Despite the recent doom and gloom around a looming recession, it may not be as bad as we think. Mark Nash explains why. "The report of my death was an exaggeration," Mark Twain quipped after newspapers mistakenly published his obituary. We can probably say the same about the prognosis of recession swirling in the financial markets now. There is no doubt the backdrop for growth is challenging. China's stringent zero-COVID policy continues to disrupt supply chains, and the Russia–Ukraine war has pushed up commodity and food prices. However, recent indicators from the world's two largest economies have not been encouraging. The US economy unexpectedly contracted in the first quarter, while a survey of purchasing managers signalled a deceleration in business activity. Meanwhile, China's growth engines are stuttering, with industrial production and retail sales declining in April, reflecting the COVID-19 lockdowns. Consumer behaviour A full-blown recession is unlikely as the labour market is still very tight, and the reopening of the world will also spur demand. Consumers have amassed a war chest of savings during the pandemic, and governments have not stopped spending as they seek to address the cost-of-living crisis stemming from high food and energy prices. Even the travails of some retailers could be due to overly optimistic demand projections rather than a lack of purchasing power. Another factor we need to account for is a switch in consumer behaviour as the world emerged from lockdowns. At the height of the pandemic, many developed countries saw increased consumer durables spending, straining supply chains and boosting inflation. Now, we are seeing an increase in spending on services, which may rise further in the summer months as travel and tourism pick up, resulting in spending on airlines, hotels, and restaurants. This shift in consumer behaviour from goods to services can mask demand and confuse policymakers. The strength of commodity and energy prices that we see now could reflect underlying demand and scarcity. Energy prices could rise further if China stops enforcing its strict COVID-19 policy, releasing an extra uplift to the global economy. Inflation conundrum  China’s slowdown will be due, primarily, to its COVID-19 policy. Therefore, there is some chance that it will end up looking slightly better than current expectations. Global growth would get a considerable boost if China reduced restrictions, eased financial conditions, and opened its economy. I expect inflation to ease in the year's second half as central banks focus more on lifting real rates than growth. The statistical base effect and weaker growth in China and Europe may help subdue headline numbers in the coming months, which could trigger a risk rally. However, inflation could be stickier than the market generally expects and may remain above target as we head into 2023. Financial conditions in the US have tightened as inflation concerns pushed yields up and most of the world reeled under weaker growth, strengthening the dollar. But the strength of the world's main reserve currency may begin to fade if growth also picks up elsewhere, prompting the Fed to increase rates. Yield curve  Many investors point toward the flat/inverse nominal bond yield curve as a predictor of recession. But the real yield curve, which is still upward sloping, suggests the central banks need to tighten more. Considering heightened geopolitical tensions and the threat of higher energy prices, the next few months will be crucial. Mark Nash is Head of Fixed Income Alternatives at Jupiter Asset Management. The article are the sole views of the author. This article was originally published in FM Report.

The gender pay gap has always been on the agenda, but now that Government are introducing legislation around reporting and regulations, it’s a necessity rather than a luxury. The topic of the gender pay gap isn't anything new, but what is new is the Government's introduction of the legislative basis for gender pay gap reporting and regulations. On International Women's Day 2022, Minister for Children, Equality, Disability, Integration and Youth, Roderic O'Gorman, announced the introduction of gender pay gap reporting in the Republic of Ireland. Employers will choose a 'snapshot' date of their employees in June 2022 and must report on the hourly gender pay gap for those employees on the same date in December 2022. This will need to include the mean and median hourly wage gap, data on bonus pay, the mean and median pay gaps for part-time employees and employees on temporary contracts, and the proportions of male and female employees in the lower, lower-middle, upper-middle and upper quartile pay bands. This reporting requirement will help ensure pay transparency exists in organisations and will play an essential role in achieving gender equality in the workplace. The reporting is a landmark victory for the fair pay campaign, but it will not be without its challenges for employers. Gender pay gap reporting in Northern Ireland The UK's law concerning gender pay gap reporting was set out in 2016. However, due to the collapse of the Northern Ireland Assembly in 2017, the subsequent publication of the regulations did not happen. There was hope that there may have been some movement on this critical issue after the recent assembly elections, but as it stands today, it looks like we will still be waiting.  It is now regarded as good practice, with or without the legislation, to publish gender pay gap information, and many organisations in Northern Ireland have already been doing this. However, to get the complete picture and to be able to have the data required to ensure fairness and equality throughout the workforce, we do need to see some legislation enacted.  Challenges facing organisations There are a few challenges facing organisations reporting on their gender pay gap in the north and south of Ireland. Reporting results will either have a negative or positive impact on your organisation, especially regarding staff retention and hiring. Gender pay gaps will likely influence a candidate's assessment of your commitment to diversity and inclusion. Resourcing this reporting requirement will need to be considered – which department is going to handle this? Most will land on HR or payroll, but will they be able to cope with this added workload? Imperfect reporting will also be a challenge. The Chartered Institute of Personnel and Development (CIPD) has compiled research into this area with UK organisations and suggests that inexperience and insufficient technology can mean the output quality is not great. Finally, internal structures, such as flexible working arrangements and child care, etc., are factors that will need to be addressed. The benefits of reporting Even though gender pay gap reporting will challenge organisations, benefits come from this hard work. For one, there can be a cultural transformation through communication, transparency and a policy of fairness and equality that transcends not just pay but every aspect of the organisation. On top of that, by collating and analysing the data gathered for reporting, an equal workforce with equal opportunities, new and improved hiring and promotion methods could be gained to ensure a fair approach. Patrick Gallen is Partner of People and Change Consulting at Grant Thornton.

Welcome to this week’s Technical Roundup.   In developments this week, the Financial Reporting Council (FRC) has issued a consultation on publishing audit quality indicators (AQIs) for the largest UK audit firms, the FRC has issued an updated edition of the Guidance on the Strategic Report to incorporate the new climate-related financial disclosures and MEPs and EU governments struck a provisional agreement on new reporting rules for large companies. The Corporate Sustainability Reporting Directive (CSRD) will make businesses more accountable by obliging them to disclose their impact on people and the planet. Read more on these and other developments that may be of interest to members below. Financial Reporting The deadline for commenting on EFRAG’s discussion paper ‘Better Information on Intangibles – Which is the best way to go?’ is approaching (30 June 2022). The Discussion Paper explores various approaches to improve information on intangibles in financial reports. IFRIC, the IFRS Interpretations Committee, has issued its June 2022 update. The IASB has published a Project Report Feedback Statement concluding its Post-Implementation Review of IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in Other Entities. The FRC has issued an updated edition of the Guidance on the Strategic Report to incorporate the new climate-related financial disclosures, following changes in legislation made earlier this year. In addition, a number of other amendments were also made to maintain alignment with legislation. For entities within their scope, the new climate-related financial disclosures are effective for financial years beginning on or after 6 April 2022. The FRC has published a consultation on proposed changes to Technical Actuarial Standard 100 which would require actuaries to include climate change risks in the course of their work. The UK Endorsement Board is holding a virtual outreach event on the International Sustainability Standards Board’s Exposure drafts. The event will take place on 30 June 2022. Auditing  The Financial Reporting Council (FRC) has issued a consultation on publishing audit quality indicators (AQIs) for the largest UK audit firms, which would provide users of audited information with greater detail on audit firms’ efforts to deliver high quality audit. The FRC welcome the views of all stakeholders – including users of audit services, investors, audit firms, and others with an interest in this topic by 18 August. A link to the consultation is available here. The Financial Reporting Council (FRC) has published comprehensive professional judgement guidance for auditors to improve how they exercise professional judgement. Professional judgement is key to high quality audit, however the FRC regularly identifies poor professional judgement as one of the most significant issues affecting audit quality. The new guidance includes a framework for making professional judgements and a series of illustrative examples. Insolvency The UK government recently published its interim report on the permanent measures in  the Corporate Insolvency and Governance Act 2020. Those measures are restructuring plans, the stand-alone moratorium, and restrictions on contractual termination (ipso facto) clauses. As part of the review,  the University of Wolverhampton was commissioned to conduct independent research. The report concludes that the permanent measures have been broadly welcomed by stakeholders and are seen as satisfying their policy objectives. It also  includes suggestions as to  how the measures could work even better.Details of the report can be found by following this link . Sanctions and Anti-Money Laundering The Irish Central Bank Director of Enforcement & Anti Money Laundering  has this week contacted business groups and professional representative bodies including Chartered Accountants Ireland regarding financial sanctions obligations. You can read details of the press release  here. The Central Bank  has asked for a letter they have written on sanctions to be circulated to members. The letter advises recipients that the Central Bank is the competent authority for the administration and enforcement of financial sanctions and that the adoption of sanctions places legally binding obligations on all individuals and entities. You can read our news item and the full contents of the letter here. PWC has recently published its Global Economic Crime Survey 2022: UK findings. Almost two in three respondents reported a fraud in the last 24 months. The survey deals with what types of fraud are occurring, who is perpetrating the crimes and how are they being detected. It identifies five key trends in respect of both fraud frameworks and specific risks. They are fraud risk and maturity, data and technology in risk management and detection, supply chain risk and resilience, ESG risk and cybercrime.You can go to their webpage and follow the registration procedure for a copy of the report. Other areas of interest The EU Corporate Sustainability Reporting Directive New social and environmental reporting rules for large companies were agreed this week by the European Council and European Parliament. It is an ambitious deal on compulsory reporting on environment, social affairs and governance. The Corporate Sustainability Reporting Directive (CSRD) will make businesses more accountable by obliging them to disclose their impact on people and the planet. This aims to end greenwashing and lay the groundwork for sustainability reporting standards at global level. New social and environmental reporting rules for large companies | News | European Parliament (europa.eu). Sustainability will become a new pillar of businesses’ performance, moving away from focus on short-term profits and the CSRD EU set to become front-runner in setting global sustainability reporting standards The UK House of Commons Treasury Committee recently issued a report on the future of financial services regulation.It includes consideration of the new regulatory framework (post Brexit),regulatory objectives and priorities and payment innovation including a focus on cryptoassets.You can read a copy of the report here. CLS Chartered Secretaries has published an article which maybe of interest to members on whether a company limited by guarantee  or a dormant Company must make a  filing  with the RBO.You can read more details and their conclusion here. The UK government,HM Treasury recently published the outcome of a consultation launched in July 2021. The consultation outlined how the government intended to amend the UK’s Money Laundering Regulations (the MLRs) to make updates to ensure that the UK continues to meet international standards, whilst also strengthening and ensuring clarity on how the UK’s anti-money laundering and counter-terrorist financing (AML/CTF) regime operates. The recently published  document summarises the responses to the consultation and sets out the government’s final approach to the relevant Statutory Instrument (SI) and you can read it here. Ministers in the Dept. of Enterprise Trade and Employment recently welcomed the publication from the Expert Group on Future Skills Needs (EGFSN) on the skills needed for Ireland to fully benefit from the opportunities presented by Artificial Intelligence.The report is entitled  AI Skills: A Preliminary Assessment of the Skills Needed for the Deployment, Management and Regulation of Artificial Intelligence.You can read the press release here and a copy of the report here. The Irish government recently announced a new €85 million fund, the Digital Transition Fund, to help businesses, at any stage or in any sector to go digital. The fund will be administered by Enterprise Ireland.Funding of €85 million has been allocated during the period to 2026 as part of Ireland’s National Recovery and Resilience Plan. €10 million will be available in 2022. A new online website is being developed and you can read more detail on the fund here. Any one member arrangements (OMA) set up on or after 22 April 2021 must meet the full requirements of the Pensions Act, 1990, as amended, including the new requirements of the IORP II Directive, by 1 July 2022.The Pensions Authority has recently issued a further reminder to trustees about this details of which you can read here. For further technical information and updates please visit the Technical Hub  on the Institute website. 

On 16 June, we welcomed a team from the FRC to Chartered Accountants House in Dublin for an in-person financial reporting update. The FRC were represented by Jenny Carter and Stephen Maloney from the Accounting and Reporting Policy team and Phil Fitz-Gerald from the FRC Lab. During the event, Jenny and Stephen provided an update on UK and Ireland accounting standards.  FRS 102, is currently in the early stages of its periodic review which occurs at least every 5 years and during 2021, the FRC sought views on this review. The Financial Reporting Technical Committee of the Institute submitted a response to this request in 2021. The FRC are now considering the views of stakeholders in advance of issuing an exposure draft with proposed changes. This exposure draft is expected to be issued for consultation in 2022. Stephen provided an update of some of the key issues being addressed as the FRC develop the exposure draft including the incorporation of newer IFRS standards such as IFRS 9- Financial Instruments, IFRS 15- Revenue from Contracts with Customers and IFRS 16- Leases into FRS 102, whilst remaining appropriate for entities applying FRS 102. The FRC have also recently held a series of roundtables with stakeholders to discuss ways in which the periodic review can be implemented. Stephen and Jenny discussed FRED 80- Draft amendments to FRS 100 Application of Financial Reporting Requirements Application Guidance The Interpretation of Equivalence which was issued in May 2022 for consultation. This exposure draft proposes updates to the Application Guidance of FRS 100 on the interpretation of equivalence and seeks to address how Irish intermediate parents with a UK parent can assess equivalence of consolidated financial statements when applying section 300 of the Companies Act 2014. Similarly, the exposure draft provides application guidance on equivalence when applying section 401 of the Companies Act 2006 in the UK. Also discussed were the current status of other UK and Irish accounting standards such as FRS 101, FRS 103, FRS 104 and FRS 105. The Financial Reporting Lab were represented by Phil Fitz-Gerald who provided an update on recent and upcoming projects. Having celebrated its 10th anniversary in 2021, the Lab provides an environment where investors and companies can come together to develop pragmatic, market-led solutions to today’s reporting needs. Their publications provide a valuable resource to companies and investors and address topical matters.   Phil discussed some of the recent publications by the Lab, including; Reporting on stakeholders, decisions & section 172 Structured reporting: early implementation review Reporting on risks, uncertainties, opportunities and scenarios TCFD: ahead of mandatory reporting and current projects on their agenda including; ESG data production Structured reporting: driving up quality  Net zero disclosures Digital security and strategy risk disclosure During his address, Phil noted the importance of participants to the Lab's work and how this contributes to the quality of the publications issued by the Lab. Phil issued a request for participants to their upcoming project entitled 'Net zero disclosures'. Companies willing to participate can do so via the FRC or by contacting the Institute.

Stopping flow of landlords leaving the market critical to address housing crisis Frontload personal tax allowances for younger workers to halt brain drain  23 June 2022 – Tax measures that support individuals and make Ireland an attractive place to live and work are critical to protect competitiveness, according to the main accountancy bodies in Ireland. CCAB-I which represents over 50,000 professional regulated accountants published its pre-Budget submission today, containing a range of measures to alleviate cost of living pressures and to tackle barriers to recruitment and retention across the Irish economy. CCAB-I identifies two key areas for Budgetary focus; improving housing supply to address the crisis in the housing market, and reforming personal tax allowances to help people as they build careers, homes, and families.  Parity in the treatment of corporate and individual landlords Ireland needs a functioning housing market to attract and retain talent to our shores. The submission states that the residential property market is in crisis, with not enough houses to buy or rent in the private sector and not enough houses being built by the State for those who need social housing. Government sees the private rental market as a source of taxes, and this is not the correct approach in a housing crisis. Commenting Cróna Clohisey, Tax & Public Policy Lead, Chartered Accountants Ireland said “Landlords are an essential feature of a fully functioning residential property market, however in general, landlords consider it to be no longer economical for them to continue in the market. In the Irish tax system, corporate landlords holding rental property have a more favourable tax treatment, at 25%, whereas individuals face rates of 52% and beyond.  “The 25% rate should be extended to individuals to address some of the inequity. By removing disparities, the tax system could be effectively harnessed to encourage landlords to stay in the market and new entrants to meet the supply shortage.” The submission also proposes:  Local property tax should be allowed as a deduction against rental income Wear and tear rates for fixture and fittings should be increased from 12.5% to 25% per annum to facilitate landlords investing in the maintenance of properties Where landlords retrofit a property to improve its energy rating, 100% capital allowances should be offered in the year of work To incentivise loss making landlords to remain in the market, rental losses in a tax year could be used against other income (such as employment income) to reduce tax payable.  Capital tax solutions to encourage the supply of accommodation As landlords withdraw from the rental market, some opt to sell the property, others do not. The current rate of capital gains tax (CGT) of 33% is too high.   The CCAB-I proposes the following measures will prevent the extraction of rental properties from the market, reduce the displacement of tenants, and result in more residential properties becoming available to purchase: Make available a relief from CGT on disposal of a rental property, conditional on the property being sold with a tenant in situ and/or a requirement for the property to continue in use as a rental property. Reduce the standard rate of CGT from 33% to 20% to release residential property back into the property market for younger generations. Outside of housing, as detailed in full in the submission, a lower rate of CGT would also encourage innovation and risk taking which in turn would drive investment activity and improve returns for entrepreneurs. Reforming personal tax allowances Traditionally Ireland’s investment policy has focused on taxation from the employer’s perspective, however in 2022, retaining talent is a prominent concern among employers. The CCAB-I proposes that consideration be given to reforming personal tax allowances so that allowances are ‘frontloaded’ at the outset of a person’s career. The submission suggests that such reform is in line with government policy on FDI which notes “talent” among the key areas which makes Ireland a consistent target for such investment    Clohisey continued “We need to turn our attention to personal tax rates, as they are impacting attraction and retention of talent. Recalibrating personal tax allowances is a long-term project and the biggest obstacle will be overcoming political resistance to change. Nonetheless, personal tax allowance reform should form part of Ireland’s overall policy to retain talent. “Speaking on behalf of a profession where most are in the early stages of their careers, this could be achieved by increasing allowances available to those under 35 at a time when many are taking the first major life steps such as starting a family or approaching the first rung of the property ladder, while reducing the allowances available to those over 55 for example. ” In addition to reforming personal tax allowances, the CCAB-I supports the proposal to introduce a third rate of income tax. Presently, a worker in Ireland begins to pay tax at their marginal rate once they have earned €36,800 which is below the average industrial wage. A third rate would make the tax system more equitable provided that the entry levels to each band of tax are appropriate. Other measures proposed by the CCAB-I include    Leave Employer’s PRSI unchanged to remove barriers to employment creation. Overhaul and simplify the R&D credit to make it more accessible to SMEs. Reform the discriminative tax treatment of service companies if Ireland is serious about encouraging the prosperity of indigenous businesses.  Avoid any measures which diminish the already modest capital tax reliefs available to Irish entrepreneurs.  To encourage FDI and competitiveness, Section 110 companies should be allowed to deduct withholding taxes suffered on the receipt of distributions or interest received.  Pension auto-enrolment incentives should not disturb established tax reliefs for pension contributions.  A more flexible Tax-Saver Commuter ticket should be introduced to match the hybrid working model that has emerged for certain workers. ENDS Issued by Chartered Accountants Ireland on behalf of the Consultative Committee of Accountancy Bodies-Ireland (CCAB-I). Read the submission in full here.  For more information Jill Farrelly  PR & Communications Manager   Chartered Accountants Ireland  About the Consultative Committee of Accountancy Bodies-Ireland (CCAB-I) The Consultative Committee of Accountancy Bodies-Ireland is the representative committee for the main accountancy bodies in Ireland. It comprises Chartered Accountants Ireland, the Association of Chartered Certified Accountants, the Institute of Certified Public Accountants in Ireland, and the Chartered Institute of Management Accountants which combine to represent over 50,000 professional regulated accountants in Ireland.  

The Financial Reporting Council (FRC) has today published comprehensive professional judgement guidance for auditors to improve how they exercise professional judgement.    Professional judgement is key to high quality audit, however the FRC regularly identifies poor professional judgement as one of the most significant issues affecting audit quality.   The new guidance includes a framework for making professional judgements and a series of illustrative examples. If applied widely, the guidance will improve audit quality by enhancing the consistency and quality of professional judgement exercised by auditors.   The guidance will be of particular use for auditors and central technical teams but will also have wider interest for those interested in audit quality, such as audit committee members and investors.

In this week’s EU Exit Bulletin, we bring you the latest guidance updates and an email from HMRC on the Northern Ireland Protocol Bill. We also bring you news of the amended submission deadline for making Supplementary Declarations as well as a new service to help traders complete declarations using the Trader Support Service. In Ireland, Revenue will shortly be making Customs and Excise weekly print outs for imports available to agents through ROS.    New submission deadline for Supplementary Declarations   From 19 June 2022, the deadline for the submission of Supplementary Declarations changed to 9pm on the fourth working day of the month following the goods movement. This is three hours earlier than the previous deadline of midnight on the same day.   The new deadline will enable the Trader Support Service (TSS) to automatically create the Final Supplementary Declaration report on behalf of traders, helping to fulfil all customs declaration requirements set out by HMRC.   Any Supplementary Declarations submitted after the 9pm deadline will be reported as late on the Final Supplementary Declaration report submitted to HMRC for that month.  A banner will appear each month on the TSS Portal as a reminder of the new deadline. All guidance on NICTA has been updated to highlight the new submission time.  More information can be found in the latest Trader Support Service Bulletin.   New Assisted Completion Service - TSS  On 20 June 2022, the TSS launched a new Assisted Completion Service which provides additional support for traders submitting Supplementary Declarations using the TSS Portal. It is specifically for goods’ movements from Great Britain to Northern Ireland, either directly or via Ireland.  When using the Assisted Completion Service, a TSS agent will complete up to 5 Supplementary Declarations per month on behalf of traders and it is hoped that this will ease any technical difficulties or teething issues when dealing with unfamiliar customs terms and procedures or the TSS declaration process.  The Assisted Completion service is available to all traders using TSS and traders can take advantage of the service to support with the completion of up to 5 Supplementary Declarations per month. However Supplementary Declarations with a Tax Point Date over 330 days old are not supported and Supplementary Declarations made using an agent or intermediary are excluded.  To use the service, traders should ask for assisted completion of one of their Supplementary Declarations directly on the TSS Portal or by phoning the TSS Contact Centre. Further information can be found here.   Miscellaneous updated guidance on GOV.UK The following documents/guidance relevant to EU exit have been updated/published recently on GOV.UK  Reference documents for The Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020;  List of sensitive goods for the purposes of special customs procedures;  Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020;  Reference Document for The Customs Tariff (Establishment) (EU Exit) Regulations 2020Reference document for authorised use: eligible goods and authorised uses;   Check simplified procedure value rates for fresh fruit and vegetables; and  Get someone to deal with customs for you.  Revenue: C&E weekly printouts for imports   At a recent meeting with Revenue, officials confirmed that agents should have access to Customs and Excise (C&E) weekly printouts for imports through ROS in Quarter 3 of 2022. Traders already have access to these reports. We will keep readers updated.    

The Irish Central Bank Director of Enforcement & Anti Money Laundering  has this week contacted business groups and professional representative bodies  including Chartered Accountants Ireland regarding financial sanctions obligations .You can read details of the press release here. The Central Bank  has asked for a letter they have written on sanctions to be circulated to members. The letter advises recipients that the Central Bank is the competent authority for the administration and enforcement of financial sanctions and that the adoption of sanctions places legally binding obligations on all individuals and entities. You can read the full contents of the letter here.

The Tánaiste and Minister for Enterprise, Trade and Employment, Leo Varadkar, has outlined his proposal to introduce a living wage for all employees.  The living wage will be set at 60 percent of the median wage in any given year, which in 2022 would be €12.17 per hour. The national minimum wage is currently €10.50 per hour, and will remain in place until the 60 percent living wage is fully phased in. This is planned to take place over four years from next year up to 2026. It is envisaged that in 2026 the national minimum wage will no longer exist, and the living wage will be the floor, mandatory for all employers. The proposals are based on recommendations the Low Pay Commission, which was tasked last year with conducting research into how best the Government can progress to a living wage. Depending on prevailing economic circumstances, it is suggested that the Low Pay Commission will be given discretion on whether the full living wage should be introduced faster or slower than the four years proposed. The Minister will consult with interested parties, including employer and worker representative groups, unions, and the public on the draft plan.

Over the coming weeks, Revenue will write to employers and employees participating in employee share schemes. Current Revenue data indicates significant non-compliance with Relevant Tax on Share Options (RTSO) and CGT in respect of employee share schemes. We will circulate copies of the letters via Tax News once they are made available to us. A key message coming from Revenue is that it intends to proceed with Level 2 interventions where there is non-compliance by participants of employee share schemes. However, Revenue also acknowledged more can be done to communicate compliance requirements to employees participating in such schemes. We will keep members updated via Tax News.

HMRC has recently published research on readiness for MTD for income tax self-assessment (“MTD for ITSA”) and VAT and a new compliance check factsheet has also been published setting out the potential penalties which will be charged if a business does not meet the necessary conditions of MTD for VAT. VAT Notice 700/22: Making Tax Digital for VAT has also been updated and the MTD for ITSA pilot is expected to open up from next month. HMRC is also sending reminder emails this week on MTD for VAT. Research on MTD readiness HMRC commissioned Ipsos Mori to conduct research on readiness for MTD for ITSA mandation, which is scheduled to commence in April 2024. The research consisted of a quantitative telephone survey of 2,200 businesses supported by 30 in-depth qualitative interviews. The research was used to provide a segmentation of the ITSA population to inform HMRC’s strategies for communication and support tailored to the needs of different groups. Six distinct groups have been formed by HMRC based on perception of readiness for MTD. This was based on their current practices, business structure, comfort using technology and life stage of the business. These are being discussed via various HMRC MTD sub-group forums which Chartered Accountants Ireland is participating in. According to HMRC, the key findings are as follows:- Readiness is affected by a number of key characteristics including age, business complexity, digital capability and record keeping practices; 67 percent of the research population are deemed “capable” by HMRC of meeting their MTD requirements based on these characteristics; Similar numbers of businesses (38 percent) reported that they will find their MTD obligations easy compared to those who said they will find it difficult (35 percent); and The research suggests areas in which the least prepared businesses may require further support, largely in the need for information on choosing suitable software, facilitating trial runs of MTD and allowing a grace period for first submissions. Research has also been published on readiness for MTD for VAT which took effect for businesses with turnover below £85,000 from 1 April 2022. This research was conducted by Yonder between June 2021 and January 2022. According to the survey results, there appeared to be a general lack of awareness of the specific requirements of MTD VAT. HMRC tells us that by the middle of May 2022, approximately 40 percent of those mandated to use MTD for VAT from April 2022 had signed up to do so. Businesses are not able to register until their final non-MTD VAT return has been filed hence it is expected that further tranches of businesses will sign up to MTD VAT in the coming months (depending on their VAT return stagger return period). MTD for VAT penalties The new compliance check factsheet on MTD for VAT penalties sets out long awaited information and guidance on the penalties that apply for failure to comply with MTD for VAT. Note that the new factsheet only deals with MTD for VAT penalties and does not deal either with the default surcharges rules or the new VAT points based late submission and payment penalty system that begin to take effect from 1 January 2023. These rules were originally scheduled to commence from 1 April 2022 but were delayed nine months as recommended by Chartered Accountants Ireland. A filing penalty of up to £400 for every return filed can be applied to a business that does not sign up to MTD for VAT and continues to file its VAT return in a way that does not use MTD compliant functional compatible software. At a recent meeting with HMRC, HMRC stated that these penalties will begin to be charged later this year once all VAT records have been transferred by HMRC to its new database. A penalty of between £5 and £15 can be charged for every day of failure to comply with the MTD for VAT digital record keeping requirements (including the digital links requirement). Chartered Accountants Ireland continues to express the need for a soft landing for the smallest businesses in respect of MTD for VAT and remains concerned about a number of aspects of MTD for ITSA, including the low £10,000 turnover exemption, and the lack of both available MTD for ITSA compatible software and the trial roadmap which was due to be published in Spring 2022. MTD for VAT bulk emails Later this week, HMRC is expected to begin sending reminder emails on MTD for VAT to businesses with turnover below £85,000. It is expected that further emails will also be sent to the same population in July and August. MTD for ITSA pilot HMRC has issued a message to agents updating them on the MTD for ITSA pilot in the latest Agent Update. HMRC plans to extend the MTD for ITSA pilot by opening it up to more of the self-employed and landlords from 1 July 2022. HMRC are keen to say that anyone taking part will be able to test MTD ITSA before April 2024, including their own internal processes for managing MTD for ITSA. The message asks agents to think about which of their clients may be eligible to join the pilot for 2022/23. HMRC wants agents to consider how the pilot provides an opportunity to test MTD for ITSA with their clients early in addition to playing a key role in testing the new system before mandation in 2024.  Taxpayers with the following income types will be able to join the MTD ITSA pilot scheme from July 2022:- self-employment (including multiple self-employments); UK property; Gift Aid; Pay As You Earn income, including employment income and occupational pensions (excluding those with a coded-out liability);  UK interest; and   UK dividends.   Taxpayers will need to have an accounting period that aligns to the tax year (6 April to 5 April) to join the 2022/23 pilot and have MTD-compatible software. However, it remains concerning that only three software packages are available and no full roadmap for this pilot has been published as yet which HMRC had promised for Spring 2022. HMRC has stated that from 6 July it will be testing the first quarterly submission for 2022/23 for taxpayers already in the pilot, after which it aims to open up the pilot more widely to those with income types listed above. More information will be available in subsequent Agent Updates after HMRC has carried out initial stage 1 testing of core income types for the first quarterly submission. Chartered Accountants Ireland continues to discuss MTD with HMRC and will keep members updated.

The Institute regularly discusses HMRC service levels and performance at various HMRC forum meetings, including the highest-level forum meeting, the Representative Body Steering Group (“RBSG”) and also shares member feedback received directly with HMRC. The RBSG is next due to meet in early July after the June meeting was postponed by HMRC. A bespoke meeting on HMRC performance is also being arranged in the next few weeks. Please therefore continue to share your feedback with leontia.doran@charteredaccountants.ie. Members are also reminded of the importance of reporting issues on the Agent Forum as this is the first place service issues should be reported to HMRC before they will be considered for escalation. The escalation process for issues being experienced sets out the various steps involved. The Agent Forum also contains a useful dashboard showing response times in particular areas. HMRC are planning to remove the dashboard from behind the Agent Forum login in future and make this publicly available to all agents. HMRC service levels are also a standing item on the agenda of the Northern Ireland Tax Committee (“NITC”). In recent weeks, the Institute contacted HMRC to share some recent feedback based on discussions at recent NITC meetings and specific issues raised by our members. Although there is an acknowledgment that there has been some improvement in recent months, some tasks (referred to as normally simple and straightforward), are still taking much longer than normal and are experiencing long delays. We specifically raised the following areas with HMRC:- Problems with corporation tax filing on 31 March 2022 which resulted in some returns not being filed on time due to issues connecting to HMRC’s systems; Long delays in processing self-assessment tax refunds – this issue has been raised on the Agent Forum and is within the Issues Overview Group escalation process. However, we expressed concern that the survival of some businesses is now under threat due to the cash flow pressure experienced from delayed refund in a very difficult economic environment; HMRC is taking sometimes a year or more to certify evidence of tax residence in the UK which some contractor businesses require for gross payment status or to claim refunds of sub-contractor tax in other jurisdictions – this is negatively impacting on those businesses from a cash flow perspective. The Institute has also raised HMRC performance as matter of concern in its annual position paper, the Next Financial Year, since the paper was first published in 2020. This year’s paper is due for publication in the next few weeks. You can read the 2020 and 2021 papers.  

In this week’s EU exit corner, we bring you the latest guidance updates and an email from HMRC on the Northern Ireland Protocol Bill. See also the most recent EU exit bulletin which features every Friday in Chartered Accountants eNews. And information on an important meeting last week which discussed the Northern Ireland Protocol Bill is also included. Institute attends meeting on NI Protocol Bill Last week, the Institute attended a meeting of the Joint Customs Consultative Committee (“JCCC”) where HMRC and UK Government officials shared information on what is contained in the Northern Ireland Protocol Bill. Officials told attendees that there is no change to the procedures currently in place for moving goods and no action is needed by traders while the Bill is making its way through Parliament. In addition, existing stand-still arrangements and grace periods and easements remain in place.  Officials confirmed that secondary legislation will develop the technical detail but were able to share the following:- The “green lane” approach will be underpinned by the existing Trusted Trader Scheme and the current requirement to be established in the UK rather than Northern Ireland specifically would apply; A dual regulatory regime would be established whereby traders can choose between UK and EU standards; Existing stand-still arrangements, grace periods and easements remain in place; ‘Adequate’ time will be given for any new changes to be implemented; Officials are aware of concerns that a dual regulatory regime could mean a border on the island of Ireland, but their view is that the Bill does not necessitate a North/South border; and Officials acknowledged that the design of new schema needs to be prepared with close engagement with businesses and that a system in theory does not always work in practice. Government officials were told by the Institute that businesses in Northern Ireland need certainty on the processes which they will face in addition to the expected timeline for any changes.  Furthermore, the importance of Northern Ireland continuing to have access to EU markets was also stressed. According to the officials, the UK has not sought to disapply this particular Article of the Protocol. A consultation process on the new regime will be announced shortly; we will keep members updated. Miscellaneous updated guidance The following documents/guidance relevant to EU exit have been updated/published recently:- Reference documents for The Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020; List of sensitive goods for the purposes of special customs procedures; Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020; Reference Document for The Customs Tariff (Establishment) (EU Exit) Regulations 2020 Reference document for authorised use: eligible goods and authorised uses; Check simplified procedure value rates for fresh fruit and vegetables; and Get someone to deal with customs for you.

Last month we told you that HMRC has stopped the payment of some research and development (“R&D”) tax credit payments to allow it to investigate what has been referred to as irregular claims. HMRC has provided a further update below. The key message from the latest update is that HMRC is strengthening checks on R&D tax claims to crack down on abuse of the reliefs and as a result the additional checks will mean HMRC’s standard processing times will increase. This follows the decision to delay payments announced last month due to an increase in ‘irregular’ claims. “We previously notified agents that we have paused some Research & Development Tax Credit (RDTC) payments while we investigate an increase in irregular claims. Our investigations are continuing, but we are now able to provide an update. To prevent abuse of the relief we will be enhancing our extensive compliance checks. These additional checks will mean our standard processing times will increase.     For the vast majority of claims, we will aim to either pay the payable tax credit or contact you regarding the claim within 40 days. It is our ambition to return to our standard 28 day processing times as soon as we can. Our gov.uk guidance will be updated shortly. We wanted to share this update to notify legitimate claimants that their RDTC payments will take longer to be processed. We appreciate agents’ and claimants’ patience while we handle these claims and continue to offer the guidance below: To help us process your R&D payment quickly, please ensure you have completed all entries on the R&D section of your Corporation Tax return (CT600 form).  Submitting additional information to support the claim, such as the R&D report will help HMRC process the claim quicker.  Review the latest guidance on completing your CT600 form on GOV.UK  If you submit a claim that is incorrect, inflated or fraudulent then you may be liable to a penalty. Read HMRC: standards for agents. We ask R&D claimants to bear with us and kindly ask them not to contact the R&D helpline/mailbox to chase their claims. We also ask you not to contact any HMRC official about a claim. Instead, agents should check the company’s online account to check the status of their claim.  We will continue to share updates when we have further information.”  

Agent Update: issue 97 is now available and contains the latest guidance and information for tax agents and advisers. This edition of the Agent Update includes:- the increase in some National Insurance Contributions thresholds from 6 July 2022; residency and the remittance basis charge; changes to VAT penalties; P11D and P11D(b) filing and payment deadlines next month; and Making Tax Digital (MTD) for Income Tax Self-Assessment – do you have clients who may want to join the pilot?  

What can a manager do when they discover that remote working is having a negative impact on one or more of their team members? Rachel Davis outlines five steps they can take to bring about positive change. Remote working has been a boon for some but, for others, working apart from colleagues has led to longer hours, greater stress and mounting burnout. So, what should a manager do when faced with this challenge? Put simply, integrating practical solutions that promote wellbeing within remote team culture is really the only way to bring about sustainable positive change. Since the idea of wellbeing can seem abstract to some, however, there tends to be a lot of corporate jargon surrounding the topic. On top of this, each individual may define wellbeing differently, so cookie-cutter solutions are unlikely to work in any scenario. It is also crucial to note that, where stress and burnout have had serious repercussions on an individual’s mental health, there is no substitute for professional medical help. Ideally, organisations should explore and provide a range of initiatives to meet the wellbeing needs of a diverse team, taking into consideration which combination of the following actions might best suit the their own team.  Let's talk in more practical terms, though. Here are five actions leaders can implement today to help bring about positive change. 1. Communication Start simple and promote open communication within the team at all levels. Start with weekly leadership-endorsed team meetings. These provide structure for a team and help showcase leadership commitment to ongoing wellbeing conversations. Layered on top of these formal meetings, more casual placeholders, such as bi-weekly cyber coffee catch-ups, can provide a safe space for open conversations without the pressure of an agenda. 2. Sports and social Encourage clubs and groups which are not necessarily related to work. Team members can create long-lasting connections and improve their physical and mental wellbeing by coming together to support their common interests. For example, the KPMG Cyber Running Club popped up quickly once the lockdown set in. As team members used their lunch hour to post about their daily run, conversation flowed more easily in team catch-ups as there was already an established connection. 3. Mental health toolkit As mentioned, wellbeing is a very individualistic notion, and some people prefer an approach that isn't focused on socialising. Apps provided by corporations to their employees and families can be a great tool to help improve mental health and wellbeing. Key features to look for include: self-guided programmes and bite-sized interactive courses to help improve sleep and relationships, reduce stress or manage anxiety; in-the-moment exercises, including mindfulness meditations, sleep melodies, healthy recipes and more, which help boost your day-to-day wellbeing and health; and insights to assess how well you're doing, such as questionnaires and mood diaries. 4. Team challenges Endorsing team challenges such as step-a-thons, 30 days of meditation or yoga, and bake-offs can spark friendly competition and encourage communication. It also can break down the barriers of team hierarchy and inspire all levels to learn from each other. These challenges can bring a sense of community, motivating teams to monitor and support each other's wellbeing.  5. Surveys and feedback Visibly responding to, and following up on, feedback from monthly workplace satisfaction to wellbeing surveys could show team members that leadership values and trusts their opinions. To help achieve a cultural change, team members may need to feel empowered and supported by leadership to take responsibility for their wellbeing. The positive feedback loop should not be underestimated and can support long-lasting positive change within a team.   When it comes to the package of wellbeing initiatives, the most important thing to recognise is that these are long-term efforts. Give them time to materialise. Often, you won't realise you have a strong wellbeing culture until you're already deep into it.  Rachel Davis is Senior Consultant in Cyber Security at KPMG.

Originally posted on Business Post 04 June 2022.  Many other developed countries would give their right arm to be in the solid economic position we are in. Yet we seem afraid to spend that largesse on causes that desperately need it.  We have emerged from the pandemic with an economy stronger than it has been for many years, a debt-to-GDP ratio hovering somewhere around 50 per cent, and full employment. We have suffered terrible loss and endured much misery, but much less so than other nations. Yet the advice from the Irish Fiscal Advisory Council (Ifac) for the future can be summarised in just two words: “Careful now.” Ifac has its job to do, but there’s more to economic life than is apparent in the ratios of tax-and-spend. Prominent among the the council’s concerns is our reliance on corporation tax. Yes, we do rely on a relatively small number of companies to pay corporation tax. But then we always did. That’s a phenomenon that has lasted more than 40 years. Only the names of the companies have changed and in some cases that was merely by virtue of merger, acquisition or simple rebranding. And yes, corporation tax receipts are higher than would be expected from domestic economic activity. But there’s a reason for that too. It’s called globalisation. If anything, the reliance on a small number of firms for corporation tax take is less flimsy than in the past. The corporation tax yield no longer stems from the availability of cheap manufacturing facilities and generous investment allowances in machinery and buildings. It flows from intellectual capital, which Ireland is uniquely qualified to host, and not just for tax reasons. No one locates intangible property in a country with a dodgy legal or political system. This is why the council’s call for the re-establishment of the rainy-day fund is unwarranted. Two decades ago, Irish taxpayers missed out on social services in their communities, special needs assistants in their schools, hospital care and decent roads to drive on, in favour of building a National Pensions Reserve Fund. The proceeds of their state-enforced frugality evaporated under the heat of the 2008 banking crisis. That cohort of taxpayers, and in the interests of full transparency I am among them, paid for the financial collapse twice – through reduced government investment pre-collapse and higher taxes post-collapse. And why should any group, however eminent, expect current ministers to build up a bank of cash for future ministers to spend after the next election? The injustice would not just be political. Why should anyone not have a home, or a university go underfunded, or a school not have a playground, or a hospital not have additional nurses and beds, in the interests of our totemic fear of the national debt? Many other developed countries would give their right arm to be in the solid economic position we find ourselves in. Yet we seem to be afraid even to recognise how well we are doing. We no longer measure ourselves by reference to the long established and international yardstick of gross domestic product (GDP). Instead, we have created a humbler measure called modified gross national income (GNI*) so that we don’t look quite as good, just in case we get above ourselves. We do not, British-style, have to think about imposing windfall taxes on industry to help our citizens with the rising cost of living. Our windfall taxes are already built into the existing system. We support industry in the pharmaceutical and technology sectors and benefit from their profitability through corporation tax receipts. We levy Vat at high rates on our hard-working consumers so that when prices rise, so too does the Vat take. Against that we may not be collecting sufficient social welfare contributions to provide the robust safety nets our citizens deserve against misfortune. There can be no argument against the economic benefits of such safety nets given the positive impacts of both the Pandemic Unemployment Payment and the Employer Wage Support Scheme. A key lesson from the pandemic surely is that targeted social welfare is not largesse. It makes good economic as well as social sense. It is better to spend money on our people than to build up rainy day funds which merely penalise the most productive elements of the economy while taking out of the equation money which could be better applied elsewhere. We have made that mistake in the past. It is strange that it be suggested again. A competent and influential body such as Ifac deserves our attention, but it seems to me that its May report is only contributing to a keening national imposter syndrome, perhaps inadvertently. We have problems with our health and welfare systems, and we need to invest more in housing and utilities, primarily water and power supply, but in the main we do well. We need to be mindful of what still has to be done, yet proud of what is already accomplished. We don’t need a “careful now” mindset. It is strange that anyone should believe we do. Dr Brian Keegan is Director of Public Policy at Chartered Accountants Ireland

With the rise of cryptocurrency, crypto-assets, and NFTs, the tax treatment of these transactions is coming under increasing scrutiny from both Revenue and asset holders. Cormac Kelleher explains. Ever since Bitcoin launched in 2008, the concept of a decentralised currency has continued to gather pace among certain segments of the online and trading community. This, along with the advent of newer crypto-assets, such as NFTs, has brought gains and losses incurred in the crypto sphere to the attention of Revenue. Right now, over 7,500 cryptocurrencies and thousands of NFTs are available to buy or invest in. While the market for crypto-assets is growing, however, asset values are highly volatile, and profits and losses can be substantial.     Income vs corporation tax The oft-asked question about transactions involving crypto-assets is whether the transaction should be subject to income/corporation tax or capital gains tax (CGT). CGT should apply to transactions involving crypto-assets where the asset has been held for investment purposes. The “Badges of Trade”, the well-established set of guidelines laid down by the courts in various cases decided over the years, should be consulted when determining if the income should be treated as a trading transaction.  Case law on the sale of traditional shares provides that, even if shares are traded regularly and in an organised fashion, the transaction may still be considered an “investment” instead of a “trade.” The position will depend on the exact fact pattern of the disponer.  Where a company is deemed to be a trading entity and carrying on a trade of investing in crypto-assets, the profits from the sale should be subject to corporation tax at the standard rate of 12.5 percent. If the trade is carried on in a personal capacity, the individual may be taxable at their marginal rate of up to 55 percent. Capital taxes Should a transaction be subject to capital gains tax, the chargeable gain should be taxable at the standard rate of 33 percent. The gain may be mitigated by any other capital losses the disponer may have carried forward or realised in the tax period. A return should be filed with Revenue noting the value of all crypto-assets on acquisition and disposal. As these assets may be viewed as investments, the inheritance or gift of crypto-assets should be subject to capital acquisition tax (CAT), which is charged at the rate of 33 percent. The reliefs that apply to acquiring any inheritance or gift should also apply in this instance. Importantly, individuals must remember to include crypto-assets as part of their estate and not merely consider “traditional” assets.    Stamp duty  As the currency exchanges most used are not based in Ireland, such transactions should be outside the scope of Irish Stamp Duty. It is recommended that this be reviewed on a case-by-case basis, however.  Cormac Kelleher is an International Tax Partner at Mazars.

With climate action leading the policy agenda in both Ireland and the EU, all businesses must start to think carefully about how they can cut their own carbon consumption, writes David Cashman. Decarbonisation of all areas of Irish society is at the forefront of public discussion as the economy recovers from the pandemic and energy costs rise. The Government has laid out ambitious climate action objectives aligned with the EU’s transformative vision in the European Green Deal. The Climate Action Plan 2021 translated carbon budgets and climate objectives into actions, incentives, and multi-annual carbon budgets kickstarting the roadmap to the 2030 ambition. The plan puts five-year carbon budgets at the core of the transition to net zero carbon emissions by 2050, and further demonstrates the decarbonisation trajectory businesses can pursue in support of this transition. Carbon reduction in business Making your business more green can have benefits beyond the net zero mission. It can also increase resilience and help to reduce costs. To get the most out of the transition here are five key areas to bear in mind: New ways of working and transport: Investing early in electric and low-carbon fleets will lead to more sustainable operations. It will also help you to avoid future carbon-related taxation for petrol and diesel vehicles. Hybrid working arrangements can furthermore help businesses to reduce their travel carbon footprint. More efficient operations: Understanding your energy consumption and gaining insights into your energy profile can help to support more targeted early investment in energy efficiency. EU and Government support for energy efficiency and retrofit programmes will allow organisations to make worthwhile investments. Empowering customers: We can expect customers to become much more active participants in the transition to a greener future. Businesses need to prepare for more sustainability-conscious customers and the need to support a just transition in communities. Embedding digital at the core: Harnessing digital technologies can enhance business resilience to possible disruptions in the future. By accelerating digital adoption, businesses can have the opportunity to deliver innovation in core operations. Holistic sustainability strategy: Considering all elements of the sustainability strategy holistically will ensure that businesses realise the most significant benefit from their investments. Just targeting compliance will lead to incremental improvement, but proactive companies will achieve greater returns over the longer term. As businesses adapt to a world that is transitioning to a decarbonised future, there are opportunities to transform operations centred on sustainability. Ultimately, those businesses that adopt a coherent strategy in responding to the challenges of climate action will be positioned to benefit the most. David Cashman is Business Consulting Director at EY.

Welcome to this week’s Technical Roundup.  In developments this week, the European Financial Reporting Advisory Group, jointly with BusinessEurope and EuropeanIssuers, will hold an outreach event on 4 July 2022 to discuss the EFRAG Exposure Drafts on Draft European Sustainability Reporting Standards (ESRS) and the Irish Pensions Authority announced recently that it is launching a short survey of a selection of defined benefit and defined contribution schemes the results of the which will be published in September 2022. Read more on these and other developments that may be of interest to members below. Financial Reporting On 16 June, we welcomed a team from the FRC to our Dublin office for an in-person event for members. During the session Jenny Carter and Stephen Maloney from the accounting and reporting policy team of the FRC gave members an update on financial reporting matters including details of the progress made to date on the ongoing periodic review of FRS 102. Phil Fitz-Gerald from the FRC Lab was also on hand to give attendees an update on recent projects completed by the Lab, including structured reporting, ESG data, Net Zero disclosures and cybersecurity risk disclosures. The Financial Reporting Council has published a consultation on proposed changes to Technical Actuarial Standard 100 which would require actuaries to include climate change risks in the course of their work. EFRAG, jointly with BusinessEurope and EuropeanIssuers, will hold a joint outreach event on 4 July 2022 to discuss the EFRAG Exposure Drafts on Draft European Sustainability Reporting Standards (ESRS). The IASB have released their May 2022 podcast which addresses some highlights from their May meetings. Some of the topics covered include a discussion on the technical staff’s research on Goodwill and Impairment, an analysis of the feedback received on the recent consultation - Targeted Standards level Review of Disclosures and the post implementation review of IFRS 9 - Classification and Measurement. Auditing IAASA has published a consultation paper on its draft work programme for the period 2023-2025. Section 910 of the Companies Act 2014 provides that IAASA must prepare and submit a work programme to the Minister of Enterprise Trade and Employment for each successive period of three years. Sanctions and anti-money laundering The EU recently announced its sixth package of sanctions against Russia. Further details is available on the Institute’s webpages on Sanctions. One prohibition which will be of interest to members is the prohibition on provision directly or indirectly of certain business-relevant services such as accounting, auditing including statutory audit, bookkeeping and tax consulting services to the Russian government, as well as to legal persons, entities or bodies established in Russia. Please click here for some more detailed information and links on the subject on the Institute’s news page. DLA Piper has issued its Anti-Money Laundering Bulletin: Spring/Summer 2022. You can download it by going to this page and in it you can read updates on AML developments in the UK, the US and internationally. The National Crime Agency in the UK has issued its latest Suspicious Activity Report (SAR) Glossary Codes and Reporting Routes as of June 2022. This booklet replaces all previous glossary codes publications and you can access it here. While it relates to credit or financial institutions, the recent publication by the European Banking Authority (EBA) of its guidelines specifying the role and responsibilities of the anti-money laundering and countering the financing of terrorism (AML/CFT) compliance officer and of the management body of credit or financial institutions might be of interest to readers. You can read the press release and download the guidelines here. Sustainability Accountancy Europe are hosting a webinar on 20 June which will bring together key stakeholders to discuss audit committees’ role in the effective implementation of sustainability and ESG aspects in business. They will also present the recent Accountancy Europe paper ESG Governance: recommendations for audit committees. In the last few weeks, the International Sustainability Standards Board (ISSB™ Board), EFRAG and the SEC have all published proposed sustainability reporting standards. All of them represent significant steps towards greater connectivity between sustainability reporting and financial reporting. In a recent podcast the three leaders of the KPMG global corporate and sustainability reporting team offer a high-level overview of the proposals. The government recently announced a new €55 million ‘Green Transition’ fund to help businesses move away from fossil fuels and towards more sustainable, cheaper alternatives. The Green Transition Fund is part of Ireland’s National Recovery and Resilience Plan (NRRP), which is funded by the European Union. It comprises the Climate Planning Fund for Business and the Enterprise Emissions Reduction Investment Fund. You can read more information here. Other Areas of Interest The Companies Registration Office (CRO) have issued their June 2022 Gazette which features new companies; change of name; annual returns received and registered. The Central Bank of Ireland has today (15 June) published the first Financial Stability Review (FSR) of 2022. The FSR outlines key risks facing the financial system and the Central Bank’s assessment of the resilience of the economy and financial system to adverse shocks. You can read the Central Bank governor’s remarks on the review here. The Central Bank recently issued a letter to financial vehicles which are required to register in the central register of beneficial ownership with the Central Bank. The letter gives details of the levy which is payable by those financial vehicles ICAVs, Credit Unions, Unit Trusts, Common Contractual funds and Investment Limited Partnerships for 2021. Details of the letter can be found here. The Irish Pensions Authority announced recently that it is launching a short survey of a selection of defined benefit and defined contribution schemes. The purpose of the survey is to assess schemes’ progress since the original survey on IORP II preparedness, which was conducted in 2020. Results of the survey will be published in September 2022. The Minister of State for Trade Promotion, Digital and Company Regulation recently attended a meeting of the EU Competitiveness Council. Matters discussed included progress on the Consumer Credit Directive and the proposed EU Chips Act which, when adopted, will help further develop and strengthen the EU’s production and innovative capacity. You can read more information here. A joint webinar has been organised by the EUIPO and 4iP Council for 23 June 2022 on how trade secrets can impact the business of SMEs. You will be able to ask questions to the experts and learn the essentials of trade secrets, the risks and advantages and the best way to use them for your business. Please click this link to register for the webinar. The Minister for Public Expenditure and Reform recently announced the next phase of consultation in the ongoing Review of Freedom of Information Act, which will inform the direction of travel for FOI and transparency policy in the coming years. You can read more details here. The Financial Conduct Authority (FCA) is in the course of writing to more than 3,500 lenders to remind them of the standards they should meet as consumers across the country are affected by the rising cost of living. In its letter, the FCA is also telling lenders to make sure that their approach to taking on new borrowers takes account of the financial pressure they may face and the impact on their expenditure. To consider and, if necessary, improve how they treat consumers in vulnerable circumstances and effectively direct customers who need it to money guidance or free debt advice. You can read details on the FCA website by clicking this link. For further technical information and updates please visit the Technical Hub on the Institute website.