{"id":215376,"date":"2024-11-03T18:09:48","date_gmt":"2024-11-03T22:09:48","guid":{"rendered":"https:\/\/antiguanewsroom.com\/?p=215376"},"modified":"2024-11-03T18:09:49","modified_gmt":"2024-11-03T22:09:49","slug":"pm-browne-warns-sandals-over-tax-payments-and-exploitative-practices-in-antigua-and-barbuda","status":"publish","type":"post","link":"https:\/\/antiguanewsroom.com\/pm-browne-warns-sandals-over-tax-payments-and-exploitative-practices-in-antigua-and-barbuda\/","title":{"rendered":"PM Browne Warns Sandals Over Tax Payments and \u2018Exploitative\u2019 Practices in Antigua and Barbuda"},"content":{"rendered":"
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Antigua and Barbuda’s Prime Minister, Gaston Browne, has criticised Sandals Resorts International, calling out the hotel chain for what he describes as \u201cexploitative\u201d financial practices that, he claims, deprive the nation of crucial tax revenue and contribute to economic inequalities. <\/p>

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Speaking on Pointe FM, Browne said that the Inland Revenue Department had recently assessed Sandals with $30 million in unpaid taxes, a figure that the company is allegedly contesting. <\/p>\n\n\n\n

\u201cThey operate as if they\u2019re the only stakeholders, reaping huge profits while our local workers struggle,\u201d Browne remarked.

Browne directly challenged Sandals, saying, \u201cThis is a colonial, exploitative model that no longer works for Caribbean nations. Our workers deserve fair pay, and our government deserves its due taxes.\u201d <\/p>

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He accused the company of \u201cmanipulating accounts\u201d and using offshore entities to report lower revenue within Antigua and Barbuda, thus reducing Antigua and Barbuda Sales Tax (ABST) contributions.<\/p>

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\u201cThey\u2019ll report only half of what they earn, claiming deductions for marketing and other expenses, ultimately paying less ABST than they should,\u201d Browne stated.

This dispute is not the first between his administration and Sandals. In 2016, Antigua\u2019s government terminated a controversial 2009 agreement that allowed Sandals to retain 65% of the ABST collected from guests, labeling it as \u201cillegal\u201d and accusing Sandals of withholding state funds. <\/p>\n\n\n\n

Browne recalled that incident, emphasizing, \u201cI thought we had been through this with Sandals already. I don\u2019t want to go down that road with them again.\u201d

In his remarks, Browne appealed for Sandals to adopt a more equitable stance: \u201cThey must understand they\u2019re not the only stakeholders. When they open their hotels here, our local staff deserve fair pay, and our government ought to get its fair share of taxes.\u201d <\/p>

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He added, \u201cIf they can\u2019t ensure there\u2019s an equitable dispensation going forward, then take your hotel elsewhere. I\u2019m dead serious.\u201d

Browne also pointed to similar practices by Sandals in other Caribbean nations, calling it a \u201cmodus operandi\u201d and asserting that Sandals\u2019 tactics reflect \u201cbadmindedness and greed.\u201d <\/p>\n\n\n\n

He warned, \u201cWe need an equitable model, where the sector benefits not just the investors, but the workers and the government.\u201d Browne expressed frustration that \u201cevery time there\u2019s a tax assessment, Sandals comes with all kinds of reasons why they should not pay, challenging Inland Revenue.\u201d

The Prime Minister noted that while generous concessions, often up to 25 years, are granted to attract investment, some companies allegedly exploit these benefits without adequately contributing to the local economy. \u201cThey\u2019ve enjoyed 25 years of tax breaks\u2014no capital gains tax, no withholding tax\u2014and still, they resist paying what\u2019s owed,\u201d Browne said. He condemned these actions, describing them as \u201cexploitative practices that mirror colonial attitudes.\u201d

Sandals Resorts International has yet to respond to the Prime Minister\u2019s latest comments. However, Browne has stated that if necessary, his administration would consider bringing in foreign tax authorities, like the IRS, to audit Sandals\u2019 offshore financial dealings. \u201cIf we have to collar them, we\u2019ll collar them,\u201d he declared, underscoring his readiness to confront the company publicly, should Sandals resist.<\/p>

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“You cannot just concentrate exclusively on exploiting concessions and to push governments into the ground. You all need to stop it, that kind of model it is a slave model it’s a colonialism that does not work for the Caribbean people,” the Antigua leader insisted.<\/p>

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He added” You need to step up and I expect a brand like Sandals, that we all admire as a Caribbean brand, should feel proud that be making a significant contribution to government revenues and should feel proud that your workers can earn enough money to get a mortgage or to own a decent home a decent car not just about you expanding while others are struggling.”<\/p>\n\n\n\n



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Antigua and Barbuda’s Prime Minister, Gaston Browne, has criticised Sandals Resorts International, calling out the hotel chain for what he describes as \u201cexploitative\u201d financial practices that, he claims, deprive the nation of crucial tax revenue and contribute to economic inequalities. Speaking on Pointe FM, Browne said that the Inland Revenue Department had recently assessed Sandals […]<\/p>\n","protected":false},"author":3,"featured_media":192604,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-215376","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\nPM Browne Warns Sandals Over Tax Payments and \u2018Exploitative\u2019 Practices in Antigua and Barbuda - Antigua News Room<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/antiguanewsroom.com\/pm-browne-warns-sandals-over-tax-payments-and-exploitative-practices-in-antigua-and-barbuda\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"PM Browne Warns Sandals Over Tax Payments and \u2018Exploitative\u2019 Practices in Antigua and Barbuda\" \/>\n<meta property=\"og:description\" content=\"Antigua and Barbuda’s Prime Minister, Gaston Browne, has criticised Sandals Resorts International, calling out the hotel chain for what he describes as \u201cexploitative\u201d financial practices that, he claims, deprive the nation of crucial tax revenue and contribute to economic inequalities. 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