Millions rebate will help ease impact of Covid
The landmark case is estimated to be worth between £50m and £70m in refunds for councils.
While an exact figure is yet to be determined, Mid Ulster Council estimates it will receive between £3m and £4m.
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Hide AdIt’s a refund which is much needed by the council as its finance streams have been stretched dealing with the impact of Covid-19 since March.
The case centred on whether VAT should be payable on charges paid by members of the public for access to sports, recreation and leisure facilities provided by councils.
Sinn Féin Councillor Cathal Mallaghan, chair of Mid Ulster Council, called the ruling a “mammoth victory”.
He said: “This is a mammoth victory from which each and every council here, and their ratepayers, will benefit substantially.
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Hide Ad“Given the significant financial pressures which we all face as a result of the pandemic, the timing could not be any better.”
Councillor Mallaghan praised the work of Mid Ulster’s finance director, JJ Tohill.
“While our sector gains as a whole, this case would not even have been taken, let alone succeeded without Mid Ulster’s Finance Director, JJ Tohill.
“JJ’s expertise, hard work and dogged determination over a sustained period, together with a brilliant legal team, has brought us all to this landmark win.”
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Hide AdLocal councillor Malachy Quinn, who is also chair of the SDLP Association of Councillors, welcomed the successful legal challenge.
He said that a significant rebate should now be paid to the 11 councils and will ease pressures caused by the Covid-19 crisis.
He said: “Mid Ulster Council has been engaged in a legal battle against unfair VAT charges for over a decade now.
“The successful result will now see local councils across Northern Ireland eligible for significant rebates for charges incurred against the public using leisure facilities operated by local government.
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Hide Ad“This is a big win for local government and it couldn’t come at a more critical time for council finances.
“The Covid-19 crisis has significantly reduced revenue streams which has had a knock-on impact on public services.”
Councillor Quinn said the rebates will go some way to ease pressure on key public facing services run by our councils.
In May the Council moved to furlough 350 staff due to “severe financial losses” of “approximately £620,000 per month” as a result of the Covid-19 pandemic.
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