Tax authorities in Antigua and Barbuda are demanding that Sandals Grande Antigua pay over $24 million in ABST collected between 2017 and 2021

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CABINET NOTES: The Cabinet invited the Commissioner of Inland Revenue, his Deputy, a Legal Advisor and a technician to address the brewing ABST discord with Sandals Resort and Spa. 

The Prime Minister has learned from the IRD that the resort has not been paying-over all the ABST which it has collected from its customers, upon checkout.

The ABST is a tax which is imposed on the totality of the bill that a guest at the hotel has incurred during their stay.

It is the Government’s money, collected by the hotel on behalf of the Government.

During the previous administration, an arrangement had been made with the property for it to deduct a portion of the ABST to compensate for the marketing of the Antigua destination when the resort was advertised.

When the Gaston Browne administration learned of this practice, it immediately reversed that policy and required the hotel to pay 100% of its ABST collection to the Inland Revenue Department.

It appears that the resort has re-commenced making similar deductions; the IRD has made a demand for an amount exceeding $24 million collected between 2017 and 2021.

The IRD is continuing its audit to investigate the deficit in payments made in 2022 and 2023.

The Cabinet has also learned that workers at the hotel are not allowed to accept tips from customers but must place all tips received into a pool, which goes towards funding the Sandals Foundation.

The Cabinet is considering legislation that will compel hoteliers to pay tips to workers and not to divert those resources to other ends.

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19 COMMENTS

  1. “The Cabinet has also learned that workers at the hotel are not allowed to accept tips from customers but must place all tips received into a pool, which goes towards funding the Sandals Foundation.”

    WOW! A SO WICKED SANDALS BE TO THEM WORKERS????? EMPLOYEE TIPS BEING USED TO FUND THEIR SO-CALLED SANDALS FOUNDATIONS????? WHAT A SCAM!!! IF THE GUESTS ONLY KNEW!!!! A BUNCH OF CON ARTISTS RUNNING SANDALS???? NO WONDER THEY LIKE TO HIRE PLENTY JAMAICANS…..THEIR OWN KIND WITH A CERTAIN MENTALITY. WELL WELL WELL.

  2. Careful with Sandals cause dem feel dem bright.

    That place will play tricks on anybody to improve their Balance Sheet.

    They been doing some sneaky tingz in that Accounts department for the longest while.

    Take your time and Audit them properly. SRI has the true figures if things dont seem right.

  3. well well well me too deceive in Butch Jr. He looks so nice and innocent…..even seem caring when his wife battled cancer. I hope he is not aware and turn a blind eye. My heart goes out to the employees though.

  4. “During the previous administration, an arrangement had been made with the property for it to deduct a portion of the ABST to compensate for the marketing of the Antigua destination when the resort was advertised.”

    How does this make any sense?? Lemme guess….Harold was tourism minister when this was arranged?

    So you are collecting MY tax, and charging me a “portion” (not specified) to promote Antigua while promotion your hotel??

    What the hell ass can go so?

  5. Such revelations hurled against the Caribbean’s most Premier Luxury Resort chain Sandals are stunning and damaging. Describing the pattern of Sandals action across the entire region as “prioritizing profits at the expense of local economies” Prime Minister Browne described Sandals model of operation as “colonialist” and argued that their operation reflects exploitative practices. This is really a hard hitting and powerful accusation and no doubt would draw a response from Sandals. Would be good to hear the Sandals side to this whole debt issue but even more so, the charges levied by the Prime Minister against the Hotel Chain.

  6. HAROLD LOVELL allowed Sandals to HOODWINK him into holding on to our ABST MONIES!!!! This is LOVELL fault.

  7. Sandals are accused of doing some similar tax-related shenanigans in the Bahamas (was Emerald Bay now Beaches) and at their resort on the Turks and Caicos Islands. I’m not one to believe in coincidences so hopefully the truth will be discovered soon for all to see.

  8. @Audley Phillip

    You made some “hard hitting accusations” against that Dominican beauty queen too.

    Can’t believe you seriously thought she wanted you or even stood a chance in your old age lol 😆 😂 🤣 😅

  9. @Sad but True:
    From 2017 to 2021. How could it be Lovell’s fault.The ABLP formed the Government in 2014 to now 2024.

  10. All Hotels doing this and they so like to short change local blacks working in certain management positions too. Launch an audit into all hotels,allll….

  11. Everyone is blaming Sandals. My first question .
    Why did inland Revenue allowed them to continue business if taxes were not paid first or second year?
    How did they got away for so long without paying their taxes from 2017 – 2021?
    I am assuming Sandals believes if China can have ITS OWN LITTLE COUNTRY WITHIN OUR COUNTRY OF ANTIGUA AND DO NOT PAY ANY TAXES WHAT SO EVER YES I MEAN NO TAXES AT ALL . WHY CAN’T THEY.

  12. The government wants to legislate how tips are handled? This is madness. Tips and service charge are legitimate income for the hotel, unless the hotel decides to permit employees to retain the tips. How about tips given to employees of the State at the Custom?

  13. The government wants to legislate how tips are handled? This is madness. Tips and service charge are legitimate income for the hotel, unless the hotel decides to permit employees to retain the tips. How about tips given to employees of the State at the Customs?

  14. This issue did not start with Harod Lovell. It seems like any concession given by ABLP , including forever ones like Data Tan etc, are ok but not anyone else. In the 1980s there was a Head Tax instituted by Lester Bird and Sandals was allowed to keep a portion of that tax in like manner. When UPP replaced the tax with ABST, Sandals asked for a concession based on the Head Tax and was allowed to keep a portion of the ABST in lieu. At least they are paying something but what do we get from many of those projects that Gaston allowed to take our lands forever!

  15. I AM JAMAICAN AND THIS IS JUST NOT FAIR AT ALL, THE TAXES MUST BE PAID IN FULL.

    • A TIP PAID TO AN EMPLOYEE FOR VERY GOOD SERVICE IS FOR THE EMPLOYEE TO KEEP. THE HOTEL HAS ALREADY CHARGED THEIR MONEY IN FULL AT THE TIME THE GUESTS CHECK IN TO THE HOTEL

    • GREED HAS NO LIMITS AND THE MONEY OWED SHOULD BE PAID WITH INTERÉST PLUS THE RATE OF INFLATION OVER ALL THOSE YEARS!

    • ALL THE TIP MONEY SHOULD BE PAID BAD TO ALL EMPLOYEES PLUS INTEREST AND INFLATION ADDED , IF THEY ARE NOT ALIVE IT SHOULD GO TO THEIR NEXT OF KIN ( CLOSEST RELATIVE)

    • FOUNDATIONS ARE A WAY TO AVOID PAYING TAXES , BUT THESE FUNDS ARE USED TO PAY OF FRIENDS AND FAMILIES THEN THE MONEY GETS FUNNELED BACK YO THE OWNER , NOTHING BUT A SCAM !

  16. SANDALS should pull out of Antigua!! If an agreement was made to keep a percentage of the tax why should they pay it? Additionally, tips aren’t allowed at any Sandals resort. They’ve explained why to all employees and guest. However, if a guest decides to tip then that money is placed into the foundation which contributes to agencies and communities.

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