Compliance with payroll tax and BBO/BAVP/BAZV should be improved

The total debt for the period January to June 2023 is 31.7 million florins. The Department of Taxation is a government department that is tasked with guaranteeing tax revenue and facilitating the taxpayer to fulfill his fiscal duties. Fiscal responsibility entails the timely submission of tax returns and corresponding payments.

Compliance with taxation is an important part of good fiscal behavior. According to the figures, the companies that submitted their loonbelasting and BBO/BAVP/BAZV returns for the period January to June 2023 did not pay the tax amount corresponding to their own returns and/or did not pay on time. Consequently, the Tax Department issued additional fines and fines for non-payment.

It is important to note that the figures of loonbelasting also include the premiums of AOV/AWW and AZV and deal with amounts that the employer has withheld from its employees and not paid to the Tax Department. It is therefore the amounts of tax and social premiums that correspond to the liability of the employee to pay that were not properly paid. Payment of BBO/BAVP/BAZV corresponds to the amount of profit of a company where the applicable 7% tax has not been paid to the Tax Department.

The following is an overview of the non-compliance with the payment of taxes according to some traders’ own statements.

Additional levies (naheffingsaanslagen) of loonbelasting, AOV/AWW and AZV premiums for the period January to June 2023

Number of taxpayers who received collection 1.684

Amount of additional charges 7.787

The total amount of Afl charges. 33.2 million

Amount paid to Afl. 12.9 million

The sum is open to pay Afl. 20.3 million

Additional levies (naheffingsaanslagen) from BBO/BAVP/BAZV for the period January to June 2023

Number of taxpayers who received collection 2.369

Amount of additional charge 8.438

The total amount of Afl charges. 21.8 million

The sum was paid to Afl. 10.4 million

The sum is open to pay Afl. 11.4 million

Compliance with taxes is the responsibility of the taxpayer. Compliance with tax returns and payments is the responsibility of the taxpayer and not the tax department. Whether it is an individual, employer, small business owner and/or large company. It is important to note that failure to file a tax return has the unintended consequences of high fees and interest rates resulting in a higher total amount to pay without necessarily having to pay. This can put the trader and/or company in a difficult financial situation to get out of. Therefore, tax evasion is not an option.

The Tax Department would like to thank the traders who have duly complied with the payments of the loonbelasting, AOV/AWW/AZV and BBO/BAVP/BAZV premiums and in the same breath urge the traders who are not complying with their tax payments to meet their fiscal responsibility. We should all demonstrate an awareness of the importance of meeting our tax obligations and thus contribute to the well-being of all of us who live and trade on the sweet island of Aruba.