Prime Minister Gaston Browne announced the cancellation of a longstanding tax agreement with Sandals Grande Antigua, accusing the resort chain of exploiting concessions granted by his administration. Browne explained that Sandals was initially permitted to deduct Antigua & Barbuda Sales Tax (ABST) as part of a concession for hotel renovations, but claimed the resort failed to fulfill its promised refurbishment plans four years later.

According to Browne, Sandals continued to deduct concessions despite not completing the project. The prime minister expressed frustration over the resort’s accounting practices, stating that Sandals owes approximately XCD$27 million in taxes, which it reportedly attempted to reduce. “When they were supposed to be collecting 14% [ABST], they charged 13%. Now who’s supposed to pay for that?” Browne questioned, adding that the resort has not provided evidence supporting their ABST remittances. The Cabinet officially terminated the tax waiver agreement on November 6.

He cited a recent Inland Revenue Department (IRD) report revealing that Sandals allegedly remits up to 50% of its revenue to an overseas company. The report also outlined that Sandals benefits from deductions on costs related to entertainment, advertising, and water sports through government agreements.

Browne, for the second week, has been unrelenting in letting the hotel chain know that they cannot evade tax collections. In response to what Browne called “exploitative” tax deductions, he plans to propose an amendment to his Cabinet Minister to change the Companies Act to protect hotel workers in the event of a company’s liquidation. He raised concerns over Sandals’ business structure, where assets generating revenue are held by separate entities from Dickenson Bay Management Limited, the entity employing Sandals staff. Under the proposed change, severance payments would take priority over other claims on company assets if liquidation occurs, ensuring employee protection.

Additionally, Browne expressed a commitment to propose legislation preventing hotels from withholding staff tips, emphasizing workers’ rights to fair earnings.

The prime minister has criticized Sandals’ use of concessions and tax reductions, describing it as an attempt to evade its obligations. He warned of potential legal actions if Sandals closes operations in protest. “If Sandals decides to spite us and lock down their hotel, we’ll go to Parliament, compulsory acquire it, and sell it to someone else,” Browne declared. “We have options… We are not people to be trifled with.”

Sandals Grande Antigua has not issued a response to the prime minister’s statements.