PM Browne Warns Sandals Over Tax Payments and ‘Exploitative’ Practices in Antigua and Barbuda

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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