Integrated Tax Administration System with great results for Caribbean Netherlands

Caribbean Netherlands set out to achieve two main objectives: improve public service to better facilitate voluntary compliance and improve enforcement towards those unwilling to comply.

Background

Since the dismantling of the Netherlands Antilles on 10 October 2010, the Netherlands have become responsible for the tax regime on Bonaire, St. Eustatius, and Saba (collectively: the Caribbean Netherlands or BES-islands). These islands now function as special municipalities within the country of the Netherlands.
The old Netherlands Antillean regulations were no longer applicable within the Dutch legal system and the new constitutional law proportions. This also applied to the tax regime. When the new legislation on the BES-islands came into force, it necessitated the introduction of a new IT system.

Key highlights

Challenge

  • Outdated and obsolete systems with serious risks for security, continuity, and efficiency
  • Administrative backlogs, contaminated data, and unnecessary delays in customer service
  • Unsatisfactory results in the enforcement of tax laws

Solution

  • A fully integrated tax administration system on the Be Informed platform
  • A collaboration in which expertise was delivered by BearingPoint, but the IT management function would be fulfilled by the Tax Administration themselves

Results

  • Third party research has shown 91% of citizens views the service as "(much) improved"
  • In the first year after implementation Caribbean Netherlands collected 26% more tax revenue than budgeted
  • In five years, tax revenue has doubled