Aquatic centre operators to sue state body for €30m
Dublin Water World (DWW) says documents obtained under freedom of information legislation show Campus Stadium Ireland Development (CSID), the since-dissolved state firm that developed the centre, pursued the Vat claim in an “alarming” manner, despite advice that it was not acting in strict compliance with Vat legislation.
DWW entered into a lease with CSID in 2003 to operate the centre but a dispute later arose whether Vat was payable on it. DWW claims papers show that, in 2002, CSID received advice from the Revenue Valuation Office to the effect the €35m open-market value of the lease was less than the €60m “economic value”, making the lease Vat-exempt.
DWW claims the Vat battle and associated threats of restriction orders against directors resulted in it later abandoning plans for water-based property developments in England, Spain, Czech Republic, and Bulgaria, with consequent estimated losses over €30m.
DWW is suing the National Sports Campus Development Authority, the legal successor to CSID.
Mr Justice Peter Kelly yesterday granted an application by Brian O’Moore SC, for DWW, to have the case fast-tracked in the Commercial Court.
Denis McDonald SC, for NSCDA, said it consented to the fast-tracking but was concerned by the claims made in an affidavit by John Moriarty, director of DWW, and refuted those.
In pursuing the Vat claim, CSID had genuinely believed it could proceed as it did and the Revenue was consulted before any demand for VAT was made, said Mr McDonald. The Vat claim was abandoned in 2010.
