In April 2020, the taxpayer filed a VAT return for March 2020 but did not pay the due tax. The Tax Inspector imposed a penalty of NAf. 2,500 for this non-payment. The dispute at hand concerns the validity of this penalty. This case occurred shortly after the outbreak of COVID-19. In late March 2020/early April 2020, the government of Curaçao issued measures to mitigate the socio-economic effects of the COVID outbreak. Based on two publications dated March 24, 2020 (an announcement of support measures) and March 27, 2020 (a brief overview), the taxpayer inferred that they wouldn’t have to pay the VAT for March 2020, and no penalty would be imposed for non-payment. However, in an April 3, 2020 publication in the Landscourant of Curaçao – which the taxpayer didn’t read – the support measures were detailed, indicating they applied to the periods from April to June 2020, not for March 2020. The Court ruled that the taxpayer couldn’t rely on the March 24 and 27 publications, and the Inspector correctly imposed a penalty of Afl. 2,500 for the late payment. The Court found the penalty to be appropriate. However, due to a delay beyond a reasonable timeframe, the Court decided to reduce the penalty by 10% on its own initiative. This means the imposed penalty will be reduced to NAf 2,250. The Court’s reduction of the penalty due to the delay is not a basis for a favorable verdict in the case. Therefore, the Court sees no reason to award legal costs or a refund of the court fee. The appeal is denied.
Source: uitspraken.rechtspraak.nl
