The Credit Review Office will accept applications from SMEs, sole traders and small and medium-sized farm enterprises that have had their application for credit refused or reduced or have had credit facilities withdrawn, and feel that the bank’s decision is unjustified. The Credit Review Office will, on application from the borrower, carry out an independent and impartial review of the bank’s decision.

The review process will review decisions to refuse, reduce or withdraw credit facilities (including applications for restructured credit facilities) from €1,000 up to €250,000.

The Credit Review Office review process will operate after the borrower has unsuccessfully appealed through the bank’s own internal appeals process. All participating banks are required to review their loan appeals policy and ensure that borrowers are made aware of their right to an internal appeal of an unfavourable lending decision.

For further information please contact:

Credit Review Office,
The Plaza,
East Point Business Park,
Dublin 3

Tel: 1850 211 789

Answer: Although most of the media comment in relation to the National Recovery Plan has been directed at the substantial increases in income tax and cuts in social welfare, the Minister for Finance laid down a clear marker in relation to capital taxes.  He announced that for both Capital Gains Tax (CGT) and Capital Acquisitions Tax (CAT) the systems, structures and thresholds will be reformed in 2012.  The general view is that the rates (currently 25%) will go up and the tax free thresholds will all come down.  The reliefs and exemptions from CGT, CAT and Stamp Duty will either be abolished or significantly restricted.

The transfer of land within a family currently has the benefit of a number of exemptions and reliefs, e.g. Retirement Relief for CGT and Agricultural Relief for CAT.  It is widely expected that these reliefs and other reliefs like the exemption from CGT and Stamp Duty on the transfer of a site will be affected by the proposed measures and therefore I would be inclined to take action sooner rather than later.  This would apply equally to anybody thinking of transferring a property or a business for which Business Relief might be claimed.

The information contained in this article is for general information purposes only and does not constitute legal or other professional advice.  Specific legal advice should be sought on any particular matter.

Answer:  Endowment mortgages were particularly popular in the late 1980s and early 1990s and were often sold with the promise that not alone would the capital sum of the mortgage be repaid when the term was up but that there would be a bonus payment to you as well!  A traditional mortgage is redeemed by paying both capital and interest every month.  An endowment mortgage is different as you pay only the interest every month and the other part of your monthly payment goes into an investment fund.  While these investment funds did well initially in the 90s you will not be surprised to learn that many of them have lost money in the last few years.  It can therefore come as a considerable shock to a borrower to find that not alone are you not getting the bonus payment you expected but that there actually is a shortfall in the amount available to repay the capital on the mortgage and that you have to make up the difference.

If you can show that the risks associated with this type of mortgage were not clearly explained to you at the time you took it out, it is possible that you may have a claim against the bank.  Earlier this year the Circuit Court awarded two pensioners €16,000 damages against a bank for negligent misrepresentation in the recommendation of an endowment mortgage.  The decision was largely based on the absence of any written warning from the bank and it may well be worth looking at what documentation was furnished to you at the time you took out your loan.  It should also be noted that this Circuit Court decision is under appeal.

The information contained in this article is for general information purposes only and does not constitute legal or other professional advice.  Specific legal advice should be sought on any particular matter.

The information contained in this article is for general information purposes only and does not constitute legal or other professional advice.  Specific legal advice should be sought on any particular matter.

Answer: Most companies now provide some level of internet access to their employees for business purposes.  It would be normal practice for employees to have access to the internet for some matters not directly related to the business e.g. personal banking online.  However employers need to recognise that excessive web surfing during working hours can lead to a significant loss of productivity.

There have been numerous cases in relation to employee misuse of the internet and it is essential that as an employer you have an internet usage policy which is properly incorporated into the terms and conditions of employment.

You should also look at technical safeguards which may complement any legal policies and it would also be important that access to computers by employees is monitored so as to ensure that company policies are being maintained.

It is unlikely that the use of the internet for unauthorised purposes will amount to a sufficient reason for dismissing an employee without notice and prior warning in the absence of a clear written statement to this effect in the company’s policy.  An exception to this perhaps would be a situation where an employee was using the company’s facilities to download obscene material but it will very much depend on the circumstances.

The information contained in this article is for general information purposes only and does not constitute legal or other professional advice.  Specific legal advice should be sought on any particular matter.

Answer:  It is easy to forget when one is getting married that you are entering into a binding legal contract with certain implied terms and conditions.  Like any contract, it is possible to reach agreement on varying these terms but because the Irish Constitution recognises the family as the natural and primary unit in society and also pledges to protect the institution of marriage, it was commonly thought that prenuptial agreements were ineffective in Ireland.

However with the introduction of divorce and the complexity of modern relationships it is now generally agreed that prenuptial agreements may well be enforceable depending on the circumstances.  One must remember that an application for divorce requires a court to consider whether proper provision has been made for each party and it is unlikely that a court will uphold any prenuptial agreement which prevents this. 

For the vast majority of couples a prenuptial agreement is not necessary and typically one would only see a prenuptial agreement where one of the parties has very substantial assets.  It may also be appropriate to have an agreement where someone is remarrying and wishes, for example, to protect the ultimate transfer of assets to the children of a prior relationship.

It is essential that any intending spouse who is being asked to sign a prenuptial agreement does so on the basis of informed consent.  Failure to disclose all assets or any element of duress in signing the agreement will almost certainly render it unenforceable.  In fact it would be best if the intended spouse received independent legal advice before signing any such agreement.

The information contained in this article is for general information purposes only and does not constitute legal or other professional advice.  Specific legal advice should be sought on any particular matter.

Answer: If you are trading as a limited company, there are specific details which must be included on your website.  These details are broadly similar as the ones you are already legally obliged to display on your company documentation, e.g. letterheads and invoices.

You must disclose on the website and any electronic communications the following details: - 

• The name of the company and its legal form
• The place of registration of the company i.e. Ireland and the registration number and registered office.
• In the event that you are exempt from the obligation to use the word ‘limited’ as part of the name, the fact that it is a limited company.
• In the case of a company which is being wound up, you must state this.
• If you make any reference to the share capital of the company, the reference has to be to the paid up share capital.

 While I have not come across any prosecution for failure to display the above items since the law came into force in 2007, nonetheless there are quite significant fines for any breach of the regulations and therefore it is very much in your interest to make sure you comply with the law.

The information contained in this article is for general information purposes only and does not constitute legal or other professional advice.  Specific legal advice should be sought on any particular matter.

Answer:  I think it is advisable for any business to have a standard set of terms and conditions.  If you are dealing primarily with consumers you are limited in what you can provide for in your standard set of terms and conditions.  There are certain rights which are guaranteed to consumers by legislation and there is also European law which makes any unreasonable terms unenforceable.  However, it is still better to have a standard set of terms and conditions particularly in a service industry where you may not always get your fee paid in advance.

Where the transaction is business to business, there is much more scope for tailoring the terms and conditions – for example it may be possible to substantially limit your liability if something goes wrong.  If you are doing a lot of work on a business to business basis it can often arise that both parties have their own standard terms and conditions.  In this event, it can sometimes be difficult to work out which terms and conditions apply and this is something to watch out for.  In disputes of this kind the courts will often look at the behaviour of each party and analyse the transaction in order to decide which party made the offer to contract and which party accepted the offer.  It would certainly be helpful to your case if you lay down clearly the conditions under which you are entering into an agreement and then follow those steps.  It is therefore important to regularly review your terms and conditions to ensure they reflect your current business practices and that they are legally effective.

The information contained in this article is for general information purposes only and does not constitute legal or other professional advice.  Specific legal advice should be sought on any particular matter.

Answer: Recent changes introduced by the Finance Act of 2010 have simplified the payment of Inheritance Tax and have made the job of an Executor less onerous.  Up to this year an Executor had a secondary liability to pay Inheritance Tax for a beneficiary.  Therefore it was good practice for this tax to be effectively deducted by the Executor and paid over to the Revenue.

However this year’s Finance Act has changed the rules so that the person who receives the inheritance is now the accountable person.  There is one exception to this rule in that the Executor still has a secondary liability where the beneficiary is non-resident in Ireland.

It might be no harm to alert the beneficiaries to the need to file a tax return.  Under the previous rules returns were due and tax payable usually within four months after the date of the Grant of Probate (although it is possible for the tax to fall due on an earlier date).  The new rules provide that where this “due date” occurs during the period from 1^st January to 31^st August in any year the tax should be paid and return delivered on or before 31^st October in that year.  Where the due date occurs in the period from 1^st September to 31^st December in any year the tax shall be paid and return delivered by 31^st October in the following year.  As you would expect, a late return may incur penalties and interest.

The information contained in this article is for general information purposes only and does not constitute legal or other professional advice.  Specific legal advice should be sought on any particular matter.

Answer:  Most planning permissions have a five year life and strictly speaking the building must be completed within that five year period.  In the past you could only apply for an extension if the building was substantially complete.  In the case of a private dwelling house this usually meant that you had to have construction at least up to wall plate level.

However under the Planning and Development (Amendment) Act 2010 it is now possible to apply for an extension even though you have not started construction at all.  In short the Local Authority can grant an extension where you can show that the development has not gone ahead because of “commercial, economic or technical” issues.  You must apply before the expiry of the original planning permission and you only get one opportunity to apply for an extension of up to five years. 

If you fail to apply for an extension then the planning permission will lapse and you will have to start the process all over again.

The information contained in this article is for general information purposes only and does not constitute legal or other professional advice.  Specific legal advice should be sought on any particular matter.

Answer: Firstly as a tenant you are entitled by law to be furnished with a rent book by your landlord.  A rent book is a document which contains the details of your tenancy agreement and should also record all payments of rent that have been made to the landlord.

When you make a payment to your landlord it should be recorded in the rent book and the landlord should either sign the book or give you a signed receipt as evidence of the payment.  I would always prefer that payments for rent are made by cheque or by standing order so that there is a back up record of the payments.  However these payments should still be recorded in a rent book or you should still be furnished with a receipt.

It is your landlord’s responsibility to give you a rent book.  If your landlord refuses to supply a rent book you should contact the Private Residential Tenancies Board.  They now deal with any disputes between a landlord and a tenant.  Further information is available on their website www.prtb.ie.

The information contained in this article is for general information purposes only and does not constitute legal or other professional advice.  Specific legal advice should be sought on any particular matter.