Philipsburg — The St. Maarten Chamber of Commerce & Industry (COCI) has expressed growing concern regarding the current enforcement practices carried out by the Tax Inspectorate of the Government of Sint Maarten, particularly through the Receiver’s Office, against business owners. Too often, these enforcement actions are based on inaccurately processed payments, administrative discrepancies, or deviations from payment agreements—even in cases still under formal protest.
Ongoing Administrative Discrepancies Strain Businesses and Undermine Fair Enforcement
Administrative discrepancies between records maintained by the Receiver’s Office and the Tax Inspectorate have existed for years, with no meaningful effort taken to resolve the issue. This persistent disconnect places an undue burden on businesses, which are frequently required to provide the Tax Inspectorate with payment receipts issued by the Receiver’s Office—a process that is time-consuming, cumbersome, and diverts valuable resources from day-to-day operations.
It is unacceptable that, to this day, these two government divisions have not developed a system to communicate effectively and share information seamlessly. As a result of this ongoing communication gap, the Tax Inspectorate generates collection reports based on its internal system and issues collection orders to the Receiver. Unfortunately, the Receiver often proceeds with enforcement actions without verifying the data against its own records—frequently doing so with unwarranted urgency and, at times, to the detriment of compliant or cooperative businesses.
Impact of enforcement measures
In recent months the business community through several means has reported about aggressive enforcement measures, including the placing of liens and threats of public auctions. These actions are placing undue and disproportionate pressure on local businesses, many of which remain financially vulnerable.
It is important to highlight that 85% of St. Maarten’s businesses are small and medium-sized enterprises (SMEs), which form the backbone of the island’s economy. These enterprises provide essential employment, services, and economic activity. They continue to face significant challenges, including the lingering impacts of the COVID-19 pandemic, climate-related disruptions, labor shortages, high utility costs, and rising operational expenses. Many are also contending with backlogs in tax and social insurance obligations accumulated during past crises.
Compliance and fair and balanced enforcement
“While we fully acknowledge the importance of tax compliance and recognize the responsibilities of both government and businesses to meet legal obligations, we strongly believe that enforcement actions must be fair and accurate, given the real economic challenges our business sector faces,” said COCI President, Ms. Peggy Ann Brandon. “The current approach—sometimes overlooking ongoing disputes filed on assessments (placing a stay on the collection of such assessments) or misprocessed payments—not only endangers individual businesses but also threatens the overall stability of our economy.” Ultimately, a tax payment obligation can only arise from a verified and legally established tax assessment. The legal obligation to get that tax basis straight lays with the Tax Inspectorate and its enforcement arm.
COCI is urging the government and relevant departments to conduct thorough administrative verifications before initiating lien placements or auction procedures. The Chamber also advocates for greater leniency and flexibility, particularly when businesses have active payment plans or have shown good faith in their compliance efforts. Furthermore, COCI calls for the expedited development of legislative frameworks and policies that promote business growth while fostering sustainable compliance. In addition, attention must be given to expanding the taxpayer base, as the current base (known and easily targeted) is clearly overburdened with carrying the obligations of a much larger business sector.
COCI reaffirms its commitment to working constructively with government stakeholders to develop effective, supportive solutions that balance fiscal responsibility with economic resilience. The Chamber believes that fostering a cooperative partnership—rather than an adversarial dynamic—will ultimately result in improved compliance, stronger businesses, and a more resilient economy for St. Maarten.
