Cessnock’s Royal Oak Hotel closes suddenly as pub forced to pay ‘unsubstantiated’ ATO debt
The surprise closure of the Royal Oak Hotel at Cessnock has shocked many, its owner John Harvey blaming the Australian Taxation Office, claiming “fake bills” and “unsubstantiated” debt.
Newcastle
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In sensational claims a Hunter Valley pub owner has lashed out at the Australian Taxation Office (ATO) blaming the government entity for his venue’s sudden closure.
The popular Royal Oak Hotel at Cessnock — owned by local dentist John Harvey — posted on its Facebook page on Monday the hotel had now closed to the surprise and shock of many patrons and locals.
“It is with a heavy heart we would like to inform all our customers that The Royal Oak Hotel Cessnock has closed,” it stated.
“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.”
Mr Harvey — who created a website called ATO duty of care, a fair go for all, explaining the pub’s closure — blamed it on an “unsubstantiated” debt it was forced to pay by the ATO, who he has been fighting for the last five years.
“Small business in this country has never before had to deal with the challenges it has faced over the last three years,” he said.
“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“We have been whacked by the ATO with fake huge bills in the past and we have had them withdrawn, but the bastards still keep coming.”
Mr Harvey bought the Hotel in 2011 and the ATO allowed Hunter Valley Dental Surgery and The Royal Oak Hotel - both owned by Mr Harvey - to operate as a single entity for income tax purposes.
But in 2015, the ATO removed that right until late 2017, which meant it took away the group’s ability to reduce compliance costs for the business and resulted in a massive tax bill.
In August last year, the Royal Oak was put on the market before Mr Harvey lodged a statement of claim in September in the Supreme Court.
It was for damages and costs against the ATO and Commonwealth of Australia which totals more than $4.5 million.
Despite this, Mr Harvey is optimistic the hotel will again reopen.
“Once we get rid of the court case and proceedings are out the way, we can reopen,” he said.
In response, an ATO spokesperson said, “The ATO cannot comment on the tax affairs of any individual or entity due to our obligations of confidentiality under the law.”
“We are also unable to comment on matters before the court.”
SHOCKING NEWS
News of the sudden closure has been a big shock to many.
More than 200 comments surfaced after the announcement on social media.
“Oh this is terrible, best pub in town,” one Facebook user said.
“We were just here last week and the food, coffee and staff were amazing. Will be very missed,” another said.
“I am sad. I loved that pub,” another Facebook user commented.
There were also comments from those who reminisced about all the good times they’ve had at the hotel.
“My first child’s name was decided at the bar, 30 years ago,” one person said.
“That’s where my husband proposed to me,” another added.
THE HISTORY
The historic pub opened in late 1922 when a license was transferred from the Royal Oak at West Maitland which closed down in January in 1921. This is how it got its distinctive name.
Maitland architect Thomas Silk originally submitted plans for a three storey building but they were changed to two storeys, before being built and owned by Tooth and Co. Brewery, the fifth hotel built in Vincent street.
They leased the license to operate the hotel to the publican and you could only buy Tooths beer at the hotel.
The hotel was an important social meeting place for local residents and provided accommodation for travellers.
The first licensee was a woman named Mary Heuston, who was an experienced hotel licensee having also owned the Family Hotel in Maitland.
These day, the hotel has been carefully restored to keep with some of the original features including the bar and the pressed metal ceilings.
The Royal Oak 221 Restaurant and Bar took out the title of the nation’s best restaurant in a pub, club or tavern at the Savour Australia Restaurant and Catering Hostplus Awards for Excellence in 2014.