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Business Consulting
Our team ensures rapid response times, a low partner-to-staff ratio and is committed to delivering consistently high quality. Our business consulting services include naming a few: Governance, Risk, and Compliance, Business Transformation, Data Analytics, Human Capital, Operations Improvement, Program Management, Strategy & Innovation, Technology-enabled services, etc.
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Business Risk Services
We deliver practical, pragmatic, and tailored solutions that support you in growing and protecting the value of your businesses. Our business risk services include naming a few: Enterprise Risk Management, Internal Audit, Operational Audit, Compliance Framework Solutions, Regulatory Compliance, Finance Risk and Modeling, Special Attestation Services, and Technology Risk Services. Are you looking into certifying your organization for best-practice management systems? We also offer gap assessments, implementation plans and managed services for ISO9001, ISO27001/2, ISO22301, and ISO37000, amongst many others.
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IT, Cyber, Information Security & Privacy Services
Our highly skilled and experienced professionals are prepared to help you navigate the complex and dynamic digital environment you operate in. Our Cyber & Information Security solutions include amongst others: IT Audit and IT Strategy, Cyber Security Audit and Assessments, Cyber Strategy Solutions, Vulnerability Assessment and Penetration Testing, and Information Security & Privacy Frameworks (best practice) solutions.
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Corporate Finance
For the past years, our highly experienced consultants have been dedicated to delivering a comprehensive array of services including transactions, valuations, deal advisory, and restructuring.
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Managed Services
With the launch of our brand-new operations center in Suriname, we offer managed services for (e.g.) risk and quality, regulatory compliance, cyber security, information security, privacy, business processes, financial Management and many more.
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Financial Statement Audits
Our team of experienced auditors guarantee that the information presented in your financial statements is accurate and in accordance with prevailing accounting standards and company laws.
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Financial Statement Reviews
Accuracy, compliance, and reliability. Our experienced auditors conduct a thorough examination, identifying errors and providing valuable recommendations to enhance reporting practices and internal controls.
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Internal Audit Services
We analyze and pinpoint opportunities for enhancement, manage potential risks, and optimize operational efficiency, ensuring that you can confidently reach your business goals.
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Data Assurance
Rely on our proficient team to conduct thorough evaluations, detect weaknesses, and establish resilient safeguards against data breaches, unauthorized access, and data manipulation. Our data assurance solutions are designed to protect your valuable information, ensuring its integrity, and fostering trust in your information systems.
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Regulatory Compliance Services
Our Regulatory Compliance Services help you navigate complex regulatory landscapes and ensure adherence to applicable laws and regulations.
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Compilation and preparation of financial statements
Our expert team delivers comprehensive reports that provide valuable insights for informed decision-making and regulatory compliance.
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Bookkeeping and financial accounting
From managing financial records to preparing accurate reports, we ensure compliance, transparency, and sound financial management.
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Payroll compliance and administration
At Grant Thornton, we meet the challenges of our clients. Our offering is tailored to meet all your payroll requirements through a single point of contact. Our outsourced payroll team becomes your dedicated payroll department, aiming to process your payroll in the most cost effective and compliant manner.
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Business services and outsourcing
Our reliable and cost-effective outsourcing services help you streamline your business operations by taking care of your workload.
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Tax Advice and Wealth Planning for high-net worth individuals
Our team of experienced tax advisors blend commercial experience and knowledge with tax expertise to advise on the full range of transactions including sales, mergers, restructurings, and wealth planning.
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Tax Compliance
We prepare tax returns, for example for profit tax returns, personal income tax, wage tax and turnover tax/ sales tax. Our expert team handles all aspects of tax preparation and filing while keeping you informed of deadlines and minimizing the risk of penalties.
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(International) tax planning and incorporation services
Experience the perfect combination of tax planning and incorporation services in one comprehensive package. Our team of experts strategically minimize your tax liabilities while ensuring compliance with regulations. Additionally, we provide guidance and support throughout the entire incorporation process, offering valuable insights on legal structures, registration, and tax implications.
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Advice on estate and retirement planning
Secure your financial future with our dedicated estate and retirement tax planning service. Our experienced team specializes in developing tailored strategies to minimize tax liabilities, protect your assets, and optimize retirement income. Count on us to navigate intricate tax laws, ensuring peace of mind and financial security for your future.
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Advice on investing on the islands
Embark on a journey towards financial growth with our comprehensive investment advice service. Our advisors know and remain up-to-date wit the market trends on the islands in the Dutch Caribbean region. Evaluate your risk tolerance and craft personalized investment strategies tailored to your goals.
Recently, the Inspectorate of Taxes has increased its efforts to obtain information from businesses with respect to work performed by persons not employed (included in payroll) and with respect to services procured during the previous year(s). The obligation to do so is (presently) described in the General Ordinance Federal Taxes (GOFT) and applies to all Administration Obliged Persons (AOP); individuals and entities that are obliged to keep administrative records (individuals who are independent professionals or operate an enterprise, individuals who qualify as withholding agent for wage tax purposes, and (all) entities). This obligation was first introduced as article 56 of the Income Tax Ordinance (ITO) and was transferred to the GOFT upon introduction thereof.
The forms, historically called IB56 cards, to be filed with the Inspectorate of Taxes, used to be provided in the package of forms (containing the tax returns for the upcoming year, the summary wage statements and IB56 cards) sent to employers at the beginning of every year. When the Inspectorate of Taxes ceased to provide hard copy tax returns, the issuance of IB56 cards also stopped. For some years the Inspectorate of Taxes did not actively pursue the filing of this information. As stated above, that has changed. Hence this newsletter.
Based on the explanatory notes to article 56 ITO, the information to be provided is very broad. For instance, these explanatory notes mention that services provided by an auditor with respect to the audit of financial statements, whether performed by an individual or an entity, should be included in the information provided. As such, it appears that the regulation goes too far, because it results in a massive volume of information. While it could be argued that it enables the Inspectorate of Taxes to verify, for example, whether the various service providers fully accounted for their revenues, the sheer volume of information to be provided would most likely be quite overwhelming. More efficient verification methods are available to the Inspectorate of Taxes. As a result of this, the interpretation of the similar rule applicable in Aruba, Curacao and the BES islands has been adjusted to an obligation of AOP’s to file the information only for those persons that are not obliged to keep administrative records (non-AOP’s).
While the information provided appeared to be intended to be used for reviewing other parties than the business providing the information, the Inspectorate of Taxes used the information, in the past, for a completely different purpose than the one described in the explanatory notes. In the late 80’s and early 90’s the Inspector of Taxes started verifying whether the persons and service providers included in the IB56 cards were registered as entrepreneurs or independent professionals with the Inspectorate of Taxes or not. For those that were not registered, they claimed that an employment relationship existed between the business filing the IB56 cards and the individuals (and sometimes entities) listed, and established wage tax and social security assessments accordingly. According to the Inspector of Taxes, it was up to the entrepreneur to prove that the professional relationship with the persons providing the work and services did not qualify as an “employment relationship” in accordance with the Wage Tax Ordinance.
Eventually, this led to a court case. As per the accepted evidentiary rules, a reasonable allocation of the burden of proof meant that it was up to the Inspector of Taxes to prove that the relationship should be treated as an employment relationship. The Inspector of Taxes pleaded that such allocation was in fact unfair as the Island features an open border between the Dutch and the French side, and hence a high level of uncontrolled economic cross border activities. In addition, according to the Inspector of Taxes, the (Island) Government apparatus was functioning insufficiently, making it impossible for the Inspector of Taxes to meet the regular burden of proof standard. Because of this, the Inspector of Taxes argued, the entrepreneur should carefully review, on a case-by-case basis, the character of the relationship about to be agreed to.
The Fiscal Court, in its decision dated 10 July 1992 (case# 1991/043), agreed with the Inspector of Taxes, however, on the condition that the Inspector of Taxes would provide clear and workable guidelines that would enable the entrepreneur to easily complete the required review. In the event the entrepreneur would fail to complete such reviews, the burden of proof would shift from the Inspector of Taxes to the entrepreneur. The wage tax assessment were nevertheless adjusted because the Court stated, the new guidelines of the Inspector of Taxes could not be applied retro-actively.
Given the fact that at present the Inspectorate of Taxes is understaffed, combined with the fact that Government needs to increase its (tax) revenues, it is likely that the information provided will again be used to establish wage tax and social security assessments for payments to those individuals and entities that are not registered with the Inspectorate of Taxes. The question which will have to be answered is: Will the burden of proof with respect to the characterization of the relationship shift from the Inspector of Taxes to the entrepreneur?
If the answer is yes, the entrepreneur should be able to show that the person working for or providing services to him has certain special skills or talents (for instance a musician hired by a resort), uses own tools and equipment performing the work or service (for instance a plumber) or provides ancillary services (a bus driver transporting personnel in his own vehicle). In addition, it will be helpful if the entrepreneur can show invoices for these services, that at least includes the following information of the provider:
- the name and address
- the Chamber of Commerce registration number
- the CRIB-number
- the work or services provided
- The price to be paid for the work or service.
In our view however, there are good reasons to answer the above-mentioned question negatively. As far as we know, the Inspector of Taxes has never issued the “clear and workable guidelines” referred to by the Fiscal Court as a condition for shifting the burden of proof. In addition, Government had 29 years (the decision was issued in 1992) to improve its functioning and come up with a method to better manage the fiscal issues surrounding the cross-border activities that made the Inspector’s task so difficult. It abstained from doing so.
For more information you can contact our office via telephone +1 721 542-2379 or e-mail info@sx.gt.com.