The Brexit Support Fund closes for applications at the end of this month - HMRC is encouraging eligible businesses to complete their application before then as the scheme application date will not be extended beyond 30 June 2021. This £20 million SME fund is designed to enable traders to access practical support, including training for not just new customs rules but support also with the rules of origin and VAT processes. From a recent discussion with HMRC we understand the evidence burden of these grants is much lighter than other grants and that an application can be made before 30 June 2021 but the evidence does not need to be submitted until 31 August 2021.  Anyone booking onto the Institute’s certificate in customs and trade course may be able to avail of the grant, subject to the relevant conditions being met for the scheme if the business is established in the UK.  Small and medium sized businesses that trade solely with the EU – and are therefore new to importing and exporting processes – are encouraged to apply for the grants. In a recent meeting with HMRC, the Institute was advised that applications have been low to date, especially in Northern Ireland, however thousands of businesses have started applications but not completed them. The scheme administrators are currently contacting businesses which have completed a registration but have not yet submitted their application.  The definition of SME under the scheme is very generous. Broadly, a qualifying business is one established in the UK with up to 500 employees and turnover of up to £100 million. 

In the June edition of tax.point Gráinne Duggan BL and Andrew Moran BL, provide insight into the role of the Tax Appeals Commission as an expert tribunal and its role in the area of EU law in their analysis of the determination in 08TACD2021. Malachy McLernon details why new capital allowance measures in the UK mean there is no longer a financial incentive for companies to delay purchasing equipment.  In VAT Matters, David Duffy provides us with the latest Irish and EU VAT developments, and Michelle Thompson considers the complexities of the VAT rules for land and property in the UK, as HMRC calls for evidence on their simplification. tax.point is available in print or online through TaxSource Total.

In its response to the consultation Raising standards in the tax advice market, the NI Tax Committee stresses the need for any mandatory Professional Indemnity Insurance (“PII”) requirement to be carefully introduced given concerns that premia could increase for affiliated tax advisers as a way of spreading the higher risk from unaffiliated agents across the whole tax advisers market. This consultation focused on two aspects of this ongoing project; mandatory PII and the definition of tax advice. Overall, the Committee made the following key points in its submission:- Mandatory PII could lead to an increase in premia - smaller firms and sole practitioners providing tax services could be priced out of the market which could lead to even more taxpayers seeking assistance from rogue agents or completing and submitting their own returns which is not desirable given the complexities of UK tax legislation. This is of particular concern in the NI market; In introducing a mandatory PII requirement for tax advisers, the Government has a vital role to play in its discussions with PII insurers. An independent Tax Advisers PII Adjudicator should be established for the affiliated sector; The PII cover for an unaffiliated tax adviser should be higher than that required currently at the highest level by any of the Professional Bodies (which is expected of practising members of Chartered Accountants Ireland) and gross fee income could be used as an appropriate measure to stage mandatory PII; For affiliated agents, the burden should fall on HMRC to check and place reliance on the searchable online databases of Professional Bodies when establishing if PII is in place. Where an adviser is not affiliated, the burden of proof should fall on the adviser; Any PII enforcement options should apply to unaffiliated advisers; Access to enhanced online services should be provided to those who are affiliated members of Professional Bodies with the appropriate level of PII; The definition of tax agent in Section 38 Finance Act 2012 (dishonest conduct legislation) feels pitched at the right level in the context of the definition of tax adviser and thus tax advice; HMRC should develop an overall consumer protection strategy combining mandatory PII with other measures; and The Office of Tax Simplification should be tasked with carrying out a review of income tax complexity in particular given the proposed extension of MTD to income tax from April 2023.

Chartered Accountants Ireland is preparing a submission to the Call for evidence: timely payment consultation. We need your feedback to build our response to this which mainly focuses onthe potential to move to more frequent in-year tax calculation and payment. The Institute previously responded to a similar consultation “Voluntary pay as you go” in 2016 in the context of Making Tax Digital. As part of the Government’s 10-year strategy to build a trusted, modern tax administration system, this call for evidence is being badged as the start of a conversation about the benefits and challenges of the current tax payment timings, and for moving to more frequent, in-year tax calculation and payment. It focuses on Income Tax Self-Assessment (“ITSA”) and Corporation Tax (“CT”) for companies outside the quarterly instalment regime, but welcomes feedback on other taxes. This will be of interest to everyone paying Income Tax and National Insurance contributions outside existing regular payment regimes (such as Pay as You Earn) and those in Corporation Tax Self-Assessment who are not within the quarterly instalment payment regime. Tell us about your views by Monday 5 July 2021 on any of the following key questions:- Do you have any comments on the benefits and challenges of timely payment? Please provide a narrative, with examples if possible, of any other benefits, challenges or impacts which you consider should be of central concern when looking at this proposal. What are the advantages/challenges of the current payment timings for ITSA? Are there any groups who rely more heavily on these than others or are challenged or disadvantaged more than others? Do you have any comments on the specific challenges faced by non-business ITSA taxpayers (i.e. those in ITSA other than the self-employed, landlords, or large partnerships)? Do you have any comments on the specific challenges faced by new ITSA taxpayers? Do you have any initial comments specifically on the impact of basis periods on more timely payment of ITSA? What are the benefits/challenges of the existing payment timings for CT?Are there any types of company, sectors, or other distinctions which rely more heavily on the long payment window than others or make the current payment timings challenging or disadvantageous? Do you agree that if there is to be a more frequent tax payment regime, it should generally be based on current year liability? Do you have any initial comments on the benefits and challenges of different calculation options to meet diverse taxpayer needs versus one process for all taxpayers in scope? What are your views on using digital solutions to facilitate in-year calculation, and what and how could specific groups be affected negatively by this? Do you have any initial comments on the feasibility and benefits for MTD taxpayers of paying in-year instalments towards their tax bill, informed by their quarterly MTD updates? Are there taxpayers for whom MTD updates would be a particularly unreliable guide for in-year tax payments, and what alternative basis might be more reliable for them? Do you have any initial comments on how income and expenses could be reported in year for non-MTD taxpayers or on a more frequent basis than required by MTD? Do you have any initial views on the benefits and challenges of monthly, quarterly, or other, payment frequency? How could more frequent payment based on current year liability be phased in? Do you have any comments on the positive and negative cash-flow impacts for businesses of more timely payments? What wider economic impacts do you foresee from reducing the time between the income and the taxation? Do you have any initial comments on the opportunities and challenges of more timely payment of CGT? The full list of consultation questions are on page 38 of the Call for evidence.

The final VAT deferral deadline (today), changes to the CJRS from July, CJRS guidance changes and deadlines feature this week. VAT deferral – final deadline The VAT deferral new payment scheme is available to businesses who deferred VAT due between 20 March 2020 and 30‌‌ ‌June‌‌ ‌2020 and still have payments to make, or who were unable to pay in full by 31‌‌ March‌‌ ‌2021. This includes those on Payment on Account and Annual Accounting schemes. Businesses must apply on or before the final deadline of today Monday 21‌‌ ‌June‌‌ ‌2021 to benefit from making the payment over 8 instalments. Failure to make payment of the deferred VAT in full or to make an arrangement to pay by 30 June 2021 may result in a 5 percent penalty, according to the guidance. The CJRS The deadline to submit  CJRS claims for periods in June 2021 is Wednesday‌‌ ‌14‌ July 2021, unless reasonable excuse is available for late submission. Amendments to May 2021 CJRS claims must be made by next Monday 28 June 2021. The UK Government will continue to pay 80 percent of furloughed employees' usual wages for the hours not worked, up to a cap of £2,500 per month, to the end of June 2021. Conditions of claiming CJRS grants Employers are reminded that for the months of May and June, they must pay the associated employee tax and National Insurance contributions to HMRC. This is a condition of applying for the grant; not doing means they’ll need to repay the whole of the CJRS grant and they may not be able to claim for future CJRS grants. Changes from July From 1 July 2021, CJRS grants will cover 70 percent of employees' usual wages for the hours not worked, up to a cap of £2,187.50. In August 2021 and September 2021, this will then reduce to 60 percent of employees' usual wages up to a cap of £1,875. Employers will need to pay the 10 percent difference in July (20 percent in August and September), so that they can continue to pay their furloughed employees at least 80 percent of their usual wages for the hours they do not work during this time, up to a cap of £2,500 per month. Employers continue to be required to pay the associated employee tax and National Insurance contributions to HMRC in these months. For the hours not worked employers can continue to choose to top up their employees' wages above the 80 percent level or cap for each month, at their own expense. Furloughing flexibly Employers don’t need to place all their employees on full furlough. They can use the CJRS flexibly to bring their employees back to work for some of their usual hours. Employers can claim for a portion of their usual wage costs for the hours spent on furlough. The guidance was updated recently as follows: Page title Changes All Pages with a callout box Text update:   The Coronavirus Job Retention Scheme has been extended until 30 September 2021.From 1 July 2021, the government will pay 70% of wages up toamaximum cap of £2187.50 for the hours the employee is on furlough. Employers will top up employees’ wages to ensure they receive 80%of wages(up to £2,500)in totalfor the hours the employee is on furlough. The caps are proportional to the hours not worked.Find out more about how the scheme is changing. Claims for furlough days inMayJune2021 must be made by 14JuneJuly2021. Claim for wages through the Coronavirus Job Retention Scheme https://www.gov.uk/guidance/claim-for-wages-through-the-coronavirus-job-retention-scheme Text update:   If you’ve missed the claim deadline and have a reasonable excuse, you should access the service as normal. You can submit a request from the page where you choose your claim month. You should do this as soon as you’re ready to make your claim but only after the claim deadline has passed. Download a template if you're claiming for 16 to 99 employees through the Coronavirus Job Retention Scheme https://www.gov.uk/government/publications/download-a-template-if-youre-claiming-for-16-to-99-employees-through-the-coronavirus-job-retention-scheme The template for 16 to 99 employees has been updated.  

Following the implementation of the off-payroll working changes on 6 April 2021, HMRC is aiming to continue to provide support to help taxpayers understand and comply with the reform and is hosting a live webinar this week. In addition to its existing education and support, HMRC will be hosting an interactive Q&A Livestream Event on Wednesday 23 June 2021 which will also provide an opportunity for you to ask questions about the rules to a panel of HMRC specialists.  The session is free to attend, and you can reserve a limited space via Eventbrite - register here. Once registered, you will receive an email with a link to submit questions anonymously in advance, and you will also be able to ask live questions using the online “Chat” facility on the day. The panel will do their best to answer all the questions asked and will signpost you to relevant guidance, educational products, and where to go if you still need further support. 

Last week Finance Bill 2021 received Royal Assent and became Finance Act 2021.

Do you complete expenses and benefits returns? Or do you complete online filing for employment related securities? If so, you have an important role to play in ensuring returns are submitted and payments made on time and by 6 July 2021. Here’s a reminder of the forthcoming deadlines:  6 July 2021 - deadline for submitting all 2020/21 P11D(b) and P11D forms - and the employee must receive their copy of the P11D; 6 July 2021 – deadline for online reporting of 2020/21 annual return in respect of employment related securities; 19 July 2021 - deadline for non-electronic payment of Class 1A National Insurance (NIC) for 2020/21; and 22 July 2021 - deadline for electronic payment of Class 1A NIC for 2020/21. To save on administration, don’t forget to consider PAYE Settlement Agreements, where relevant. For 2020/21 these must be agreed by 5 July 2021 with payments due by 22 October 2021. HMRC has also published online versions of form P11D(b). The purpose of form P11D(b) is to report Class 1A NIC on expenses and benefits-in-kind and to declare that forms P11D have been submitted to HMRC. Employers who payroll all benefits-in-kind and so do not need to submit forms P11D must nevertheless submit form P11D(b) to report their Class 1A NIC liability to HMRC.   

The EU’s e-commerce package will introduce changes from 1 July 2021 in respect of the movement of goods from Northern Ireland to the EU and imports of low value goods into the EU or Northern Ireland. The package also introduces new rules for supplies made through online market places, similar to those already applying in Great Britain and partly in Northern Ireland. HMRC has sent us a number of Q&As one of which confirms that the One Stop Shop procedure will be available for NI businesses to register from 1 July 2021. However, the Import One Stop Shop (IOSS) system will not be available in the UK from 1‌‌ ‌July 2021; until the system is fully implemented businesses can register in any EU Member State. The Institute is discussing these changes directly with HMRC. Two new EU-wide IT systems will be introduced: one for the declaration and payment of VAT on imports of low value consignments (IOSS); and the other for the declaration and payment of VAT on B2C sales of goods within the EU (OSS). The changes will affect businesses: selling or supplying goods from Northern Ireland to non-VAT registered customers in the European Union (EU); making supplies of goods from the EU to non-VAT registered customers in Northern Ireland; sending low value goods to Northern Ireland (or the EU) from outside the EU and Northern Ireland (including from Great Britain (England, Scotland and Wales)); non-EU businesses with goods located in Northern Ireland at the point of sale. It also affects online marketplaces that facilitate the sale of goods: located in Northern Ireland (or the EU) by non-EU businesses to non-VAT registered customers in EU and Northern Ireland consumers from Great Britain to consumers in Northern Ireland and the EU More information is available on GOV.UK and in the Q&As below. “HMRC Q&As Q1. Who is affected by the EU’s VAT e-commerce package that will be introduced on 1‌‌ ‌July‌‌ ‌2021? The e-commerce changes will affect you if you are: supplying goods from Northern Ireland to non-VAT registered consumers in the EU supplying goods from the EU to non-VAT registered consumers in Northern Ireland sending 'low value' goods to Northern Ireland (or the EU) from outside the EU and Northern Ireland (including from Great Britain, England, Scotland and Wales). Under certain circumstances, online marketplaces that are facilitating transactions, will also be affected. Q2. What are the changes that are being introduced in the EU’s e-commerce package? The EU’s e-commerce package, which starts on 1‌‌ ‌July‌‌ ‌2021, will mean changes to the Business to Consumer (B2C) sale of goods between Northern Ireland and the EU, and the import of 'low value' B2C goods into the EU or Northern Ireland from outside the EU. Overview of changes: a new single EU-wide threshold of £8,818 (€10,000) will be introduced for the B2C sale of goods in the EU. The threshold only applies to sales of B2C goods to and from Northern Ireland, which means that suppliers sending goods from the EU to consumers in Northern Ireland who exceed the threshold will have to account for UK VAT in the United Kingdom online marketplaces will be liable for collecting and accounting for VAT on goods supplied to consumers in Northern Ireland, under certain circumstances the EU will remove low value consignment relief (LVCR) on imported goods, which relieves import VAT on consignments of goods of up to €22. LVCR was removed in Northern Ireland on 1 January 2021 in line with wider UK reforms two new EU-wide IT systems will be introduced: one for the declaration and payment of VAT on imports of low value consignments (IOSS); and the other for the declaration and payment of VAT on B2C sales of goods within the EU (OSS). Both systems are designed to reduce administrative burdens on business and to facilitate the collection of VAT across the EU for goods sent from Great Britain to Northern Ireland via an online marketplace that is registered for IOSS, the online marketplace will be liable for payment of VAT on non-excise goods in consignments not exceeding an intrinsic value of €150, rather than the seller. Q3. What are the One Stop Shop and Import One Stop Shop, and why are they being introduced? To support UK traders, HMRC will introduce two new VAT e-commerce IT systems to link with the new EU-wide IT systems. The One Stop Shop (OSS) will be introduced to reduce the administrative burden on businesses. The new opt-in online One Stop Shop will provide traders with a quarterly VAT reporting and payment system and allows you to register for VAT electronically in a single member state for all the eligible sales of goods across any of the EU Member States. This will reduce the administrative burden on your business, as you will only have to deal with one administration, in one language, even if your sales are EU-wide. For traders in the UK, only those who operate under the terms of the Northern Ireland Protocol, are VAT-registered and sell goods that total more than £8,818 (€10,000) per year to consumers in EU Countries from Northern Ireland, are eligible to register for the One Stop Shop Union Scheme. The One Stop Shop will be available on GOV.‌‌UK for businesses to register from 1‌‌ July‌‌ ‌2021, additional guidance about this will follow. The Import One Stop Shop (IOSS) is an optional VAT collection mechanism for imports of low value consignments. The IOSS scheme is an optional accounting scheme that is available to businesses anywhere in the world importing low value non-excise goods, in consignments not exceeding £135 (€150), into the EU. If you register for IOSS, you will need to charge and account for VAT on these supplies. If your consignment is valued at £135 or more, then current rules continue to apply (i.e. Import VAT is due). The IOSS system will not be available in the UK from 1‌‌ ‌July, and until the system is fully implemented businesses can register in any EU Member State. If you’re registered for IOSS and importing goods to Northern Ireland, you should notify HMRC of your IOSS number. Further information on how to do this will be available shortly. Q4. What is Postponed VAT Accounting and what are the benefits? Postponed VAT Accounting (PVA) allows UK VAT registered importers to account for and recover import VAT on their VAT return. PVA is available permanently and we expect that most businesses will choose to use it, because it provides significant cash flow benefits compared to the alternative of paying the import VAT when the goods are imported. Q5. Do I have to use Postponed VAT Accounting if I delay my declarations? Yes, if you are a VAT registered importer, and you delay your declarations or use a simplified customs declaration to make a declaration in your own records, you must use Postponed VAT Accounting (PVA). You’ll need to estimate the amount of import VAT to be accounted for on the VAT return covering the date you imported the goods. If you’re not VAT registered, you must pay the import VAT on your duty deferment account when you make your supplementary declaration. Q6. What steps should I take to benefit from Postponed VAT Accounting? Here are some helpful steps that you should follow: Step 1  Consider getting someone to do declarations for you, such as a Customs Agent, freight forwarder or fast parcel operator. Step 2 Find out on this page when you must use PVA to account for import VAT on your VAT return and when it is optional. Step 3 Find out how to: account for import VAT on the customs declaration complete your VAT Return to account for import VAT Step 4  Talk to your tax advisor or anyone who helps you maintain your VAT records and complete your VAT return. Step 5  Access the Customs Declaration Service to get your postponed import VAT statements that you need to complete your VAT return. Q7. Where to find help and support about importing and exporting We will continue to provide guidance and support to help you and your business, including information on GOV‌‌‌‌‌‌‌‌‌.UK, our popular live webinars and through this weekly email. Give us a call Our customer service advisors are available to answer your queries on the Customs and International Trade helpline. They’ll help you with importing, exporting and customs reliefs. The helpline is open from 8‌‌‌‌am to 10‌‌‌‌pm Monday‌‌‌ to‌‌‌ Fri‌‌day and from 8‌‌‌‌am to 4‌‌‌‌pm at weekends. Call to speak to an advisor on 0300‌‌‌‌ ‌322‌‌‌‌‌‌‌ ‌9434. If you know of a business who would also find these weekly emails helpful, please forward it on, or suggest they register to get these updates directly to their inbox.”

On 11 June 2021, Ireland made changes to their EU VAT refunds service which may affect any claims in draft status. You may need to re-enter the claim again if you did not complete and submit any draft claims before 4:30pm on 11 June 2021. Any new draft claims created before 14 June 2021 for VAT incurred in the Republic of Ireland may also be affected. A number of EU exit webinars are also being held by HMRC. A full list of the EU member states now accepting VAT refund claims for 2021 expenses under the EU VAT Refund system is also now available. Upcoming EU exit webinars are as follows:- Importing – steps you need to take before making your supplementary declaration: to support those who’ve delayed their customs import declarations, HMRC explains the steps you need to take before you can make a supplementary declaration and how intermediaries can help you do this.  Please register to take part if you’ve imported goods since 1 January 2021 and not yet completed a customs declaration for them. If you’re planning to import and want to understand the full declarations process please register for Customs Import Declarations: an overview. Exporting: what you need to do to keep your goods moving: an overview of the actions you need to take now before you export goods from Great Britain to the EU and move goods between Great Britain and Northern Ireland. Key processes include zero-rated VAT, customs declarations, using an intermediary as well as licences, certificates, and authorisations. Please register to take part if you’re planning to export. Trader responsibilities when using an intermediary: this webinar explains your responsibilities as a trader if you choose to use an intermediary to complete import or export declarations for your business. These are complex and an intermediary can save you a lot of time. Please register to take part if you’re planning to import or export. Rules of Origin: watch our recorded webinarif you buy goods from the EU, or send or sell goods to the EU for your business, this webinar will help you understand rules of origin and what’s required to meet the rules. The recorded webinar can be paused or rewound to allow you to work through the information at your own pace.  You can also: watch videos on HMRC's YouTube channel to familiarise yourself with the new customs processes and what you need to do before you trade goods with the EU; use the trader checklist to make sure you’re familiar with the new rules that affect you; use HMRC’s updated guides to understand the new customs and VAT requirements when moving goods between the UK and EU countries; sign up to the Trader Support Service if your client’s business is moving goods between GB and Northern Ireland and use their suite of educational products – including online training modules and webinars for support with the Northern Ireland Protocol; ask and get answers to specific questions about HMRC processes for importing or exporting, by visiting our forums; and watch webinars and videos from other government departments.

The most recent TSS bulletins 31 and 32 are available. These cover the following:- Upcoming change to the ‘Importer EORI’ field in TSS; Preparing for full frontier declarations; Two government schemes supporting SPS goods movements; Supplementary declarations timeline reminder and help is on hand; Using your previous completed declarations as a template for future submissions; Notice of planned TSS downtime today 20 June; New features on TSS available from 21 June; Update your company details in the TSS portal; and Updated error codes guidance to help you with your declarations.

The Minister for Finance, Paschal Donohoe TD, welcomed the preliminary agreement reached by the Council of the EU and the European Parliament for the Brexit Adjustment Reserve (BAR). Under the proposal, Ireland will be allocated over €1 billion of the available €5.34 billion. Speaking in Luxembourg, the Minister for Finance Paschal Donohoe said: “The significant allocation of this Special Instrument to Ireland recognises the disproportionate impact of Brexit on key sectors. With today’s agreement we are much closer to funds being disbursed before the end of 2021 and that is most welcome. I want to thank the Portuguese Presidency of the Council for steering the discussions on the BAR to a successful conclusion.” The next steps in finalising the process requires that the preliminary agreement between the Portuguese presidency of the Council and negotiators from the European Parliament must be endorsed by the two institutions, before they can proceed to adoption of the regulation. This is expected to take place very soon.

Hybrid working is on the cards for most offices, but how can organisations successfully implement it? Moira Dunne has three top tips to help plan for the new way of working. Pandemic restrictions are easing, and businesses are preparing to return to the office. Many employees have enjoyed the flexibility of working from home, and a ‘hybrid’ working model will likely be the new way of working. Hybrid working is a mix between remote and office working. Ideally, the model provides the best of both worlds. If successful, employees and employers can benefit from the flexibility of working from home while also collaborating in the office. To make this happen, it is important to plan for the new way of working. Here are three tips for successful hybrid working. Reset This is a good time to reflect and reset. Due to the sudden onset of the pandemic in 2020, people adjusted quickly to homeworking. Hybrid working will continue to involve homeworking, albeit part-time. So, it is important to review the following: Do I need a better routine when working from home? Can I optimise my workstation and equipment? What distractions cause me to lose time and focus? This review can help people optimise their home working environment, boosting productivity and comfort while not in the office. Plan To get the most benefit from hybrid working, consider how to split work between home and office. Consider the time and location dependency of the work. Is there a requirement to support others at set times? Is there a need to access office-based files or systems? Which tasks are independent of time and location? Tasks that require a high level of focus are more suited to a quiet home environment. Time in the office enables group work, such as problem-solving, innovation or coaching. Each employee can plan the: time-dependent tasks that must be done during core hours; location-dependent tasks that require access to files or systems in the office; collaborative tasks that require interaction in the office; and solo tasks that can be done individually, independent of location or time. If a team gets together to plan their schedules, they can create a rota to cover all responsibilities. They can also optimise collaboration time in the office. Deliver Successful hybrid working happens when each person takes responsibility for delivering in their role. This can build trust and help remove the residual stigma about remote working. It helps shift assessment of performance away from presenteeism. Both employees and managers have a part to play in delivery. Productivity is improved when: employers provide clarity about what needs to be delivered. This helps people work independently at home; employees seek clarity if they are not clear about expectations. They report on progress and discuss any issues that arise; and there is open communication. This is beneficial in any working environment, but it is particularly important in a hybrid working model. Hybrid working offers benefits for both the business and employees. There is a collective responsibility for making it work, but it may take time for the new model to settle. It is new territory, so it is best to take an iterative approach. Encourage people to adopt a continuous improvement mindset. By trying the model, reviewing, modifying, and improving it, you will have a successful hybrid working situation. Moira Dunne is the Founder of BeProductive.ie. You can find more tips about successful hybrid working in her webinar.

A responsive ransomware incident plan is critical for organisations. Carol Murphy and Ross Spelman outline what the plan should include and how to respond in the case of an attack. Every organisation should have a ransomware incident response plan in place, and this should be regularly tested, reviewed, and updated. This plan should include roles and responsibilities for all stakeholders, including IT, legal, compliance, human resources, operations, communications, and end-users. The response effort should focus on key functional areas, including IT, information security, legal, and communications. The teams looking after these areas should share information in a central location and establish clear communication channels with regularly scheduled incident update sessions. IT Ransomware is a technology problem and, once detected, the first step is to disconnect any infected or suspected systems from the network and shut down non-infected systems to protect them from infection. Once that is complete, available backups should be identified and evaluated. It is critically important that backups pre-date the attack. If a system cannot be cleaned and brought back to a secure, operational state, the system must be rebuilt or restored. The restoration process should follow a clear, prioritised sequence based on business criticality and risk exposure. For example, critical production servers or systems providing email/collaboration services may come first, followed by business-critical workstations supporting payroll and other critical areas of the business. Depending on the priority, general user workstations may come last. Information security The information security team should attempt to identify the type of ransomware that has infected the system and, if possible, pinpoint the criminals responsible for it and then determine if a decryption key or remediation software is publicly available. A forensic investigation should be undertaken to determine whether any data was stolen, how the network was accessed, the particular systems accessed, and what activities took place on them. Devices and equipment which appear to be non-infected should be examined for evidence of hacker activity as a matter of routine. Once the investigation is complete, the team should work with IT to fix the vulnerabilities used by the criminals to access the network. It is not good enough to fix the root cause(s) or vulnerabilities exploited by the attacker: the organisation should strengthen multiple layers of security controls and improve/adopt a defence-in-depth approach to security. Legal and communications Depending on the criticality of the incident, company officers and employees may need to be notified immediately. Business partners and key external parties should also be informed at the earliest possible juncture and kept informed as the investigation progresses. The legal and communication teams should prepare a statement to inform the broader public of the incident. They should also work with IT and Information Security to develop and implement temporary workarounds for impacted critical functions, including email, payroll, and customer portals. The team should also prepare for regulatory or compliance reporting requirements such as those covered by GDPR. No ransom We do not think you should pay ransom demands for a variety of reasons. Paying ransoms will only fund continued criminal activity. Payment could also expose companies to legal risk with no guarantee that the criminals will make good on their promise to supply a decryption key or other means of recovering data. Indeed, companies that pay ransoms may find themselves vulnerable to re-infection by the same criminals or their associates. No organisation can afford to be without a cyberattack or ransomware response plan. The plan should be subject to periodic review and set out the role of all appropriate sections of the organisation in the response and recovery process. Particular emphasis should be placed on the investigation phase as this will assist in the prevention of future attacks. When an organisation recovers from a ransomware incident, it should emerge much stronger. Carol Murphy is Consulting Partner and Head of Risk Transformation at EY. Ross Spelman is Cybersecurity Director and Lead at EY.

Over the last number of years, ESG has become increasingly important to investors. By dedicating time and resources to ESG now, companies can reap greater rewards in the future. Edel O’Reilly explains. In my organisation, I act as a conduit between many publicly listed companies and the global investor community, and I have witnessed first-hand how important the issue of environmental, social, and governance (ESG) criteria has become to that community in recent years. Increased regulation, societal demand, underlying customer demand and perhaps, most importantly, improved investment outcomes are the key issues that have fuelled this change, and global investors and lenders now see the adoption of ESG practices as a crucial driver of value creation. This has been reflected in an acceleration in engagement levels between companies and their investors on the key issues.  What are investors looking for? So, what do investors care about and what are they looking for? I regularly organise corporate governance and ESG roadshows, and investors are intensely focused on corporate governance as a key indicator of evaluation. Why? Because good governance underpins strong business performance without excessive risk-taking. Investors focus their attention on board members, the processes in place to support adequate oversight, and board accountability. Board chair and members For allocators of capital, it is critical that the board chairperson is independent, while a diversity of skills and additional board experience are important criteria for board members. And, as the world becomes ever more digital, investors like to see board members who have cybersecurity and IT skills. Processes and oversight When it comes to governance architecture, best practice dictates that there should be three board committees: A nominations committee to ensure board balance; An audit committee to oversee the financial reporting aspects; and A remuneration committee with responsibility for proper alignment with executive pay. Investors want to see balanced compensation packages for management teams that reward performance but that are also related to long-term goals. Investors assess potential long-term value by judging the quality of policies and processes in place and the board’s diligence and care in overseeing their implementation. Accountability Critically, good governance can’t stand still and, as a company grows, it should have governance in place for each stage of its maturity. There must be continual reviews of whether the board structure and policies in place are fit for purpose at every stage of development and growth phase of the company. A formal external evaluation process and response plans to any gaps identified are important steps and initiatives that investors like to see.  Companies that demonstrate a strong commitment to ESG best practices will benefit from greater access to debt and equity capital at competitive costs. Any company seeking a loan or equity investment will potentially be screened through an ESG lens, which will determine access to – and the cost of – such capital. So, the drive for good corporate governance has never been more important.  Investors are rewarding companies that can prove they are legitimately committing resources to sustainable goals – good governance is an essential part of this journey.  Edel O’Reilly is Head of Investor Relations at Goodbody and a member of the Chartered Accountants Ireland Sustainability Expert Working Group.

In Irish tax developments, Revenue updated the Tax and Duty Manual – Surcharge on undistributed income of service companies – following a decision by the Tax Appeals Commission on the activity carried on by management consultants. The corporation tax surcharge suspension ends on 30 June. On the UK front, read more about the relaunch of the Agent Dedicated Line from Monday 14 June and what members should expect when making calls. On the international tax front, G7 leaders endorse a global minimum tax rate of 15 percent and will seek consensus with the G20 and OECD in July.        Ireland Revenue’s view on the activity carried on by a “Management Consultant “is updated in the context of a surcharge on undistributed income of service companies; When the corporation tax surcharge suspension introduced in response to COVID-19 ends on 30 June, surcharges will apply by reference to the original filing date of the Form CT1; UK From Monday 14 June, calls to the Agent Dedicated Line should be answered by HMRC within 10 minutes – read our more detailed update on what to expect when making calls; Read the latest updates on the HMRC administered COVID-19 supports; International The G7 leaders endorsed a global minimum corporation tax rate of 15 percent and will seek to reach consensus with the G20 and OECD in July. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter.

Welcome to this week’s Technical Roundup.   In developments this week, The International Auditing and Assurance Standards Board has released two guides to help stakeholders implement its suite of quality management standards; The IFRS Foundation is inviting users of its website to comment on the kind of digital content it creates and Accountancy Europe have published SME risk management: sustainability which explains how and why SMEs need to put sustainability at the forefront. Read more on these and other developments that may be of interest to members below. Audit IAASB release guides on quality management The International Auditing and Assurance Standards Board (IAASB) has released two guides to help stakeholders implement its suite of quality management standards.  The guides will help stakeholders understand the standards and properly implement the requirements in the manner intended. Financial Reporting The IFRS Foundation is inviting users of its website to comment on the kind of digital content it creates. The European Financial Reporting Advisory Group (EFRAG), the European Federation of Financial Analysts Societies (EFFAS), the Association Belge des Analystes Financiers (ABAF/BVFA), and the International Accounting Standards Board (IASB) will host a joint webinar on 12 July 2021 on the proposals in the IASB’s Exposure Draft (ED) ‘Reg­u­la­tory Assets and Reg­u­la­tory Li­a­bil­i­ties’. The International Accounting Standards Board (IASB) will be holding a live webinar on the Discussion Paper Business Combinations under Common Control on 30 June 2021. Board Member Bruce Mackenzie and technical staff will discuss feedback received in the initial outreach activities, and address some of the frequently asked questions from stakeholders. Sustainability The 14th European Development Days (EDD), a leading global forum on international partnerships and cooperation, this week began to reflect on the road to the UN Biodiversity Conference (CBD) COP15 in Kunming in October and COP26 in Glasgow in November 2021. The European Financial Reporting Advisory Group (EFRAG) Secretariat seeks comments from stakeholders on its Public Consultation Paper: EFRAG Due Process Procedures on EU Sustainability Reporting Standard-Setting. Comments are welcome by 15 September 2021. The proposal for a CSRD requires that EFRAG’s Technical Advice is prepared with ‘proper due process, public oversight and transparency, and with the expertise of relevant stakeholders, and it is accompanied by cost-benefit analyses that include analyses of the impacts of the Technical Advice on sustainability matters’, contributing to the delegated acts through which the ESRS will be adopted in the EU. Read more here. Small businesses are at the heart of our economies. Accountancy Europe have published SME risk management: sustainability which explains how and why SMEs need to put sustainability at the forefront. It outlines how accountants can help SMEs become more sustainable organisations so they can deal with these new realities. Other areas of interest The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has published its Annual Report, which reviews its achievements in 2020 against its priorities and objectives in meeting its mission of enhancing investor protection and promoting stable and orderly financial markets in the European Union. Read more here. For further technical information and updates please visit the Technical Hub and the Covid-19 Hub on the Institute website.       

Can you tell us a little about where you're from? My name is Kevin Nyhan. I'm originally from Bandon in West Cork but have lived and worked in Cork City for many years. I really enjoy living in Cork which has the spirit of a town and a really good atmosphere and strong business and community spirit. It has the benefits of city living yet I'm still only a short drive from West Cork and the scenery, beaches and food scene that Cork has to offer. Tell us why you choose to become a Chartered Accountant and how you got here? I've always had an aptitude for numbers and during secondary school I was always interested in business. I was attracted to a career in business and as I considered what to do after school, accountancy seemed to be a really good career that would give lots of opportunities.  I'm probably unusual for accountants of my age in that I chose not to go to college and instead went down the direct entry route. After my Leaving Certificate I started a training contract with Parfrey Murphy Chartered Accountants in Cork. I did a five year training contract and qualified at the end of 2006. I received really good training there and a grounding in all aspects of accounting, auditing and tax which still stands to me today. I stayed with Parfrey Murphy until 2010 when I left to do some travelling.  After returning home I knew that I wanted to gain experience working outside of practice. AIB were hiring accountants to work as part of the lending teams dealing with SME customers and I joined on a one year contract with the intention of gaining some experience and then moving on to try another sector. However 10 years later I'm still here! I have moved around and worked in a number of different roles and areas and have gained really good experience. I currently work in Credit Risk where my job is to assess and decision loan and funding applications for the Corporate & Institutional Banking division which includes large indigenous and multinational corporates as well as large property and real estate finance transactions. It's really interesting work and my accounting qualification has been key to helping me do my job. What do you value most about your membership of the profession and how do you think those benefits can be used to support the economy and society? The recognition and value placed on the Chartered Accountant qualification by businesses and non-accountants has been the key benefit to me personally. People may not be fully aware of what accountants always do but I feel there is a general recognition that accountants are well trained in their profession and bring key disciplines and experience that can be applied to any sector and beyond the core finance area. Chartered Accountants have always played a leading role in the economy and contribute back to society. Many members use their professional skills to support charities and clubs as officers, particularly in treasurer roles, and members do tremendous work which is often unnoticed and under the radar. I was previously a volunteer with CAVA (Chartered Accountants Voluntary Advice) an initiative of Chartered Accountants Ireland. CAVA works together with the Citizens Information Service (CIS) and Money Advice and Budgeting Service (MABS), to provide advice to local people who cannot afford the services of an accountant. It's a great service and a strong example of how we as a profession can use our skills to support society. You have just completed your year as chair of the Cork Society. I know it was totally unforeseen how this year would be, but can you tell us some of the highlights of the year for the society and the benefits for you personally. I've been a member of the Cork Society Committee for seven years and I've thoroughly enjoyed the experience. It has given me opportunities to build networks within the local business community and to develop personal skills, particularly public speaking and communication skills. It certainly has been an unusual year as chair and COVID has dominated everything during my term. However the society has evolved how we do things and serve our members by swiftly moving all our activities online. It hasn't always been easy and we haven't been able to put on our full complement of events but we were able to deliver a strong calendar of events. Highlights for me included hosting a really interesting discussion with Michael McGrath TD, Minister for Public Expenditure and Reform who is also a Chartered Accountant. Also, we have been able to work more closely with the other district societies than ever before. Organising joint events with them has been really good and something I hope can continue beyond COVID. Is there anything you would have done differently during your term as Chair? Given the circumstances that COVID has presented it was always going to be a challenging year, trying to adjust and still deliver a calendar of events. However I think as a committee and a district society, we managed to continue to serve our members. I'm really proud that we were able to do so despite the unprecedented challenges. Unfortunately we were unable to host some of our flagship in-person events including the annual Daffodil Day breakfast for the Irish Cancer Society and our Christmas Lunch. I remain hopeful that we will be able to run those events over the next year in some shape or form. And finally, Kevin, if you weren’t an accountant, what do you think you would you be/have been? Like every child I probably harboured dreams of a career as a professional athlete but my severe lack of skill and ability put an end to that! I've always been interested in politics and public affairs so I think if I hadn't become an accountant I may have worked in that area. On a completely different front, I have a real interest in food and particularly coffee so perhaps whenever I hang up the calculator I might finally fulfil the dream of opening a small coffee shop.

We caught up with Martin Devine, a member based in Perth, Western Australia, for a quick chat. Can you tell us a little about where you're from originally? I'm from just outside Ballymagorry in Tyrone, around 20 minutes from Derry and just across the border from Donegal. Why did you choose to become a Chartered Accountant and how did you got here? I became a CA to follow on from my degree in Accountancy. I always enjoyed working with numbers and it seemed like the next logical step. At that point I didn’t have a clear idea of where I'd like to end up career wise, but I thought the CA would help as a next step. I travelled to Australia with my girlfriend for a year in 2010 and we haven’t given up yet. I started off in a range of roles over eight years working with a private engineering company and in 2018 I moved on to Mader Group, an ASX listed heavy equipment maintenance company in the Group Financial Controller role. What do you value most about your membership of the profession and how do you think those benefits can be used to support the economy and society? I think the thing I appreciate most is how difficult it was to attain membership. The hours of travel, classes, study, exams really galvanised students on the way through. The result is that now when I see Irish CA on a CV, it immediately stands out from the rest. I was told by my practice partner when leaving Ireland that the Irish qualification was very well thought of, but it wasn’t until I started hiring that I realised the consistent high standard of people who make it through the programme. You have just spent the last 15 months living with Covid in Perth, Australia. Tell us a bit what that was like for you professionally and personally Professionally it's been a challenge. Border restrictions internationally and interstate have restricted our people movement which has made it difficult to continue to grow. Quarantine costs from travel and staff retention during this period have seen a hit on margin but that’s recovering now and we’re seeing growth back on a steady path locally and internationally. Personally, it's been tricky at times. We’ve had a few short sharp lockdowns but comparatively we’ve been incredibly lucky to still move freely for most of that period. We’ve welcomed our second baby in the last three months so busy times at home! Where is the first place you will go when travel in and out of Australia re-opens? We’d love to go home and show off our new boy. He hasn’t met his grandparents yet so would be great to get home for a period. A beach holiday would be great, but I think restrictions of some sort will be here across Asia for a while. And finally, Martin, if you weren’t an accountant, what do you think you would you be/have been? I always fancied myself running a restaurant, not sure if it would be front of house or in the kitchen but that would be the idea I think. Set aside the lack of cooking skills and knowledge of food retail!  

Last Friday, the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) announced that its 129 members have adopted a Programme of Work setting out a process for agreeing a new global consensus for taxing multinational enterprises (MNEs). The document, which calls for intensifying international discussions around two main pillars, was approved last week at a meeting of the Inclusive Framework. It will be presented by the OECD to the G20 Finance Ministers for endorsement on 8 and 9 of June in Japan. This Programme of Work, which is a follow on from the consultation process undertaken earlier this year, sets out a roadmap which includes two pillars of work. The first pillar will focus on solutions for determining where a company should pay tax and on what basis as well as what portion of profits should be taxed where clients or users are located. The second pillar of work is intended to address remaining issues identified by the OECD/G20 BEPS initiative and explores the design of a minimum tax for MNEs. The OECD said that there is a large amount of work to do to reach a consensus-based long-term solution, adding that they hope to reach a unified solution before the end of 2019 to ensure adequate time for completion of work during 2020.