At a time when our local council is haemorrhaging cash at an alarming rate, and revenues have plummeted, the income from business and domestic rates is vital to maintain services. Bear in mind also that a business’s liability for business rates is a necessary qualification for securing COVID-19 emergency funding as we described on April 20th.
This inspired us to revisit an article we published on January 30th 2019 entitled “It’s Business as “Normal” at the Grand…”. That article came about after Council bailiffs turned up at the Grand over unpaid business rates. Our research then revealed that only seven out of eighteen holiday flats were registered for business rates. It also revealed that during the Insolvency Services enquiries into Michael Stainer’s (pictured) indebtedness, he admitted in a formal declaration that there was some £10,000 owing in Council Tax.
What concerned us then, as it does now, what of the other eleven holidays flats owned by the Stainers?
Luckily Mr Stainer has come to our aid from the sanctity of the virtual witness box. Yet again, the Grand’s freeholder, Hallam Estates Ltd, in the person of its sole director, Robert Moss (pictured), currently residing at the Grand, was before the First Tier Property Tribunal. The case last Tuesday, May 5th, revolved around the use of residential flats whose lease strictly forbade commercial use, being rented out as holiday lets. We will undoubtedly be reporting on this when the Tribunal issues its determination, as the proceedings were quite remarkable in many ways.
The issue here however, is a specific question put twice to Michael Stainer. He was asked as to whether all the eighteen flats were registered for business rates, as they should be, as shown on the Council’s Business rates data 2020 for May.
His answer on both times of asking, even when challenged a second time, was a clear and unequivocal “yes”.
Here’s the true answer taken directly from the May 2020 Business rates data sheet, easily available to download from the Council’s website.
The only difference from last year is that Hallam Estates Ltd are now the primary liable party, whereas in January 2019 the primary liable party was The Grand Folkestone Partnership Ltd, notwithstanding that this company went into liquidation in September 2018. That will also pose some problems to the Council as Hallam’s financial problems as reported back in March were made far worse when the Honourable Judge Zacaroli twice rejected applications to stay insolvency proceedings on April 17th 2020 and 5th May 2020.
But what of the missing flats, all eleven of them? As they were absent from the Council’s Business rates register, they must be registered for domestic rates. To find them, we went to the Council Tax valuation list.
Eight flats do not show up on either register: The Gordon, The Glynde, Grand (Suite) – better known as the flat that never was Hastings, Hever, Hythe, Grasmere, Goodwood. So that’s eight lots of Council tax to be accounted for. What is described as the Penthouse Floor in the Business Rates register is in fact four flats: the Pembury, Petworth, Penshurst and Pembroke.
So back to Mr Stainer and the memory malfunction. His “yes” should have been a “no”.
So what about false statements in a Tribunal? These violate Section 32.14 of the Civil Rules & Practice Direction(1) where “proceedings for contempt of court may be brought against a person if he makes…. a false statement.”
As the Tribunal Appointed Manager for The Grand, everyone can be assured that the alleged “memory malfunction” will be brought to the attention of the Panel.
If the staff employed at the Grand are now being furloughed at the expense of the taxpayer then Hallam Estates Ltd should not object to meeting all its legal obligations when it comes to the payment of local and national taxes.
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy
Privacy Overview
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
As the Tribunal Appointed Manager for The Grand, everyone can be assured that the alleged “memory malfunction” will be brought to the attention of the Panel.
If the staff employed at the Grand are now being furloughed at the expense of the taxpayer then Hallam Estates Ltd should not object to meeting all its legal obligations when it comes to the payment of local and national taxes.
https://en.wikipedia.org/wiki/Render_unto_Caesar