Tax evasion allegations at
heart of Safe Haven dispute
PHILIPSBURG--Former Safe Haven Director Lorraine Lopez-Daniel paid incorrect wage tax amounts for herself and three other Safe Haven employees, an audit by Government Accounts Bureau SOAB for Safe Haven’s board reportedly concluded recently.
Attorney for the Safe Haven board Jeroen Veen of Lexwell Attorneys-at-Law refuted on Tuesday the claim of Lopez-Daniel’s attorney Mauritsz de Kort of Bergman, Bloem and Bergman that the audit report had only found a discrepancy in the amount of wage taxes paid, a task that belongs to the board.
Veen told The Daily Herald the report indicated that Lopez-Daniel had “intentionally” paid incorrect wage tax amounts, as she had instructed the accountant handling Safe Haven’s accounts to pay wage tax for her as though she were earning minimum wage when in fact she was paid a large amount. This was also done for present and past employees.
Asked if the matter of fraud and tax evasion would be reported to the Prosecutor’s Office, Veen said the board had not yet decided, but the “possibility is very high.”
As for the board knowing that the incorrect wage tax amounts were paid, he said the cheques had been signed by Lopez-Daniel and former Safe Haven Chairwoman Liesa Euton de Marinaro and the rest of the board only knew the amount Lopez-Daniel was paid as a salary and not that she had intentionally filed the wrong information with the tax authorities for herself and other employees on a large scale.
The paying of incorrect wage tax can be very detrimental to the foundation, as the board cannot exclude that the Tax Department will come to collect the owed taxes and issue fines, which together could be in excess of NAf. 100,000, Veen stated.
This will not only lead to fines, but to other financial consequences that could cripple the foundation that operates the only shelter on the island for battered women and children, he added. Safe Haven is subsidised by the Island Government and donations also help to cover cost.
Questioned about Veen’s claim, De Kort said, “The board should have at least known if they did their work well. This is exactly what SOAB concluded. Furthermore, it was with the board’s approval that their accountant paid less wage tax in order to create enough cash flow to keep Safe Haven afloat.”
Veen denied this, calling it “a ridiculous accusation.”
Lopez-Daniel was placed on non-active duty two months ago after the board said it had discovered some “irregularities” with the foundation’s accounts. She was dismissed on May 12, based on the preliminary findings of the audit report. Now that the report is out, Lopez-Daniel has filed a court case against the board for wrongful dismissal.
Meanwhile, the shelter is operating with several clients in residence who are provided with regular counselling and whose other needs are also being met, one board member told this newspaper Tuesday. Additionally, the board with the help of a professional team is looking at ways to restructure the shelter’s operations and a new business plan is also in the works.
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