By: Staff Writer
November 8, 2024
Sandals Resorts allegedly doesn’t pay its taxes as both the Antigua and Barbuda government along with the government of The Bahamas say that the resort chain owes the tax revenue authorities $11.1 million and d$30.8 million respectively.
Prime Minister of Antigua and Barbuda Gaston Brown, told listeners to his radio that the 373-room Sandals Grande Antigua, a six-star, all-inclusive, adults-only resort, owes an estimated EC$30 million (US$11.1 million) in taxes.
He said most of the taxes owed are from the Antigua and Barbuda Sales Tax (ABST) which Sandals collected for the government and was holding on to portions of the money.
“I don’t understand why these ‘so-called’ investors feel that they are the only game in town and are the only stakeholders to benefit. So they try to wring every ounce of revenue out of the business and they don’t want the government to get anything in the form of taxes,” Browne said, adding “I have been through this already with Sandals and I don’t want to go down that road with them again.”
Browne added aid while he did not want to make the issue a public matter, he was nonetheless appealing to Sandals to cooperate with the Inland Revenue Department (IRD) so as to avoid another public spat,
Browne recalled that Sandals had a recent issue with the Bahamas where it ended up having to pay “some money.”
“Everywhere they go, this is their modus operandi! Everywhere they go, there is a feeling that they don’t want to pay government taxes and that they are the ones who must extract all these profits so that they can expand.
On the other hand, Bahamian authorities has demanded that Sandals Resorts make a payment of $30.8 million in back taxes, but Sandals has challenged that assessment.
The demand was made after an audit determined the resort chain owes the Bahamas government $29,195,112.67 and $1,648,705.26 in additional value-added taxes (VAT) and business license fees, respectively.
Sandals was also advised it owed the sum of $570,000 (the maximum penalty allowed under the VAT Act, as the DIR considered that sum appropriate).
Sandals has denied both claims.