The government of Antigua and Barbuda is engaged in negotiations with Sandals Resorts International to resolve outstanding tax payments and revise concession agreements to ensure greater financial transparency and fairness in tax contributions.
Speaking on Pointe FM, Prime Minister Gaston Browne said his administration is working to address concerns over head tax and room tax payments, as well as Sandals’ deductions for marketing expenses, which he believes have significantly reduced the resort’s tax obligations.
“They’ve been reporting a head tax of about $300 per guest, but anyone staying at Sandals knows that they’re not paying $300 a night. We need full transparency on how these taxes are being calculated,” Browne stated.
Under existing agreements, Sandals has been allowed to deduct marketing and operational costs from its taxable revenue. However, Browne said that these deductions have been excessive, reducing the resort’s tax liability beyond reasonable levels.
“They’ve been deducting marketing expenses that cut deeply into their tax contributions, and when you look at the ads, they are just generic Sandals branding, not Antigua-specific promotions,” he noted.
As part of the renegotiation, the government is considering:
- Capping the amount Sandals can deduct for marketing expenses to prevent excessive reductions in taxable revenue.
- Increasing government oversight to ensure accurate tax reporting.
- Improving compliance mechanisms to guarantee proper financial contributions.
Browne revealed that he has met with senior representatives from Sandals, including a legal adviser and a board member, and believes that progress is being made toward a resolution. He noted that with a new professional board overseeing Sandals’ operations, there is hope for a more transparent and cooperative relationship going forward.
While acknowledging the importance of Sandals to Antigua and Barbuda’s tourism sector, the Prime Minister insisted that the government remains committed to ensuring fairness in the tax system and preventing revenue losses due to overly generous deductions.
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Happy for the update. It was just last week I was asking myself what became of this matter.
let them pay
The only Caribbean PM with the balls to stand-up to Sandals
Sandles is the only commercial i have ever seen on US television whilst visiting the US . They didn’t specifically brand Antigua.. but their ads did want me to leave the cold in NYC and get back home.