The European Parliament’s Subcommittee on Tax Matters (FISC) hosted a public hearing on the impact of taxation on gender equality in the EU. The hearing examined tax policies that are considered obstacles to promoting gender equality and tax policies that can contribute to advancing gender equality.

Kenya has deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS Convention). The BEPS Convention will enter into force on 1 May 2025 for Kenya.

The Co-Chairs of the Inclusive Framework on BEPS have provided an update on the progress made in developing a final package for Pillar One of the Two-Pillar Solution.

The OECD has released the updated GloBE Information Return (GIR) which incorporates clarifications on completing the GIR. It also includes a template to use to notify jurisdictions that they will receive the GIR through exchange of information. Each constituent entity of an MNE Group is required to annually file a GIR with the tax administration of the jurisdiction where it is located to support the administration of the GloBE rules.

A strong organisational culture drives performance, retention and reputation. Laura Magahy outlines how to shape and sustain culture for competitive advantage Organisations ignore culture at their peril. We need only look back to the global financial crisis and recent controversies across several charity and public sector institutions to see the results of weak organisational culture. Peter Drucker may have never actually said, “Culture eats strategy for breakfast”, but Ford Motor Company President Mark Fields certainly did when he put it on his office wall in 2006. This is much more than a catchy slogan. It underlines a critical truth: no matter how well-crafted a strategy might be, it will fail if the culture in an organisation doesn’t actively encourage its people to live it. In short, without a coordinated framework for supporting a culture that will drive the company’s vision forward, achieving it will not be possible. Conversely, organisations with a strong, positive and supported culture enjoy significant benefits, including improved performance, enhanced employee recruitment and retention and better overall reputation. The cultural wake-up call The 2008 global financial crisis cast a spotlighted cultural failings in financial institutions as a key contributing factor. By 2012, corporate culture began to be seen as a key strategic element to prevent future crises. In 2018, the Central Bank of Ireland conducted a behaviour and culture review of Irish banks. What followed was the establishment of the Irish Banking Culture Board, which was set up to drive cultural change in financial institutions. More recently, other high-profile scandals have led a number of public sector authorities, agencies and charitable bodies to look seriously at organisational culture as part of essential governance oversight and reputation protection. Defining and assessing organisational culture The challenge facing organisations is how to determine if they have the right culture and, indeed, what that culture should be. There is no identity for setting the ideal or target organisational culture. The nature of the individual organisation and the circumstances in which it operates are of fundamental importance and must be considered. For example, the culture required for a commercial, sales-focused organisation may be different to that of a public service provider; where a number of organisations are merging, they may need to define a new culture for the new entity; when a new agency is being established or has an expanded remit, they may need to reset their target culture. In all cases, the target culture must be aligned with what the organisation and its leaders want to achieve to support their mission, vision and values. Organisational culture, if not actively supported and monitored, tends to grow and evolve organically and frequently in unintended and unexpected ways. It is created through the behaviours that are displayed by both the top management and local leaders through their day-to-day actions. Four common culture types Broadly speaking, organisational culture will often fall into one of four general categories. Each is based on different value drivers, which depend on various factors, including whether the organisation is more internally or externally focused, how flexible and innovative it needs to be to deliver on its mission and what its risk appetite should be. Clan culture: Internally focused, promoting long-term cohesion, with core values of commitment, communication and staff development. Hierarchical culture: Also internally focused, prioritising efficiency, consistency and structure in the pursuit of a common goal. Adhocracy culture: Externally oriented, with a long-term vision; competitive, driven by innovation, agility and transformation. Market culture: Also externally focused, with a sharp emphasis on customer service, goal achievement, market share and profitability. In reality, most organisations exhibit a blend of these types. What really matters is if it is the right target culture for what the organisation needs and, if not, what the right one would be. Characteristics of strong vs. weak cultures Strong organisational cultures typically exhibit traits such as: Honesty and transparency; Strategic and forward-thinking approaches; Respect and accountability; Adaptability and reliability; and A shared sense of purpose. In contrast, weak cultures are often characterised by: Siloed thinking; Short-term focus; Low employee morale; High staff turnover; Over-concentration of power; and Lack of trust and engagement Cultural variation across departments It should be emphasised that uniformity of culture across different parts of an organisation is not necessarily critical for mission delivery. As long as the people within the organisation are aligned with the same goals and values, then cultural variation or sub-cultures across departments and divisions can co-exist. For example, adhocracy may suit a research and development department, while the sales operation may find a market culture more appropriate. As long as they share the behaviours and values of a strong, positive culture, they can work together in harmony or at least in a mutually supportive environment. Laura Magahy is Head of Public Sector Consulting at Forvis Mazars

Moira Cronin explains how the Digital Operational Resilience Act will impact Irish-based financial services providers, enhancing ICT risk management and digital resilience The Digital Operational Resilience Act (DORA) came into effect on 17 January 2025. Designed to consolidate and upgrade information and communications technology (ICT) risk requirements in the financial sector, DORA applies common standards to all financial system participants. Its aim is to mitigate ICT and cyber risks across providers’ operations. So, what does this Act mean for financial services providers based in Ireland? Legal basis DORA removes obstacles to—and improves the establishment and functioning of the internal market for—financial services, by harmonising the rules applicable in ICT risk management, reporting, security control testing and ICT third-party risk. Subsidiarity The proposal harmonises the digital operational component of a deeply integrated and interconnected sector already benefitting from a single set of rules and supervision in most other key areas. For ICT-related incident reporting, only EU harmonised rules could reduce administrative burdens and financial costs associated with reporting the same ICT-related incident to different EU and national authorities. Proportionality Proportionality is designed in terms of scope and intensity through qualitative and quantitative assessment criteria. While the new rules cover all financial entities, they are also tailored to the risks and needs of their specific characteristics in terms of their size and business profiles. Proportionality is also embedded in the ICT and cyber-risk management rules, digital resilience testing, reporting major ICT-related incidents and oversight of critical ICT and cyber third-party service providers. Choice of instrument The measures needed to govern ICT and cyber risk management, ICT and cyber-related incident reporting, testing and oversight of critical ICT and cyber third-party service providers must be contained in the regulation to ensure that the detailed requirements are effectively and directly applicable in a uniform manner, without prejudice to proportionality and specific rules foreseen by this regulation. Three DORA requirements businesses should aim to achieve are: 1. ICT-related incident reporting One of the main requirements for financial entities is to establish and implement a management process to monitor and log ICT and cyber-related incidents, followed by an obligation to classify them based on criteria detailed in the regulation and further developed by the European Supervisory Authorities (ESAs) to specify materiality thresholds. Only ICT-related incidents deemed significant must be reported to the competent authorities. 2. Cyber operational resilience testing The capabilities and functions included in the ICT risk management framework need to be periodically tested for preparedness, identification of weaknesses, deficiencies or gaps and prompt implementation of corrective measures. This regulation allows for a proportionate application of digital operational resilience testing requirements depending on financial entities' size, business and risk profiles. 3. ICT and cyber third-party risk The regulation is designed to ensure a sound monitoring of ICT and cyber third-party risk; financial entities shall be required to observe several key elements in their relationship with ICT and cyber third-party providers, remaining fully responsible for complying with and discharging all obligations. To this end, contracts governing this relationship will be required to include: At least a complete description of services; An indication of locations where data is processed; Full-service level descriptions accompanied by quantitative and qualitative performance targets; Relevant provisions on accessibility, availability, integrity, security and protection of personal data; Inspection and audit by the financial entity or an appointed third-party; Clear termination rights; and Dedicated exit strategies. As such, DORA should be taken into consideration in close coordination with NIS Directive version 2, CBI Operational Resilience Guidelines and the EU Critical Infrastructure Directive. DORA is part a package of digital finance measures designed to further enable and support the potential of digital finance in terms of innovation and competition while mitigating the risks arising from it. It aligns with the European Commission's priorities to make Europe fit for the digital age and build a future-ready economy that works for the people. Moira Cronin is Digital Risk Partner at PwC Ireland

Two distinctly opposing leadership ideologies now exist, but could one damage your organisation? Michael O'Leary explores the current state of leadership Thirty years ago, the late Colin Powell, former US Secretary of State, listed 18 lessons for leaders in a presentation titled A Leadership Primer. He talked about authenticity, optimism, challenging others and not being afraid to be challenged back. Fast forward to 2025. A friend with a successful track record as a leader and entrepreneur says he fears the examples young people are now exposed to by political leaders around the world –namely, their values, naked self-interest and fervent intolerance for people different from themselves. Beyond Powell’s single set of leadership principles, we now have two diametrically opposing “successful” leadership ideologies – one which engages others around common goals, innovation and adaptability and the other around a populist, narcissistic personality, sewing divisiveness and confrontation. Growth in disinformation on social media and in vested print media has spurred an undesirable social contagion of the latter, meaning organisations now need to consider how to combat these external influences on their internal leadership behaviours. As the global economy stumbles, having a positive, optimistic and thriving organisation culture is essential. Who you recruit as a leader determines your culture. Here are the three leadership traits we see too often in geopolitics and how to avoid hiring them. Trait 1: Strict dogma and rigid perspective Even leaders who deliver results occasionally believe that to get things done, they need to do it themselves. The consequences include a feeling of exclusion for employees and that their opinions are not wanted. This erodes collaboration and disengages the team over time. Hire leaders who can give examples of adapting on the move and can describe in detail how they brought their teams on a new journey. Look for leaders who have recognised when to pivot and have engaged with their teams to work out a new direction or multi-pronged approach. Trait 2: Intense control and single-mindedness In extreme cases of dictatorial leadership, curiosity is deliberately stifled. The leader seeks to control matters tightly to their agenda. Curiosity has deep riches; it is the key to continuous improvement, innovation and building connections between people. Leaders should inspire their teams to be open-minded and look for new ways of achieving outcomes. Ask your potential leadership hires to outline examples of where they have completely let go of an issue and had it worked through by a team or team member to the point of resolution. Look for leaders who can respond quickly when asked to give an example of inquisitiveness. Trait 3: Investing only in self Fear of the unknown can drive irrational levels of support for geopolitical leaders, even in the face of their aberrant conduct. Within the context of organisational leadership, self-absorbed leaders are dangerous to team or group morale. Their staff turnover will often be higher as their lack of authenticity undermines their credibility. How self-aware is the leader you are interviewing? Are they attuned to their emotions and impact on others? Can they give examples of areas in which they need development? Do they rely too heavily on their charisma? While it can be useful in motivating others, it can also suggest a potential for arrogance and the need to be at the centre of attention. Though the world and our organisations currently face an unusual number of difficulties, organisation leaders with the right traits understand how to insulate against malign influences and navigate challenges. Their ability to bind intellectual agility to practical demonstration is what makes them outstanding leaders. They do this by behaving in a diametrically opposing manner to those political leaders who seek personal gain at an extreme cost to their citizens. Michael O'Leary is Chairperson at HRM Search Partners

Chartered Accountants Ireland was pleased to see the publication of the Programme for Government by the incoming administration this week. The Programme contains a number of commitments on key priorities for our members, that we hope will come to fruition, including:   On SMEs: the programme’s commitment to address the regulatory and cost burdens facing SMEs is welcome, in particular its pledge to establish a dedicated Small Business Unit in the Department of Enterprise and commitment to rigorously apply the’ SME test’ to all new legislation that risks further increasing business costs, prior to enactment.   On childcare: commitments to progressively reduce the cost of childcare to €200 per month per child are positive. Moreover, pledges to provide capital investment to build state-owned childcare facilities to create additional capacity will be welcomed by parents who are struggling to find a place for their child in local childcare facilities. If successfully implemented, these measures could leave working parents better off and free up vital working capacity in the economy.  On climate: the continued commitment to accelerating Ireland’s progress towards achieving the 17 Sustainable Development Goals (SDGs) is welcome. It is encouraging to see, in particular, a focus on the  further development of the sustainable finance sector, renewable energy, upskilling and training, and the provision of supports for industry – including supports for small businesses – to decarbonise and embrace a circular economy.     The Institute looks forward to working with the new Government to ensure these important commitments are delivered over the course of the 34th Dáil term and to continue to amplify the voice of our members on the policy issues of importance to them.      

In Irish news, Revenue has published preliminary results for 2024 and the Department of Finance has published final Exchequer figures for 2024. In UK news, we issue key reminders ahead of the 2023/24 online self-assessment filing deadline on Friday 31 January 2025 and update you on the joint response from the Professional Bodies, including this Institute, to a HMRC letter on service levels. In International news, the OECD have released a pricing tool for the implementation of Amount B under Pillar Two.      Ireland Read the Revenue Commissioners published preliminary headline results for 2024. Exchequer figures for 2024 show further growth in tax revenues.   UK Read our key reminders ahead of the 2023/24 online self-assessment filing deadline on Friday 31 January 2025. The Professional Bodies have jointly responded to a HMRC letter on service levels.   International The OECD have released a pricing tool and factsheets to facilitate the implementation of Amount B under Pillar Two. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount. You can also read this week’s post EU exit corner here.

From the Institute's Professional Accounting team .... In December 2024 the UK Government laid legislation, the Companies (Accounts and Reports) (Amendment and Transitional Provision) Regulations 2024 before Parliament to increase the monetary size thresholds for micro, small and medium-sized entities. It also removes certain requirements from the Directors’ Report.  The new monetary size threshold changes are effective from 6 April 2025. Please also click to read the explanatory memorandum to the legislation for further insight into the changes.                                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.

For 2024, the Irish Exchequer recorded a surplus of €12.8 billion, up €11.6 billion from 2023, largely reflecting the transfer of once-off receipts from the Apple case. Total tax receipts of €108 billion were collected in 2024, with the main sources of income broken down as follows: Income tax receipts of €35.1 billion were collected. This figure is €2.2 billion, or 6.6 percent ahead of 2023, reflecting earnings growth and strong employment. Corporation tax receipts of €39.1 billion were collected. This figure is €15.2 billion, or 63.9 percent ahead of the previous year, with the bulk of the increase arising from the Apple case. VAT receipts of €21.8 billion were collected. This figure is €1.5 billion, or 7.3 percent ahead of 2023, reflecting solid consumer spending. Commenting on the figures, Minister for Finance Jack Chambers TD said: “The end-year figures are affected by one-off receipts arising from the Court of Justice of the European Union and so it is important to dig below the surface. When we do this, we see solid growth in income tax and VAT receipts last year; these trends demonstrate the underlying strength of our economy. Looking ahead, there are clearly identifiable risks on the horizon. Navigating through these will require a greater focus on competitiveness and on getting the basics right – especially in areas like energy, water, transport and housing. This is why Government is committed to using the proceeds of the CJEU ruling to expand infrastructure in these critical areas.”

Last week, Revenue published preliminary headline results for 2024, showing record-breaking collections for tax and duties of over €107 billion, with a further €30 billion collected on behalf of other government departments and EU Member States. Income tax, corporation tax and VAT were the largest contributors to the tax take in 2024 at €35.1 billion, €39.1 billion and €21.8 billion respectively, all higher than in 2023. Combatting non-compliance remains a key priority for Revenue, in addition to confronting various tax-avoidance schemes. Some of the highlights of this work during 2024 were as follows: Revenue completed almost 311,000 audit and compliance interventions yielding €591 million. Revenue settled 256 tax avoidance cases yielding €46 million. Revenue secured 20 criminal convictions for serious tax evasion and fraud and published 74 tax settlements in the list of tax defaulters. Revenue also reports that the introduction of real-time payroll reporting has led to a year-on-year increase in the number of PAYE taxpayers managing their own tax affairs. During 2024 Revenue processed nearly 1.4 million income tax returns for PAYE for the 2023 year of assessment. Revenue reports that during the first week of 2025, over 175,000 PAYE taxpayers have already filed a return in respect of the 2024 year of assessment.   Looking ahead to property tax pay and file obligations, Revenue reports that the Residential Zoned Land Tax (RZLT) will come into force in 2025 and will apply to land which is zoned and serviced for residential use. By 31 January 2025, local authorities will publish the revised map for 2025, showing land that is within the scope of RZLT and Revenue’s RZLT registration portal will open at that time. RZLT returns and liabilities will be due in May 2025. Separately, Revenue also published a statistical infographic on the Debt Warehouse Scheme, which is available here and which shows that 94 percent of tax debt is either settled or secured by Phased Payment Arrangements.

Ahead of the 2023/24 online self-assessment filing and payment deadline of Friday 31 January 2025, several key reminders are set out below. Readers should also be aware that HMRC staff are planning strike action over the coming weeks which you can read more about in a separate story in this edition. Members are also advised to contact the Institute by email if they experience any issues in the coming weeks which prevent the filing of 2023/24 self-assessment returns before the deadline so that we can discuss with HMRC. 2023/24 transition year to basis period reform Important guidance on the transition year to basis period reform, and in particular applying for information on overlap relief, was contained in the November 2024 Agent Update which we highlighted last month. HMRC has also published a new tool to help calculate overlap relief if HMRC is unable to provide the information on unused overlap relief. By way of reminder, 2023/24 is the transition year of basis period reform after which the tax year basis of assessment commences in full from 2024/25 for all unincorporated businesses. In 2023/24, any unused overlap relief from earlier tax years must be used.  To use HMRC’s new tool, information is required from business records, including the date the business started or the date an individual joined a partnership. According to HMRC “reasonable estimates” should be used if not all the information required is available.   Simple assessment tax bills  HMRC is reminding taxpayers who have received a simple assessment letter to pay any tax outstanding for 2023/24 by the later of: 31 January 2025; and three months from the date of issue of the letter. Guidance is also available on how to pay a simple assessment tax bill, including what action to take if a taxpayer is unable to pay the full amount due by the deadline. Scams HMRC is warning that fraudsters are increasingly targeting people with offers of tax refunds, or demanding payment of tax to obtain personal information and banking details. HMRC’s advice to taxpayers is to check if contact is genuine using the guidance on GOV.UK before taking any action.  

Last month we highlighted to readers a November letter from HMRC to the CEOs of the Professional Bodies seeking a meeting to discuss HMRC services. The Professional Bodies responded jointly to that letter on 23 December 2024 and will be meeting with HMRC as proposed. Members will be updated on developments in Chartered Accountants Tax News and are reminded that you can feed back on HMRC services at any time to us by emailing tax@charteredaccountants.ie. The response to HMRC sets out the key strategic issues for the various bodies and their members and focuses on HMRC’s strategic challenges in relation to improving its services the headlines from which are as follows: How can the demand for phone and post contact be reduced, The need for an electronic communication tool, The importance of establishing a system for progress tracking, Quality of advice available on HMRC helplines, Retaining phone and post services, and Compliance including the need for HMRC to address how it is currently utilising the compliance powers it has available. Many of these are issues which the Institute has already highlighted to HMRC in previous discussions and several also featured in our pre-Budget submission in October 2024. The letter did not address other key strategic areas such as raising standards and potential regulation of the tax profession and acknowledged that the £51m additional Government investment in HMRC announced in May 2024 is starting to impact.

HMRC has contacted us to advise of industrial action in the coming weeks in the period to Friday 14 February 2025. According to HMRC, “robust plans are in place” to ensure  it is able to continue delivering critical services. HMRC has advised that its Employer Services phone line and webchat will be open daily from 8am-6pm as usual, however callers may experience longer wait times.   The helplines expected to be affected are: The Employer helpline,  and The Construction Industry Scheme helpline.   HMRC has advised that it will keep the opening hours and service levels under review and will update us in advance of any changes. There are currently no expected impacts on other services.  HMRC is also updating taxpayers and agents on GOV.UK and via recorded message on its helplines. Callers will hear a message which tells them about the industrial action and the increased waiting times. This message is also encouraging callers to use digital services.  HMRC is strongly encouraging the use of digital services rather than waiting to speak on the phone. Some of the main topics callers call these helplines about, which they can do online are:  get a quick answer to queries using the digital assistant, Check the status of your CIS refund in the ‘Where’s My Reply’ tool (only call if the date has passed), and Check your balance in the Business Tax Account.   For technical support with online services use the Online Services helpdesk. 

In this week’s miscellaneous updates, the minutes from the most recent meeting of the Joint Vat Consultative Committee, which Chartered Accountants Ireland is represented on, are available on GOV.UK. The most recent HMRC Agent Update is available as is the 19 December 2024 Stakeholder Digest which includes information on the appointment of the new HMRC CEO when the current CEO Sir Jim Harra retires in April 2025. A recent report from the National Audit Office (NAO) features suggestions to reduce the tax gap and HMRC has published an online tool to help workers or employment businesses using umbrella companies work out gross and net pay. HMRC has also recently launched new online services for platform operators to register and submit reports. VAT on private school fees applies from 1 January 2025 and 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. Latest Agent Update Agent Update: issue 126 is now available. Get the latest guidance and information including: the best way to pay voluntary National Insurance contributions, Simple Assessment, extended period for issuing tax calculation (P800) letters, The upcoming Self-Assessment deadline, and helping to test HMRC’s pay calculator for umbrella company workers. NAO report on the impact of fraud and error on public funds In this report the NAO suggests three ways to reduce the tax gap: HMRC should ensure that it understands the impact of its compliance work so that it can target activities to bring in the most tax revenue, HMRC should make it easier for taxpayers to comply and get help, so they pay the right amount of tax, and HMRC should ensure that tax rules are soundly designed and easy to comply with and evaluate and iterate rules as required. New online tool Last month HMRC collated their guidance, tools and documents for umbrella companies and those that use their services into a single page on GOV.UK. In addition, a new online tool designed to estimate gross and net pay from an umbrella company for a single role and the associated tax deductions was also published. Online services for platform operators Last month HMRC published a new online service to enable platform operators to register with HMRC. Note that even excluded operators who will not be submitting reports will still need to register with HMRC by Friday 31 January 2025. HMRC has also published a new service for platform operators to use to manage their digital platform reporting account after completing the registration process i.e. the service to be used for submitting reports and updating details. Both services are accessed via the Government Gateway ID.

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. The Northern Ireland Affairs Committee has opened an inquiry into the operation of the Windsor Framework (WF) which is accepting evidence until the end of this month and HMRC has sent an email reminder that from 31‌‌‌ ‌‌January 2025 the next stage in the UK’s Border Target Operating Model commences when all European Union imports into Great Britain (GB) will require safety and security declarations. HMRC has also been writing to businesses which move non-qualifying Northern Ireland goods from Northern Ireland to GB to advise how this change will impact; more information on this is set out below. Moving non-qualifying Northern Ireland goods from Northern Ireland to Great Britain from 31 January 2025 From 31 January 2025, a business moving non-qualifying Northern Ireland goods will be required to submit an entry summary declaration prior to the goods arriving in GB  on the following routes:   Northern Ireland to GB, Northern Ireland to GB via Ireland, and European Union to GB via Northern Ireland The requirement for an entry summary declaration is in addition to the existing requirement for an import and export declaration for non-qualifying Northern Ireland goods moved from Northern Ireland to GB.  Which goods will require entry summary declarations?   There is no requirement for entry summary declarations for qualifying Northern Ireland goods, which will continue to benefit from unfettered access arrangements. Businesses can move qualifying goods directly from Northern Ireland to GB without customs or other controls, with extremely limited exceptions. This means the vast majority of goods moving from Northern Ireland to GB will not require entry summary declarations.  However, the following goods will require entry summary declarations from 31 January 2025: goods under a customs special procedure,  goods in authorised temporary storage,  goods which are moved from Northern Ireland and do not merely pass through Ireland before entering GB, and    goods indirectly exported from the European Union to GB via Northern Ireland which do not meet the definition of qualifying Northern Ireland goods when in Northern Ireland.   More information about qualifying Northern Ireland Goods can be found at https://www.gov.uk/guidance/moving-qualifying-goods-from-northern-ireland-to-the-rest-of-the-uk. More information on making an entry summary declaration is available at https://www.gov.uk/guidance/making-an-entry-summary-declaration. A business will need to discuss with their haulier or carrier to understand their plans for submitting the entry summary declaration on their behalf to ensure all parties are ready for this change. This may also include discussing whether there is any additional information they will need the business to provide in order to complete the declarations. The Trader Support Service will continue to submit the export declaration requirement for goods that require these when moved from Northern Ireland to GB.  It will also support the submission of entry summary declarations for non-qualifying Northern Ireland goods from 31 January 2025 when these are moved from Northern Ireland to GB and Northern Ireland to GB through Ireland.  Miscellaneous guidance updates and publications Moving goods between Great Britain and the UK Continental Shelf, Notice made under the Customs (Records) (EU Exit) Regulations 2019, List of customs training providers, Using similar goods to replace customs special procedure goods, Notices made under the Customs (Import Duty) (EU Exit) Regulations 2018, Notices made under the Taxation (Cross-border Trade) Act 2018, Notices made under the Customs (Export) (EU Exit) Regulations 2019, Pay less import duty and VAT when re-importing goods to the UK, Maritime ports and wharves location codes for Data Element 5/23 of the Customs Declaration Service, and External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service.

Emma Broderick explains how suppliers of virtual events must account for VAT where customers are located, complicating compliance The EU VAT treatment of live streaming and virtual events services has changed with effect from 1 January 2025. Suppliers of such events will need to consider whether it will be necessary to account for VAT in multiple EU jurisdictions and how to efficiently manage any associated registration ‘footprint’. A virtual event isn’t defined in VAT law, but could include live-streamed events or other online events that involve people interacting in a virtual environment rather than meeting in a physical location.  The change is intended to apply VAT where the service is consumed, in line with the normal place of supply rules for business-to-business (B2B) services and similar rules for electronically supplied services provided on a business-to-consumer (B2C) basis. New measures Currently, VAT is levied on live-streamed events, including virtual events, where that event takes place. This means that live-streamed events are subject to VAT in the country in which the event is taking place, even if the viewers are located in a different jurisdiction. This is the case regardless of the business or non-business status of the customer. From 1 January 2025, EU law applies VAT to such events where the viewer, or customer, is located. This operates as follows: For B2B supplies, the EU business recipient may be required to self-account for reverse charge VAT in their EU country of establishment. For B2C supplies, the supplier will be responsible for collecting and remitting VAT in the EU country where the customer is located. This is intended to bring the VAT treatment of virtual events into alignment with that of other telecommunication, broadcasting and electronically supplied services (including streaming services or the delivery of other pre-recorded content). A pan-European €10,000 threshold applies for EU and NI businesses, and a nil threshold applies for non-EU established businesses. This change follows an amendment to the VAT place of supply rules for certain events services in Directive 2022/542. Irish law has not yet been amended to implement these changes, but we anticipate a statutory instrument to this effect will be issued in the coming weeks. Going forward The VAT treatment of events provided on a B2C basis will change considerably and bring about increased costs of compliance for businesses providing such B2C virtual services. The provider of the online events may need to register and charge VAT in each EU country where their final customers reside. Suppliers of live-streamed and virtual events will need to think about how to identify the location of their consumers and understand the impact of being subject to VAT in another EU jurisdiction. There is a VAT registration simplification available, known as the VAT One Stop Shop, to facilitate one single-EU-wide registration to remit output VAT on supplies, but there remains a challenge of monitoring differing VAT rates across the EU and pricing, contracting and invoicing decisions associated with this. The impact on cross-border B2B supplies should be less significant, as business customers should be able to self-assess for VAT on the reverse charge basis in their country of establishment, but suppliers will still need to consider invoicing and relevant VAT reporting requirements. Emma Broderick is a tax partner at Grant Thornton

As 2024 breaks temperature records, Derarca Dennis explores how businesses are advancing net zero strategies and why urgent climate action is essential In November, the EU climate monitor Copernicus reported that 2024 was "virtually certain" to be the hottest year on record, with warming above 1.5C, highlighting that the world was passing a "new milestone" in temperature records. These statistics, among countless others, highlight the critical need for immediate and sustained action to reduce emissions and mitigate the impacts of climate change. As the global climate crisis intensifies, the urgency for businesses to commit to and achieve net zero carbon emissions has never been more critical. The EY State of Sustainability 2024 report sheds light on the progress organisations are making towards sustainability. However, as events of recent weeks and months have shown us, every business, person and country need to do more. The global climate crisis is arguably the most pressing challenge of our time. Rising temperatures, extreme weather events and the degradation of natural ecosystems are just a few of the devastating impacts of climate change. A revision of National Defined Contributions (NDCs) is an absolute requirement as we know already that we will surpass 1.5C if we continue on current NDCs. As major contributors to global emissions, the actions businesses take to reduce their carbon footprint can have a profound impact on the overall trajectory of climate change. While part of a much bigger and very complex picture, by committing to net zero targets, businesses can help drive the systemic changes needed to transition to a low-carbon economy, protect natural resources and ensure a sustainable future for all. The EY State of Sustainability report shows that increased focus on sustainability is evident in the high rate of adoption of formal sustainability strategies among businesses. According to the report, 70 percent of respondents have approved and implemented a sustainability strategy, with the same number reporting alignment between that strategy and the overall business strategy. This alignment is crucial as it ensures that sustainability is integrated into the core operations and decision-making processes of the organisation. However, 35 percent of respondents feel their organisation is not doing enough, a notable rise from 17 percent in 2022. While it’s positive to see the overall trajectory of sustainability in business in Ireland moving in the right direction, it’s equally heartening to see that organisations are beginning to understand that there is much more to do. One of the most encouraging findings from the report is that 55 percent of organisations are aiming for net zero science-based targets, with 40 percent having established a clear roadmap towards achieving net zero. Leadership plays a crucial role in driving sustainability efforts, with 53 percent of organisations assigning C-suite responsibility for sustainability. In 67 percent of these cases, the CEO or managing director leads the initiative, while in 22 percent, the responsibility falls to the chief sustainability officer or head of sustainability. The assignment of sustainability responsibilities to senior leaders underscores the high priority businesses place on achieving their net zero targets. This commitment from the top is a clear signal to employees, customers and stakeholders of an organisation’s dedication to sustainability. And we need more leaders to follow suit to set the tone from the top if we, as a collective business community, are to play our part in halting the climate crisis. Why business emissions reductions matter Businesses are significant sources of greenhouse gas emissions, creating emissions through electricity and other energy use, manufacturing, transportation, agriculture and food waste, among others. By reducing their emissions, businesses can: Mitigate climate change: Lowering emissions helps to slow the rate of global warming, reducing the frequency and severity of climate-related disasters such as hurricanes, floods, and wildfires. Protect ecosystems: Reducing emissions can help preserve biodiversity and protect ecosystems that are vital for maintaining the planet's health and resilience. Drive innovation: The pursuit of net zero can spur innovation in clean technologies and sustainable practices, creating new business opportunities and driving economic growth. Enhance reputation: Companies that lead in sustainability can enhance their brand reputation, attract environmentally conscious consumers, and gain a competitive edge. Ensure regulatory compliance: As governments worldwide implement stricter environmental regulations, businesses that proactively reduce their emissions will be better positioned to comply with new laws and avoid penalties. The adoption of formal sustainability strategies, risk and materiality assessments, clear KPIs, and accountability, along with a strong commitment to science-based targets, are all essential steps towards achieving net zero. While there is more to do, it is very encouraging to see all the progress made in the past two years and great to see business leaders continuing to commit to building a better future for all. Derarca Dennis is Assurance Partner and Sustainability Services Lead at EY

When considering the trajectory of artificial intelligence, it’s worth looking back to see forward, writes Tania Kuklina Though it’s hard to believe now, following the invention of the World Wide Web in 1989, it took several years for businesses to realise its potential and value.   That journey began, slowly and tentatively, with ‘portals’ providing information for investors and the curious public. Next came sites assisting job applicants or helping customers to make purchasing decisions. With Web 2.0, businesses moved towards self-service models, enhancing customer engagement and user experience. In a clear case of back to the future, what we are currently witnessing in relation to artificial intelligence (AI) is similar, as businesses are only gradually beginning to understand its potential. Of course, it is already here and in a variety of guises. It provides enhanced search capabilities and supports learning and teaching. It can write, summarise and analyse large documents. In the realm of computer vision, AI is already being used for context-specific focus tracking in digital cameras. Despite these advancements, we are still waiting for AI’s first “killer app”, the groundbreaking application that will revolutionise and disrupt the world like the first internet browser on the World Wide Web.   We do not know if this application will be a job killer or a job creator, but what we do know is that, when it comes, it will shape the thinking of employers and employees about AI within their own organisations.   Productivity challenge At present, we believe AI will replace humans in low-stakes tasks. It is increasingly being used for customer engagement tasks, such as the pop-up web chat screens that sometimes launch when we visit websites. But as AI becomes more widespread and demystified, and the large language models that power them are cheaper to build, businesses are returning to a fundamental question – what is its value to them?   For businesses ready to look at their processes in a new way, the best way to assess AI’s value is the old-fashioned way – through business case assessment and return on investment.   Opportunities for improvement need to be quantified, processes may need to be redesigned and specific AI applications need to be developed. Total costs, including regulatory compliance, must be measured against potential benefits. People power People have a key role to play in assessing AI’s value proposition and making the technology work. As part of this work, several trends have emerged. First, workers still struggle with basic AI concepts and applications. Many do not grasp what AI implies for their roles, nor question why they should master a technology that might eventually take their jobs. This uncertainty underscores the need for clear communication and education about AI's personal benefits and potential. It is also increasingly clear that the success of generative AI (GenAI) technologies and the ability to realise their value depends on the ability of the workforce to adopt and apply them effectively. Despite this, many organisations are pushing for rapid adoption before their teams are fully equipped. As GenAI features evolve constantly, providing employees with consistent, stable and coherent learning experiences will prove difficult. With an ever-changing curriculum, Gen AI learning must be broad-based and continue to keep pace with change. Employees also need abundant structured opportunities to apply and practice what they are learning. Yet AI is not well enough democratised – not every employee has access to it, or support. This could lead to the ‘Matthew effect’, which is the phenomenon wherein those with pre-existing advantages accumulate more advantages over time. If access to GenAI is unevenly distributed, it could exacerbate existing disparities. AI has already started to extend our cognitive abilities, enabling us to access, understand and process more information than ever before. Highly skilled individuals find that when they explore and figure out how to use AI to support their work, it enhances and extends their capabilities without diminishing their hard-earned skills. However, for novices, an over-reliance on AI tools may limit their ability to develop essential skills such as problem-solving and subject matter expertise. So, while Gen AI requires traditional methods of evaluating investment and return on investment, in the training and people space, we need to reconsider learning approaches. This includes incorporating data-driven measurements such as tracking understanding and perceptions of GenAI, engagement levels and sustained versus lapsed adoption. KPMG has been actively developing and supporting these initiatives for clients, including through our GenAI Academy. Get it right, now Recognising the central role people play in the AI journey is crucial. It is also important to consider the medium and long-term impacts on skills, roles, learning, and culture. Investing in workforce upskilling is the cornerstone of how organisations show their commitment to putting humans at the centre of AI transformations. We may reach a point in the future where AI can be trusted to work autonomously. We may see a digital workforce of bots emerge as our co-workers. For now, however, AI adoption is a journey in which employee engagement, participation and support are vital. Tania Kuklina is a Director at KPMG