Reasons small man is taxed and is prime subject for fiscal audits in the Dutch Caribbean

Reasons small man is taxed and is prime subject for fiscal audits in the Dutch Caribbean

Terrance Jandroep Terrance Jandroep

SINT MAARTEN (PHILIPSBURG) – Benjamin & Parker Tax Specialists says that, “The tax legislation outlines the obligation, responsibilities and compliance specifics hereof. The taxpayer is obliged to meet the Tax ordinances to be considered admissible in the tax assessment management process and the fiscal compliant. The tax assessment mechanism is clear and many companies are being penalized for not following the mechanism correctly.”

The procedures dictates that there are 3 stages of admissibility: 1) 60 days to submit tax returns 2) filing of protest letter within  60 days when the taxpayer disagrees 3) file an Appeal within 60 days of the ruling. Any deviation within these stages makes the protest letters or Appeal inadmissible meaning the tax payer’s legal sustainability is compromised by noncompliance of the 60 days legal term to react.

The market scenario can be explained as follows:
The entire system creates a buffer of 5 years or more  approximately between the protest letter and the Appeal on the fiscal year in which the taxes are incurred.  In this period in which the taxes are in the Appeal phase the Tax Department cannot reinforce the collection until the Tax Court’s ruling on the matter.

The result hereof is that elite companies are protected by high end Tax Consultants during the entire time span. The question that everyone should ask themselves is how the Country is going to survive if collection of taxes is delayed for 5 years. The answer to the question is the aggressive collection of the taxes applied to the small man and medium size enterprises which cannot afford the high end Tax Consultants.

Tax Audit:
Unexplained Accountant’s errors that provoke tax audits targeted to the small man:

The private use recording  is unexplained too low. (EZ)
The gross profit margin is unexplained low compared to previous years.
There are major defects in the accounting which indicate suspicious performance by the Accountant
Irregular TOT and Payroll remittances in frequency and amounts
Incomplete or wrong records registration and substantiation
Negative test results to Personal Equity Substantiation.

With a combination of these factors, the taxpayer is automatically accused of a presumed defective accounting and is entrusted with the burden of proof to defend future tax assessment after the Audit is conducted by the fiscal authorities.

This means that the Inspectorate will forward a Supplement Tax Assessment in which a high tax amount is levied (Ballpark figure), and any attempts to lower the assessments will only rely on the evidence disclosed by the tax payer during the Protest procedure or the Board of Tax appeal. 

In view of these scenarios Benjamin & Parker, (company that is comprised by former specialists of worldwide recognized Audit & Tax firms), trained and upgraded groups of Sint Maarten and Son of Soil professionals and welcomed a selected group of these students into our network, which is a unique action. Today they are successful independent consultants in Sint Maarten, with online support of Benjamin & Parker for tax Analysis and Cash improvement Audits.

Misrepresentation of BP services
The fees within BP network are in accordance with the standard calculation methods and are based upon our SXM associates guidelines to avoid market overpricing, however BP is aware and informed that some firms (not our associates) that outsourced assignments to BP, charged their clients approximately 400%, implying that it is our firm (BP) that overpriced the assignment.

Benjamin & Parker works with 4 consulting firms in SXM and interact continuously to improve E-support and financial wellbeing of the SXM taxpayer, meaning our firm and associates are not perpetuators of any overpricing practices. This statement is made publically due to the consistent indicators of misrepresentation by others in Sint Maarten.  

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