Beaches update on TCI

#Providenciales, March 15, 2019 – Turks and Caicos – We take note of the recent Press Release by the Government of the Turks and Caicos Islands setting out taxes and penalties said to be owing by various establishments under the Hotel, Restaurants and Tourism (Taxation) Ordinance, including Beaches, and we have exercised our constitutional right to challenge those claims.

In January 2019 we filed suit against the Government in relation to these matters and also claiming certain tax refunds. We wish to make it very clear that the alleged unpaid tax of US$26,708,618 plus interest at 213% per annum, arose because the TCI Government, having entered into binding host country agreement(s) with Beaches to encourage our expansion of the hotel, undertook a tax audit and although finding no violation of our agreement unilaterally and without warning imposed back taxes in breach of the host country agreement and other written assurances given by the TCI Governments. 

As made clear in a previous statement Beaches TCI has for the past 23 years in which it has operated in the Turks and Caicos Islands, punctually and accurately paid taxes according to law. As a matter of fact we are always first in line when it comes to paying our taxes.

Rather it is the Government of the TCI that is indebted to Beaches in respect of genuine over-paid taxes and refunds. Two of the largest items are (i) refund for taxes on children under 12 and (ii) custom processing fees.

There are other areas of over-payment and positive tax adjustments which the Government is required to make in favour of Beaches, and these and other related matters are the subject of law suits which regrettably, we have been compelled to file.

It is indeed most unfortunate that we had to litigate against our host country, but given the injustice we had no alternative. Based on the number of communications that our organization has been receiving, it is clear that the investment and banking community together with the travel trade including the airlines are all paying close attention to see whether the Government will honor its commitments.

Press Release: Beaches Resorts