Tax Dispute between Antigua Government and Sandals Resorts International
Prime Minister Urges Sandals to Address Outstanding Tax Obligations
ST. JOHN’S, Antigua, Nov. 4, 2024: A Caribbean prime minister has publicly urged Sandals Resorts International (SRI), to address outstanding tax obligations on its Antigua property, Sandals Grande Antigua.
Background
Antigua & Barbuda Prime Minister Gaston Browne expressed frustration over what he described as the luxury resort’s unwillingness to fulfill its tax responsibilities, noting that Sandals owes around EC$30 million, primarily from the Antigua and Barbuda Sales Tax, (ABST).
Disappointment and Concerns
During his radio show over the weekend, Browne expressed disappointment, saying that despite Sandals collecting the ABST on behalf of the government, a significant portion of the funds has yet to be remitted. He voiced concerns about what he sees as a pattern with Sandals across the Caribbean, suggesting that the resort chain’s approach has been to prioritize profits at the expense of local economies.
Critique and Call to Action
"I don’t understand why these ‘so-called’ investors feel that they’re the only stakeholders who should benefit. They aim to extract every bit of revenue but resist government taxation," Browne said. He warned that a similar tax dispute occurred with Sandals in the Bahamas, resulting in payments from the hotel group.
Addressing Sandals’ Executive Chairman Adam Stewart directly, Browne asserted that the company should be invested in more than just profits, stressing the importance of fair wages for staff and the fulfillment of tax obligations to support the local economy. He stated, "Sandals is not the only stakeholder; governments and workers deserve their fair share, not just Sandals’ shareholders."
Conclusion
The Prime Minister’s comments highlight the ongoing tax dispute between the Antigua government and Sandals Resorts International. The controversy has sparked concerns about the resort chain’s business practices and their impact on local economies.
FAQs
- What is the amount of tax owed by Sandals Resorts International?
- EC$30 million, primarily from the Antigua and Barbuda Sales Tax, (ABST)
- What is the Prime Minister’s concern about Sandals’ business practices?
- That the resort chain prioritizes profits over local economies and governments
- What is the Prime Minister’s call to action for Sandals?
- To fulfill tax obligations and prioritize fair wages for staff and the well-being of local communities
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