Employees demand answers as Tax Office denies lump sum tax reductions granted to previous Group

 

Philipsburg, Sint Maarten –A private company in Sint Maarten, which began a downsizing initiative in 2023, now faces escalating concerns as its second group of employees under the Voluntary Early Retirement Option (VERO) confronts unequal treatment by the Sint Maarten Tax Office.

In 2023, the first wave of employees accepted the company’s retirement package and successfully applied for a tax reduction on their lump sum payouts. Their requests were honored without issue, setting a precedent for others who opted for the same package. However, in 2024, the story took a dramatic turn when the second group of employees faced rejection, sparking outrage and raising questions about transparency and fairness.

The Employees Speak Out

Employees from the second group explained their plight, stating:

“We were presented with the VERO package and submitted requests for tax rulings on our lump sum payouts, some as early as September 2024. Despite our efforts, the tax department did not respond until months later, when our requests were abruptly declined.”

When pressed for an explanation, employees claim they were informed by Sint Maarten Tax Department representatives that the rejections were based on Article 11; 1-1 and Article 24; 11-1, citing their transition from employees to pensioners as the rationale. Yet, employees argue this reasoning is inconsistent, pointing to their financial vulnerability:

“Our salaries are at minimum wage. With 47% of our lump sum taken in taxes, how are we supposed to provide for our families? Why were our colleagues last year granted tax reductions while we were denied?”

The group also highlighted a disparity in treatment compared to employees in similar situations across other islands, all of whom reportedly received tax rulings without issue.

Lack of Response Fuels Escalation

Frustrated by the lack of clarity, employees sought intervention from the Ombudsman, who facilitated communication with the tax office. However, the explanations provided failed to resolve their concerns. The group has called for greater accountability and transparency from the tax department, as well as a review of their rejected applications.

A Call for Fair Treatment

The affected employees are urging the Sint Maarten Tax Office to reconsider their cases and align its decisions with the precedent set in 2023. They also emphasize the need for fair and consistent treatment, particularly for workers in vulnerable financial positions.

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Editor’s Note

At the request of the employees, their identities and that of their employer will remain anonymous. 721news stands by its commitment to amplify the voices of the community and ensure accountability from institutions tasked with serving the public.