In Irish tax developments, Revenue published its summary of the measures announced in Budget 2022 and Revenue provides further clarifications to Chartered Accountants Ireland on the expanded tax debt warehousing scheme. On the UK front, the 2020/21 self-assessment paper filing deadline is fast approaching on 31 October and this week’s update on HMRC administered COVID-19 support schemes is available. While in international news, the OECD’s revised statement on the two-pillar solution on global tax reform has been endorsed by G20 Finance Ministers and Central Bank Governors.      Ireland Revenue published its summary of the measures announced in Budget 2022. Revenue provides further clarifications to the Institute on the operation of the expanded tax debt warehousing scheme for directors and employees with a “material interest” in their employer company. UK         The 2020/21 self-assessment paper filing deadline is fast approaching on 31 October. Read this week’s update on HMRC administered COVID-19 support schemes. International The OECD/G20 Inclusive Framework on BEPS revised Statement on the two-pillar solution to address the tax challenges arising from the digitalisation of the economy has been endorsed by G20 Finance Ministers and Central Bank Governors. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax Newsletter by updating your preferences in MyAccount. 

Welcome to this week’s Technical Roundup.  In developments this week, the UK Financial Stability Board has welcomed the publication of the 2021 status report by the industry-led Task Force on Climate-related Financial Disclosures; Public trust and confidence in charities research has recently been published by the Charity Commission for Northern Ireland. According to new research 87% of respondents marked 'doing what they say they will do' as a major factor that influences their trust in a charity. Read more on these and other developments that may be of interest to members below. Financial Reporting The Financial Reporting Council (FRC) has published the findings of its review into IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’, which has been identified as a recurrent problem area by the FRC.  The International Accounting Standards Board (IASB) is currently consulting on proposals for a new accounting standard that would permit eligible subsidiaries to apply IFRS Standards with reduced disclosure requirements in their financial statements. The comment period is open until 31 January 2022. The IASB recently released a short video which introduces the board’s proposals set out in the exposure draft. The European Financial Reporting Advisory Group (EFRAG) released it’s second of three podcasts on “good practices in reporting the business model, sustainability risks and opportunities”. In this second podcast, Giuseppe Milici, Task Force member and Sustainability Services Senior Manager at Deloitte Italy, provides insights on the good practices identified in the report’s supplement, the selection process set by the Task Force, observed common threads among the identified good practices and the challenges encountered by the Task Force. The UK Endorsement Board secretariat has published its survey on IASB Exposure Draft ED/2021/3 Disclosure Requirements in IFRS Standards – A Pilot Approach (the Disclosure Pilot). The ED proposes replacing today’s mandatory disclosure regime with a series of disclosure objectives, giving companies more freedom to decide what should be disclosed to meet the objectives. Read more here. Q&A We have published a number of Questions & Answers to answer some of the most common questions members and other stakeholders have in relation to audit and assurance engagements financial reporting and insolvency. Other Areas of Interest The Financial Stability Board (FSB) has welcomed the publication of the 2021 status report by the industry-led Task Force on Climate-related Financial Disclosures (TCFD), which reports on the further progress in TCFD-aligned disclosures by firms. The Irish Pensions Authority recently published information on trustees obligations to notify the Authority of outsourcing arrangements. From 1 December 2021, trustees must notify the Authority when they enter an outsourcing arrangement for the provision of the internal audit and risk management key functions. Trustees who have entered these arrangements since 22 April 2021 must also notify the Authority. As part of Charity Trustees’ Week  on 15-19 November 2021 the Irish Charities’ Regulator together with Boardmatch Ireland, Carmichael, The Wheel, Volunteer Ireland, Charities Institute Ireland, Pobal and Dóchas, have put together a timetable of diverse events to suit trustees from every type of charity such as the Charities Governance Code Workshop for Small Non-Complex Charities on 18 November 2021 and the Charities Governance Code Workshop for Registered Charities on the 19 November. Places are limited so register now if interested. Public trust and confidence in charities research published by the Charity Commission for Northern Ireland. According to new research from the Charity Commission for Northern Ireland, 87% of respondents marked 'doing what they say they will do' as a major factor that influences their trust in a charity. Fraud and Money laundering The ICAEW has produced a useful insights article on payment diversion fraud. It outlines what it is and how businesses can avoid it for example by training and vigilance. It also provides advice  on what to do if it happens to your business and a link to the NCA brochure . HMRC has recently updated its guidance “Help and support for money laundering supervision”. There are a series of webinars on its pages on money laundering supervision containing information for all businesses and sectors including Accountancy Service Providers and Trust or company service providers registered with HMRC . For further technical information and updates please visit the Technical Hub and the Covid-19 Hub on the Institute website. 

Our 30,000th member, Richard Akpan, trained with KPMG in Dublin and is now embarking on a move to Edinburgh to take up a new role in a new city. We caught up with him to find out about his preparations and feelings about this adventure. Can you tell us a little about how the circumstances of your move came up? Besides my summer in Berkeley/San Francisco on a J-1 visa back in 2016, I’ve lived in Dublin for as long as I remember. While I do love home, I’ve always been keen to live abroad as a professional. Further afield is a lot more uncertain with Covid-19, but mainland UK offers something different that is still close to home. Myself and my girlfriend (who is also a Chartered Accountant) were between choosing London and Edinburgh to move to. What drew us to Edinburgh was that it was a smaller city where you can walk to everywhere, combined with both of us having family and friends scattered across Edinburgh, Glasgow and Aberdeen, led us to believe that it would be an easier city to settle in. The timing works out nicely with me finishing up with KPMG as a Chartered Accountant and looking towards the next steps of my career. What about the proposition made it a "yes"? There definitely were a number of factors.  I visited Edinburgh a few months ago and instantly fell in love with the city. I had visited when I was a child, but the feasibility of it as a potential place to relocate to was lost on my five year old self. What I like about Edinburgh is that while the Old Town is in the heart of the city centre, it doesn’t feel like a city centre. It has a really homely feel to it. Edinburgh was ranked the second biggest predominantly English speaking financial services centre in Europe in 2020, so there were a lot of suitable roles for both myself and my girlfriend to apply to.   Edinburgh is also a big rugby city – a sport of which I am an avid fan and incredibly average player of. I intend on joining a club when I move over in order to keep fit and get to know new people. A trip to Murrayfield is definitely on the bucket list.   The cost of renting is a lot more reasonable in Edinburgh. The housing market in Dublin is a nightmare, as anyone from my generation will tell you. The current rent I’m paying in Dublin for a one-bedroom in Ranelagh would get me a two-bedroom apartment in Edinburgh’s city centre, so there is a lot more bang for your buck.   The people there are very friendly. I find that the Scottish and the Irish have a very similar sense of humour too. What are you particularly excited about? I’m particularly looking forward to the change of scene. There’s so much that goes on in Edinburgh – such as the Fringe Festival in August and Christmas markets. I certainly envisage myself doing a lot of hosting with friends and family using visiting me as an excuse for a holiday! I am really looking forward to discovering a new city. What are you nervous about? I’m definitely nervous about starting my new role and making friends over there, but definitely in an excited way. It will very much have a "first day of school" feel to it – going from being very much settled in Dublin to a complete change in Edinburgh. I’ll be moving to a new city and a new apartment, starting a new job in a new company and joining a new club. There will be a lot of new firsts and there will be plenty of things to be nervous about along the way but I am looking forward to throwing myself into it. Now that you're ready to go, what have you learned along the way that might have helped you to know in advance? I would definitely make sure that if you’re looking to move abroad, to make sure that you start the job hunting process with a few months to go. A lot of employers may require a notice period that is as long as three months, so that is definitely a timeline to factor in.  A lot of companies are also inundated with applications to roles and can be slow to respond, so make sure to apply to a few roles that you are interested in and allow for a few weeks to progress to the next stage.   Make sure to confirm with your employer whether you are required to also become a member of their local accountancy body. Chartered Accountants Ireland is part of an international network so you should be able to maintain your membership at home as well as being a membership abroad, but it is definitely something to consider.   I remember reading a publication from Barden that was sent out alongside an Accountancy Ireland magazine back in late-2019.  On their moving abroad section, they said  “only apply to a job abroad if you would apply to the same role if you weren’t moving.”  I can’t stress how important that advice has been when job hunting. It meant I spent time reflecting on what direction I want my career to go and applying to suitable roles to get me there.   Make sure that you have the right to work in the country you are hoping to move to.  As Ireland is part of the Common Travel Area agreement with the UK, Irish nationals are automatically entitled with a right to work in the UK. It’s also good to have an idea about the National Insurance number – the UK equivalent of the PPS number. This can take some time to receive but it is good to look into it ahead of moving.   It probably goes without saying but I would heavily recommend spending some time in the city you would like to move to if at all feasible, just to make sure that the city is a good fit for you personally. What will you miss most about home? My family and friends. I’ve made a promise to my mum to visit home every 6-8 weeks! A flight back home is quicker than most people’s morning commutes, so I can at least make it back home on a regular basis and quite easily as well! Richard Akpan was admitted to membership in June 2021, becoming the Institute's 30,000th member.               

31 October 2021 is the self-assessment paper filing deadline for 2020/21 to avoid penalties. Readers are reminded that if an online return cannot be filed by virtue of one of the online filing exclusions (this link is to the most recent version of these exclusions) meaning the return must be filed on paper instead, then in those cases, the 2020/21 paper filing deadline is extended to 31 January 2022. A reasonable excuse claim should accompany such returns. HMRC may still accept COVID-19 as being a reasonable excuse when appealing late filing penalties. The guidance on this should be consulted before filing an appeal for reasonable excuse. HMRC has recently issued a reminder to Self-Assessment taxpayers to check they have the correct information in order to complete their tax return.  

  There is increasing evidence that strong ESG (environmental, social and governance) credentials can boost a company’s bottom line while also generating access to capital. Investors, clients and employees alike are seeking out companies with credible ESG profiles. There are many reasons why it makes sense for CFOs to take on the task of aligning financial and ESG goals. CFOs work in a variety of organisations. What unites them is that they are all trusted advisors and are core to both daily operations and long-term strategies. They recognise risks and opportunities and act on them. They are involved in critical decision-making and provide reliable information to investors and boards. They advise and influence action in others and are uniquely placed to be a positive force in driving change. What distinguishes CFOs from other financial advisors is their potential to influence and encourage greener choices at an executive level within their organisation. They have the authority to advise on procurement policies and procedures that focus on sustainability as much as cost control. CFOs also have a key role in the preparation of annual reports and in deciding on what they include. Measuring sustainability-related activities and reporting on them is an integral part of becoming a sustainable business. Choosing from among the many frameworks and standards is an example of the leadership a CFO can offer, particularly in the absence of standardised and comparable frameworks. Business models are moving away from placing shareholder value at the centre. Instead, broader sustainable measures are being embraced, and the CFO will play a critical role in this process. Susan Rossney is Public Policy Officer at Chartered Accountants Ireland.

The latest Agent Update: issue 89 and Employer Bulletin: October 2021 have been published. This edition of Agent Update includes the latest information on:- the CJRS; declaring coronavirus support schemes overpayments on company tax returns; the health and social care levy; employer’s liabilities and payments for PAYE; and an update on HMRC appeal processes. The Employer Bulletin: October 2021 contains the latest information on payroll topics for employers and agents.

The final deadline for amending CJRS claims for the month of September 2021 features in addition to an update from HMRC on the SEISS, information on how to report COVID supports in tax returns and news that the three-month extended window has ended to appeal against tax decisions and penalties if the delay was due to COVID-19. Updated guidance has also been published on offsetting CJRS over and underclaims. The Coronavirus job retention scheme (“CJRS”) The final deadline to submit CJRS claims for periods in September 2021, the final month of the scheme, was Thursday‌‌ ‌14 October 2021, unless reasonable excuse is available for late submission. Amendments to September 2021 claims must be made by Thursday 28 October 2021. HMRC has also updated its guidance which confirms that it will allow employers to offset under and over-claims but only within a single claim period. SEISS update HMRC sent the below update regarding the Self-Employed Income Support Scheme (“SEISS”). In the coming weeks HMRC will be writing to everyone who claimed at least one SEISS grant with key information for them to be aware of on how to report SEISS grants correctly on their tax return, and what to do if anything has changed since claiming. This will cover (depending on your client’s circumstances): A reminder that SEISS grants are taxable: Taxpayers will be reminded that their SEISS grants are subject to income tax and National Insurance; and Grants received on or before 5 April 2021 should be included in 2020/21 tax returns (online filing deadline 31 January 2022). Grants received on or after 6 April 2021 should be included in 2021/22 tax returns (online filing deadline 31 January 2023). How to report SEISS grants on the tax return: Taxpayers will be advised that 2020/21 returns and supplementary pages have a new box on which to report SEISS grants received on or before 5 April 2021; and Instructions are available on how to report SEISS (and other coronavirus support payments). How HMRC corrects 2020/21 returns, if SEISS grants have not been returned in the way expected: Taxpayers will be asked to check the statement of account if HMRC has made an amendment to the SEISS grant entry; and Help is available on what to check and next steps will be included. Changes to returns after 3 March 2021: Taxpayers will be reminded that they should tell HMRC about amendments made to their 2019/20, 2018/19, 2017/18 or 2016/17 tax returns after 3 March 2021; and Taxpayers will be instructed to follow the guidance and complete a form if amendments either: reduce the amount of fourth or fifth grant they are eligible for; or cause them to no longer be eligible for the fourth or fifth grant. Fifth grant turnover test and the 2020-21 tax return: If a taxpayer completed the turnover test and provided a figure for the 12 month period from April 2020 to April 2021 which started on any date from 1 to 6 April 2020, they need to check this against the turnover figure they include in their 2020-21 tax return; and If they gave HMRC an incorrect turnover figure when they claimed the fifth SEISS grant or realise now that it was wrong, they need to tell HMRC by completing a form online. Reporting coronavirus grants on tax returns HMRC is also reminding taxpayers that grants to support businesses and self-employed people during the pandemic are taxable. If a taxpayer claimed CJRS or SEISS grants, these also need to include these as income on the relevant tax return. Depending on their business type, they’ll need to report this as income on the corporation tax return, the partnership return or the self-employment pages of the individual tax return. Guidance on how to include a grant or payment on the tax return is available. Closure of extended appeal window due to coronavirus In February 2020, HMRC introduced a three-month extended window to appeal against tax decisions and penalties if the delay in appealing was due to coronavirus. This also ended last month on 30 September 2021. For tax decisions and penalties dated up to and including 30 September 2021, the extended window to appeal is still available. Taxpayers should follow the normal process and times for appealing decisions dated from 1 October 2021 onwards.  HMRC is aware that some taxpayers are still feeling the impacts of coronavirus, and this may still be a reasonable excuse for not meeting their tax obligations on time in some cases. HMRC will continue to consider appeals and ask for evidence if needed.  

In this week’s EU exit corner, we bring you an email from HMRC on how full customs controls will be introduced as planned from 1 January 2022 for goods movements from the EU into GB (different rules apply to Northern Ireland under the protocol). The latest guidance updates also feature. See also last Friday’s EU exit bulletin which features every Friday in Chartered Accountants News. HMRC has sent the following email about getting ready for full customs controls from 1 January 2022 and declaring goods you’ve already imported on movements of goods from the EU into GB. “Full customs controls will be introduced as planned on 1‌‌‌ ‌January‌‌‌ ‌2022 Full customs declarations and controls are due to be introduced as planned on 1‌‌‌ ‌January‌‌‌ ‌2022. This means that the option to delay your customs declarations for up to 175 days, without an authorisation from HMRC, is coming to an end‌‌‌ ‌on‌‌‌ ‌31‌‌‌ ‌December. If you’re already making full import declarations, or if you’ve started submitting supplementary declarations, you’re well prepared. If you’ve not made any declarations to HMRC for goods you’ve moved from the EU since January 2021, you need to start preparing now for this change. This email explains the steps you need to take to prepare including completing your supplementary declarations and paying any duties owed. If you have moved goods or intend to move goods from the EU to GB during 2021 You must make customs declarations for these goods. Most businesses use third-party agents or intermediaries, like customs agents, freight forwarding companies and fast parcel operators, to deal with customs processes including completing customs declarations. Most businesses use third-party agents or intermediaries, like customs agents, freight forwarding companies and fast parcel operators, to deal with customs processes including completing customs declarations. If you are using one of these third-party agents or intermediaries, you should have agreed with them who will make the declaration. We’ve created a register of customs agents and fast parcel operators showing who is taking on new clients, and the services offered. If you are importing any non-controlled goods from EU free circulation to GB free circulation during 2021 EU free circulation goods have been produced/manufactured in the EU or have been declared to customs and customs duties paid. GB free circulation goods have been imported with the intention of paying the customs duties straight away. You can choose to make a full declaration at the time the goods arrive into Great Britain (GB) or delay your declarations. You cannot use delayed declarations if you are importing controlled goods or the goods are not going into free circulation. If you choose to delay your declaration, you’ll need to enter the goods in your records (known as an entry in declarants’ records or EIDR) and then provide full details in a supplementary declaration. You need to do this no later than 175 calendar days after the goods are entered in your records or the date your goods arrived in GB whichever is sooner. For example, if you imported goods on 29 April 2021, you must submit your supplementary declaration before 21‌‌‌ ‌October‌‌‌ ‌2021. To help you make your declarations on time you can use the personal supplementary declaration planner which sets out the key actions you or your customs intermediary need to take. It’s available to download at www.gov.uk/hmrc/brexit-resources. If you have chosen to delay your declarations this means you will also delay paying any customs duty and import VAT (unless you’re VAT registered). Find out more at www.gov.uk/topic/business-tax/vat. If you move controlled goods or trade rest of the world goods Different rules apply to controlled goods, exports, rest of the world goods and the movement of goods into Northern Ireland. For help with moving goods to Northern Ireland, sign up to the free Trader Support Service for support. Submitting your supplementary declarations You must submit your supplementary import declaration no later than 175 calendar days of the date the goods were entered in your records or arrived in GB whichever is sooner. If you are not using an intermediary to do this for you then you’ll need to prepare to make your supplementary declaration and make sure you have the correct authorisations and systems to submit your declarations. These can take up to 60 days. Authorisations can make customs easier and cheaper for your business. You can use our Trader tool to help identify which are suitable for your business. You will need to submit your declarations electronically using the Customs Handling of Import and Export Freight system (CHIEF) or the Customs Declaration Service (CDS). You’ll need to have access to a duty deferment account (DDA) to submit your first supplementary declarations. It works like a credit account where you pay HMRC duties accrued on imports via monthly Direct Debit, instead of paying for individual consignments immediately at import, or when released into free circulation or from an excise warehouse. Some customs experts provide access to their DDA for their customers. So, speak to your agent or freight forwarder to see whether this is part of the service they offer. If not, or you are making your own customs declarations, you must apply for your DDA and Simplified Customs Declarations Processes authorisation in good time to meet the 175-day deadline for supplementary declarations. Sending HMRC your supplementary declaration is your legal obligation as an importer. If you imported anything into GB between January and March 2021 and haven’t yet made your delayed declaration then these are now overdue, please call us on 0300‌‌‌ ‌322‌‌‌ ‌9434 so we can discuss what you need to do next. We also advise you to call us as soon as possible if you think you will not be able to make customs declarations in time or believe you may have used delayed declarations incorrectly. We will advise you on what to do next. From 1‌‌‌ ‌January‌‌‌ ‌2022 From 1‌‌‌ ‌January‌‌‌ ‌2022, when full customs controls are introduced, the option to delay declarations without an authorisation from HMRC will no longer apply. You will need to choose to make full customs declarations when you import goods or to be authorised to make simplified declarations. You may want to use an intermediary to help you, but if you choose to make your own customs declarations you will need to start preparing now. Your goods may not be allowed to travel to the UK if you have not made a customs declaration. Where to find more help and support For online support, including live webinars and YouTube videos, go to our help and support for UK transition page. You can also call our helpline on 0300‌‌‌ ‌322‌‌‌ ‌9434. The helpline is open from‌‌‌ ‌8am to 10‌‌‌pm Monday‌‌‌ to Friday and‌‌‌ ‌from‌‌‌ ‌8am to‌‌‌ ‌4pm at week‌‌‌ends. If you export to Europe, the recently launched government Export Support Service is a free service giving you access to online and phone support. You can access it at www.gov.uk/ask-export-support-team or by calling 0300‌‌‌ ‌303‌‌‌ ‌8955 where you will be put in touch with a member of the dedicated export support team. If you know of a business who would also find these emails helpful, please forward it on, or suggest they register to receive them directly to their inbox register to get these updates directly to their inbox.” Miscellaneous updated guidance The following documents/guidance relevant to EU exit have been updated/published recently:- Import goods into the UK: step by step; Case studies for insufficient production when trading between the UK and the EU; Insufficient production for manufacturing and agri-food processes when trading between the UK and EU; Proving originating status and claiming a reduced rate of Customs Duty for trade between the UK and EU; Rules of origin for goods moving between the UK and EU; Find out when to make an exit summary declaration; List of customs training providers; Check your goods meet the rules of origin; Trade and Cooperation Agreement Governance; Making cosmetic products available to consumers in Great Britain; Rules of origin for goods moving between the UK and EU; Introduction to rules of origin and claiming duties when trading between the UK and EU; Organisations that trade with the EU – webinars calendar; Great Britain Marketing Authorisations (MAs) for Centrally Authorised Products (CAPs); and Trade Specialised Committee on Level Playing Field for Open and Fair Competition and Sustainable Development.

HMRC provided us with information regarding a new online inheritance tax checking tool that was launched a few months ago. HMRC encourages you to use the tool and would like to receive your feedback on it. You can provide feedback on the tool itself or to the relevant mailbox:- hmrcguidanceteam@hmrc.gov.uk. The new checker tool will:- give you an approximate value of the estate; and help you decide whether any inheritance tax is likely to be due or not. The checker does not:- calculate the amount of inheritance tax that’s owed; or tell HMRC about the estate’s final value.

Following the announcement last week that 136 member countries of the OECD/G20 Inclusive Framework on BEPS endorsed a revised Statement on the two-pillar solution to address the tax challenges arising from the digitalisation of the economy, the political agreement has now been endorsed by G20 Finance Ministers and Central Bank Governors. The G20 Finance Ministers issued a Communiqué following their meeting last week, which called on the OECD/G20 Inclusive Framework and endorsed the agreement. “We endorse the final political agreement as set out in the Statement on a two-pillar solution to address the tax challenges arising from the digitalisation of the economy and in the Detailed Implementation Plan…We call on the OECD/G20 to swiftly develop the model rules and multilateral instruments as indicated in and according to the timetable provided in the Detailed Implementation Plan, with a view to ensure that the new rules will come into effect at global level in 2023.” Following the announcement, European Commissioner for Economy, Paolo Gentiloni, released a Statement confirming the European Commission will swiftly put forward a directive to implement Pillar Two in the EU once the OECD has finalised the model rules under the pillar. Regarding Pillar One, the Commission will carefully examine whether a directive is needed to ensure its consistent and effective implementation at EU level.

Budget 2022 is forward-facing, but how will it impact businesses now and in the long-term? Emma Arlow comments on the key takeaways from the Budget address. In Budget 2021, we saw unprecedented levels of intervention and financial supports being provided to support the Irish economy against a challenging backdrop created by COVID-19 and the expectation of a no-deal Brexit. With more positive economic indicattaors than in prior years, Budget 2022 now looks to the post-COVID-19 era and to building recovery and confidence across all sectors of the economy. Inflation One key takeaway from the Minister for Finance’s Budget address has been the increased attention on rising inflationary pressures, notwithstanding the strong rebound in the domestic economy. The indexing of income tax bands and credits to take account of inflation will be welcome not only from the perspective of taxpayers but also for employers who, going forward, may find themselves under pressure to attract and retain the talent so vital for business growth. Business growth The need to plan for sustainable business growth also featured heavily in the Minister’s Budget address. While previous Budgets have given relatively little focus to the domestic business landscape, this year would appear to have moved the dial with respect to changes to the Employment Investment Incentive Scheme to provide greater access to funding for early-stage companies. The exact detail of the changes remains to be seen, but the Minister’s speech suggests that the future of domestic business is a key theme emerging in the medium- to long-term. Climate change The ever-present challenges in respect of climate change and sustainability were given considerable attention. As noted by the Minister: “Future generations will not tolerate inaction from the leaders of today”. We expect to see further changes and an increased focus on sustainability in the years to come. We have already seen such changes come to pass through amendments announced to the VRT system, and amendments to tax relief on certain energy efficient equipment. International tax Budget 2022 and the upcoming Finance Bill 2021 include several well-flagged changes to Irish tax law, including the imminent introduction of interest limitation rules required by the EU law. Such measures will operate to restrict a company’s net borrowing costs, and while they represent Ireland’s last remaining commitment under the EU Anti-Tax Avoidance Directive, commentary both on Budget Day and from the Minister in the days prior make it clear that this will not be the last we  hear of disruption in the international tax landscape. The recent announcement from the Minister that Ireland is to agree to the OECD international tax reform proposals on Pillars One and Two, which will alter the way in which multinationals (including Irish PLCs) tax their profits globally. A key focus in 2022 and onwards will, therefore, be on the design of such rules. We may expect to hear an update on this in next year’s Budget speech from the Minister for Finance. Early engagement with the business community on these imminent changes is vital to ensure that implementation of these rules is made as manageable as possible and continues to allow for innovation and growth in Irish business going forward. Emma Arlow is Director of Tax in Deloitte.

The most powerful tool in a networker’s arsenal is the ability to give back to your network. By following the 10 key points outlined by Jean Evans, you’re guaranteed to cultivate a strong and supportive business network. One of the first things you learn about networking is the importance of giving back to your network, and most people starting out can become overwhelmed by this notion. You might think you don’t know anyone, or you’re worried that you don’t have anything of value to give to another person in your network. However, it’s a lot easier to give back than you think. Here are 10 things you can do to give to your network. Show up consistently If you’ve taken the time to join a network, I’m going to make a bold assumption and say that you’ve done your due diligence and you know the schedule and the frequency. Put this in your diary and schedule any other meetings around your networking meetings. This time spent networking should be sacrosanct. The know, like and trust factor Schedule one-to-one time with people in your networking groups as part of your networking process. Do a minimum of one of these individual meetings each week per networking group you are a part of to consistently and constantly build up your network. It’ll be noticed and appreciated. Add value As you get to know people and their businesses in your network groups, you’ll start to understand what matters to them. For example, you might come across an article that could be of interest. Why not email it on, share it on LinkedIn, or tag the person on a social media post? Then, they’ll see the article or post and know you were thinking of them. Referrals People generally network to get referrals. Of course, it’s great to be able to refer business to your fellow networkers. A word of caution, however: don’t be hasty. Always do your one-to-ones in advance to learn about a person’s offering before giving a referral. Testimonials If you’ve used a service or product of someone in your network, think about how a testimonial might add value to them personally or to their business. For example, a personal recommendation or testimonial might be put on LinkedIn. If it’s a business testimonial, ask where is best to place a recommendation (e.g. Google Reviews, LinkedIn, or just sending a testimonial by email that can be published on their website). If you include your full name and your company, it’s a little bit of micro-networking for your business too. Get social Find out what social media channels people are on, both personally and professionally. Then, follow them and start engaging – commenting, sharing, tagging others – with relevant content. Get involved and show you care. Be a connector Everyone in business has problems and pain points they are trying to solve. You might not be in a position to help, but you might know someone who could. Make the introduction and connect the two parties. They’ll both remember you for this gesture and the fact that you took time out to help. Share your knowledge One of the amazing benefits of networking is how much you learn from other people in your groups. Most networks have an ‘ed slot’ where five minutes are assigned to a member sharing business insights with the rest of the group. Be willing to share your knowledge. Be yourself Be your authentic self. Know your values, beliefs, and what you stand for, and be sure you can articulate this. This is important as, bit by bit, you’ll want to build a network of people aligned with your values. Don’t try to be something you’re not. Follow up If you offer to do something, be it giving a testimonial, an introduction, or organising a one-to-one, make sure to follow up. This is mission-critical. Everything succeeds or fails based on our ability to follow up. This speaks to your reputation and your reliability. All these actions go towards building up your social capital. If you invest in yourself and build relationships consistently over time, you’ll become known as a stellar networker. It does take discipline, effort, energy and time, but the rewards could be great. Jean Evans is a Networking Architect and Founder at NetworkMe.

With mixed feelings about returning to the office, how can leaders inspire and invigorate their employees? Paul O’Donnell shares his five top tips to manage expectations and morale. It is difficult to think of an aspect of our existence that the COVID-19 pandemic has not impacted. A recent Harvard Business Review survey, What COVID-19 Has Done to our Wellbeing, gives stark data on mental decline in general and burnout in particular. Now organisations are reopening, leaders must address a new challenge: how to rebuild their businesses in a manner that is safe and culturally adapted to reflect the new world while also taking account of the often-unspoken elements of stress in the workplace. Every crisis intensifies the need for solid leadership competencies. If you are a new leader, it will be a rapid learning experience. Here are five steps to get you started. 1. Re-connect your team to the vision or create a new compelling ambition  Operational recovery as a purpose is short-term. It creates initial buy-in but fades quickly. Your employees want to know that the work they do matters and fits with the organisation’s long-term objectives. If your team’s mission has changed because of the pandemic, redefine what that means for your team, communicate it clearly, and work carefully to create engagement. 2. Recognise and celebrate small wins What we took for granted pre-pandemic are often key successes during a challenging return. Small wins matter. They are often achieved against greater adversity when in recovery mode. These wins help raise the bar on what your team believes is achievable. Hunt out daily progress – even small moments of recognition can ignite an employee’s engagement. 3. Be honest about challenges and failures Create a two-way communication forum and make it safe for employees to share their concerns and perspectives. Be clear about the challenges; talk about what has and hasn’t worked and why. Encourage contribution. Don’t let ill feelings or worries fester; it can turn minor personal concerns into significant team disputes. 4. Keep what works and worked well Not everything you did before the pandemic was perfect, but some of it is still fit for purpose. If your team works or worked remotely, reflect on what you did differently and any efficiencies you achieved. Work with your team to find the best blend of “before” and “during” phase activities to create the right “beyond” plan. If your team is hybrid-working, ensure time is set at least once a week for the team to meet safely and discuss any issues they wish to raise. 5. Be clear that you care Your employees may have different personal priorities now from those before the pandemic. In addition, their experiences during, and continued navigation through, the pandemic has created anxiety and altered expectations. Bridge these new needs with the needs of your business through a clear focus on employee wellbeing, transparency in all matters, and alignment with all public health directives. It is easy during these times to fall back on old ways of getting things done. However, the strongest leaders will avoid that trap and take this opportunity to grow engagement and performance. These are the leaders who know the difference between surviving and thriving. Paul O’ Donnell is the COO of HRM Search Partners.

Following the EU’s announcement, the Joint Customs Consultative Committee shared an update with us about what the EU proposals currently mean for the Protocol. We have reproduced the commentary below: Following the EU’s announcement, the Joint Customs Consultative Committee shared an update with us about what the EU proposals currently mean for the Protocol. We have reproduced the commentary below: “None of the reported changes, or documents published this week by either party, on the Northern Ireland Protocol have yet been agreed. Both UK and EU have shared proposals with each other, and discussions continue. Existing arrangements will continue for now. Traders should continue to meet the requirements of the Protocol as currently being operated, if your members ask please remind them that existing processes remain in place, and supplementary declarations should continue to be submitted Businesses without their own fixed address in Northern Ireland can continue to be authorised for the UK Trader Scheme, provided they meet the other existing UKTS requirements The existing approach to post and parcels movements from GB to NI will continue. The Government will ensure that reasonable notice is provided if the current approach changes, to enable businesses to make appropriate preparations.”

The European Commission this week put forward “bespoke arrangements” in response to the difficulties that have been experienced as a result of trade under the Northern Ireland Protocol. Further flexibilities are proposed in the area of food, plant, and animal health (SPS checks), customs, medicines and engagement with stakeholders in Northern Ireland. The package of measures is set out in four ‘non-papers’ (non-legislative texts) and broadly cover the following: An 80 percent reduction in SPS checks on food, plant and animal goods moving from Great Britain to be consumed in Northern Ireland. This would mean a truck moving 50 different food products, such as dairy, meat, fish, plants, from Great Britain to Northern Ireland would only need one SPS certificate instead of 50. A 50 percent reduction in paperwork needed to move goods from Great Britain to Northern Ireland on the condition that the UK commits to providing full and real-time access to IT systems and certain monitoring and enforcement measures. For goods not regarded as ‘at risk’, much less paperwork would be required. Enhanced engagement with stakeholders and authorities in Northern Ireland with regards the practical implementation of the Protocol. Among the measures to achieve this includes a proposal to enhance links between the NI Assembly and the EU-UK Parliamentary Partnership Assembly is also proposed. Pharmaceutical companies in Great Britain could supply the Northern Irish market and keep all of the regulatory functions where they are currently located. Specifically related to Customs, the proposals would mean: A wholesaler of food products, established only in Great Britain and not in Northern Ireland, would be eligible for the UK Trader Scheme and be able to benefit from the scheme to regularly supply retailers in Northern Ireland. Northern Ireland supermarkets, and grocery stores of large national retailers, that depend on supply chains and distribution centres established in Great Britain will see their customs formalities reduced to a minimum. These companies will file customs declarations only once a month as opposed to filing one declaration per transaction. Certain products that are generally prohibited for import into the EU – e.g. sausages – would be allowed to be imported into Northern Ireland from Great Britain, subject to them carrying individual certificates, for which specific models will be provided The European Commission’s response does not address three of the UK’s asks: removing the oversight of the Court of Justice of the EU (ECJ) when it comes to EU law in Northern Ireland; changing State Aid rules in Northern Ireland; and allowing the free movement of pets between Great Britain and Northern Ireland.  A press statement issued by the European Commission following the announcement stated that “The Commission believes that this package of measures will make a real difference on the ground in Northern Ireland and addresses the Brexit-related problems regarding the movement of goods from Great Britain to Northern Ireland that have been raised by Northern Irish people and businesses. These measures come in addition to the package that was presented in June 2021, which facilitates the movement of live animals from Great Britain to Northern Ireland.” Vice-President Maros Šefčovič said: “I have listened to and engaged with Northern Irish stakeholders. Today's proposals are our genuine response to their concerns. We have put a lot of hard work into them to make a tangible change on the ground, in response to the concerns raised by the people and businesses of Northern Ireland. We are looking forward to engaging earnestly and intensively with the UK government, in the interest of all communities in Northern Ireland.” The UK and EU will now enter a period of “intense discussions” over the coming weeks. Read the European Commission’s Press Statement The Four Non-Papers Concrete examples of the proposals

In this week’s bulletin we cover the detail of what’s contained in the proposals put forward by the European Commission in response to the current difficulties in implementing the Northern Ireland Protocol. You can also read the Institute’s reaction to the EU’s announcement.   Details of Ireland's Brexit Impact Loan Scheme, which is open for applications, are also provided.  “Bespoke arrangements” The European Commission this week put forward “bespoke arrangements” in response to the difficulties that have been experienced as a result of trade under the Northern Ireland Protocol. Further flexibilities are proposed in the area of food, plant, and animal health (SPS checks), customs, medicines and engagement with stakeholders in Northern Ireland. The package of measures is set out in four ‘non-papers’ (non-legislative texts) and broadly cover the following: An 80 percent reduction in SPS checks on food, plant and animal goods moving from Great Britain to be consumed in Northern Ireland. This would mean a truck moving 50 different food products, such as dairy, meat, fish, plants, from Great Britain to Northern Ireland would only need one SPS certificate instead of 50. A 50 percent reduction in paperwork needed to move goods from Great Britain to Northern Ireland on the condition that the UK commits to providing full and real-time access to IT systems and certain monitoring and enforcement measures. For goods not regarded as ‘at risk’, much less paperwork would be required. Enhanced engagement with stakeholders and authorities in Northern Ireland with regards the practical implementation of the Protocol. Among the measures to achieve this includes a proposal to enhance links between the NI Assembly and the EU-UK Parliamentary Partnership Assembly is also proposed. Pharmaceutical companies in Great Britain could supply the Northern Irish market and keep all of the regulatory functions where they are currently located. Specifically related to Customs, the proposals would mean: A wholesaler of food products, established only in Great Britain and not in Northern Ireland, would be eligible for the UK Trader Scheme and be able to benefit from the scheme to regularly supply retailers in Northern Ireland. Northern Ireland supermarkets, and grocery stores of large national retailers, that depend on supply chains and distribution centres established in Great Britain will see their customs formalities reduced to a minimum. These companies will file customs declarations only once a month as opposed to filing one declaration per transaction. Certain products that are generally prohibited for import into the EU – e.g. sausages – would be allowed to be imported into Northern Ireland from Great Britain, subject to them carrying individual certificates, for which specific models will be provided The European Commission’s response does not address three of the UK’s asks: removing the oversight of the Court of Justice of the EU (ECJ) when it comes to EU law in Northern Ireland; changing State Aid rules in Northern Ireland; and allowing the free movement of pets between Great Britain and Northern Ireland.  A press statement issued by the European Commission following the announcement stated that “The Commission believes that this package of measures will make a real difference on the ground in Northern Ireland and addresses the Brexit-related problems regarding the movement of goods from Great Britain to Northern Ireland that have been raised by Northern Irish people and businesses. These measures come in addition to the package that was presented in June 2021, which facilitates the movement of live animals from Great Britain to Northern Ireland.” Vice-President Maros Šefčovič said: “I have listened to and engaged with Northern Irish stakeholders. Today's proposals are our genuine response to their concerns. We have put a lot of hard work into them to make a tangible change on the ground, in response to the concerns raised by the people and businesses of Northern Ireland. We are looking forward to engaging earnestly and intensively with the UK government, in the interest of all communities in Northern Ireland.” The UK and EU will now enter a period of “intense discussions” over the coming weeks. Read the European Commission’s Press Statement The Four Non-Papers Concrete examples of the proposals   JCCC confirms no change to the current operation of the Protocol Following the EU’s announcement, the Joint Customs Consultative Committee shared an update with us about what the EU proposals currently mean for the Protocol. We have reproduced the commentary below: “None of the reported changes, or documents published this week by either party, on the Northern Ireland Protocol have yet been agreed. Both UK and EU have shared proposals with each other, and discussions continue. Existing arrangements will continue for now. Traders should continue to meet the requirements of the Protocol as currently being operated, if your members ask please remind them that existing processes remain in place, and supplementary declarations should continue to be submitted Businesses without their own fixed address in Northern Ireland can continue to be authorised for the UK Trader Scheme, provided they meet the other existing UKTS requirements The existing approach to post and parcels movements from GB to NI will continue. The Government will ensure that reasonable notice is provided if the current approach changes, to enable businesses to make appropriate preparations.” Brexit Impact Loan Scheme applications opens today in Ireland    The €330 million Brexit Impact Loan Scheme, intended to help SMEs, farmers and fishers deal with the impact of Brexit has opened for applications today. The scheme replaces the Brexit Loan Scheme and is open to businesses in the primary agriculture and seafood sectors. Low-cost loans of between €25,000 and €1.5 million will be made available to eligible businesses, for terms up to six years. The Strategic Banking Corporation of Ireland (SBCI) is administering the scheme with retail banks and select credit unions also participating. The Brexit Impact Loan Scheme operates until 31 December 2021 or until the scheme has been fully subscribed. Further details can be found at this link.  Latest edition of the Trader Support Service (TSS) Bulletin The 47th edition of the TSS Bulletin covers the following: Support available from the TSS when moving goods for seasonal events Upcoming TSS webinar on live animal movements – 27 October 10am-11am. Register here to attend this webinar Feedback requested from HMRC from businesses of all sizes that are based in: Northern Ireland and import from Great Britain or another non-EU country Northern Ireland and export to a non-EU country other than Great Britain Great Britain or another non-EU country, and export to Northern Ireland If you would be willing to help, please provide your details here–this will only take one to two minutes. Upcoming webinars and guidance HMRC webinars Various dates – Completing customs declarations: an overview. Register here.  Various dates – Trader responsibilities when using an intermediary. Register here.  Various dates – Importing: preparing to make your supplementary declaration. Register here.  Various dates – Exporting: what you need to do to keep your goods moving. Register here.    EU Exit guidance:   Sign up for Home Office email updates about the next steps for EU citizens in the UK at this link.   A guide for EEA business travellers, to provide clarity on what business travellers can and cannot do in the UK without a visa, and to help ensure they obtain a relevant visa, if needed, before travelling to the UK.   A common queries leaflet for au pairs, business travellers, Erasmus+ students and those looking to come to the UK for an internship, which provides essential information that these cohorts need to know before travelling to the UK.   These products are both live on the points-based immigration system EU citizens campaign pages on GOV.UK.   For further updates, visit www.charteredaccountants.ie/brexit

The details of the procedure for accountants in exceptional difficulty to make an arrangement with Revenue for the income tax deadline are set out in our Irish tax developments, along with confirmation from Revenue that arrangements for accountants reporting turnover for VAT Form 56A continue to apply. On the UK front, read this week’s updates on HMRC administered COVID-19 supports and we also bring you news of a new economic crime levy. While in international news, with Ireland signing up to the OECD global minimum tax agreement, 136 jurisdictions including all EU Member States and OECD members have agreed the two pillar plan.     Ireland Revenue set out the process for accountants in exceptional difficulty for the upcoming income tax deadline to seek to put an arrangement in place. Long-standing arrangements for accountings to support a client’s VAT Form 56A application continue to be recognised by Revenue. UK           Read this week’s updates on HMRC administered COVID-19 supports. HM Treasury has published more information on a new economic crime levy on professional firms and financial institutions. International The OECD two pillar plan on international tax reform is agreed by 136 jurisdictions, including Ireland. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax Newsletter by updating your preferences in MyAccount. 

Welcome to this week’s Technical Roundup.  In developments this week, the recently published Companies (Corporate Enforcement Authority) Bill 2021 (the Bill) establishes the Office of the Director of Corporate Enforcement (ODCE) as a standalone statutory body with a commission structure, to be called the Corporate Enforcement Authority (CEA); In its third quarterly podcast, the IFRS Interpretations Committee Chair and Vice-Chair of the International Accounting Standards Board Sue Lloyd joined Technical Staff Member Patrina Buchanan to talk about recent activities to support the consistent application of IFRS Standards during the third quarter of 2021 Read more on these and other developments that may be of interest to members below. Auditing The International Auditing and Assurance Standards Board (IAASB) has issued a proposed International Standard on Auditing of Financial Statements of Less Complex Entities. The consultation is open until 31 January 2022. The Institute's Audit and Assurance Technical Committee is considering this proposal in detail. To keep our members informed and updated on this important development we have published a webpage where members can access the consultation papers and submit their comments to us. IAASA have issued a revised version of ISA (Ireland) 240 The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements. The main changes to the standard are designed to provide increased clarity about the auditor's obligations to detect material fraud and enhance the requirements for the identification and assessment of the risk of material misstatement due to fraud and the procedures to respond to those risks. Read more here. Financial Reporting In its third quarterly podcast, the IFRS Interpretations Committee Chair and Vice-Chair of the International Accounting Standards Board Sue Lloyd joined Technical Staff Member Patrina Buchanan to talk about recent activities to support the consistent application of IFRS Standards during the third quarter of 2021. Topics discussed in the podcast included; Non-refundable VAT on lease payments Accounting for warrants that are financial liabilities on initial recognition Demand deposits with restrictions on use Cash received via electronic transfer as settlement for a financial asset. The FRC’s Lab published a report that supports companies in the move towards high-quality digital reporting. The Lab report sets out key considerations and tips for companies covering: how to set up the structured reporting process; how to enhance the usability of structured reports; and common tagging issues to avoid. The Financial Reporting Council (FRC) has published the findings of its review into IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’, which has been identified as a recurrent problem area by the FRC. In it’s latest podcast, the European Financial Reporting Advisory Group (EFRAG) provided an insight into the European Lab Project Task Force on the reporting of non-financial risks and opportunities and the linkage to the business model (PTF-RNFRO) report : Towards Sustainable Businesses: Good Practices for Business Model, Risk and Opportunities, Reporting in the EU and Supplementary Document: Good Reporting Practices. Other Areas of interest The recently published Companies (Corporate Enforcement Authority) Bill 2021 (the Bill) establishes the Office of the Director of Corporate Enforcement (ODCE) as a standalone statutory body with a commission structure, to be called the Corporate Enforcement Authority (CEA). Listen to the Association of Compliance Officers’ podcast series. Compliance files- Season 2, Episode 1.This week they speak with Ian Drennan, Director of Corporate Enforcement, on the role and powers of his Office, the implications of the Hamilton Report and the Implementation Plan which can be found on the Department of Justice website. One of the strands is the Advisory Council one of the key responsibilities of which will be developing Ireland’s first multi annual strategy for combatting crime and economic corruption. The director also makes reference to the above Bill which he says the legislature hope to have in force by year end, so a recent priority of his office has been work in this area to have the CEA ready to go by January 2022. As part of European Cybersecurity Month ISME are hosting a webinar on cybercrime with Department of Justice and  An Garda Síochána on protecting your business from cybercriminals.    The free webinar is on 28 October, and you can register by clicking the link above. The Department of Enterprise Trade and Employment has issued a Budget day newsletter with a link to the department’s Budget 2022 allocation. The newsletter gives details of some of the business focused measures contained in Budget 2022 such as enhanced tax arrangements for remote working and funding for digital and green funds. The Central Bank’s Director General Derville Rowland spoke recently at  the A&L Goodbody Corporate Crime and Regulation Summit about the evolution of enforcement at the Central Bank. She referred to  areas such as establishing and maintaining the credible threat of enforcement by the Central Bank and also about the proposed Individual Accountability Regime under the General Scheme of the Central Bank (Individual Accountability Framework) Bill 2021 making reference also to the UK experience in relation to this. HMRC has issued its October edition of its  bi-monthly magazine for employers and agents giving them the latest information on topics and issues that may affect them. Also, in the anti-money laundering supervision area, HMRC has recently updated its Guidance on Understanding risks and taking action for Trust or Company Service Providers. Sustainability Sustainable Finance Ireland in conjunction with the UN-convened FC4S, has launched Ireland's Sustainable Finance Roadmap, in collaboration with public and private stakeholders across Ireland including the Department of Finance, Skillnet Ireland, and internationally. Developing sustainable finance talent will be prioritised as a key pillar of the roadmap. In launching the report, the Minister for Finance Paschal Donohoe said the roadmap was a priority Action Measure under the Ireland for Finance Action Plan 2021, demonstrating sustainable finance’s increasing prominence as a priority for Ireland and an essential tool in addressing the climate crisis. For further technical information and updates please visit the Technical Hub and the Covid-19 Hub on the Institute website. 

Minister for Finance Paschal Donohoe announced the expansion of the tax debt warehousing scheme in yesterday’s Budget. The Collector General’s Division has provided Chartered Accountants Ireland with the following update: I refer to your representations at TALC regarding the section 997A Taxes Consolidation Act 1997 (TCA) issues impacting certain directors / employees who have a “material interest” in the company that pay their emoluments, and who are not entitled to a credit for the tax deducted from their remuneration  under the PAYE system but not remitted to Revenue, as a consequence of their employer company availing of debt warehousing for PAYE (Employer) liabilities.  In yesterday’s Budget publication, the Department of Finance has outlined the intention to allow self-assessed income taxpayers with employment income who have a material interest in their employer company to warehouse income tax liabilities relating to their Schedule E income in these circumstances. Please note this is subject to the enactment of the Finance Bill. In this regard, where a director / employee has a “material interest” in the company that pays their emoluments, and section 997A TCA means the director / employee is not entitled to a credit for the tax deducted due to the company warehousing its PAYE (Employer) liabilities, and the director/employee does not satisfy the 25% reduction of income threshold to avail of income tax debt warehousing, the director / employee may avail of debt warehousing  only for their Schedule E (PAYE) liability which has been warehoused by the employer company. The non Schedule E liability must be paid when filing the income tax return. Revenue has updated the Statement of Net Liabilities screen to include a new tick box declaration (as outlined below). When completing the Statement of Net Liabilities screen, a director / employee who satisfies the above requirements and wishes to warehouse their Schedule E liability only, may tick the relevant declaration to avail of debt warehousing for their Schedule E liability. Although my income has not reduced by 25% when compared to 2019, I wish to warehouse my Schedule E (PAYE) liability in respect of the tax deducted from director emoluments as set out in this return on the basis that I am restricted by Section 997A TCA 1997  from claiming credit for tax deducted from those emoluments as a result of my employer company warehousing their PAYE (Employer) liabilities. We would be grateful if you could bring this to the attention of your members so that they can inform their clients who are impacted by this issue. END OF MESSAGE As highlighted in the CCAB-I’s Pre-Budget Submission, and Chartered Accountants Ireland’s The Next Financial Year, the interaction of anti-tax avoidance provisions under section 997A TCA 1997 and the tax debt warehousing scheme gives rise to financial difficulties for taxpayers classed as proprietary directors and employees with a material interest in their employer company because this cohort of taxpayer are not entitled to a credit for PAYE tax in the calculation of their income tax liability for 2020 and preliminary tax liability for 2021 where their employer is participating in the tax debt warehousing scheme. Chartered Accountants Ireland, under the auspices of the CCAB-I, has made representations to Revenue for a pragmatic solution to this issue.  The Institute has asked Revenue for clarification on a number of issues related to the expanded debt warehousing scheme and further information will be published in Chartered Accountants Ireland’s  Tax News when it becomes available.

This year Minister Donohoe could not reaffirm his commitment to the 12.5 percent rate as the Government has taken the historic decision to join the global international tax agreement which will see the corporate tax rate increase to 15 precent for large multinational companies. The Budget measures announced today are aimed at supporting enterprise with the extension of tax relief for start-up companies and the introduction of a digital gaming tax credit. Also announced was the final transposition of the EU’s Anti-Tax Avoidance Directive (ATAD). Relief from tax for certain start-up companies The relief for certain start-up companies from corporation tax (Section 486C TCA 1997) is extended for a period of five years until 31 December 2026. The relief is granted by reducing corporation tax payable on the profits of the new trade and gains on the disposal of any assets used for the purposes of the new trade. The amount of relief available is directly linked to the amount of employers’ PRSI paid. During his speech, Minister Donohoe announced that in view of the challenges companies currently face in utilising the relief due to the impact that pandemic related supports have had on Employers’ PRSI payments, the relief will also be amended so that start-up companies will be able to avail of the relief for up to five years, in place of the current three years. Tax credit for digital gaming sector This new relief will support digital games development by companies by providing a refundable corporation tax credit for expenditure incurred on the design, production and testing of a digital game. The relief will be available at a rate of 32 percent, on eligible expenditure, up to a maximum limit of €25 million per project. There will also be a per project minimum spend requirement of €100,000. Relief will not be available for digital games produced mainly for the purposes of advertising or gambling. A claimant will not be allowed to qualify for additional relief under Section 481 TCA 1997 (Film Relief) or the Research and Development tax credit. A claim for the tax credit for digital games can only be made in respect of a digital game which has been issued with a cultural certificate from the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media. Full details will be published in the Finance Bill 2021 and will be implemented subject to commencement order because European State aid approval is required for the credit to be introduced. Interest Limitation Rules Budget 2022 confirmed the introduction of a new Interest Limitation Rule in line with Article 4 of the EU Anti-Tax Avoidance Directive (ATAD). For companies within the scope of these rules, this measure will place a limit on deductible interest expenses equivalent to 30 percent of EBITDA, commencing on or after 1 January 2022. Disallowed interest may be carried forward and may be deducted in future years if the company has sufficient interest capacity. A de-minimis rule will apply where net interest deductions are below €3 million, and exemptions will apply for standalone entities, legacy debt where the terms were agreed before 17 June 2016, and certain long-term infrastructure projects. Companies may operate the restriction on a single entity or local group basis, and certain group reliefs may apply where the Irish taxpayer is part of a consolidated worldwide group for accounting purposes. Full details of the measure will be contained in the Finance Bill. Anti-reverse hybrid rules Anti-reverse-hybrid rules in line with Article 9(a) ATAD are being introduced. This measure will bring certain tax transparent entities (such as partnerships) within the scope of Irish tax where the entity is 50 percent or more owned or controlled by entities resident in a jurisdiction that regard it as tax opaque and, as a result of this hybridity, double non-taxation occurs. Full details of the measure will be contained in the Finance Bill. International corporation tax reform The Irish Government has signed up to OECD proposals for a global minimum effective tax rate of 15 percent for multinationals with global revenues in excess of €750 million. Ireland has negotiated an effective minimum rate set at 15 percent instead of the original “at least” 15 percent proposal by the OECD and endorsed by the G7 in July this year. Ireland has also secured agreement that the 12.5 percent rate continues to apply to companies below the €750 million revenue threshold. The new rules are expected to be implemented as early as 2023. Bank levy (Stamp duty) The bank levy, which was due to expire in 2021, is being extended for one further year. It will apply to a reduced number of institutions, as, Ulster Bank Ireland DAC and KBC Bank Ireland plc are being excluded from its scope due to the fact that they are exiting the market. The banks to whom the levy will continue to apply to will not pay any more in 2022 than they did in 2021, thus explaining why the level collected will be in the region of €87 million.