(Trinidad Guardian) Founder and chairman of Sandals Resorts Gordon Butch Stewart has denied allegations made by Antigua and Barbuda’s Prime Minister Gaston Browne that Sandals has been retaining the lion’s share of hotel room tax income, by what the Antiguan government has called “an unlawful agreement.”
The allegation was made last month by Browne who took a decision to end a 2009 tax agreement brokered through a previous administration, which allowed Sandals Resorts International (SRI) to collect 100 per cent of Antigua and Barbuda Sales Tax from its customers and keeps 65 per cent of the yields.
The remaining 35 per cent is handed to the Antiguan government.
However, the Antigua and Barbuda government has been trying to change this arrangement.
SRI has since threatened to pursue legal action against Browne, who in turn said his administration will not be “intimidated and bullied” in its ongoing public battle with SRI over the payment of taxes to his government.
Stewart, in response to an e-mail sent to the T&T Guardian this week said of Browne’s claims: “Absolutely nothing could be further from the truth. These accusations have been made without one shred of evidence. Prime Minister Browne has committed a huge libel.”
Since 1992, Stewart said, SRI had been operating in Antigua and Barbuda, and his hotel had consistently been audited by PriceWaterhouseCoopers, Grant Thornton International, as well as the government’s tax department.
“Never has there been cause for any such accusations,” the hotel tycoon insisted.
In 2015, Stewart said, SRI paid to the Antigua and Barbuda government taxes in excess of US$5.2 million and in the financial year 2016, they paid over US$5.8 million in taxes.
“We estimate that our direct contribution to the economy of Antigua and Barbuda exceeds US$27.5 million per annum and we earn more foreign currency than any other resort chain on the Island,” Stewart said.
Stewart said the 2009 agreement dated back to 2000, which was signed by the then government, led by Sir Lester Bird.
“The basis for the concession agreement had to do with our commitment to build at least another 100 rooms. In fact, we went much further by constructing 180 suites at a cost of over US$100 million.”
Financing for this project, Stewart said, was provided by T&T’s First Citizens Bank.
“We continue to enjoy a tremendous relationship with them (FCB) as they also financed our hotel in Grenada,” Stewart disclosed.
Stewart said SRI had been proud to operate its flagship resort in Antigua and Barbuda.
“We also take pride in the fact that our 750 employees are the highest paid in Antigua and Barbuda which makes us the largest private employer on the Island.”
