Ronan firm claims Bewley’s wants taxpayer to pay its rent through heritage tax credit
A COMPANY controlled by developer Johnny Ronan has claimed the operators of Bewley’s Cafe on Grafton Street want the taxpayer to foot their rent obligations by suggesting they will donate the stainedglass windows in the premises to the public.
Donation of a heritage item to the State attracts a tax credit of 80pc of its value, which means Bew le y’ s would be getting the taxpayer to fund its rent obligations, landlord RGRE Grafton Ltd claimed.
RGRE also rejected a proposal by Bewley’s to offset the value of the windows in lieu of rent by selling them to RGRE.
The six windows, which RGRE claims are “part of the premises”, are estimated to be worth more than €1m, according to RGRE.
However, Bewley’s says the windows were never part of the property and have been moved freely in the premises.
They have been treated as ornamental decorative panels and have always remained in Bewley’s ownership, it says.
Yesterday, Mr Justice David Barniville admitted proceedings by RGRE against the Bewley’s group companies, whose principal is Paddy Bewley, to the fast-track Commercial Court list. The case comes back in June.
Waiver
In an affidavit seeking admission to the commercial list, RGRE CEO Rory Williams said the windows are believed to have been installed in 1929 and have “formed part of the premises ever since”.
As tenant, Bewley’s is required to pay RGRE more than €1.4m a year, Mr Williams said.
Last December, John Cahill, director of Bewley’s Cafe Grafton Street Ltd, wrote seeking the waiver of rent until March and a reduction for the rest of the lease term.
He offered to sell to RGRE the Harry Clarke stained-glass windows to cover rent until the end of the lease in 2022.
Mr Williams replied that Bewley’s “can’t sell what we already own”.
He said Bewley’s expressed intention to donate the windows to the people of Ireland, which would en title it to a tax credit of 80 pc of their value.
This “seemingly altruistic gesture appears, in fact, to be a further mechanism” to ensure that a third party – the taxpayer – discharges Bewley’s rent obligation, he said.
Following requests of documentation to prove the ownership claim, which was not forthcoming, RGRE instituted proceedings.
It seeks orders and declarations, including that the windows form part of the premises, are owned by RGRE and any purported transfer of ownership by Bewley’s is null and void.