ST JOHN’S, Antigua – Sandals Resorts International has agreed to pay EC$6.5 million to the Government of Antigua and Barbuda as part of a settlement aimed at resolving a prolonged dispute over unpaid taxes, according to reports from Antigua News Room.
The agreement follows months of public disagreement between the government and the Jamaica-based hotel chain over tax assessments made by the Inland Revenue Department.
According to Antigua News Room, the settlement was announced by Prime Minister Gaston Browne during his weekly radio programme, where he said the matter had been resolved through negotiations and that the government would receive EC$6.5 million.
The dispute centred largely on the Antigua and Barbuda Sales Tax (ABST), which hotels collect from guests on behalf of the state. Tax authorities had previously claimed that Sandals Grande Antigua owed tens of millions of dollars in outstanding taxes dating back several years.
In 2024, Prime Minister Browne publicly accused the luxury resort operator of attempting to avoid paying its full tax obligations and warned that investors benefiting from generous concessions should also make what he described as a fair contribution to the country’s development.
The Inland Revenue Department had earlier assessed Sandals for more than EC$24 million in taxes collected between 2017 and 2021, while additional assessments were being carried out for subsequent years. The company challenged aspects of the assessment in the High Court, arguing that procedural requirements had not been followed.
Prime Minister Browne had maintained that the government was seeking an equitable arrangement and had criticised what he described as practices that deprived the state of revenue needed for public services.
According to Antigua News Room, the latest agreement brings an end to the dispute and clears the way for a reset in relations between the government and one of the country’s largest tourism investors.
Sandals Grande Antigua is among the Caribbean nation’s major tourism properties and forms part of the wider Sandals Resorts International group, which operates resorts across the region.