The Herald (Ireland)

Ronan firm claims Bewley’s wants taxpayer to pay its rent through heritage tax credit

- Tim Healy

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.

 ??  ??
 ??  ?? The stainedgla­ss windows at Bewley’s. Inset, Johnny Ronan
The stainedgla­ss windows at Bewley’s. Inset, Johnny Ronan

Newspapers in English

Newspapers from Ireland