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Thread: Ground Tax Ruling according to Rona

  1. #1
    Senior Member schexc's Avatar
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    Ground Tax Ruling according to Rona

    For all of you that own property on the island.

    We have been filing an Objection Letter every year since 2018. Hopefully it will now get resolved.

    https://batibleki.wheninaruba.com/th...-are-punished/

    We just received a newsflash regarding the opinion of the Attorney General in the Aruba ground tax case at the Dutch Supreme Court. The case relates to the rate changes and abolishment of the tax-free sum which took place in 2019.
    Remember they raised the rate of taxation mid-term, so to speak, and as citizens protested and sued them, legal opinions were required.
    Bottom line: Those who paid as they were told as screwed. And those who protested, might get a refund.
    Grant Thornton writes:
    The Attorney General has provided his opinion regarding the Aruba ground tax court case on November 29, 2022
    Effective January 1, 2019, the ground tax legislation was amended.
    One of the changes pertains to the increase of the tax rate for legal entities from 0.4% to 0.6% and the elimination of the tax-free amount of Afl. 60,000.
    Grant Thornton Aruba took the position that these changes could not be implemented within the five-year period (2017-2021) stipulated in the ground tax legislation.
    Furthermore, Grant Thornton Aruba took the position that an additional assessment can only be imposed if a ‘new fact’ is present (in Dutch: ‘nieuw feit’).
    A new fact is a condition to impose an additional assessment.
    Conclusion of the Attorney General :

    The introduction of a change in the law is, in the opinion of Grant Thornton Aruba, is not a new fact. Therefore, it was NOT possible to impose an additional assessment.
    Several court cases were filed by Grant Thornton Aruba to receive a decision on these legal questions. One of the above-mentioned ground tax cases is currently in cassation at the Supreme Court.
    In order for the Supreme Court to issue a decision, the Attorney General has provided a conclusion on the matter at hand which will be used by the Supreme Court as guidance for its decision.
    The Attorney General concluded on November 29, 2022, that an additional assessment is not possible because the Attorney General is of the opinion that the introduction of a law or, in this case, the amendment of a law cannot be considered a ‘new fact’.
    The ground tax legislation does not allow the increase of the rate from 0.4% to 0.6% and the elimination of the tax-free amount in the five-year period (2017-2021) for which the ground tax assessments were already determined.
    Therefore, in the opinion of the Attorney General the appeal letter of the Minister of Finance (read: Tax Authorities) should be dismissed.
    If the conclusion of the Attorney General is followed by the Supreme Court, the assessments for the years 2019, 2020 and 2021 should be completely nullified and new assessments for these years should be imposed against a rate of 0.4% and taking into account the taxfree amount of Afl. 60,000.
    If this conclusion is confirmed by the Supreme Court, it will only have consequences for the taxpayers who timely filed an objection against the 2019, 2020 and 2021 ground tax assessments.
    WOW: Very typical of the tax office, those who comply are punished.




    OUR COUPLE'S RETREAT. THE PEARL CONDO HOTEL AT EAGLE BEACH. CONDO ACCOMMODATES TWO ADULTS. YOU MUST REQUEST UNIT #8. https://photos.app.goo.gl/lRquP1F4VtxyZhR42 RENTING DIRECTLY http://www.pearlarubacondos.com/. SEND PM BEFORE BOOKING FOR REFERRAL .
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  2. #2
    Senior Member Aruba4ever's Avatar
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    Ouch!!!! Sorry.

    Quote Originally Posted by schexc View Post
    For all of you that own property on the island.

    We have been filing an Objection Letter every year since 2018. Hopefully it will now get resolved.

    https://batibleki.wheninaruba.com/th...-are-punished/

    We just received a newsflash regarding the opinion of the Attorney General in the Aruba ground tax case at the Dutch Supreme Court. The case relates to the rate changes and abolishment of the tax-free sum which took place in 2019.
    Remember they raised the rate of taxation mid-term, so to speak, and as citizens protested and sued them, legal opinions were required.
    Bottom line: Those who paid as they were told as screwed. And those who protested, might get a refund.
    Grant Thornton writes:
    The Attorney General has provided his opinion regarding the Aruba ground tax court case on November 29, 2022
    Effective January 1, 2019, the ground tax legislation was amended.
    One of the changes pertains to the increase of the tax rate for legal entities from 0.4% to 0.6% and the elimination of the tax-free amount of Afl. 60,000.
    Grant Thornton Aruba took the position that these changes could not be implemented within the five-year period (2017-2021) stipulated in the ground tax legislation.
    Furthermore, Grant Thornton Aruba took the position that an additional assessment can only be imposed if a ‘new fact’ is present (in Dutch: ‘nieuw feit’).
    A new fact is a condition to impose an additional assessment.
    Conclusion of the Attorney General :

    The introduction of a change in the law is, in the opinion of Grant Thornton Aruba, is not a new fact. Therefore, it was NOT possible to impose an additional assessment.
    Several court cases were filed by Grant Thornton Aruba to receive a decision on these legal questions. One of the above-mentioned ground tax cases is currently in cassation at the Supreme Court.
    In order for the Supreme Court to issue a decision, the Attorney General has provided a conclusion on the matter at hand which will be used by the Supreme Court as guidance for its decision.
    The Attorney General concluded on November 29, 2022, that an additional assessment is not possible because the Attorney General is of the opinion that the introduction of a law or, in this case, the amendment of a law cannot be considered a ‘new fact’.
    The ground tax legislation does not allow the increase of the rate from 0.4% to 0.6% and the elimination of the tax-free amount in the five-year period (2017-2021) for which the ground tax assessments were already determined.
    Therefore, in the opinion of the Attorney General the appeal letter of the Minister of Finance (read: Tax Authorities) should be dismissed.
    If the conclusion of the Attorney General is followed by the Supreme Court, the assessments for the years 2019, 2020 and 2021 should be completely nullified and new assessments for these years should be imposed against a rate of 0.4% and taking into account the taxfree amount of Afl. 60,000.
    If this conclusion is confirmed by the Supreme Court, it will only have consequences for the taxpayers who timely filed an objection against the 2019, 2020 and 2021 ground tax assessments.
    WOW: Very typical of the tax office, those who comply are punished.
    Trip 38 booked for Feb! Cant wait.







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  3. #3
    Super Moderator WaltVB's Avatar
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    Steven, I'm real estate tax illiterate and don't remember the details of your backstory. Can you explain this in laymen terms? Did you get screwed? The taxman cometh...
    I want to grow my own food, but I can't find any bacon seeds...
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  4. #4
    Senior Member robin's Avatar
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    Steve filled objections every year, so he might get some $$$ credited or returned. We did not, so we will not.

  5. #5
    Senior Member Aruba4ever's Avatar
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    Its an awful policy.....either it was wrong for all or it was not. Not much different than at home....things don't always happen like they should and not everyone is on the lookout to say "this is not fair"....and then they get ripped off.
    Trip 38 booked for Feb! Cant wait.







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  6. #6
    Senior Member schexc's Avatar
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    Quote Originally Posted by WaltVB View Post
    Steven, I'm real estate tax illiterate and don't remember the details of your backstory. Can you explain this in laymen terms? Did you get screwed? The taxman cometh...
    In our original situation, our property assessment was raised on 2018, after our original purchase in 2017. Ground tax stipulation, states that a change in assessment, can only happen every five years. We have filed an Objection Letter for tax years 2018 and beyond. Every year, you have to file an Objection Letter, for the current year and all previous years, if no judgement has been concluded. If you do not, then the previous years Objection becomes null. At least this is what we have been told.

    In 2019, the tax basis was changed for tourists, as well as others. Tourists tax rate was increased from .4% to .6%, and the tax free amount of the first Afl. 60,000, was also taken away.

    The Attorney General, stated that this was not possible, based on the five year rule and that the change was not new fact. Hopefully, the Supreme Court will follow the same.

    Up to this point, we have been paying our land tax at the original assessed value, but we did follow the tax rate change, went it went from .4% to .6%, along with the removal of the assessment credit.

    I have no idea what the end result will be. We'll probably have to hire a tax consultant when we return in 2023.




    OUR COUPLE'S RETREAT. THE PEARL CONDO HOTEL AT EAGLE BEACH. CONDO ACCOMMODATES TWO ADULTS. YOU MUST REQUEST UNIT #8. https://photos.app.goo.gl/lRquP1F4VtxyZhR42 RENTING DIRECTLY http://www.pearlarubacondos.com/. SEND PM BEFORE BOOKING FOR REFERRAL .
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  7. #7
    Super Moderator WaltVB's Avatar
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    Wow, sorry this is happening. Hopefully logic and sanity will come into play.
    I want to grow my own food, but I can't find any bacon seeds...
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  8. #8
    Senior Member schexc's Avatar
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    Quote Originally Posted by WaltVB View Post
    Wow, sorry this is happening. Hopefully logic and sanity will come into play.
    Fingers crossed. Unfortunately, when a government needs money, the logic is insanity.




    OUR COUPLE'S RETREAT. THE PEARL CONDO HOTEL AT EAGLE BEACH. CONDO ACCOMMODATES TWO ADULTS. YOU MUST REQUEST UNIT #8. https://photos.app.goo.gl/lRquP1F4VtxyZhR42 RENTING DIRECTLY http://www.pearlarubacondos.com/. SEND PM BEFORE BOOKING FOR REFERRAL .
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  9. #9
    Senior Member robin's Avatar
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    Quote Originally Posted by schexc View Post
    Fingers crossed. Unfortunately, when a government needs money, the logic is insanity.
    They refund your money or give you a credit and then in the next 5 year cycle increase the tax rate or the value of the condo. Like you said, they need the $$$$.

  10. #10
    Aruba since 1979
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    it is confusing and frustrating I am sure.
    what a pain!
    THINK.. is it Thoughtful? Helpful? Inspirational? Necessary? Kind? sidtm
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