Construction company of property entrepreneur Michael O’Flynn is ordered to cover the legal expenses associated with An Bord Pleanála’s appeal for dismissing the company’s objection against a newly introduced land tax. In a recent decision, Mr Justice Anthony Barr of the High Court expressed his dissatisfaction over the company’s challenge being a test case, thereby granting costs to the planning authority.
In a previous judgement, Mr Justice Barr rejected O’Flynn Construction Company’s objection regarding the fresh tax on its dormant assets along the Naas Road in Dublin. An Bord Pleanála contended that the initial tax map had been superannuated, asserting new orders to follow.
Mr Justice Barr stated that the core proceedings will involve negligible costs concerning documentation and the request for permission to initiate a judicial review. Accordingly, he declared that no court order for compensations will be enacted, implying that each party will be responsible for its charges.
Per the request of Oisín Collins, senior counsel of O’Flynn’s enterprise, the judge suspended the impact of his directions for a month, in anticipation of a probable appeal.
The introduction of the Residential Zoned Land Tax (RZLT) on suitable premises was scheduled for February of the last year. However, the Minister for Finance has postponed its launch by a year and has instructed local councils to compose a new list of sites for its implementation. This particular tax, pegged at 3% of a location’s worth, was introduced in the 2022 Budget to boost housing construction. Properties marked for residential development prior to 2022 are subject to the initial application of the RZLT.
Dublin City Council had assigned mixed-use – including residential – zoning for the O’Flynn properties situated on the former Nissan grounds along the Naas Road. The O’Flynn establishment acquired permission for a decade in 2021 to build over 1,100 apartments on this 19-acre property.
The panel and review board consented that the aforementioned lands are to be added to the site list subject to the RZLT, starting from February 2024. The O’Flynn company and a number of other significant landowners independently started legal objections towards the adverse outcomes from An Bord Pleanála. Yet, as the alterations were put into action by the Finance Minister, An Bord Pleanála posited in the High Court that O’Flynn’s legal initiative is presently opposing a decision deemed “obsolete”.