CD writes from Waterford: My credit card has been used to withdraw €2,500 in cash by unknown persons before the credit card company became suspicious and refused any further use. I have just found out and would appreciate your advice on what course of action to take, or is it a lost cause? The bank has informed me that I would be liable to pay the money.
I contacted Ipso, the Irish banks’ payment services company, and was told an investigation will be undertaken into the suspicious use of your card that will most likely involve the gardai as well as the card provider. You will be asked to account for your use of your card during the period in question, and if the investigation shows that you “have not used your card or chip and Pin number negligently, the value of the fraudulent withdrawal will be refunded by your bank” .
If your card wasn’t stolen, it wasn’t left unattended and you didn’t let anyone know your Pin number, then chances are you have been a victim of ATM “skimming”, says Ipso.
Skimming can involve a sophisticated device that is attached to the ATM with a pinhole camera that captures your Pin number, or it can be as simple as “shoulder” skimming, whereby the thief literally observes you keying in your secret number.
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It will certainly help your case if the authorities believe an ATM you used may have been subject to skimming during the period in question or if you can produce any evidence to show you were somewhere else when your Pin was being used.
Ipso says that fraud cases are dealt with speedily by the credit card companies and tackle the immediate problem of liability individually.
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German bank view of partners’ plans
ET writes from Dublin: I am considering investing in the German property market with a friend and we envisage spending up to €1.5m on a mixed residential/retail property. We are both PAYE workers and we plan to fund 70%-80% of the purchase price through a German bank.
What’s the optimal way to structure our relationship in order to optimise our business case with the German banks? Does this relationship structure also minimise our potential exposure to current and exit taxes?
The German property market is attracting a lot of attention these days, but with German unemployment still running at more than 10% and economic growth at less than 2% per year, you need to take a long-term view of your investment.
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As for formalising your relationship with your partner, this is a very good idea. The German banks will want to know how much capital each of you is putting up, how you are sharing the management of the property and the nature of your exit plan, should one of you wish to liquidate their interest early, or if either of you fell ill or died prematurely.
A partnership agreement won’t have any impact on the tax liability you will incur on rental income, capital gain if the property is sold or any inheritance tax bill that your respective heirs might face. It would, however, make the deal much more complicated and probably result in extra tax being paid, not to mention higher administration fees and charges.
You need to speak to a good accountant/legal adviser who is familiar with both Irish and German property tax and legal issues.
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Cost of including items in house sale
DS writes from Tipperary: My wife and I have just bought a holiday home worth €250,000 and agreed with both the vendor and auctioneer to buy certain contents, including new appliances and garden equipment, for another €16,000.
We were told the deed price would be €250,000 and we would have to pay a 4%, or €10,000, stamp duty since the contents amount would be exempt. When it came to signing the contract however, the deed value was €266,000, which attracts 5% or €13,300 stamp duty.
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My solicitor said we would still only have to pay the 4%, so I signed. Now he is denying this and says we must pay the €13,300 in stamp duty or we will be in trouble with the Revenue. What can we do?
Paying for household items separately from the building, especially if it appears to keep you beneath a higher stamp duty band, is a grey area with the Revenue, who sometimes see it as blatant tax avoidance.
They take no prisoners when it comes to late payment, however, so the first thing you should do is appeal to the Revenue for a time extension and include any documents from the vendor and auctioneer that back up your story that the sale price was €250,000.
If you haven’t already done so, put your complaint to your solicitor in writing. If his response is not satisfactory, you can ask the Law Society to investigate, but I am told that even if it finds in your favour it cannot make a cash award.
They can give you the names of lawyers who will take your case against your solicitor, but financially it might make more sense just to pay the extra €3,300.
Jill Kerby is co-author of the new TAB Guide to Money, Pensions & Tax 2006. E-mail her at money.ireland@sunday-times.ie or write c/o Money Matters, The Sunday Times, Fourth Floor, Bishop’s Square, Redmond’s Hill, Dublin 2, giving a daytime telephone number. We cannot send personal replies or deal with every letter. Please do not send original documents or SAEs. Information and advice is offered without legal responsibility.