Prime Minister Gaston Browne of Antigua and Barbuda has strongly criticized Sandals Resorts International (SRI), urging the Jamaica-based luxurious lodge chain to think about eradicating its property from the twin-island nation if it continues its “coverage” of avoiding taxes.
Talking on his radio program over the weekend, Browne expressed frustration over what he claims is a sample by Sandals of withholding taxes owed to the federal government, together with roughly EC$30 million (US$75.3 million) in Antigua and Barbuda Gross sales Tax (ABST) collected at its Sandals Grande Antigua resort.
“I don’t perceive why these so-called buyers really feel that they’re the one sport on the town and are the one stakeholders to profit,” Browne stated, referencing the 373-room, six-star resort. “They attempt to wring each ounce of income out of the enterprise and so they don’t need the federal government to get something within the type of taxes. I’ve been by means of this already with Sandals, and I don’t need to go down that highway with them once more,” he added.
A historical past of tax disputes throughout the Caribbean
Browne’s feedback comply with a current concern Sandals encountered within the Bahamas, the place the corporate additionally needed to settle excellent tax funds. He alleged that Sandals has a historical past of tax-related disputes throughout the Caribbean, suggesting the corporate’s method places undue pressure on native economies.
“In every single place they go, that is their modus operandi!” Browne declared, criticizing Sandals for focusing solely on earnings. He particularly addressed Sandals’ govt chairman, Adam Stewart, stating, “Sandals just isn’t the one stakeholder while you open your accommodations in a Caribbean nation; you’ve workers who deserve pay; you’ve the federal government who should get its fair proportion of taxes. You can’t rely solely on exploiting concessions and to push governments into the bottom; you all have to cease it!”
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‘Colonist’ method to enterprise
Browne likened Sandals’ enterprise mannequin to a “colonialist” method that exploits native sources with out honest compensation, an accusation he says is deeply disappointing given Sandals’ standing as a beloved Caribbean model. “This can be a colonialist mannequin that doesn’t work for the Caribbean folks,” he stated. “You ought to be proud to have the ability to say that your employees are making a good wage in order that they may afford a mortgage, automobile, and many others. It’s not about you increasing whereas others are struggling.”
The Prime Minister emphasised that low wages within the hospitality sector have made it difficult for accommodations to draw native employees, whereas Sandals continues to revenue considerably. “Each time there may be an evaluation, you include every kind of explanation why you shouldn’t be paying,” he stated. “I’m bored with it. If that is going to be your perspective going ahead, the place solely Sandals advantages, then take your lodge elsewhere; and I’m very severe.”
SRI has not but issued a response to Browne’s feedback. The Prime Minister famous that he was “shocked” to study of Sandals’ alleged lack of cooperation with the Inland Income Division and reiterated that this tax concern just isn’t distinctive to Antigua and Barbuda however impacts different Caribbean nations the place Sandals operates.
