Baker Tilly Dutch Caribbean | Edition 1 2014

VOLUNTARY
DISCLOSURE
What if a taxpayer forgot to
report or incorrectly
reported taxable income in
their personal income or
profit tax return(s)?
Fortunately, the taxpayer may
request a so-called voluntary
disclosure (in Dutch “vrijwillige
verbetering” or “fiscale inkeer”) and
still submit the correct and complete
information to the Tax Authorities at
a later point in time.
A voluntary disclosure is only
possible as long as the taxpayer
was not aware or reasonably could
not have been aware that officials of
the Tax Authorities were familiar with
or about to become familiar with
the incorrectness of the filed tax
return. Hence, the rectification must
take place on a voluntary basis and
only before the tax authorities raise
questions or announce a tax audit.
The benefit of a voluntary disclosure
for the taxpayer is that the taxpayer
does not have to pay an offence
fine (in Dutch “vergrijpboete”) of
up to 100% but only a default fine
(in Dutch “verzuimboete”) with a
maximum of 15%. In Aruba there
will also be no offence fine, but
there is no maximum to the default
fine that can be imposed. Arthur
van Aalst: “Make sure that your
tax lawyer arranges that there will
be no prosecution on the basis of
a criminal provision as a result of
the voluntary disclosure. Pursuant
to tax regulations, a voluntary
disclosure avoids an offence fine or
criminal tax penalties but it does not
automatically avoid prosecution on
the basis of criminal provisions”.
TIO / FIOD
INVESTIGATION?
Have your tax attorney at your side!
Most taxpayers only deal
with Tax Inspectors or
the BAB.
In case these officials of the Tax
Authorities suspect that a taxpayer
deliberately or regularly evades tax
laws, they may contact an officer
of a tax investigation bureau. For
Curaçao and St. Maarten this is
the TIO (“Team Inlichtingen en
Opsporing”) and for the BES Islands
it is the FIOD (“Fiscale Inlichtingen
en Opsporingsdienst”). These tax
investigation bureaus will come into
action if a taxpayer is suspected of
a criminal tax offense. Arthur van
Aalst: “If an investigation officer
informs a taxpayer that he is
considered a suspect, don’t make
any further statements and contact
your tax attorney immediately.” The
investigative methods and tools
used by the TIO or FIOD are totally
different from investigations by the
Tax Authorities (e.g. the BAB),
as are the rights of a taxpayer and
the penalization. For instance,
a Government Tax Inspector is not
permitted to make use of invasive
methods such as wiretaps,
house searches or observations
of suspects.
And where the taxpayer generally
makes use of a tax advisor, he now
needs a tax attorney to represent
him during the hearings by the
TIO or FIOD officials or during the
sessions before a criminal Court.
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