On Tuesday, 18 March 2025, the European Commission and the European Parliament will co-host the third EU Tax Symposium. The event is to bring together finance ministers, politicians, policymakers, academics and others to discuss the future of EU tax systems under the theme Strengthening Competitiveness and Fairness to Build Prosperity. Registration is now open for the symposium which will take place in Brussels and will also be livestreamed.

Following his inauguration on 20 January 2025, the President of the United States of America, Donald Trump, has published the Presidential Actions. The publications include a Memorandum on the OECD Global Tax Deal which states that the OECD’s Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy has no force or effect in the United States.

Recent trends The Institute’s Professional Standards Department has recently seen an increase in the frequency and complexity of proposed restructures of accounting and audit firms including: Institute firms acquiring or merging with other accounting and audit firms; Changes in a firm’s principals (retirements, additions); Creation of new firms within a firm network structure (including the splitting of an existing firm into a number of smaller firms sometimes with a focus on a particular business line or jurisdiction); Interests in a firm being fully or partially acquired by larger firms or other external investors including the involvement of private equity investors in firm/network ownership structures. These trends are observed in both Ireland and the UK. Early engagement with the Institute advised Firms who are considering a change in the firm’s structure or ownership are advised to engage with the Institute’s Professional Standards Department at an early stage in the process.  Such early engagement is important to ensure that any impact on existing or proposed firm authorisations, and/or on the AML supervision of any entities in the structure, is fully understood and properly planned for.  Law and Institute Regulations in both Ireland and the UK set out detailed eligibility criteria which must be met by firms authorised in reserved areas such as audit and investment business.  These eligibility criteria include specific requirements regarding the qualifications of principals and those having ownership/control at authorised firms.  While Institute Regulations require firms to notify the Institute promptly after a change in circumstance which could impact authorisations takes place, firms will benefit from early engagement with the Institute in relation to proposed restructuring transactions.  Firms will, no doubt, want to avoid a situation where a significant transaction concerning the firm’s structure has taken place only to discover that the revised structure negatively impacts the firm’s eligibility for authorisation in a key area. Firms considering a restructure should contact the Institute at authorisations@charteredaccountants.ie.  The Institute will advise the firm regarding the information which should be shared with the Institute initially and as the restructuring plans progress.  The Institute will request information to enable a full understanding of the proposed restructure and the impact on the firm’s eligibility for authorisation(s).  Such information is likely to include the detailed agreements and documentation underlying a transaction such as revised partnership agreements, constitutional documents such as articles of association and where relevant, service level agreements between entities within the revised structure. Frequently, the complexity of restructuring transactions requires that the Institute dedicates significant time to review the relevant documentation, engage with the firm’s principals and conclude in relation to ongoing or new authorisations as a result of a firm restructure.  A firm’s engagement with the Institute early in the restructuring process helps ensure sufficient time for Institute consideration and for the processing of any new applications for individual or firm authorisations arising. The Institute cannot provide legal advice in relation to potential firm structures.  The Institute assesses information provided to conclude whether the Institute can continue to provide authorisations to the restructured firm(s) in reserved areas in accordance with the Institute’s Regulations. Oversight bodies In certain cases, it may also be appropriate for a firm and/or the Institute to engage with relevant oversight bodies such as IAASA or the FRC.  For example, an audit firm which is registered with the FRC as a UK public interest entity (PIE) auditor will be obliged to share information with the FRC in relation to a transaction which could impact UK audit registration. Fees For new notifications of restructuring arrangements received on or after 1 January 2025, the Institute may charge a separate fee to firms for the consideration of the impact of a firm restructure on a firm’s authorisations in reserved areas and/or on AML supervision where relevant.  The fee will be dependent on the complexity of the proposed restructure and the work involved in the Institute’s assessment of all relevant information.  This fee will contribute to the cost incurred by the Institute in the consideration of the proposed restructure and may include a contribution towards any legal advice which the Institute needs to undertake in this regard. Further information Any queries in relation to any of the matters raised above can be directed by email to authorisations@charteredaccountants.ie

In this week’s post EU exit corner, we bring you the latest guidance updates and publications relevant in the post EU exit environment. The most recent Trader Support Service bulletin is also available as is the latest Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. Readers are again reminded that from 31 January 2025 an entry summary declaration (ENS) must be submitted for goods imported from the EU to Great Britain (GB). Also from the same date, HMRC has issued an email reminder about the new safety and security declarations required for all EU imports into GB. Entry summary declarations required for certain imports from 31 January 2025 HMRC is encouraging businesses involved in importing from the EU into GB to familiarise themselves with the new ENS requirements and has provided a summary of the key information. Detailed guidance is also available on GOV.UK. Miscellaneous guidance updates and publications How to claim a repayment of import duty and VAT if you've overpaid, Check if a business holds Authorised Economic Operator status, Make an entry summary declaration using the Import Control System 2, Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service, and Appendix 1: DE 1/10: Requested and Previous Procedure Codes of the Customs Declaration Service (CDS).

In this week’s miscellaneous updates, a new independent review of the loan charge has been announced by HMRC Treasury to bring the issue to a close. HMRC has issued a clarification about certain company tax returns submitted before 10 September 2024 and the Public Accounts Committee has recently opened an inquiry into the cost of the tax system. The latest schedule of HMRC Talking Points live and recorded webinars for tax agents are available for booking. Spaces are limited, so take a look now and save your place. And finally, check HMRC’s online services availability page for details of planned downtime and the online services affected. New loan charge review Last week HM Treasury announced that a new independent review into the loan charge has been launched (23 January) when the Exchequer Secretary to the Treasury (XST) in a Written Ministerial Statement announced that Ray McCann, a former President of the Chartered Institute of Taxation, will lead the review. The review will examine the barriers preventing those who are subject to the loan charge reaching resolution with HMRC where they have not already settled and paid their tax liabilities in full. It will also recommend ways in which they can be encouraged to settle with HMRC. The reviewer is tasked with reporting and presenting their recommendations to the XST by Summer 2025. The terms of reference of the review set out the context, scope, and objectives of the independent review in more detail. The review team can be contacted at contact@lcreview2025.org.uk. The following publications provide more detail on the review: Independent review of the loan charge, and Loan charge review launched. Company tax returns submitted before 10 September 2024 On 10 September 2024, HMRC updated its guidance on how to complete a company tax return for accounting periods straddling 1 April 2023. This required companies to use box 326 (and not box 625) to report the number of related 51 percent group companies. HMRC has now clarified that returns submitted before 10 September 2024 do not need to be amended to reflect the updated guidance. New Public Accounts Committee (PAC) inquiry into the cost of the tax system The PAC is conducting an inquiry into the cost of the tax system. The PAC has recently been scrutinising HMRC’s customer services, underpinned by the National Audit Office (NAO) findings in 2024 that delivering responsive customer service continued to be one of HMRC’s biggest challenges. The NAO is also currently undertaking a project which will report on drivers of cost in the tax system which is expected to be published shortly in winter 2024/25. The study aims to help understand how elements of the tax system drive these costs, while establishing what progress HMRC has made in reducing costs and improving efficiency.  Based on the NAO report, the PAC expects to hear from senior HMRC officials on topics including:  What costs the UK tax system imposes on HMRC taxpayers and their intermediaries, Challenges in tackling the costliest parts of the system, and   How HMRC is taking opportunities to reduce costs.  The PAC has published the requirements for written evidence submissions as part of its inquiry and advises that it is unable to accept material as evidence that is published elsewhere. 

This was the key recommendation of the Institute’s Northern Ireland Tax Committee in its response to the HMRC consultation ‘The Tax Administration Framework Review - new ways to tackle non-compliance’. This consultation proposes several amendments to existing powers/potential new powers for HMRC including partial enquiries, amendments to the conditions for making certain claims, reform of Revenue Correction Notices and a power to require taxpayers to self-correct. The Committee also took the opportunity to highlight the lack of progress being made on tax simplification and made a number of recommendations to reduce tax complexity. The Committee’s key recommendations can be read on page 9 and in summary are as follows: A full review of HMRC’s existing powers, deterrents, and safeguards should be undertaken, and their associated administration processes, before any changes are made to existing powers, or any new powers are introduced, A range of measures should be undertaken to tackle tax complexity, which should as a minimum include the establishment of a Tax Simplification External Forum which reports annually to Parliament, HMRC should consider the possibility of requiring certain large employers to claim flat rate expenses on behalf of their employees via PAYE Real Time, HMRC should consider if a system could be implemented in the UK for claiming relief for employment expenses by enabling supporting evidence to be uploaded to the taxpayer’s Personal Tax Account with services also available to agents, The time limit within which a taxpayer can reject a Revenue Correction Notice should be longer and should not begin until it has been received by the taxpayer, HMRC should not introduce partial enquiries for the reasons cited in the submission. Overall, the Committee concluded that more broad ranging reform of HMRC’s compliance powers appears to be warranted similar to the different levels of compliance interventions in Ireland which include voluntary self-correction powers for non-deliberate errors by taxpayers.

The 2023/24 self-assessment online filing deadline is in just four days’ time on Friday 31 January 2025. The Institute is aware of the impact of Storm Eowyn and its aftermath on the ability of taxpayers and agents to file returns on time and will be flagging this to HMRC to ask it to take a pragmatic approach as the fallout from the storm continues into this week. We will update members in the news section of our website. On Thursday 23 January just the day before the Storm, HMRC was warning that 3.4 million returns remained unfiled. By way of reminder, taxpayers who provide HMRC with a reasonable excuse may avoid a penalty for filing late. However, those without a reasonable excuse will be issued with a penalty including: an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time, after 3 months, additional daily penalties of £10 per day, up to a maximum of £900, after 6 months, a further penalty of 5 percent of the tax due or £300, whichever is greater, and after 12 months, another 5 percent or £300, whichever is greater. 31 January 2025 is also the due date for paying any remaining income tax and Class 4 national insurance contributions for 2023/24 and is also the first self-assessment payment on account deadline for 2024/25.

Mentorship is key for young accountants transitioning to business development, offering guidance on effective networking, client engagement and relationship-building, says Mary Cloonan The challenge can feel significant for young accountants stepping into roles with business development targets for the first time. New responsibilities, particularly those requiring skills like networking and relationship-building, are often far removed from their previous technical focus. This is where mentorship can help, providing guidance and support to help them grow into the demands of their new role. Business development requires more than technical expertise. It involves cultivating relationships, strategic thinking and communicating value—skills not typically part of an accountant’s formal training. A mentor can: Provide practical guidance: Teach the mentee how to approach client engagement, network effectively and communicate persuasively. Build confidence: Support them as they tackle new challenges and unfamiliar scenarios. Set the example: Offer insights through real-world experiences and professional behaviour. Align efforts with strategy: Help them understand how their contributions support the firm’s broader goals. Effective mentoring: seven steps Here are seven steps experienced accountants can take to be a good mentor. 1. Simplify the starting point Break down business development into manageable steps. Help your mentee see this as relationship-building exercise rather than purely sales-focused. Concentrate on: Recognising potential opportunities in their network. Understanding the firm’s unique value proposition. Developing a genuine interest in client needs. 2. Set measurable goals Define clear and realistic targets. For example: Attend one networking event per month. Schedule two introductory meetings with prospective clients. Contribute to a team pitch or proposal. These bite-sized goals can help to build momentum without overwhelming them. 3. Practice through role-play Simulated scenarios are invaluable for building confidence. “Practice” situations with your mentee, such as: Introducing themselves at events. Explaining the firm’s services to a potential client. Handling objections effectively. Role-playing in a safe environment can help to prepare them for real-world challenges. 4. Encourage observation Let your mentee shadow experienced professionals. Whether it’s a client meeting, negotiation or event, watching mentors in action is a powerful learning tool. Follow up with discussions to reinforce key takeaways. 5. Emphasise listening Strong business development is rooted in active listening. Encourage them to: Ask open-ended questions. Pay close attention to what clients are really saying. Build trust by understanding challenges from the client’s perspective. 6. Give constructive feedback Feedback is essential. Review your mentee’s performance after meetings or pitches— highlight strengths and suggest improvements. Recognising small wins can boost confidence and foster growth. 7. Highlight the bigger picture Help your mentee to connect their efforts with your firm’s success. Discuss how building relationships can drive growth, create opportunities for cross-selling and enhance career prospects. Benefits for both mentors and mentees An effective mentorship programme benefits everyone. Firms gain future leaders with technical and business development skills, while clients will likely experience better service through improved relationship management. For young accountants, developing these skills early can boost their confidence and open up potential avenues to career advancement. Mary Cloonan is Founder of Marketing Clever

Amid political pushback and regional divides, investment in ESG remains a long-term bet driven by sustainability, transparency and innovation, writes Dan Byrne Publicly, the battle over Environmental, Social and Governance (ESG) principles is heating up, and 2025 will be a make-or-break year. US President Donald Trump’s 2024 victory, buoyed by agendas dedicated to combatting so-called “woke capitalism”, has thrown a wrench into the ESG movement in the United States. But while some parts of the world are doubling down on anti-ESG sentiment, others—like Europe and Asia—are charging ahead with ambitious sustainability plans, so far unfazed by angry rhetoric elsewhere.  The conundrum surrounding ESG is that, for many people, it is all about politics. Much of the media will reinforce this viewpoint because it provides the juiciest angle, filled with conflict and the makings of a good story.  ESG goes much deeper than politics, however. The real decisions are made at quieter levels, where investment patterns continue and corporate strategies align with investor priorities. Although it may not be as juicy, this is the main factor fuelling success or failure in ESG.  ESG investing in 2025 When it comes to investing, there is one main conclusion: ESG isn’t going anywhere.  You may have read many news articles—particularly over the last 18 months—discussing divestment from ESG assets and the dwindling popularity of ESG among stakeholders. These stories are true, signalling that ESG is taking a beating in some quarters. If we zoom out, however, the numbers tell a different story.  As of late 2024, the global value of ESG assets is still expected to hit somewhere between $35 and $50 trillion by 2030, according to University of Chicago lecturer and Impact Engine Chief Investment Officer Priya Parrish, writing for Fortune last October.  In other words, the recent setbacks for ESG investment are small backflows, but the much more significant wave of overall ESG investment still exists.  Why the continuing surge? Investors are likely convinced that ESG-related investments are smart, long-term bets. Many of today’s ESG pillars involve adaptation, essential in governance thinking and good news for investors who always want clarity on how a company will succeed in five, ten or twenty years.  Even as critics argue that ESG is overhyped, woke or restrictive, a colossal chunk of capital remains, especially in Europe and Asia, where ESG investments are firmly entrenched.  Investors in the US will be much more cautious about ESG under Donal Trump’s presidency, but again, this is on the public political side, which we’ll explain more about below. ESG and politics The other firm conclusion is that the debate over ESG will not simmer down soon. Trump’s return to power in the US means that everything related to ESG will face even more backlash and legal headaches. These can range from limiting ESG considerations in federal contracts to questioning corporate motivations. The critics are loud and emboldened, and they will motivate anti-ESG movements elsewhere.  Will they succeed? It’s very iffy.  You might have heard that the bulk of the world’s population went to the polls in 2024, including the UK, India and the European Union (EU)—as a whole and within certain member states such as France. New governments with fresh mandates now exist in these places. Many will remain until about 2030, and most remain committed to ESG-related principles in some form.  The EU is doubling down, rolling out regulations such as the Corporate Sustainability Reporting Directive (CSRD) that demand greater transparency and accountability than ever before. In Asia, governments are leaning into sustainability to future-proof their economies.  The result? A fragmented world in which ESG is thriving in some places and under siege in others. Five main expectations So, are we likely to see governance professionals making key strategic decisions regarding ESG? Unfortunately, there is no clear answer here because each company’s ESG strategy depends on factors including its goals, industry and national stakeholder mood. However, we can make a few more general predictions right now: Regional divides will deepen. Europe and Asia remain ambitious about ESG and new regulations are coming into force. Meanwhile, the US and some emerging markets are grappling with political resistance. Expect the gap between these regions to widen, which is bad news for the boards of trans-Atlantic companies. Suddenly, they must ensure their business pleases two very different political regimes.  Transparency will require upskilling. Many companies, particularly in Europe and Asia, will realise the need for new expertise on boards and executive teams. This is the only way they can hope to comply with the new reporting regulations they face. Because of this, ESG-related training will become more crucial.  Tech will lead the charge. Artificial intelligence and blockchain are set to revolutionise ESG reporting. Think real-time monitoring of supply chains and automated sustainability audits. The future is digital because digital can make massive tasks more manageable, enabling companies to report with great depth and confidence.  “Hushing” will be the new ESG language in the US. How does a company pursue ESG investment without angering its anti-ESG government? The answer is hushing, which means being quiet on a particular issue, no matter how devoted you are, for fear that being public will attract too much unnecessary criticism. Corporate activism will rise: Whether or not companies and politicians like it, the most polarised attitudes around ESG will mean more activism among investors. Boards must be prepared for this because aggressive activism can sometimes threaten their entire agenda. The story of ESG is being rewritten in real-time. The loud political pushback in the media starkly contrasts with the continuing investment in sustainability, accountability and transparency.  Navigating all this is a considerable challenge for businesses, but there is also an opportunity for those who adapt quickly, embrace innovation and stay ahead of evolving regulations. Dan Byrne is Content Manager at The Corporate Governance Institute

Liam Cotter charts the road ahead and critical importance of data for Irish organisations preparing for the AI revolution Right now, many organisations are experiencing caution, confusion—or both—in relation to artificial intelligence (AI). They are unsure about generative AI (GenAI), how it differs from previous AI iterations, and whether it can add value for them. With the first milestones of the European Union’s AI Act due to come into force in February 2025, focused on prohibiting AI systems posing unacceptable risk, organisations are concerned about falling foul of regulation. They are keen to ensure that any AI model introduced to help their business, undergoes rigorous testing to ensure it is fair and doesn’t have bias baked in. There are also more generalised fears regarding the cost of moving too quickly and developing the wrong solutions, however, as well as the “opportunity cost” of moving too slowly and thus failing to capture the benefits of the right opportunities. Data-based decisions Regardless of what stage an organisation has reached in its adoption of AI and GenAI, one thing holds true: the key to success is data. The only way to ensure quality AI outputs is to provide quality inputs. The way we manage and store data for the AI age differs from how we have done so in the past. Thus, even though the same fundamental rules apply, your data capture and entry systems may not be robust enough to handle AI demands and this could put you at a competitive disadvantage. Part of the problem with readying your data for AI transformation is the sheer amount of hard work involved, which may not appear not to offer a lot of value. This is because this work involves run-of-the-mill data generated from day-to-day operations. The key to the successful adoption of AI tomorrow is ensuring everybody in your organisation is aware of data management today. It is about ensuring everyone is measuring the quality of their data right across the organisation so they can stand over what it presents. For organisations that previously placed little value on the data they generate, this shift will require a culture change. It may also require different parts of the organisation to pool data—such as combining sales and stock databases rather than keeping them siloed, for example. In companies involved in mergers and acquisitions, it means ensuring you fully understand your data's lineage. The time to act is now The past 12 months have seen a growing realisation among organisations of the potential importance of AI as a lever for competitiveness. It is increasingly viewed as a valuable tool to drive digital transformation, enabling them to become more flexible, be faster to market, provide a better customer experience and more. Most of what AI will do has yet to be “dreamed up”. To put its scale in context, somewhere in the world, a data centre—the building block that powers the AI revolution—opens every two days. Organisations need to act to keep up. The first step is understanding the regulations and timeframes that are being rolled out under the EU AI Act. Next, identify use cases and develop them. Experiment—and if you are going to fail, fail fast. Get involved and discover the value in AI. People-powered data Understand the behavioural risks, too.  A lot of the work involved isn’t about technology at all. It’s about people. You can introduce the best technology in the world, but it's useless if staff don’t collect, curate and manage their data correctly. Everyone in your organisation must be able to stand by the accuracy of their data, which means good data practices must be applied to all business processes. In many organisations, this means investing in data capabilities, including staff training, and appointing a Chief Data Officer responsible for driving data literacy and good data management practices throughout the organisation, from the bottom to the top. To succeed, data management must be seen as a core, valuable component of what everyone does, regardless of their role. Break down the barriers Barriers to achieving effective AI readiness include an organisational culture that hasn’t yet caught up with the importance of data, allied to poor systems and processes that ensure people don’t understand the implications of getting it wrong. The real barrier is, however, that all of this takes work. Readying your data systems for AI is a pain, and sometimes, people can see no value in it. Once you can stand over your data, knowing it is of good quality and understanding its lineage, your organisation will likely be in pretty good shape because you can then move on and digitise your key business processes with confidence. The AI revolution starts and ends with data. Don’t underestimate the effort required to get good quality, well-managed data. It is the foundational work that cannot be avoided. Equally, don’t underestimate the impact. Once you have good data systems in place, you can confidently move forward and capture the full breadth of AI benefits that await.  Liam Cotter is Technology Practice Lead at KPMG

Welcome to the latest edition of Technical Roundup. In developments since the last edition, the International Federation of Accountants (IFAC) has published the results of a survey among its members 'International Standards: 2024 Global Adoption Status Snapshot’ including research results on the adoption of IFRSs. EFRAG has released a document that maps the voluntary Eco-Management and Audit Scheme (EMAS) against the European Sustainability Reporting Standards (ESRSs). Read more on these and other developments that may be of interest to members below. Financial Reporting The International Accounting Standards Board (IASB) has launched a new podcast series dedicated to the forthcoming third edition of the IFRS for SMEs accounting standard. The series discusses some key updates to the standard.  The IASB has released a webcast which explains the proposed targeted improvements to IAS 37 Provisions, Contingent Liabilities and Contingent Assets as set out in its recent Exposure Draft. The comment period for this Exposure Draft remains open until 12 March 2025.   EFRAG, the European Financial Reporting Advisory Group, is holding an event entitled “Financial Reporting: What’s Ahead for 2025” on 6 February. This event will focus on upcoming changes in the reporting landscape in 2025. EFRAG has published its December 2024 update. This summarises the public technical discussions held, decisions taken, open consultations, future events and vacancies. EFRAG has published its final comment letter on the IASB’s Exposure Draft Equity Method of Accounting IAS 28 Investments in Associates and Joint Ventures. EFRAG has issued its latest Endorsement Status Report. The International Federation of Accountants (IFAC) has published the results of a survey among its members 'International Standards: 2024 Global Adoption Status Snapshot’ including research results on the adoption of IFRSs. IAASA has published a summary of the outcomes of its 2024 financial report examinations which highlights the various issues IAASA addresses with companies as part of its corporate reporting supervision.  It indicates a strong overall compliance with financial reporting requirements.  The summary lists the financial statement examinations completed in 2024 and the outcomes of those examinations. The UK Endorsement Board (UKEB) has published a Draft Endorsement Criteria Assessment on the potential use in the UK of the IASB’s Annual Improvements to IFRS Accounting Standards – Volume 11. Auditing The IAASB have published their plans for 2025 which includes approval of the revisions to the Fraud standard and complete the project on Listed and PIE entities.   At their December board meeting the IAASB approved ISA 570 (Revised 2024) Going Concern, which will be effective for periods beginning on or after December 15, 2026. Anti–money laundering and sanctions Please join us for Chartered Accountants Ireland free webinar on suspicious transaction reporting at 10AM on 12 February 2025. Accountants in practice, as designated persons under Irish Anti-Money Laundering legislation, have a statutory obligation to report suspicious transactions to both the Financial Intelligence Unit (FIU) of An Garda Síochána and the Irish Revenue Commissioners. Join representatives of both An Garda Síochána and the Revenue Commissioners on Wednesday 12 February as they provide an overview of how to report on the recently updated FIU GoAML system, as well as the Revenue system. This event will be of interest to accountants, trainees and anyone in the firm of a designated person who may come across something suspicious which might raise the obligation to make a suspicious transaction report. Click here to learn more and to book your place today: Suspicious transaction reporting: all you need to know - ..rteredaccountants.ie The Joint Practice Group (JPG ) comprising representatives of the professional accountancy bodies, the Association of Chartered Certified Accountants, Chartered Accountants Ireland, Association of International Accountants, and Chartered Institute of Management Accountants with input from the Garda National Economic Crime Bureau and FIU Ireland has recently issued a bulletin on payment diversion fraud. Click for more details. Sustainability The Financial Reporting Council (FRC) has published a thematic review of Climate-related Financial Disclosures by AIM and large private companies, following their first cycle of mandatory reporting in the UK. EFRAG has published a document that maps the voluntary Eco-Management and Audit Scheme (EMAS) against the European Sustainability Reporting Standards (ESRSs). Accountancy Europe has set up a tracker that monitors the transposition of the EU Corporate Sustainability Reporting Directive (CSRD) across the European Economic Area (EEA). In an interesting article, Accountancy Europe have discussed the European Commission’s efforts to reduce administrative and reporting burdens for European companies. While welcoming the efforts being made, Accountancy Europe have highlighted some concerns as well as some suggestions on how reporting burdens could be reduced. The Department of Enterprise, Trade and Employment hosted a free online event focused on responsible business and the environment on 6 November 2024.  The presentations are now available to download from their website. Legislation The UK’s Public Procurement Act 2023 will be implemented shortly pursuant to the Procurement Act 2023 (Commencement No. 3 and Transitional and Saving Provisions) Regulations 2024. The explanatory notes describe the purpose of the Procurement Act 2023 as to reform the United Kingdom’s public procurement regime following its exit from the European Union, creating a simpler and more transparent system not based on transposed EU Directives. The Department of Enterprise, Trade and Employment has published a Transposition Table of EU Directives as of 31 December 2024. Other news The International Ethics Standards Board for Accountants has begun a standard-setting project to create a principles-based framework on a firm’s culture and governance. The objective of the project is to develop a culture and governance framework that promotes, supports and reinforces a high standard of ethical behaviour by a firm's leadership, other partners, and staff across all of the firm’s services, thereby helping the firm develop a reputation as a highly ethical firm, mitigate the risks of unethical behaviour and strengthen public trust and confidence in all of its services. Readers may find of interest the High court judicial review case taken by the Irish Registrar of Companies in connection with two companies’ delivery of annual returns to the Companies Registration Office. Under section 343 of Companies Act 2014 a court can make one order (only) to extend the time for filing an annual return. In Registrar Of Companies and Greenway Limited ; Registrar Of Companies and Kitchen Innovations Limited the High Court quashed a decision by the District court where the District Court erroneously granted a second extension of time for filing of  annual returns. With the coming into force of Digital Operational Resilience Act (DORA) on 17 January 2025, readers may be interested in some DORA related news. Please click to read  an article of January 17th entitled “What do you need to know now that DORA is here?” Also, the Pensions Authority recently published details of how pension schemes subject to the DORA regulation can report major ICT-related incidents and make voluntary reports of significant cyber threats. Readers can find details here. For further technical information and updates please visit the Technical Hub on the Institute website.      This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.  

Chartered Accountants Ireland to celebrate first annual dinner as largest professional body on the island of Ireland post- 2024 amalgamation  “Trump administration will be hitting the ground running, and as a small, open economy we must see the same impetus from our government” – Barry Doyle    Swift and effective implementation of the measures detailed in the Programme for Government will be critical as the new administration takes office this week.  Even with a five-year term, a greater sense of urgency must be evident if the new administration is to address the struggles of SMEs, the twin challenges of childcare cost and availability, and the positioning of Ireland for any global trade headwinds.  President of Chartered Accountants Ireland Barry Doyle made these points ahead of the Institute’s Annual Dinner on Friday evening, which will be attended by over 650 members, guests, and elected representatives. The Institute is now the largest professional body on the island of Ireland, representing over 39,000 members on the island of Ireland and in over 100 countries.  Commenting, Barry Doyle, President of Chartered Accountants Ireland said  “The Programme’s commitment to address the regulatory and cost burdens facing SMEs, in particular its pledge to establish a dedicated Small Business Unit in the Department of Enterprise is reassuring, but rapid delivery will be critical so that businesses can start to feel the effects of these measures in 2025.  “Similarly, it is our hope that the rigorous application of the “SME test” to all new legislation that increases business costs, prior to enactment is prioritised with immediate effect. My own professional life since qualifying has been largely within the SME sector, a sector that employs so many in Ireland, and such measures will allow these businesses to plan with confidence for the coming year.”  In a week where the Trump administration returned to office in the US, Barry Doyle also noted the potential for greater geopolitical uncertainty and intensifying global competition for inward investment. The recent launch of a new report by the Institute on FDI in Ireland noted that a slowdown in growth of the global economy coupled with accelerated industrial policy interventions by competitor countries means that Ireland’s inward investment model is now at a crucial inflection point.  Doyle continued   “The new Trump administration in the United States will be hitting the ground running and we must see the same impetus from our government in positioning Ireland to continue to thrive as a destination for investment and growth. Ireland cannot afford to be complacent about our offering, or our success to date. The significant deficits in the State’s crucial infrastructure, including housing, energy, water, childcare and nationwide public transport, need to be addressed with urgency if we are to remain fully competitive in the race for future FDI.  “Taking childcare as an example, as a parent of a two-and-a-half-year-old and a six-month-old, I am only too aware of the sheer pain of the current system. Cost, but in particular, capacity, especially for children under one, need urgent attention, and failing to prioritise this will hit individuals as well as Ireland Inc.”

The goAML system for making suspicious transaction reports (STRs) which the Irish Financial Intelligence Unit administers, is being upgraded. The upgrade is scheduled to go live the week of 10 February 2025. The FIU is carrying out internal training and there may be delays in processing STRs during this upgrade period. Firms registered on goAML will have received a communication from the FIU about the upgrade and in particular how to make urgent STRs during the upgrade period. Please click here to view further details from the FIU.   This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.

Revenue has updated the Tax and Duty Manual Living City Initiative which provides guidance on this scheme of property tax incentives. The updated guidance outlines that where an owner-occupier making a claim first occupies the property as their main or sole residence on or after 1 January 2023, relief is available for the first six years at a rate of 15 percent and a rate of 10 percent in the seventh year. Any relief unused can be carried forward for up to nine years after the year in which the claim is first made. The manual has also been updated as follows: Details on the interaction between funding available from local authorities to property owners and relief available under the living city initiative, and To reflect the revised De Minimis Regulation on the application of the Treaty on the Functioning of the European Union to de minimis aid. In any three-year period, an undertaking make not receive more than €300,000 in State Aid, from all sources subject to the de minimis regulations. A declaration on the de minimis aid is also required by a claimant when completing their tax return.

Reporting under DAC7 and the Model Reporting Rules for Digital Platform Operators is due by Friday, 31 January 2025. Details on the obligations and information required to be reported by digital platform operators is available on the Revenue website.

In this week’s post EU exit corner, we bring you the latest guidance updates and publications relevant in the post EU exit environment. The most recent Trader Support Service bulletin is also available as is the latest Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. HMRC has also asked us to highlight a current issue with the Customs Declarations Service (CDS) and its inability to accept certain characters.  CDS issue  The CDS is currently unable to accept special and diacritic characters. HMRC has asked us to share their guidance giving examples of these. This also explains what to do in certain circumstances such as where the user has an approved licence with such characters. HMRC is aiming to fix this issue in Spring 2025.  Miscellaneous guidance updates and publications  Simplified Process for Internal Market Movements (SPIMM) and UK Carrier (UKC) Scheme: Procedure Code to Additional Procedure Code correlation matrix,  SPIMM and UKC Scheme: terms and conditions,  SPIMM and UKC Scheme: Customs Simplified Procedures Guidance,  SPIMM and UKC Scheme: CDS Declaration and Customs Clearance Request Instructions,  SPIMM and UKC Scheme: Navigate the Customs Declaration Service Declaration Instructions,  SPIMM and UKC Scheme: Declaration Category Data Sets,  SPIMM and  UKC Scheme: Procedure Codes,  SPIMM and UKC Scheme: Additional Procedure Codes, and  SPIMM and UKC Scheme: Customs Declaration Service Data Element Completion Guide. 

In this week’s miscellaneous updates, the OECD has published updated Pillar Two guidance and employment expenses relief claims can be made online again for all qualifying employment expenses. HMRC has also published detailed guidelines for compliance (GFC) and a Revenue and Customs Brief on the VAT treatment of remedial works.  OECD publishes updated Pillar Two guidance  Last week, the OECD published the following documents:  Administrative guidance on article 9.1 of the GloBE model Rules, which clarifies the treatment of deferred tax assets arising from tax benefits provided by a government. However, the Inclusive Framework has agreed that, for a two year grace period, jurisdictions will not apply 9.1 to neutralise the deferred tax expenses arising from arrangements that were entered into before 18 November 2024, unless the deferred tax expense exceeds 20 percent of the relevant excluded deferred tax asset amount originally recorded,  Administrative guidance on articles 8.1.4 and 8.1.5 which clarifies how groups will be required to complete GloBE Information Returns (GIR) when there is a difference between domestic legislation and the GloBE model rules,  A list of jurisdictions whose legislation for the Income Inclusion Rule and Domestic Minimum Top-up Tax (DMTT) have been granted transitional qualified (and DMTT Safe Harbour) status by the Inclusive Framework, and  An update to the GIR, a XML schema user guide for tax administrations, and a Multilateral Competency Authority Agreement on the exchange of GloBE information.   All of the updated guidance is available on the OECD website at: Global Anti-Base Erosion Model Rules (Pillar Two).   Online claims for relief from all employment expenses restored  HMRC has recently fully restored the online option for an employee to make a claim online for tax relief for all types of employment expenses. This was restored for uniform, work clothing, and tool expenses from 31 October 2024. However, from 23 December 2024, an employee can make a claim and submit evidence for all qualifying employment expenses online using a new iForm. Note that agents cannot make claims online and can only do so by post.  From Monday 14 October 2024, claims for relief for employment expenses had only been possible by post using form P87 and were required to be backed up by supporting evidence.   More information and guidance is available in the following publications:  HMRC policy paper: Evidence required to claim PAYE (P87) employment expenses, and  HMRC guidance: Claim tax relief for your job expenses.  VAT treatment of remedial works  HMRC has published a GFC and a Revenue and Customs Brief on the VAT treatment of remedial works. The GFC includes illustrative examples to help stakeholders understand how these rules apply. See the following documents for more information:  Help with VAT treatment of remedial works — Guidelines for Compliance GfC11, and  Revenue and Customs Brief 3 (2024): VAT on cladding remediation work. 

A new R&D disclosure facility recently went live on GOV.UK and HMRC has set out its position following the First-tier Tribunal (FTT) decisions in Collins Construction Ltd v HMRC [2024] UKFTT 951 (TC) and Stage One Creative Services Ltd v HMRC [2024] UKFTT 1059 (TC).  New R&D disclosure facility  HMRC’s new R&D disclosure facility went live last month on 31 December 2024. This facility has been designed to make it easier for taxpayers or their agents, to disclose non-deliberate inaccuracies in R&D claims to HMRC.  This facility is for:   R&D tax reliefs claims which are out of time to amend via the company tax return; and   Taxpayers who have self-served R&D tax relief claim inaccuracies by mistake, despite taking reasonable care or carelessness.  Any deliberate inaccuracies disclosed will be re-directed to the contractual disclosure facility as tax fraud.   The facility itself is a form on GOV.UK. The accompanying GOV.UK page details the information required to complete the disclosure, which includes uploading computations, explanations and the submission of a letter of offer. The facility also enables taxpayers/agents to self-serve any tax, tax credit repayments, interest, and penalties due. Once received, HMRC will review the disclosure and if the offer is satisfactory a letter of acceptance will be issued. This facility does not require notification of the intention to make a disclosure.  FTT cases  In both these cases, the FTT found in favour of the appellant companies. HMRC has been considering the outcome of the cases and has decided that it will not be appealing the decisions.  HMRC has set out that it recognises clarity is needed on the impact of these cases on open enquiries, appeals, and other claims with subcontracted R&D and subsidised expenditure issues.   HMRC is now considering the wider impacts these FTT decisions have on such claims and aim to publish further guidance on this next month. HMRC is also contacting companies with existing enquiries this month to update them on next steps. 

Both Finance Bill 2024/25 and The National Insurance Contributions (Secondary Class 1 Contributions) Bill continue their passage through parliament.   Finance Bill 2024/25  Committee of the whole House for the Finance Bill took place last month on 10 and 11 December. The Bill is therefore currently at Committee stage with the next stage of its progress being scrutiny by the Public Bill Committee. This is expected to have concluded by 4 February 2025. In preparation for this, last month the Government published proposed amendments to the Bill and associated updated explanatory notes.   A meeting took place with HMRC on 18 November to discuss the changes to the taxation of non-UK domiciled individuals which are contained in the Bill. The Institute was in attendance at that meeting the minutes from which have been published on GOV.UK.  The National Insurance Contributions (Secondary Class 1 Contributions) Bill  This Bill implements the changes to employers National Insurance Contributions (NICs) from 6 April 2025 as announced in the Autumn 2024 Budget. It is now at Committee Stage in the House of Lords.   The Bill provides for the 1.2 percent increase in employers NICs from 13.8 percent to 15 percent and the reduction in the secondary threshold to £5,000. It also increases the annual employment allowance (which currently reduces the employer’s NIC liability of eligible employers by up to £5,000) to £10,500 and removes the qualifying requirement to have a total secondary Class 1 NICs liability of less than £100,000 in the prior year. 

The Platform for Collaboration on Tax is compiling a concise set of high-level principles that are designed to help navigate the policy, legislative and administrative issues related to tax incentives. It has published a draft version of its Tax Incentives Principles as it seeks feedback on its contents from tax policymakers, practitioners and experts by 10 February 2025.