Sandals’ 25 year holiday

He was responding Monday, to Independent Senator Jennifer Raffoul who earlier in the Budget debate said she now supports a Sandals resort in Tobago but wants transparency in the investment, and to know the period and terms of tax holidays to be granted the Jamaican hotel chain, and other financial structures.

Raffoul said that at first she was not sure what she felt about Sandals. Growing up, she said, she liked the authenticity of the islands.

However, due to economic circumstances, she said, the country has to be innovative. Sandals is expected to bring employment, airlifts, and marketing of the island, she said, but at the same time she noted there were questions still to be answered.

She would like to see not only monetary benefits for the population, she said, but a local presence at the resort through employment and the integration of TT’s rich local culture, such as the steel pan, shared with the world.

On the other hand, Ramdeen said, “Sandals is the biggest scandal” that could hit this country’s tourism industry.

A letter dated November 5, 2013 from Barbados Minister of Finance Christopher Sinckler to his country comptroller of accounts and Sandals on the memorandum of understanding agreed and signed between the Government of Barbados and Sandals International on October 18, 2013 requesting concessions in respect of acquisition, expansion and development and operation of the hotel property formerly known as Casuarina located at Dover, Christ Church, Ramdeen said, revealed the agreement granted Sandals a 25-year tax holiday.

This means that the company carrying out the Sandals/Casuarina project, he said, is exempt from corporate tax, all withholding tax on interest paid to non-resident financial institutions on the portions of loans for financing of the operations of the hotel, dividends, management services, consulting skills for operations of the hotel on the company’s recoverable costs including and not limited to insurance premiums.

They are exempted from the payment of duties, taxes and levies which may be due to any property that may be acquired for the benefit and use of the hotel, or for living accommodation for non-resident senior staff and any other staff, stamp duty in respect of loans, mortgages, debentures or other related documents executed by the company in relation to the hotel or in respect of any other property which may be acquired for the benefit or use of the hotel. They are also exempted of duties and taxes in respect of the reparation of capital profits.