GREAT BAY--Minister of Finance Marinka Gumbs has confirmed that the Ministry of Finance is currently unable to provide accurate figures showing how many residents and businesses in St. Maarten are paying taxes compared to ten years ago, citing outdated administrative processes and limitations within the Tax Administration's information systems. The Minister said significant portions of tax processing remain manual, restricting the government's ability to generate the statistical information needed to assess changes in the country's tax base.
Gumbs made the disclosure during the continuation of Parliament's 2027 national budget debate on Monday, November 9, in response to questions from Member of Parliament Veronica Jansen-Webster, who sought information about whether the country's growth in population had been accompanied by a corresponding increase in the number of taxpayers.
Jansen-Webster referred to the recently published census results, which she said indicated population growth of approximately 25 percent over the past decade. She asked the Minister to explain how the number of residents paying income tax had changed over that period and whether a similar increase had occurred among businesses contributing to government revenues.
In response, Gumbs acknowledged that the Ministry could not currently provide the requested comparisons.
She explained that many of the Tax Administration's operations continue to depend on manual procedures, with tax returns and related information requiring individual processing and entry by employees.
The Minister also identified limitations in the existing information systems, which do not readily allow the Tax Administration to generate the management reports and statistical analyses required to answer such questions.
Consequently, the Ministry was unable to provide a verified comparison of the number of income taxpayers over the past decade or establish how many additional businesses were contributing to government revenues during that period.
Questions About Growth of the Tax Base
Jansen-Webster's questions focused on the relationship between population growth and the number of individuals and businesses contributing to the country's tax revenues.
The requested information would help establish whether the number of taxpayers has increased alongside the population and provide a clearer picture of developments within St. Maarten's tax base.
However, population growth does not necessarily translate into an equivalent increase in income taxpayers. The number of people required to pay income tax depends on several factors, including employment, income levels, applicable exemptions and other statutory conditions.
Similarly, the number of registered businesses does not necessarily correspond to the number actively filing returns or making tax payments.
The Minister's response did not provide figures for any of these categories or indicate when a verified historical comparison would become available.
Tax Administration Modernization Planned for 2027
Gumbs linked the limitations to the need for continued modernization of the country's tax administration and financial information systems.
She explained that government is pursuing a phased approach to strengthening the tax system, beginning with stabilization and improvements in existing administrative processes before advancing to broader legislative reforms.
Several initiatives are planned for 2027, including a compliance baseline program, improvements to the taxpayer register, expanded digital services and the introduction of a new business taxpayer portal.
The Ministry also intends to improve payment processing and the allocation of tax payments, while developing better management information and public accountability mechanisms.
These measures are intended to strengthen the Tax Administration's ability to maintain accurate taxpayer records, monitor compliance and produce more reliable information concerning revenue collection.
Gumbs previously explained during the budget debate that a data-cleaning team has begun working with existing tax administration databases to support future policy analysis. The work includes examining the available information and preparing the data required for assessments of proposed tax reforms.
Broader Tax Reform Remains in Progress
The Minister has identified three phases in the government's approach to tax modernization: stabilization, repair and reform.
According to Gumbs, the Ministry remains in the stabilization phase while implementing elements of the repair phase. Broader changes to tax legislation, including potential revisions to profit tax and wage tax, remain under consideration.
The work scheduled for 2027 is expected to strengthen compliance, improve administrative efficiency and support future decisions on tax policy.
However, the Minister did not establish a timeline for when the Tax Administration would be able to produce the historical taxpayer figures requested by Jansen-Webster.
The information therefore remains outstanding, including how many individuals and businesses were paying taxes ten years ago, how many are paying today and how those figures compare with the country's population and economic growth.
