~Possibility of tax harmonization between both sides.~
PHILIPSBURG:— Minister of Finance, Ardwell Irion and President of the Overseas Collectivity of St. Martin, Daniel Gibbs, together with their delegation, met on Friday, March 19th to discuss how both sides of the island could achieve tax cooperation. With the support of the Department of Foreign Affairs, both parties expressed the desire for research into areas of possible tax harmonization, highlighted gaps in the systems, and presented possible solutions.
During the meeting, there were discussions about a system where both governments can have access to certain data that would be beneficial to both parties and improve on leakage. Topics such as turnover tax, transactional tax, income tax, and sin tax were discussed. A follow-up meeting will be organized in quarter two.
The reality of two countries sharing one island with an open border brings with it complexities as it relates to taxes. These discussions are therefore crucial and necessary as we continue the tax reform process. The goal with the tax reform is to simplify the process, minimize tax evasion and increase revenue.
