Photo courtesy Audit Chamber Facebook page.
PHILIPSBURG--The General Audit Chamber has released a report examining how the St. Maarten Tax Administration’s back-office operations affect taxpayers’ experiences and their compliance with the tax system. The report includes results from a survey conducted with 562 respondents, shedding light on the public’s interactions with the island’s tax system.
According to the Audit Chamber, an inefficient and inconvenient tax system can create significant barriers to tax collection. Issues such as poor communication, unclear assessments and inadequate customer service not only hinder the system’s functionality but also damage its reputation, making it difficult to rebuild trust. The Chamber argues that a solid reputation is essential to maintain taxpayer confidence and compliance, which is a central motivation behind the audit.
While the findings of the audit are not statistically representative nor exhaustive, they offer valuable insights into the public’s experiences. The Chamber notes that it was unable to ascertain the exact number of taxable entities and individuals on St. Maarten.
The survey revealed that 72% of respondents faced challenges when interacting with the tax office. The most common complaints included unclear assessments (reported by 269 respondents), poor customer service (199 respondents), and difficulties reaching the tax office (200 respondents). Furthermore, 73% of those surveyed relied on professional assistance, underscoring the complexity of the tax filing process.
Only 22% of respondents found the tax forms easy to use, while 38% found them difficult. Awareness of the Tax Administration’s efforts to promote compliance was also low, with 41% of respondents unaware of any such initiatives. These findings point to significant gaps in communication, efficiency, and transparency, which the Chamber believes undermine compliance and erode trust in the system.
While acknowledging ongoing reforms such as ICT upgrades and legal improvements, the General Audit Chamber stresses the need for immediate improvements in customer service and accessibility. A customer-focused approach, better communication and simplified processes are crucial for rebuilding taxpayer confidence and achieving the Tax Administration’s goal of efficiency and honesty.
The Chamber has called on the Tax Administration, government and Parliament to address these issues promptly to ensure a fair, transparent and effective tax system. The findings are intended to guide efforts toward a stronger relationship between taxpayers and public institutions, ultimately contributing to the country’s fiscal stability.
The General Audit Chamber continues to support Parliament with objective assessments that inform their oversight role. The report serves as a call to action for addressing systemic issues and is available on the Chamber’s website:
www.arsxm.org.
