PHILIPSBURG:--- Finance Minister Martin Hassink confirmed on Wednesday during the Council of Ministers' weekly press briefing that he is currently reviewing the tax write off that was implemented by the former Minister of Finance Roland Tuitt. Minister Hassink said he still has to decide on whether or not to use measures the former Finance Minister used for the write off or if he would need to make some changes on who would receive the tax write off.
It should be noted that former Minister of Finance Roland Tuitt already issued a Ministerial Beschikking (MB) for the write off going back to the year 2006. The MB issued by former Minister Tuitt was published in the National Gazette. In order for the current Minister to make changes or get rid of the write off he would have to issue his own Ministerial Beschikking (MB) to annul the MB issued by Tuitt.
Minister Hassink told reporters that the only reason his predecessor did the write off was to clean up the tax systems which he said still needs further cleanup. Minister Hassink said that the tax department is not optimal because they are still in two separate locations and despite the technologies in place it is not enough for proper functioning of the tax department. "One of my main priorities is to bring the two departments together in one building so that they can function better."
AUC Debt still has the Attention of the Finance Minister --- MOU was signed with DeVry not the former owners of AUC.
In response to a question posed by SMN News reporter regarding the profit tax that has to be paid by the former owners of AUC (Medical School), Finance Minister Martin Hassink confirmed he is still looking into the matter to ensure that the former owners of AUC pay government what is owed to them in the sale of AUC. Minister Hassink said that clients and tax related issues are private matters and he is not at liberty to divulge more information. According to information provided to SMN News, the former owners of AUC sold the establishment for $235 million dollars and they were supposed to pay the government of St. Maarten some 34.5% in profit tax but they only paid 10%. It appears as though the former owners of AUC managed to broker a deal with members of the UP/DP/Illidge government when they sold AUC to DeVry.
Prime Minister of St. Maarten Sarah Wescot Williams tried to deviate from the issue on Wednesday during the Council of Ministers' weekly press briefing when she said that the former Minister of Finance with the blessings of the Council of Ministers signed a Memorandum of Understanding (MOU) with AUC in February 2013. She said that this MOU was to ensure that AUC hires more locals and invests more on St. Maarten.
It is true that an MOU was signed in February 2013 with AUC and the Government of St. Maarten, but that MOU was signed with the new owners which is DeVry, well respected investors who have been paying their dues on St. Maarten. It must be made clear that the first owners of AUC are the ones that sold AUC and did not pay the full percentage of profit tax to the government of St. Maarten. Should government collect these monies they should not have issues with balancing their budgets for next four years.
2013 Budget still to be approved --- Council of Advice reviewing budget.
The Finance Minister also told reporters on Wednesday that he is expected to submit his report on the budget by Thursday August 15th. He said that report is completed and he expects to give Parliament further details on the 2013 budget early September. The Finance Minister made reference to the Netherlands that has a 4% deficit in their budget which according to the law is too high yet the Netherlands through the CFT is putting enormous pressure on St. Maarten to have a balanced budget (deficit free). He said that if the CFT allows St. Maarten to have either 1% or 2% deficit it would have been good for St. Maarten. The Finance Minister further stated that if the budget that was presented by his predecessor was accepted by the CFT for the year 2013 it would have been beneficial to St. Maarten. Minister Hassink made clear that the current situation is hampering St. Maarten and he already foresees problems with the 2014 budget which is supposed to be ready by October 15th, 2013.
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