TCI News
Can TCI Gov’t and Beaches Resort resolve tax row in 10-days? Mediator can start work Nov 8
#Providenciales, Turks and Caicos Islands – October 19, 2020 — Negotiations to resolve the multi-million dollar claims of non-payment or over-payment linked to Beaches Turks and Caicos could begin in 20 days, now that a mediator proposed by the Turks and Caicos Islands Government has been accepted by the resort.
“After four years, the Government has finally agreed to a process of mediation to which we are fully committed in an effort to bring this long outstanding matter to a fair conclusion. TCIG proposed a list of mediators and we agreed to one of them. The Mediator is available the week of November 8, 2020 and we have advised the TCIG that we are ready, willing and able to proceed. We trust that the TCIG will enjoin in the mediation process during this period in good faith as committed,” explained Beaches Resort in a statement issued today.
In response to Magnetic Media questions about who is the mediator and what is the proposed timeline for start and conclusion of the negotiations, the Premier said via email that, “The matter with Beaches remains sensitive. Both TCIG and Beaches are moving with urgency and until dates are finalised, TCIG is not in a position to state a timeline outside of as soon as possible.
I will ask Beaches and TCIG’s lawyers as to whether information about the mediation process can be shared at this point.”
Sharlene Robinson, TCI Premier and Minister of Finance, in a letter issued last week to media informed of the offer of a mediator.
“Obvious by its absence in Beaches’ press release is reference to the ongoing urgent discussions and actions between the parties’ respective lawyers to appoint a qualified mediator to facilitate a resolution. TCIG has since May this year agreed to a mediator and it is hoped that such a mediation will take place next month.”
Beaches Resort over the weekend confirmed to Magnetic Media that it was true; they were in receipt of a list of candidates. The fact had not made it to any of their public statements on the litigation.
The Premier rejected the characterisation of ‘incompetence’ by Beaches Resort and in a TCI Sun newspaper article, was resolute that government has not ignored the law suit for years.
“The line being peddled by Beaches that a lawsuit remains unresolved after 4 years is demonstrably untrue. As I have previously made clear, Beaches first issued proceedings in May 2019. We continue to await their amended claim, promised by their attorney in August 2020. They have also brought proceedings seeking to challenge an assessment made in February 2020. It does not follow that, because Beaches repeatedly assert that they don’t owe taxes, that that is legally the case,” she said.
Magnetic Media has learned the individual, a male, is a Queen’s Counsel (QC) attorney with experience in negotiating tax disputes.
The background and adeptness of the QC is critical as there is so much riding on the process, not least of which is the impending re-opening of the resort on November 18.
Beaches’ Board of Directors is adamant that it will not re-open the property which employs 2,000 people and which attracts the lion’s share of long stay visitors to the country, until the matter is addressed.
“We echo the sentiments of TCIG that the Turks and Caicos Islands is also beautiful with remarkable people and we look forward to re-opening our doors in due course once approved by the Board of Directors. The statement also explained, “Beaches TCI wishes to make it clear that it has made no unreasonable demands whatsoever. Beaches is not asking TCIG for any favours or special treatment and any suggestion to the contrary, is simply a PR spin on the facts.”
Beaches Resort Turks and Caicos claims its Development Agreement was breached and they had been overpaying taxes.
“Beaches simply wants the Government to honour the terms of its Development Agreement(s) and other legally binding commitments, nothing more, nothing less. Breaches of these Agreement(s) by TCIG is the reason Beaches was compelled to file its lawsuit in May 2019.”
TCIG claims Beaches Resort is severely in arrears to the tune of a reported $20 million dollars.
Beaches TC, five days before opening its mega resort property on Grace Bay Beach in Providenciales, announced it would postpone reopening amidst the coronavirus pandemic from October 14 to November 18; it was a devastating announcement.
The result is a volley of spicy statements which had not nudged the needle until now.
The mediator has indicated he can begin the negotiation process on November 8. The ball is now in TCIG’s court.
TCIG knew from April that fuel factor could surge almost 80%; Minister says $500 cost-of-living payment was part of Government’s response
PROVIDENCIALES — The Turks and Caicos Government knew months before July’s shocking electricity bills that consumers faced a potentially massive increase in the fuel factor.
Minister of Information Technology and Energy E. Jay Saunders revealed Friday that Pelican Energy warned his Ministry in April that generation fuel costs were projected to rise from $3.09 per gallon in May to $4.79 in June and July.
That translated into a projected fuel factor jump from about 17.5 cents to 31 cents per kilowatt-hour — an increase of almost 80%.
Saunders said he personally advised Cabinet of the projected increase and presented options for cushioning the impact.
He characterised Government’s $500 cost-of-living payment as its “initial response” to rising fuel costs, before a separate fuel-factor subsidy was approved.
Cabinet records show Government agreed on June 24 to provide funding to mitigate the fuel-factor impact, with the relief programme approved July 8.
Eligible residential customers — those averaging less than $1,500 monthly over the previous three bills — are capped at 22 cents per kWh from July through October.
Pelican confirmed Friday that Government’s contribution was already applied to July bills, meaning the bills now triggering widespread public outrage would have been even higher without the subsidy.
Saunders did not disclose the programme’s total cost.
His admission that Government knew since April, however, raises another question amid the backlash: why were consumers not directly warned by Government about the scale of the approaching increase?
PROVIDENCIALES — New commercial Crown Land applications are facing a six-month pause as the Turks and Caicos Islands Government takes inventory of its holdings.
During Cabinet meetings held July 15 and 16, an immediate six-month moratorium was approved on the acceptance, processing
and approval of new applications for commercial Crown Land grants, leases and allocations.
The pause will remain in place pending completion of the Crown Land Inventory Review. Cabinet’s summary did not state what prompted the review or indicate whether availability of commercial Crown Land is a concern.
The two-day meeting also advanced major consumer legislation. Cabinet approved the National Fair Competition Policy 2026 and drafting instructions for a Fair Competition Ordinance, moving TCI toward stronger consumer protection and fair competition rules.
In Grand Turk, Cabinet approved rezoning land in the North West Suburbs from low-density to medium-density residential use to facilitate a new apartment development.
Cabinet also advanced fisheries reforms, water legislation allowing private and public-private investment, minerals legislation and appointments across tourism, health and finance.
Progress toward establishing a TCI Credit Union was also noted.
PROVIDENCIALES — Major development projects outside Providenciales received Cabinet attention on July 8, with Government approving agreements connected to the redevelopment of Dellis Cay and a resort development in North Caicos.
Cabinet approved a Development Agreement between the Turks and Caicos Islands Government, Desarrollos Hotelco DC Ltd. and
Desarrollos Hotelco Astoria Ltd. for the redevelopment of Dellis Cay.
The long-discussed private island development sits between Providenciales and North Caicos and its return to Cabinet signals another step toward redevelopment.
Cabinet also approved amendments to an agreement involving SPR LND Ltd. (Royal Reef) and TCIG Development Agreement for a resort/hotel development in North Caicos.
Other decisions included approval of the First Supplementary Appropriation Bill 2026 for onward transmission and the appointment of Cindy Ewing as Chair of the Invest TCI Board, effective August 1 for three years.
Cabinet also noted consultation outcomes concerning changes to business licensing, approved professional membership expenses for qualifying Telecommunications Commission staff and approved advice relating to the Interim Clinical and Estates Services PPP.
The July 8 meeting was chaired by Acting Governor Anya Williams.
Photo Credit: Royal Reef (Keith)
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