Antigua and Barbuda’s Prime Minister, Gaston Browne, has criticised Sandals Resorts International, calling out the hotel chain for what he describes as “exploitative” 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 with $30 million in unpaid taxes, a figure that the company is allegedly contesting.
“They operate as if they’re the only stakeholders, reaping huge profits while our local workers struggle,” Browne remarked.
Browne directly challenged Sandals, saying, “This is a colonial, exploitative model that no longer works for Caribbean nations. Our workers deserve fair pay, and our government deserves its due taxes.”
He accused the company of “manipulating accounts” and using offshore entities to report lower revenue within Antigua and Barbuda, thus reducing Antigua and Barbuda Sales Tax (ABST) contributions.
“They’ll report only half of what they earn, claiming deductions for marketing and other expenses, ultimately paying less ABST than they should,” Browne stated.
This dispute is not the first between his administration and Sandals. In 2016, Antigua’s government terminated a controversial 2009 agreement that allowed Sandals to retain 65% of the ABST collected from guests, labeling it as “illegal” and accusing Sandals of withholding state funds.
Browne recalled that incident, emphasizing, “I thought we had been through this with Sandals already. I don’t want to go down that road with them again.”
In his remarks, Browne appealed for Sandals to adopt a more equitable stance: “They must understand they’re 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.”
He added, “If they can’t ensure there’s an equitable dispensation going forward, then take your hotel elsewhere. I’m dead serious.”
Browne also pointed to similar practices by Sandals in other Caribbean nations, calling it a “modus operandi” and asserting that Sandals’ tactics reflect “badmindedness and greed.”
He warned, “We need an equitable model, where the sector benefits not just the investors, but the workers and the government.” Browne expressed frustration that “every time there’s a tax assessment, Sandals comes with all kinds of reasons why they should not pay, challenging Inland Revenue.”
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. “They’ve enjoyed 25 years of tax breaks—no capital gains tax, no withholding tax—and still, they resist paying what’s owed,” Browne said. He condemned these actions, describing them as “exploitative practices that mirror colonial attitudes.”
Sandals Resorts International has yet to respond to the Prime Minister’s latest comments. However, Browne has stated that if necessary, his administration would consider bringing in foreign tax authorities, like the IRS, to audit Sandals’ offshore financial dealings. “If we have to collar them, we’ll collar them,” he declared, underscoring his readiness to confront the company publicly, should Sandals resist.
“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.
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.”
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Well said Mr PM. An assessment should be done on all hotels in Antigua, especially Jumby Bay who have brought in a team of French dictators who treat the staff just less me the Africans are treated in France. Do an independent survey, the staff there are unhappy.
GASTON BROWN you are inflicting “EXPLOITATIVE PRACTICES that MIRROR COLONIAL ATTITUDES”towards LIAT1974 LTD WORKERS by not paying SEVERANCE which is due to the workers by LAW.Telling the workers take the PITTANCE OFFERED or LEAVE IT.I guess SANDALS following the LEADER of the country that have no respect for its WORKERS and CITIZENS.RESPECT is given to those who respect themselves.
Absolutely correct.
Mr. PM, you have went down that road with that same hotel. Why then didn’t you put gatekeepers law in place (having the majority in the parliament) so the other HOTELS DOING THE SAME, can no longer get away with the practice of deceiving the country !!. Even if they pay up, it’ll be business as usual one the dust from the exposure storm is settled. Take the matter to parliament. Just like you and the attorney General did on the issue of the YOUTHS/ FUTURE LEADERS OF THIS NATION, the same TICK DAT BANG DI TAME GOAT ( the youths of Antigua & Barbuda) shudda use fi bang di wild one dam to. A so mi see um.
me only hope you have this same energy for Carlisle Bay and dem little tricks. every hotel in Antigua lack dung fi fix up but they don wan to caz dem no wa pay off staff dem na like see black ppl with noting.
Wow
All the hotels in Antigua and Barbuda treat worker horrible, they treat worker like slaves. It’s time Government stand up the hotel workers in this country.
Lovell started this mess. He allowed Sandals to HOODWINK him into holding on to our ABST monies
Gasp! It appears that Sandals Resorts International may have been avoiding their tax responsibilities, much to the dismay of our fearless leader, Prime Minister Gaston Browne. How dare they try to deny Antigua and Barbuda the joys of a well-funded society? The audacity!
But fret not, for our PM is here to put an end to this financial farce, shining a light on the alleged dark corners of Sandals’ accounting practices. With a knowing wink and a stern warning, Browne is ready to tackle this colonial-era exploitation like a modern-day superhero. Get your popcorn ready, folks! This battle of wits and wit is sure to be a rollercoaster of tax-evading thrills.
all corporations in antigua need to pay fair wages. There are many offshore corporations operating here and many are refusing to pay workers fairly. How do they manage to avoid the local labor laws? why does the country even have laws if these companies can avoid them? Sandals and others pay only a fraction of what they should in salary and then toss workers out during the low season. how can they get away with this. Where are the unions in this issue?
It’s good when you have a leader undiplomatic enough to rough up an investor, but you cannot at the same time build untouchable investors like PLH off of the back of barbudans land with even buffer zone for racism purposes thrown in.
You Knock over Kelsick junk on Halcyon beach – right ! Then worst yet you allowed Royalton to build their junk on our beach blocking off a portion of the beach. This is absolutely wrong, no portion of our beach should be blocked off . We should not have to bend under concrete and wood to go on our beach. You have investors doing as they like. They generate their own electricity, they operate their own desalination plants and dump concentrated salt water in our reefs . They dump sewage water in our beaches. Environment and DCA needs to work hand in hand and police the disposal of sewage water from these hotels and operators of these plants. PM if they don’t pay their taxes you can have them this way. There are several ways to skin a cat. Put a proper team in place and police this disposal of sewage and highly concentrated salt destroying our environment. Check the amount of plants operating island wide and you will see the tremendous damages that are being done to our reefs. Check out the sewage disposal . Soon it will be unhealthy to bathe in most beaches in Antigua. Check out the quantity of water that goes to these treated plants. Check out how much they are recycling and using and the amount being dumped. Tourism is a fragile industry. Just let a few tourists get sick from what these people are doing.
It’s not the fault of the hotels that workers are treated like slaves, it’s the whole system that’s in place which requires hotel workers to be always neatly well dress, humble, perfect in every way and having to kiss ass. The system now requires you to be a graduate with a diploma in order to be employed, yet when you travel a broad and stay in these hotels even a five star you realize it’s not a big deal, servers pushing carts, stacking and scrape dishes right infront your face, some uniform aren’t even iron.
In half an hour I could teach you the essentials of good table service, setting tables, napkin folds, carrying a tray and in which hand, the basic serve from left remove from right routine, drinks from right, who gets serve first on a large table, crumming, even the correct way to present a check.
Yes it’s our main industry but cut the slavery mentality out the system, it’s a simple job.
PM thanks for acknowledging that the hotels treat workers like slaves and that is why they have to import workers because of the very low wages.
Well the owners of the Royaltons are doing exactly just that and nothing is done about it. They are bringing in workers from the Dominican Republic, Mexico , St.Lucia and Jamaica. After our government handed them all these concessions. Yes and you are correct we have stake in it as well. They are on our lands , our beaches as well and are not contributing. They are only filling their pockets and don’t care about Antiguan workers and contractors.
They the big supermarket owner that you knighted- He and his politician business partner brought in Filipinos.
@Done Lemon. Are liat workers government workers? The government of Antigua/Barbuda owns 33%shares in liat and therefore respondible to pay only that amount in severance. Let the other countries that own more shares than Antigua pay the remaining amount. Tell the workers to make their union sit down with the government and see how a settlement that benefit the workers can be reached and stop insisting on 100% for ALL of liat workers.
Hello did you forget where you come from being ungrateful to sandals they where the one putting income the the country when they take over Anchorage, did an invesrter offer you more money to take down sandals hope you have enough money if you know what you putting your self in shame shame
@D’Onally!!
Did the other countries (Barbados, St Lucia n St Vincent) ask our government for funds to pay their workers from Liat in their country when they were paying them their severance. I certainly did not hear or read it anywhere.
Y,’all need to stop repeating what the all ppl who back the government saying n think critically for urself. Country first. That’s what we should be looking at.
If Sandals not paying pull them up of course but give the same energy to all hotels owner. Not just those who will stand up be outspoken!!!
Absolutely ALL big companies in the world put a lot of effort into evading their taxes. They are very good at it. All hotel in the world pay minimum wages (try to work in an hotel in New York!). Let Inland Revenue handle this. No need to bring out slavery or colonial-era exploitation into this!