A GROUP of people claimed in the High Court yesterday that planning permission for houses which they own in a Dublin 4 development meant that they could let them as "holiday homes" to avail of a tax benefit.
RTE's Head to Toe presenter, Ms Barbara McMahon, and her husband, are among the owners.
Dublin Corporation claimed that the use of the houses contravened planning permission because they were registered with Bord Failte as "holiday homes" for short term lettings.
Mr Philip O'Sullivan SC, for the house owners, said he understood that some of his clients were the first to avail of the scheme in Dublin and got the idea from similar schemes in tourist areas in the west. It was part of a scheme favoured for tax purposes under the 1978 Finance Act.
He claimed that the original planning permission for the houses at Lansdowne Village in Newbridge Avenue and Londonbridge Road, Dublin, permitted short term lettings.
A typical occupant would be a diplomat, visiting businessman or holiday maker. The owners themselves occupied the houses from time to time.
Dublin Corporation took the view that special planning permission was required for houses on short term lettings. An Bord Pleanala decided that there had been a material change of use which required planning permission.
He said his clients sought a declaration from the court that the relevant planning permission authorised the particular use, and they were also appealing the Bord Pleanala decision.
The original 1983 planning permission was for 25 houses and 56 maisonettes at Lansdowne Village. Mr O'Sullivan said he had no problem with the corporation's view that a change to office, surgery or consulting room would be a "material change" and the condition clearly excluded "non residential use".
The only issue was the length of a stay. The typical length of stay over the years had been two or three weeks from 1986.
Mr Justice Barron asked why it had taken until now for the matter to get to court when he was told the first challenge to the corporation's decision had been in 1988.
Mr O'Sullivan said the planning authority had not sought an injunction or enforcement order and, as far as he could understand, had not been particularly adversarial in the matter.
Mr Justice Barron asked if non owner occupier was a business use.
Mr O'Sullivan said the test was how the use affected the immediate environment and not how long the occupant would be in the house. He understood that if a house was let on long term occupancy, the corporation would not object.
The corporation, in its defence, claimed that no part of the documentation in the planning application indicated that the houses would be used in any way as "holiday homes" or that they were for short duration occupation. The current use was not authorised.
The owners' group includes Dr Thomas McMahon, of Glenbrook, Castleconnell, Co Limerick; Dr Patrick Lee, of Ballyclough, Co Cork; Dr Stephen Flynn, Mill Road, Corbally, Limerick; Mr Marcus McMahon and Ms Barbara McMahon, company directors, both of Grange, Castleconnell; Mr Brian Gubbins, company director, and Ms Moya Gubbins, of Stormount House, Castleconnell; Mr Frank Cleary, company director, Monread Road, Naas, Co Kildare; Ms Jacinta Stacey, business executive and Mr Ciaran Stacey, of Dargle Valley, Rathfarnham, Co Dublin; and Security Holdings Ltd, with registered offices at O'Connell Street, Limerick.
The hearing continues today.