Beaches Said to Withdraw From Turks and Caicos Tax Mediation

Planned mediation talks between officials at Beaches Turks and Caicos and the territory’s government regarding a $20 million tax dispute will not commence after the resort operator withdrew from the scheduled discussions, said Sharlene Robinson, the Turks and Caicos’ premier and minister of finance.

“Beaches is regrettably, no longer willing to engage in a mediation concerning its outstanding tax liabilities,” said Robinson in a government press statement posted to Facebook by Travel Advisors Selling the Caribbean (TAC) principal Kelly Fontenelle-Clarke.

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“This is a mediation [the government] has said for many months it was prepared to participate in, and in respect of which an agreed mediator had been selected and a date set,” said Robinson.

Officials at the resort denied they have abandoned mediation. “Beaches Resorts remains ready, willing and able to resolve the matter with the Turks and Caicos government in a fair, equitable and transparent manner,” said officials at Beaches’ parent firm, Unique Vacations Inc., in a statement provided to TravelPulse.

“Previous reports of a cancelled mediation on behalf of Beaches Resorts are inaccurate,” the statement continues. “Each year that we have operated in Turks and Caicos, we have punctually and properly paid taxes according to the law. We do not nor have [we] ever owed any money in unpaid taxes and have always fully observed, complied and met our tax obligations on time.”

The statement adds the issues “can be resolved” within days. “There must be a strong commitment, sincerity, good faith and capable decision makers sitting down together.”

Beaches officials have not yet announced a reopening for the property as the Caribbean’s crucial holiday travel season approaches. Robinson said Beaches officials abandoned mediation after earlier disputing the alleged tax debt in local press reports.

The long-running dispute increasingly overshadows even COVID-19 with regards to Turks & Caicos tourism and is under litigation in the Turks and Caicos’ courts, said Robinson.

Last week the Turks & Caicos Hotel and Tourism Association (TCHTA) called for a resolution to the standoff, which stems from an alleged $20 million tax bill government officials say is owed by Beaches.

In a statement, TCHTA officials said its members are "gravely concerned” with the imbroglio’s “negative impact” and added the resort’s continued closure would trigger a “devastating fallout for the overall [Turks and Caicos] economy.”

"At an extremely fragile time where all Caribbean countries are fighting for the rebounding of their tourism product, travel partner confidence is essential,” the statement added. The resort generates “approximately 70 percent of long-stay visitor arrivals to Providenciales” and local airlift demand “is highly dependent on its reopening.”