Sandals Emerald Bay Villas Mistakenly Listed for Auction
Part of the shuttered Sandals Emerald Bay Resort in Exuma was erroneously listed for public auction by the Bahamas Department of Inland Revenue this month, amid an ongoing legal dispute over unpaid taxes. On May 12, the DIR published a Notification of Sale by Public Auction citing several “Farmers Hill, Sandals Beach Units” seized for assessed values between $1.51 million and $2.7 million each. The listing followed months of contention over Sandals Resorts International’s tax obligations, culminating in a Supreme Court case in Nassau.
Sandals Emerald Bay closed last August for renovations and was set to reopen as the family-friendly Beaches Exuma in fall 2024. When the auction notice surfaced, Sandals Resorts International denied any intention to dispose of the villas. A corporate spokesperson called the listing “an error stemming from inaccurate records at the Department of Inland Revenue,” and confirmed that the mistake would be corrected and no bids would be accepted. The DIR’s communications lead, John Williams, later told Tribune Business that the agency had retained the properties’ former owners on file rather than updating its database to reflect Sandals’ ownership.
The incident is the latest chapter in Sandals’ high-stakes tax clash with the Bahamian government. In 2024, a DIR audit of Sandals Emerald Bay’s financials from 2017 to 2022 found underreported revenue and unpaid taxes exceeding $284 million. The government accused the resort of declaring just 40 percent of its earnings. Sandals has defended its accounting under a complex business model, but the dispute remains unresolved in the Supreme Court.
Sandals Resorts International is also facing allegations of unpaid taxes in Antigua and Barbuda. In late 2024, Prime Minister Gaston Browne publicly challenged the company over an EC$30 million (USD $33.9 million) tax shortfall. Browne warned that Sandals’ pattern of aggressive tax concessions and profit retention “pushes governments to the brink” and called for fair contributions to national revenues.
Adding to the scrutiny, a forensic review by FTI Consulting released on May 5 flagged potential tax avoidance. Auditor Edith Wong highlighted “flows of funds that appeared to diverge from contractual terms,” unexplained cash balances and profit-shifting concerns. These red flags raise questions about the group’s financial transparency and the potential favoritism of related parties over stakeholders.
The auction mix-up underscores the reputational risk Sandals faces as it weighs strategic options, including a potential sale valued between $6 billion and $7 billion, as first reported by the Wall Street Journal on March 20. Despite its assurances of ongoing investment in the Bahamas and long-standing regional partnerships, the company must resolve these tax disputes to protect its brand and secure its planned network expansions. With the DIR’s files now corrected, the villas at Sandals Emerald Bay will remain off the auction block—but the broader legal saga over unpaid taxes shows no sign of abating.
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