Natural disasters and taxation

After a natural disaster of the magnitude of Hurricane Irma, the primary focus is naturally on rebuilding the island. Getting back on our feet and cleaning up the mess. After the dust has settled, some financial concerns may come to mind: ‘Am I covered for this by my insurance?’ and if so: ‘How will the taxman treat the insurance payments?’. Or: ‘Can I deduct my hurricane insurance premium for tax purposes?’.

This article will provide some insight in aspects of taxation that could come up before- or after a natural disaster on St. Maarten. It will primarily focus on practical matters based on existing tax law. Although such an event might also call for a material tax reform and/or types of tax relief, that subject can be discussed in a future article.

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