Royal Oak Hotel owner blames ‘unsubstantiated’ ATO debt for sudden closure
The owner of a historic pub in the Hunter Valley has blamed an “unsubstantiated” tax debt on his decision to close its doors suddenly.
Locals were taken by surprise when news was posted to social media that Cessnock’s Royal Oak Hotel had closed.
Owner John Harvey took to Facebook to make the announcement, blaming the Australian Taxation Office for the pub’s sudden demise.
“It is with a heavy heart we would like to inform all our customers that The Royal Oak Hotel Cessnock has closed,” Harvey said in the Facebook post.
“We are using this time to reassess the hotel’s future and will keep you up to date regarding its reopening.
“Thank you for your support over the years.”
Harvey said he has been fighting an “unsubstantiated” debt to the ATO for the last five years until he was forced to pay.
In a website created by Harvey, he stated; “Small business in this country has never before had to deal with the challenges it has faced over the last three years.
“We have had drought, floods, fires, the massive storms and now the Coronavirus but the greatest threat to the small business in Australia is the ATO.
“Hungry to meet their targets the ATO are hanging around like foxes in a flock of newborn lambs waiting to pick off the vulnerable.
“We have been whacked by the ATO with fake huge bills in the past and we have had them withdrawn, but the bastards still keep coming.”
A dentist by trade, Harvey acquired the Hotel in 2011, with the ATO permitting his dental practice and the hotel to operate as a single entity for income tax purposes.
But in 2015, the ATO removed that right until late 2017, resulting a huge tax bill. Last year Harvey lodged a $4.5 million claim in the Supreme Court for damages and costs against the ATO and Commonwealth of Australia.
Harvey said he will reopen the pub “once we get rid of the court case and proceedings are out the way”.
Sheridan Randall, 21st February 2020
