David Lucas, FCA, the recently appointed Head of Corporate Finance at Azets Ireland, tells us about his career path, passion for supporting entrepreneurial businesses and plans for the future Tell us a bit about yourself, and when and why you decided to become a Chartered Accountant? I learned from my parents the importance of having a profession from an early age. My father was an engineer and my mother a teacher, so I was encouraged to choose a profession that would provide me with solid career opportunities.  At school, I was strong at maths and I have always been interested in business, so the BComm at University College Dublin was a natural fit. It wasn’t until my third year at college that I decided to pursue accountancy. Upon completing my degree, I went on to do a master’s in accountancy at Smurfit Business School.  I qualified as a Chartered Accountant with KPMG at the age of 24. From there, I moved into banking, spending eight years with AIB in corporate lending before moving into corporate finance. My career path has blended my accountancy training with my interest in business and my entrepreneurial spirit.  Has your career unfolded as you anticipated or were there some surprises along the way?  There have been a lot of surprises. I firmly believe that once you become an accountant, you can do anything you want.  I have found it to be an excellent and well-regarded qualification that can open a lot of doors to exciting opportunities.  Once you are a qualified accountant, no one can take it away from you. Whether you work in industry, practice or become an entrepreneur or business owner, the training and experience you gain as a Chartered Accountant will always stand to you.   I have always been interested in corporate finance and have a genuine interest in entrepreneurship, talking to owner-managed businesses and understanding what makes them tick.  In my various roles, I have explored these interests and carved out a career in corporate finance, working with entrepreneurial businesses across multiple sectors. I enjoy what I do today, and I’ve enjoyed the journey. Are you glad you made the decision to qualify as a Chartered Accountant? Absolutely, yes. There are thousands of Chartered Accountants in Ireland and beyond. It is a fantastic network and the training gives you a strong range of skills that can prepare you for any challenge, both inside and outside work. Among the people you have worked with over the years, who has been your biggest inspiration?   I have been lucky to have had a number of mentors and trusted friends, all of whom have influenced me in various ways. One of the best lessons I have learned is that people do business with people.  Bearing this central principle in mind, growing my network, and building strong relationships across the business community, has been a consistent feature of my career. If you can stay connected with those around you, you can bring each other forward. How has the role of the Chartered Accountant evolved since you joined the profession? The role of the Chartered Accountant has evolved significantly and is now viewed as that of a broader business advisor.  It is no longer just about balancing the books. Today, Chartered Accountants are trusted advisors, serving as the go-to person for clients on a wide range of issues, opportunities and challenges.  The training Chartered Accountants undergo is comprehensive, covering nearly all aspects of business and finance.  Clients can trust us not only to manage financial matters, but also to lead teams, train and develop staff, and support clients through every stage of the business lifecycle – from start-up to sale.  We play a key role in helping business owners realise the full value of their work and dedication.  What advice can you offer ACAs starting out on their career path today? The Chartered Accountancy qualification is world-renowned and world-recognised. It opens so many doors and opportunities in whatever walk of life you want to take on.  The training you receive and the people you meet will give you the tools to pursue opportunities as they arise. With this qualification, there are any number of directions you can take and potential employers and clients can be comfortable in the knowledge that you have a good grounding due to your experience and training.  I would say it is really important to be open to new challenges, even those outside your comfort zone, as they often provide the greatest opportunities for growth.  Networking is also key. Surround yourself with mentors and peers who can offer guidance and support and seek to learn from everyone.  Lastly, trust in your abilities and don’t be afraid to go for things and do your best. You won’t know how to do everything and don’t pretend to know everything – no one does – but always give your best.  Who do you admire most right now in business or public life? I greatly admire Jürgen Klopp, the former manager of Liverpool Football Club, for his leadership approach both on and off the field.  Early in his Liverpool career, Klopp emphasised the importance of building a cohesive team by ensuring that all players knew and respected the entire staff, regardless of their role.  This inclusive leadership style is rooted in treating everyone with respect and acknowledging that every individual plays a crucial part in the success of the team. Klopp fosters a culture of mutual respect, camaraderie and accountability. He understands that a strong team is built, not just on talent, but on unity and shared purpose.  His ability to connect with people on a human level makes others want to work with him and be part of his vision.  By creating an environment where everyone feels valued, he motivates the whole team to perform at their best.  His leadership shows that when people are treated with dignity and trust, they are more likely to consistently deliver exceptional results. This is something I strive to achieve with my team: nobody gets left behind. We are all in it together and we have each other’s backs. Tell us about your new role as Head of Corporate Finance at Azets Ireland? Our Corporate Finance Department provides a full range of services to mid-market businesses across Ireland ranging from buy side and sell side mergers and acquisitions, due diligence and valuations to debt advisory services.  Given our extensive service offering and the range of sectors we operate across, every day is different for me. One day could involve advising on the sale of a business, and the next performing detailed financial due diligence or raising debt or equity to help fund growth for a  business.  Every deal is different, and I enjoy getting to know my clients and their businesses to provide the best service possible.  My bread and butter is the buying and selling of businesses. These transactions require a corporate finance advisor to manage all aspects of the deal from early-stage preparation through to going to market, deal negotiation, project management and liaising with legal advisors right through to completion. My recent appointment as Head of Corporate Finance comes at an important moment in the growth trajectory of Azets in Ireland.  Over the next three years, we aim to double the size of our department with the addition of about 20 new recruits. The expanded department will enable us to advise on the growing number of transactions expected in Ireland’s mid-market sector over the medium term.

Older professionals have much to offer in today’s multigenerational workplace, but many continue to experience the ill effects of negative attitudes and bias As Honorary Treasurer and Interim Chair of Age Action Ireland, Colm Nagle, FCA, continues to apply the experience honed over the course of a 45-year career begun in 1979 when he joined Stokes Kennedy Crowley as a trainee. The longest-serving director of Age Action Ireland, the national advocacy organisation for older people and ageing in Ireland, Nagle is proud of his ongoing contribution to its work, in particular its annual Positive Ageing Week. Kicking off this year on 30 September and continuing through the first week of October, Positive Ageing Week (PAW) celebrates the contributions of older people and promotes their agency. As the dust settles on another successful PAW, which this year featured over 500 events around the country, Nagle is turning his attention to other priorities on the agenda of Age Action Ireland, which has published two annual State of Ageing reports since 2022, highlighting the reality of growing older in Ireland. “Age discrimination is often under-represented in discussions of diversity, equity and inclusion, and, in the workplace, ‘age’ is often left out of company’s DE&I policies and initiatives,” Nagle says. “So far in our culture, we just have not had the same conversations and awareness-raising around ageism that we have had around other forms of discrimination. People haven’t learned to stop and think about ageing or question implicit beliefs they might have internalised.”  The World Health Organisation’s Global Report on Ageism, published in 2021, found ageism to be a prevalent and serious form of discrimination.  “The report demonstrated that we come to accept ageist beliefs from as young as four years old, and that these beliefs – about ourselves and others – can have seriously negative consequences, including worse health outcomes,” Nagle says.  There is, he adds, evidence suggesting that ageism is especially sharply felt in the labour field.  “Age Action’s ‘Are We Ageist’ poll found that unemployed persons were most likely to report recently experiencing age discrimination,” Nagle says. “Ageism is also known to interact with and compound other forms of discrimination like misogyny, classism or ableism, and so, to effectively eliminate these kinds of discrimination, we must also be aware of what ageism is and how it works.” A priority for Age Action is to involve everyone in our society in the project of reframing ageing and changing how we think, act, and feel about older persons.  Rethinking mandatory retirement age Many people now are living more active lives well into retirement age and want to defer full retirement for as long as possible.  “Fundamental to all of us continuing to have choice and control over our employment as we age is the existence of mandatory retirement clauses in contracts,” Nagle says. “Currently, our Equality Acts make an explicit exemption that allows for this kind of age discrimination, so that people can be forced to leave their jobs for no other reason than that they have reached a certain age. This is based on harmful stereotypes of older persons, that deny their skills and capacity.” Mandatory retirement implies that in older age, we are all the same, Nagle says. “It is deeply concerning that through our laws, the State is currently legitimising these kinds of ageist beliefs. It forces older persons out of workplaces and thus contributes to social exclusion,” he says.  “At Age Action, we have spoken to people who, 10 or 20 years on, are still angry and hurt by having been forced to retire. “We have long campaigned for the abolition of mandatory retirement and, in April, we made our case before the Oireachtas Committee on Employment, which subsequently recommended it be abolished. “It has already been outlawed in Canada, Australia, New Zealand and the US, in some cases for decades, and their labour markets are still functional and productive.” Negative bias and discrimination Well before retirement age, professionals can feel the negative effects of unhelpful biases as they mature through their careers. Seventy-five percent of respondents in the most recent Workplace Equality Study published by Matrix Recruitment identified ageism as an issue in today’s workplace. More than two-thirds, meanwhile, said workers over the age of 50 have fewer promotional opportunities then their younger colleagues, up 19 percent points on the previous year’s findings.   Commenting on the findings, Kieran McKeown, Managing Director of Matrix Recruitment, said they were “hugely disappointing.” “There is a widespread view that professionals aged over 50 have fewer promotional opportunities than their younger colleagues, but the reality is actually quite the opposite,” McKeown says.   “On a more positive note, the majority of respondents surveyed (89%) agreed that people over the age of 50 have as much to contribute to the workplace as those under 40, and this is an opinion we, at Matrix Recruitment agree with, given the calibre of the candidates we speak to on a daily basis in this age group.”  Despite this, McKeown believes older and more experienced professionals in the Irish market remain something of an “untapped talent pool.” “It is quite a complex issue but there appears to be an unconscious bias against older candidates and a poor understanding of, or appreciation for, what they can bring to a workplace,” he says.  “There is a view – a misguided one, in my opinion – that if you are older, you are less likely than your younger peers to be considered capable, adaptable or willing to embrace something new. “We are living in a digital age in which transformation is constant. Given that half of our respondents were of the view that more mature candidates may not have ‘21st century’ IT and digitalisation skills, it is likely that employers think the same way.   “In my experience, the over-50s are highly skilled and actively embrace technological change. Together with their years of experience, this is a group whose contribution to the workplace cannot be underestimated.  “Of course, how people in their 50s are perceived varies greatly from person to person but populations are aging, working lives are lengthening and graduates are joining the workforce later – so 50 is young.” The Matrix Recruitment Workplace Equality Study found that mature workers were considered to have better life skills and those aged over 50 were also rated higher when it came to mentoring and guiding colleagues.  “Forty-eight percent of our respondents consider mature employees to be more reliable workers than their younger cohorts, who statistically are more likely to job hop,” McKeown says.  “Employers find that there are lower staff attrition rates with more mature workers who also have strong interpersonal skills and an equally strong work ethic. And of course, they bring to the workplace years of life experience alongside the expertise they have built up in other roles.” The biggest challenges facing older candidates in today’s job market often “come from within,” McKeown says.  “Losing confidence, feeling they are too old to move job or upskill – or simply not knowing how to go about driving change – are all barriers we see among candidates in this age group,” he says.  “I would encourage anyone considering a career or job move to speak to a recruitment expert.  We can help identify any gaps in their skill set or job spec and help them recognise and promote their transferrable skills.  “There are also lots of tools, such as LinkedIn, which can help individuals stay on top of industry trends and grow their network and connections.  “At Matrix Recruitment we have supported and placed dozens of candidates over the age of 50, including those looking for a new job, a different career or re-entering the workforce after many years. My advice is to get off that fence, speak to an expert and go for it!” Liberation from the rat race For Pat Barker, FCA, sitting on the fence has never been an option. A trailblazer for women in the profession, Barker sat her accounting exams in 1973, becoming only the 20th female Chartered Accountant in Ireland. “I didn’t have a master plan, but seemed to rocket from one opportunity to another,” she says now.   “Generally, I was offered chances and I probably said ‘yes’ to too many and found myself active all the time. Luckily, I am fit and healthy and had lots of energy, and I reflect back on a very packed work and non-work life.”  Barker served her articles with Stokes Bros & Pim in Dublin and then relocated to the UK for a time, becoming Partner with an accounting firm in Manchester and working at Manchester University as a Principal Lecturer.  She was appointed Lecturer at Dublin City University in 1980 and progressed to Senior Lecturer, Associate Dean of the Business School and Vice-President, Academic. Today, Barker continues to lecture in business ethics at DCU. “When you get older, you are liberated from the competition of your career trajectory and you must then decide, ‘What am I going to do now? Am I going to take up golf and play bridge and drink Chardonnay in the afternoon?” she says. “I thought about that and decided it wasn’t for me and the joy for me in continuing to lecture and to serve on boards is that I no longer feel the need to prove myself through my work. “I do not want to lose my capacity – my skills – as a Chartered Accountant. I do not want to stop applying these skills. I want to continue learning about what interests me, and to apply what I learn in the work I do. “That professional decision-making and problem-solving part of me continues to matter enormously to me and, these days, it is enhanced by an ethical overview. Continuing to work when you are older and out of the rat race is a kind of liberation.” Benefits of a multigenerational workforce With an ageing population, longer life expectancy and delayed retirement, workplaces in Ireland are becoming increasingly multigenerational, says Dee France, Wellbeing Lead with Thrive, Chartered Accountants Ireland’s wellbeing hub.  “Fostering a positive age culture is crucial to the Irish workforce and its future, but the importance and value of older employees in their workplace can be seriously overlooked,” France says. “An ageing workforce isn’t a burden; it is an opportunity and there are many business benefits to having a multigenerational workforce.  “With age comes a wealth of experience and with skill and labour shortages reported, employers should not overlook older employees but focus instead on actively retaining and retraining them to address growing talent shortages.” As France sees it, older workers bring an abundance of knowledge, experience and skills that can be invaluable to employers.  “Longer periods in the working environment allow employees to acquire and cultivate significant soft skills that are often so important and beneficial to both the company and younger employees – interpersonal and communication skills, for example, problem-solving and critical thinking along with other leadership qualities and abilities,” she says. Supporting and advocating for age-inclusivity By supporting and advocating for an age-inclusive environment, employers can retain these important qualities in teams, ensure knowledge transfer and provide meaningful and symbiotic mentorship opportunities.  “Failure to address the needs of an ageing workforce is a common issue when employers look to implement supportive work practices,” France says. “In this digital era, there can be preconceived notions and age-related assumptions surrounding older workers, such as their ability to embrace digital transformation, reluctance to adopt new processes and ways of working, or difficulty shifting to changes in company culture. “Many employers can also overlook the importance of providing flexible working arrangements for older employees, making it easier for them to remain in the workforce.”  It is crucial to implement policies that allow accommodations for an ageing workforce for part-time work, job-sharing or remote working, France says. “I would also advise considering phased retirement plans that allow employees to reduce their working hours gradually while maintaining a connection to the workforce.  “This approach can improve retention and reduce stress, allowing employees to continue contributing to the business for longer.” Supporting older workers: advice for employers  Embracing age inclusivity is not just a social matter, it is a business matter too, writes Dee France.  As Ireland’s demographics evolve, businesses must adapt and embrace the potential an age-diverse workforce can unlock. Creating a culture of belonging to foster equitable, inclusive and thriving workplaces that value diversity, including age diversity, is key to supporting a growing workforce.  Employers should actively promote age-friendly policies, avoid reinforcing stereotypes and encourage intergenerational collaboration by fostering mentorship programs that allow employees to share their generational knowledge, creating a mutually beneficial learning environment. Employers should also develop and prioritise well-being initiatives that support an ageing workforce.  Offering health insurance benefits, wellness programs and access to resources like mental health support or fitness programs can significantly improve employees’ quality of life.  Additional tailoring of benefits such as regular health check-ins and adjusting job demands to accommodate any limitations an individual may have, can help ensure that employees can continue working comfortably. Supporting the well-being of older workers through tailored policies on health, flexibility and career development can help them stay engaged and productive, ultimately benefiting the wider organisation.  Positive ageing initiatives can also help reduce turnover, increase job satisfaction and enhance loyalty within the organisation. Positive ageing in the Irish workforce is not just a trend but a critical component of building a resilient, productive and inclusive workplace.  Employers must recognise the value of older employees and take proactive steps to support them.  By addressing common pitfalls and adopting best practices, employers can create a work environment in which workers aged over 55 feel valued, supported and empowered to continue contributing to the success of the organisation. Dee France is Wellbeing Lead with Thrive, Chartered Accountants Ireland’s dedicated wellbeing hub  

Carmel Moore, FCA, Director at the One Moment Company, has seen the number of women in senior positions rise throughout her career, but, she says, true equality has yet to be reached From my convent school days to becoming a Chartered Accountant, an in-house Tax Director, a Big Four Tax Partner, and now running my own business, my career has been far from linear.  I never followed a grand plan or five-year roadmap – just trusted my gut, took risks and made mistakes along the way. My original aspirations were creative, but the harsh reality of Ireland’s job market steered me towards the accountancy profession.  As a law graduate, I started my career with KPMG. On the first day of my training contract, despite the new suit, the shoulder pads and the briefcase, the bus conductor still charged me the children’s fare.  This early career path laid the groundwork for an unexpected, yet deeply fulfilling, professional journey.  I moved to London (for romantic reasons) in the late 1980s. My heart was broken while I was there, but my career flourished. I spent 13 happy years on the in-house tax team at Barclays.  My next chapter took me to Pfizer, as Senior Director of the European Tax Centre. That role, filled with challenge and variety, alongside a hugely talented team, sparked my interest in coaching and leadership development. I became a Partner at EY in London, specialising in tax transformation, honing my expertise in change management and leadership development for deep technical experts, focusing on balancing subject matter expertise with soft skills, communication and handling ambiguity. Since 2017, I’ve been on a different path, co-founding the One Moment Company with my wise and wonderful business partner, Marty Boroson.  An unlikely combination of a zen priest and a Chartered Accountant, we are a specialist consulting and leadership business that is 100 percent focused on time, with a radical approach that is very different from traditional time management.  I believe that women have been taught to think about time differently to men. Growing up, I learned that time was a resource to be used for the benefit of others.  The women around me put their own needs last. It’s still a deep-seated belief that underpins the busy lives of the women I coach, and it holds them back.  I’ve always had an academic side hustle. I like to say it’s a love of learning, but it’s really a love of pens and stationery!  I have a master’s degree in English literature from King’s College London and I am a Master Practitioner in Neuro-linguistic Programming.  I’ve studied organisational development. I’ve done an Advanced Diploma in Personal, Leadership and Executive Coaching at Kingstown College. And now, my son has just signed me up for a refresher course in Irish. Every day really is a school day. Gender equity in the accounting profession I’ve witnessed significant progress in gender equity over the years, but it is never enough. I’ve been the only woman on a team several times (including at the gym this morning). I didn’t work for a woman until 2006.  I’ve experienced everything from clumsy flirtation, to pay disparity, to being overlooked for an overseas promotion opportunity (“But you have a baby! We didn’t think you would want to go!”) to being formally reprimanded for my more eccentric fashion choices.  I’ve run the gamut of the many indignities a woman can experience in the workplace.  My way of dealing with things early on was to be very, very professional – aka terrifying. One particularly mortifying round of 360 feedback revealed that is exactly how people experienced me: scary.  Even my handbag received an honourable mention in the feedback: “She wields her handbag like a battle shield.”   Being this way was exhausting. I would come home wrung out every evening, remove the suit of armour and collapse with a Chardonnay. A coaching course taught me that flexibility, softness and openness are part of leadership.  I haven’t always been vocal and visible when it comes to women in the workplace. As I became busier with family and with work, I relaxed my vigilance. I had this vague idea that things were better, weren’t they? I was so wrong.  A chance hosting of a young female leader’s event revealed that, despite advancements, women were still not feeling there had been any change.  They had the same questions that had troubled me all those years ago: imposter syndrome, not speaking up in meetings, not advocating for oneself, work-life balance issues, fear of failure, networking difficulties and lack of mentorship.  I resolved to do better and use my coaching and leadership development skills to support others. It has been a joy.  Today, more women are stepping into influential leadership positions in finance with grace and strength, though the journey is far from complete.  I would love to see a continued push towards not just increasing the number of women in leadership, but also ensuring their voices are heard and valued equally and integrated into commercial decision-making processes. Navigating career advancement and mentoring My career has been one of many organic steps. It has evolved through recognising opportunities as they have arisen.  I will give anything a go – I am open to new experiences. That, and retaining an Irish sense of humour. It’s defused many a tense steering committee! Mentoring and networking relationships are crucial for women as they progress in their careers. Everyone needs to take all the help they can.  There are potential mentors everywhere. Make a list of people you admire in your company, ex-colleagues, or someone interesting you met at a conference. Ask for advice. Good people love to help.  My own experiences with mentoring have been enriching; particularly the dynamic exchange in my reverse mentoring relationships. I would recommend it.  The quest for work-life balance Achieving work-life balance has been tough, especially in high-demand roles.  A major spine operation in 2014 forced me to reevaluate my priorities and slow down, reminding me that self-care isn’t optional.  I learned the hard way. The key is setting boundaries and being intentional about how you allocate your time.  If I could give one piece of advice to my younger self, it would be to trust your instincts.  The times when I ignored or overrode my gut feelings didn’t end well. Trusting your intuition in decision-making is crucial, as it aligns with your core values and aspirations.  The future of gender equality I joined a group of women leaders at the Institute recently to meet with the Minister for Finance, Jack Chambers. We discussed the unique challenges faced by women in their career journeys and how these barriers can be more effectively addressed by policymakers.  But the discussion went deeper. There was a profound exchange on how society needs to change for the better, to create and foster truly inclusive workplaces.  Women shouldn’t have to contort their lives to fit in. The Institute is committed to taking this agenda forward and we’ve been shaping what a dedicated women’s programme could offer. I would advocate for more courageous workplace conversations in real-time, rather than relying solely on policies and events.  It is important to address inequities as they occur and foster a more immediate and impactful learning environment for everyone. But women need the skills and confidence to host these conversations. This is where coaching and mentoring play their part. Reflecting on my journey, I find that each step and misstep along the way has contributed to a broader understanding of work and life.  Despite the miles travelled, I still feel as though I am just starting, eager to learn and contribute.

Ireland is facing fiscal challenges ranging from unaccrued liabilities to over-dependency on multinationals, yet these critical issues remain largely absent from public discourse, writes Cormac Lucey The most basic task of accountancy is to measure the results of a business over a given period. In the public sector, however, things are different. Voters may not want to know how serious everything is. Even when they are told, they may not care.   The US government’s budget deficit is expected to hit 5.6 percent of national output this year – far above the three percent limit set in law in the European Union – yet the issue has hardly featured in this year’s US presidential campaign.  Likewise, Ireland’s media has a hard time featuring the stories and facts people need to know. Here are four major issues that are generally absent from Irish public debate. Issue 1: Unaccrued public sector liabilities While formal US government debt is estimated to equal 123 percent of US national income (GDP), unaccrued public sector liabilities were reckoned (in a recent edition of The Economist) to come to around 580 percent of GDP. In America, the bulk of the national debt iceberg lies below the surface.  The same situation applies in Ireland. According to the Irish Fiscal Advisory Council (IFAC), the Irish government’s debt will equal €181 billion by the end of 2024.  However, a 2017 actuarial analysis carried out by KPMG estimated that the state’s unaccrued liability to PRSI contributors equalled €335 billion in 2015. On top of this, the state’s pension liability value concerning public service employees was estimated to be €176 billion at the end of 2021.  Actual state debt vastly exceeds publicly measured debt.  Issue 2: Looming long-term fiscal problems  A 2023 report carried out by the Office for Budgetary Responsibility warned that the UK’s national debt was on track to nearly triple relative to the size of the economy, from 99 percent of GDP today to 270 percent by 2070.  The key drivers of this expected deterioration are an ageing population, and costs related to climate change and higher defence spending (because of rising geopolitical tensions). Each of these factors applies to Ireland.  In addition, by 2070, Ireland may have to face up to the fiscal costs of national reunification. Data from Britain’s Office for National Statistics shows that, for the financial year to April 2023, Northern Ireland raised £21.5 billion in revenue, mostly taxes, but spent £32.9 billion in current expenditure and £3.1 billion in capital expenditure, spending £14.5 billion (€17.5 billion) more than it raised. Issue 3: Dependence on tax revenues from multinationals Eighty-five percent of the state’s corporation tax revenues come from multinationals (MNCs), as do 55 percent of Ireland’s income tax revenues and 54 percent of VAT.  Apply this 54 percent share to the residual, smaller tax sources, and you can quickly see that more than 60 percent of the state’s total tax take is derived – directly and indirectly – from the multinational corporation (MNC) sector.  Meanwhile, the EU wants to strangle Ireland’s MNC golden goose, Donald Trump wants MNCs to repatriate their jobs to the US and Neil Morris – Amazon’s boss in Ireland – has warned that Ireland is “becoming complacent about foreign direct investment.”  Issue 4: Growing complexity and politicisation risk smothering productivity The reason we live vastly improved lifestyles compared to our antecedents 200 years ago is not that we are intrinsically superior but because of much higher productivity.  However, there is little appreciation of the central importance of productivity, or of how it can be smothered by needless complexity and politicisation of the rules we must operate under.  The common feature of these four issues is that, while they are extraordinarily important, they have barely featured in public debate.  Sadly, the media in Ireland and Britain is dominated by plausible and pleasant talkers who have little understanding of what’s really going on. As a result, amiable spoofing wins out over hard facts.  Cormac Lucey is an economic commentator and lecturer at Chartered Accountants Ireland *Disclaimer: The views expressed in this column published in the October/November 2024 issue of Accountancy Ireland are the author’s own. The views of contributors to Accountancy Ireland may differ from official Institute policies and do not reflect the views of Chartered Accountants Ireland, its Council, its committees, or the editor.  

The world of academia is crying out for accountants who can teach valuable skills to students based on real-world experience, writes Dr. Neil Dunne, FCA Universities need accountants to teach accounting. This seemingly obvious fact is sometimes overlooked in third-level institutions, however, where academic credentials such as a PhD outrank professional accounting qualifications.  Consequently, universities may assign non-accountants to teach technical accounting courses, a situation hard to imagine in other professional fields – law or medicine, for example.  Professionally experienced personnel truly bring a subject alive. Without them in our lecture theatres, we forsake education rooted in the ‘real world’ of professional accounting, and thus risk deterring students from an accounting career. Academia needs qualified accountants, but we also need them to join academia in an informed manner. Here are four points to consider if you are thinking of making this move. Heed the signs There may be indicators that academia is for you. For me, my parents were both teachers, and I was always comfortable in explaining things to others when working as an accountant. Additionally, I enjoyed accounting at school, at university and during my ACA training. Speak up Don’t let a fear of public speaking hold you back. Although my own natural disposition is far from extroversion, I teach (which is a role I am passionate about) to students (whose progress I care about) in an ‘extroverted’ manner. When you are involved in something you care about, you can transcend quietness, shyness or introversion. Research is king To work at most colleges, you will need to have commenced a PhD at the very least. A PhD needs a supervisor. So where to begin? My approach was to attend the annual conference of the Irish Accounting and Finance Association (IAFA). I knew nobody there my first time, but everyone was welcoming. There, I found an especially interesting seminar, which led me to my own PhD supervisor, Professor Niamh Brennan at University College Dublin.  Mind the gap There is usually an initial income fall associated with moving from a professional role to academia, but with time and progress this gap can be bridged. What newcomers may not anticipate, however, is a parallel status change. Moving to academia means we ‘start again,’ in a sense, at the foothills of a whole new mountain. For me, this was a short-term price worth paying for the autonomy, flexibility and meaning associated with an academic role. I would advise any Chartered Accountants curious about academia to investigate more. Reach out to the IAFA, a professor whose classes you may have enjoyed, or to others that have completed PhDs. I ‘made the leap’ myself 17 years ago and have never regretted it.    Dr. Neil Dunne, FCA, is Programme Director and Assistant Professor in Accounting  at Trinity Business School, Trinity College Dublin

Accountants will play a critical role in helping SMEs manage the impact of new sustainability reporting requirements on their supply chains. Niamh Brennan, Louise Gorman and Seán O’Reilly explain why The EU’s Corporate Sustainability Reporting Directive (CSRD) was transposed into Irish law in July 2024. Those in management and accounting functions in some of Ireland’s large companies have struggled to interpret the Directive’s requirements.  The legislation will require reports under European Sustainability Reporting Standards (ESRS) from 1 January 2025 for the 2024 financial reporting year.  In recent years, many large companies have voluntarily reported sustainability information under the Global Reporting Initiative (GRI) and the Taskforce for Climate-related Financial Disclosures (TCFD) frameworks.  Moreover, the environmental topics covered by the ESRS are derived from the EU Green Taxonomy, with which large entities in certain sectors have already reported alignment. This alignment prepares them for the CSRD requirements to some extent.  Listed SMEs will not come within the scope of the CSRD until 2027 (for the 2026 financial year), with an opt-out for two further years to 2029 (for the 2028 financial year).  Nonetheless, many SMEs, both listed and unlisted, will experience the effects of sustainability reporting requirements before these dates. Significance of the value chain The ESRS require disclosures on material environmental, social and governance topics. Such disclosures must detail the undertakings’ own operations as well as those throughout their value chain.  The value chain refers to the full range of activities, resources and relationships related to the undertakings’ business model and the external environment in which they operate.  In Ireland, many large companies’ activities, resources and relationships involve SMEs. Examples include financial services institutions with SME customers, and food and beverage producers with SME suppliers.  The implication of such relationships, in ESRS terms, is that large companies must gather sustainability information from SME value chain partners. Reporting challenges for SMEs  We have conducted two research studies on sustainability reporting for Irish SMEs. Our first study employed the GRI framework, and our second used the EU Green Taxonomy, to assess SMEs’ reporting preparedness.  Mindful of SMEs’ strong reliance on their Chartered Accountants for reporting and advisory needs, we engaged with professional Irish accounting practitioners to gain insights into the challenges they face.  Both studies were conducted in 2022 in anticipation of the publication of the ESRS by the European Financial Reporting Advisory Group (EFRAG). Our findings are highly relevant now that sustainability reporting is legally mandated. The findings of both studies indicate that cost is the greatest barrier encountered by SMEs.  In particular, set-up costs, ongoing data management expenses and potential operational changes, are likely to prevent the average SME from collecting and reporting accurate and reliable sustainability data.  Resources, particularly human resources and associated training costs, also pose a substantial impediment to implementing a sustainability reporting system. Related to this, both studies identify a significant sustainability knowledge gap within SMEs.  While an implicit understanding of the importance of environmental and social sustainability exists, many SME managers and employees have not received education on the necessary topics or metrics which must be disclosed, many of which are scientific or highly specialist in nature.   Finally, access to the necessary technology to manage and report sustainability information is limited. Appropriate data management and reporting systems have only recently become available, at a price point that typically only large companies can currently afford.  With these issues in mind, future problems are envisaged as large undertakings request sustainability data from SME customers and suppliers for ESRS reporting. Supports for SMEs Supports could help to alleviate the challenges facing SMEs over the coming years. Our research found that national or EU governmental grants, tax incentives or carbon credits may assist SMEs in overcoming cost-related challenges.  The accounting practitioners in our studies also recognised that education and training in sustainability reporting for SME management and relevant employees may need to be subsidised.  Beyond financial supports, participants in our study indicated that simplified disclosure requirements would be appropriate for SMEs.  Since we reported these opinions from our study, EFRAG has published an exposure draft of Voluntary SME (VSME) sustainability reporting standards for small non-listed enterprises.  The exposure draft presents a modular approach that SMEs can adopt on a phased basis.  Alongside simplified reporting requirements, another non-financial support deemed suitable by our respondents was the establishment of a state-sponsored or equivalent body to provide SMEs with consultancy, resources and tools for sustainability reporting.  The Department of Enterprise Trade and Employment’s recently established National Enterprise Hub represents a valuable opportunity to aid Irish SMEs in meeting sustainability data demands from larger companies. The path ahead for SMEs In the immediate term, large undertakings collecting sustainability data from smaller value chain parties can avail of transitional provisions when data is not available in the first two to three years of reporting.  Nonetheless, such reliefs are limited amidst a strong impetus across Europe to set and achieve Greenhouse Gas emissions’ reduction targets in line with the Paris Agreement.  Without data from value chain parties, measures of Scope 3 emissions reported by large undertakings under the climate change standard, ESRS E1 Climate Change, will be inaccurate and misleading.  At a time when greenwashing is considered almost akin to financial fraud by the general public, large undertakings may impose pressures on small enterprises to produce relevant measurements, even if regulators do not.  Failure to do so may cost SMEs valuable business relationships. Disclosures required under ESRS E4 Biodiversity and Ecosystems will also impact Irish SMEs in value chains in sectors such as agri-food. With the Circular Economy Act signed into Irish law in 2022, reporting on the circular economy under ESRS E5 Resource Use and Circular Economy may be deemed a material topic for many companies.  ESRS E5 requires extensive discloses on product lifecycles and may well also necessitate data collection from SME suppliers as well as from SME consumers.  In fact, it is important not to consider SMEs solely from a supplier perspective. In terms of social sustainability, ESRS S4 Consumers and End-Users sets out reporting requirements on consumers’ use of goods and services, with a particular emphasis on health and safety.  SMEs intermediating between large companies and end-consumers will also be required to report upstream to larger companies in value chains.  Additionally, ESRS S2 Workers in the Value Chain requires large undertakings to report on the composition of suppliers’ and customers’ workforces, as well as their working conditions. Sources of support Our research findings, coupled with an analysis of the ESRS requirements, clearly indicate that support for SMEs is vital to ensure they retain strong positions within value chains in Ireland and across the EU.  Prompt development of the VSME standards is essential. Without standardisation, SMEs face requests from multiple supply chain stakeholders to provide various types of data in different formats.  The introduction of the VSME standards in a manner that encompasses guidance to larger firms on best practice in data collection from smaller value chain partners may ease the reporting challenges for undertakings of all sizes.  The role the accounting profession will play is integral, as smaller entities will need sustainability reporting alongside traditional accounting services.  Chartered Accountants Ireland offers advice, education and representation for members in the area of sustainability reporting.  As these requirements becomes a priority for SMEs, the Institute will continue to provide support to Chartered Accountants navigating the nuances of this major development in accounting and reporting. Niamh Brennan is Michael MacCormac Professor of Management at University College Dublin Louise Gorman is Assistant Professor at Trinity College Dublin  Seán O’Reilly is Assistant Professor at University College Dublin

Companies complying with the Corporate Sustainability Reporting Directive could see real business benefits, but the right mindset is crucial, write David Connolly and Alba Boshnjaku At its core the Corporate Sustainability Reporting Directive (CSRD) is a reporting requirement, but it should not be viewed merely as a compliance exercise.  Companies within the scope of the Directive will be reporting in a standardised way. This means that sustainability statements could become a powerful tool for communicating more effectively with their stakeholders.  The CSRD could potentially enable these companies to build trust, enhance their reputation and strengthen their accountability.  This scenario is not dissimilar to existing accounting standards, whereby the requirement for companies to report financial information to investors, lenders and other stakeholders, has facilitated better and more transparent comparability between businesses operating in the same industry. Ignoring sustainability is no longer an option. Companies must be aware of, and report on, the impacts they have on people and the environment, as well as the sustainability-related risks and opportunities they face in the short, medium and long term.  Therefore, the CSRD gives companies an opportunity to understand what matters to them and their stakeholders. It allows them to re-evaluate their business to gain a competitive edge and potentially attract new customers, talent and capital, thereby strengthening their strategic resilience.   C-suite executives should recognise the potential the CSRD has to help steer their organisation towards a future that balances profitability with environmental and social responsibility governed by robust control frameworks.  Before exploring the potential benefits, however, let’s first revisit some of the key concepts of the CSRD. Europe: leading the way in sustainability reporting  An estimated 40,000 companies based in the European Union will be brought within scope of the CSRD on a phased basis, starting this year and continuing through 2028. Reporting obligations apply to all large and listed companies, including small and medium sized entities (SMEs), except for listed micro-enterprises. The size category into which an undertaking or group falls is defined by establishing thresholds in relation to net turnover, gross value and average number of employees during the financial year.  A large undertaking or a large group will, for example, exceed at least two of the three following criteria: balance sheet totalling €25 million; net turnover of €50 million; an average of 250 employees.  These criteria, including the ones for SMEs, are established in the Accounting Directive at EU level and transposed in national legislation, which companies must consult to determine whether they are captured within the scope of the CSRD. Certain non-EU companies with listed subsidiaries or significant operations in the EU market are also required to report. Non-EU companies that fall under the scope of the CSRD need to have: Net turnover of more than €150 million in the EU for each of the last two consecutive financial years;  A large or listed EU subsidiary, or EU branch, generating over €40 million in the EU. The requirement for certain non-EU companies to report will impact some companies established in Northern Ireland where they meet the relevant threshold criteria.  Ireland transposed the CSRD in the Companies Act in July 2024. Companies should carefully consider the relevant provisions to determine whether they fall within scope. The first wave of companies (large, listed companies with over 500 employees) have already mobilised their teams to get disclosure ready as they will be publishing their sustainability statements in the first quarter of 2025 for the current financial year.  Companies within the scope of the Directive must prepare their sustainability statements in line with the European Sustainability Reporting Standards (ESRS). The first set of twelve sector-agnostic standards have been adopted by the European Commission and are directly applicable to all EU member states.  Sector-specific standards are under development and proportionate standards for listed small and medium-sized entities are also expected.  Two of the standards – ESRS 1 and ESRS 2 – are cross-cutting and mandatory for all. The remainder, structured under Environmental, Social and Governance (ESG) pillars, are subject to the outcome of the materiality assessment. Companies will need to undertake a double materiality assessment to decide what they will need to report on.  They will have to identify and assess the impacts of their business on people and the environment (impact materiality) and the risks and opportunities the outside world poses to their business (financial materiality).  As part of this process, companies will need to understand the business and regulatory environment in which they operate and map their value chain. The value chain is defined as the full range of activities, resources and relationships related to the undertaking’s business model and the external environment in which it operates.  The value chain encompasses the activities, resources and relationships the undertaking uses and relies on to create its products or services from conception to delivery, consumption and end-of-life.  As part of their double materiality risk assessment, companies will also need to identify material- and sustainability-related impacts, risks or opportunities relating to their value chain across time horizons.  Once they have identified their material matters, they will then need to identify the material disclosures and data points to be reported in the sustainability statement.  The sustainability statement will be subject to limited assurance, with added responsibilities for audit board committees. Companies will need to implement robust control frameworks that ensure high quality, reliable and comparable sustainability information. The CSRD: a competitive edge  The CSRD offers an opportunity for companies to gain a competitive edge, because it requires that they report, not only on the material impacts they have on people and the environment, but also on the potential risks and opportunities they face.  For example, supply chain disruptions caused by climate change or dependencies on scarce natural resources could lead to operational risks for companies, which could then take the form of credit risks for financial institutions. Similarly, negative impacts on employees or affected communities could lead to litigation and reputational damage. On the flipside, investment in green technology or innovation could generate profit and add shareholder value.  By treating double materiality assessments as a box-ticking exercise, companies will miss the opportunity to better understand their business and make more informed strategic decisions.  A thorough, data-driven assessment should take into consideration value chain relationships, sector and geographical exposures. Supported by stakeholder insights, this approach can help a company to identify the existing and anticipated effects of sustainability on its business model and strategy, including risks or opportunities related to its financial position, cash flow and access to capital.  The double materiality assessment is dynamic and requires companies to think and assess what is material, not only this year, but in the medium to long term – and how this will impact its wider business plans and strategy.  For C-Suite executives, the results of the double materiality assessment could yield insights that enhance efficiency, improve performance and help them set realistic targets, all while demonstrating their company’s commitment to transparency. Opportunity for increased internal accountability  Under the CSRD, companies will need to report on the processes they have in place to identify and manage material sustainability matters. The preparation process will trigger important internal questions that require owners and demand accountability.  Are our policies and actions effective? How are we tracking the effectiveness of our targets? Is our data accurate? How robust is our internal control framework? Is sustainability integrated into our risk management process? What is the role of the Board in sustainability reporting?  These are only a small fraction of the questions companies will need to ask themselves to ensure that their reports are CSRD-compliant. These are also questions that could help companies become efficient and foster a transparent and risk-focused culture.  Further, reported sustainability information, such as financial reporting, will need to be reliable, accurate and comparable. What gets measured gets done.  By having to define baselines and measure progress from year to year, companies must ensure that time and resources are adequately allocated to set the business up for success.  Communicating what matters to stay ahead  Companies will have to report on what is material and relevant to stakeholders and, with stakeholder expectations evolving, ongoing engagement will be key.  Investors, employees, customers, suppliers and the public at large are becoming more aware of the sustainability impacts of companies, so they can make informed, ethical decisions.  Some stakeholders will be more interested in the sustainability credentials of companies than others. While customers and employees will take account of sustainability when deciding where they spend their money or where they work, funders and regulators will have more than a passing interest.  In 2023, according to the latest World Investment Report, the value of sustainable investment products, both bond and equity, reached more than $7 trillion, up 20 per cent on the previous year. Both investors and lenders rely on accurate and transparent information to make informed decisions, meet their own reporting requirements, and mitigate greenwashing risks. C-suite executives should be prepared to answer their questions. Regulatory requirements are becoming increasingly onerous across industries and regulatory bodies worldwide are pushing for uniformity and transparency in sustainability reporting.  While climate change has dominated the regulatory agenda in recent years, other environmental and social issues are also coming into focus, including human rights and labour practices within supply chains.  As new requirements are introduced globally – for example, IFRS sustainability disclosures –businesses operating across jurisdictions will need to think about interoperability to ensure consistent messaging and compliance.  By understanding who the users of the sustainability information are, and what they need to know, companies have scope to build trustworthy relationships that could benefit their market position, value and access to capital, while also ensuring compliance. Cultivating a winning mindset With the right mindset, companies complying with the CSRD could see real business benefits. The CSRD is a function of the European Union’s wider Green Deal, designed to revitalise and transform the European economy by decoupling economic growth from resource use to ensure long-term sustainability.  This will require a focus on innovation, new technology, sustainable products and services, responsible and sustainable business practices, employment and supply chains.  So, while companies prepare for their first year of CSRD reporting, C-suite executives should be thinking about potential opportunities and risks, emerging material sustainability issues, and how they can use sustainability reporting to improve their strategic resilience and business value.  David Connolly, FCA, is a Director in EY Financial Services Climate Change and Sustainability Services (CCaSS) Alba Boshnjaku is a Manager in EY Financial Services CCaSS, specialising in ESG reporting

Daniel O’Donovan considers the urgent need to resolve interpretative questions that have emerged following the transposition of the Corporate Sustainability Reporting Directive into Irish law The European Union (Corporate Sustainability Reporting) Regulations 2024 (the Regulations), also known as S.I. No. 336 of 2024, transposes the Corporate Sustainability Reporting Directive (CSRD) into Irish law.  This legislation marks a significant step in aligning Ireland’s corporate reporting framework with the EU’s broader sustainability goals, as outlined in the European Green Deal and the EU Action Plan for Financing Sustainable Growth. The Regulations were signed into law during the summer and came into effect on 6 July 2024. Their principal objective is to integrate the new corporate sustainability reporting obligations with Ireland’s existing financial reporting framework.  It is estimated that about 1,000 Irish companies will fall into the scope of these Regulations. The Regulations will be phased in over the next few years and will generally apply to public interest entities and companies qualifying as large under section 280H of Companies Act 2014.  Companies regulated by the Central Bank of Ireland qualify as large under this section, for example. It is welcome to see the implementing legislation. Ireland is among the first countries in the European Union to have implemented the CSRD, thus giving businesses in Ireland as much time as possible in the circumstances to assess its impact.   The impacted entities have been assessing the obligations in the legislation since it came into effect.  As with any implementation of such a complex European directive, some interpretative questions in relation to the implementing legislation have emerged. What follows are some of the key interpretative questions that have emerged to date. The definition of “Applicable Company” Several questions arise from the definition of “applicable company” in Section 1586 of the Regulations.  The definition refers to a provision contained in Part 6 of Companies Act 2014 to define its boundaries and, in particular, draws on the definition of a large company in section 280H of the Companies Act 2014.  This appears to have unintended consequences because an ineligible entity is a large company.  For example, certain small and medium entities and micro-entities that fall within the definition of an ineligible entity may be included in year two of reporting pursuant to section 1587(1)(b), reporting on 2025 sustainability information, rather than being in year three of reporting pursuant to section 1587(1)(c), reporting on 2026 sustainability information.  Exemptions for certain subsidiaries Section 1594 of the Regulations provides an exemption for certain subsidiaries. However, the exemption appears to be more restrictive than the equivalent in the CSRD, because it appears to be limited to Irish subsidiaries of Irish holding companies and excludes Irish subsidiaries of EU holding companies. See first table below.  In addition, it appears that all subsidiaries that are themselves large public-interest entities (listed and non-listed entities) are precluded from taking the exemption – whereas the CSRD only excludes large subsidiaries listed on an EU-regulated market. Exemptions for certain holding companies that are subsidiaries Section 1598 of the Regulations provides an exemption for holding companies that are themselves subsidiaries, where: a higher parent undertaking prepares a directors’ report under Part 6; or  a non-EU higher parent provides a group report either in accordance with the sustainability standards or in a manner recognised as equivalent to them.  However, as “third country” in the Regulations is defined to exclude Member States, it appears that there is no exemption for holding companies that are subsidiaries of an EU parent. See second table below.  Further, this exemption appears to be restricted further than the CSRD, because all large public-interest entities are prohibited from availing of the exemption, whereas the CSRD only excludes large public-interest entities that are listed on an EU-regulated market. Transitional provisions for consolidated reporting The Regulations permits, in section 1607, a subsidiarity of a third country undertaking to report on a consolidated basis on behalf of a group until 2030 (artificial consolidation).  However, it appears that this provision only applies to financial years commencing on or after 1 January 2028 by virtue of its placement in Chapter 3 of the Regulations.  As such, companies that wish to avail of this provision may be unable to do so during a significant portion of the transitional period. Supporting sustainability ambitions The EU and Ireland’s shared ambition to lead in sustainability reporting, transitioning to a sustainable economy and economic model, it comes with an ambitious timeline.  For example, the period between the effective date of the Regulations and the end of the first period on which year one companies will report on sustainability, in accordance with the European Sustainability Reporting Standards, is just six months.  We believe that a stable and clear legal framework is essential for businesses to thrive in Ireland.  Ensuring that outstanding CSRD transposition matters are resolved promptly will help maintain Ireland’s strong reputation as an excellent place to do business.  It is in the public interest to provide companies with the clarity they need to comply with new laws effectively. We welcome The European Union (Corporate Sustainability Reporting)(No.2) Regulations 2024 (S.I. No. 498 of 2024) signed into law on 1 October. S.I. 498 of 2024 resolves some of the interpretative questions set out above, aligning: The exemption for subsidiaries that are themselves large public-interest entities with the CSRD, which only excludes large subsidiaries listed on an EU-regulated market from the exemption; The exemption for holding companies that are subsidiaries, with the CSRD, which only excludes large public-interest entities listed on an EU-regulated market from the exemption; and The commencement of the transitional provision regarding artificial consolidation with the CSRD, now available immediately. Significant questions remain to be resolved, however.  Accountants are committed to meeting the new sustainability reporting requirements, but we recognise that implementing the CSRD into Irish law is complex and that the necessary resources and expertise to prepare detailed and complex reports, and to obtain assurance on those reports, are still developing in the Irish market. By working together, we can ensure businesses have the support they need to meet these sustainability ambitions, aligning with the CSRD’s goals for 2024 and beyond. Time is running short. As the clock strikes the 11th hour, companies need to have clarity on the interpretative questions discussed in this article as a matter of urgency. Continued imminent engagement between the legislators and the legislates is critical to resolving these matters and ensuring our sustainability reporting ambitions are successfully achieved. Daniel O’Donovan is a Partner with KPMG and leads the firm’s Audit and Assurance Methodology Team

Accountants have a critical role to play in assisting companies, both large and small, to get on their sustainability journey, writes Dee Moran Sustainability reporting is a term that is getting much more traction and interest than in the past and with due cause. From an environmental perspective, the latest report from the Environmental Protection Agency is encouraging in that Ireland’s emissions in 2023 were below the 1990 baseline for the first time in three decades.  However, the report also states that the Climate Act objective of achieving a 51 percent reduction by 2030 will not be achieved unless all sectors meet their indicative reductions.  Therefore, it is critical that we, as accountants, play our part in assisting entities to up their game, particularly in the area of sustainability reporting.  It has become clear in the past year or so that our members’ interest in this area has increased hugely.  Having over 600 members attend our two recent sustainability webinars is testament to this, as are the numbers signing up to the Institute’s certificate and diploma programmes in this area.  The transposition of the Corporate Sustainability Reporting Directive (CSRD) into Irish law on 5 July 2024 requires companies, depending on their size, to begin reporting from 1 January 2024.  Whilst the subsequent publication of the statutory instrument, (S.I. 336/2024) has been very welcome, there remain some areas that require clarification on interpretation before we can begin to write technical guidance for members.  In this special report, Daniel O’Donovan outlines these interpretations in a very clear and concise manner.  We have engaged with the Department of Enterprise, Trade and Employment and Minister Peter Burke, TD, FCA, on these interpretive questions, and other matters that require clarification. An amending statutory instrument, S.I. 498/2024, was signed into Irish law on 1 October 2024. While the S.I. provides some clarifications, outlined in Daniel O’Donovan’s article, there still remain questions that must be answered regarding the transposition. It is important that there is a shared understanding of the legislation, which will allow preparers to set up the processes and procedures necessary to report and comply with the CSRD.  In this special report, EY’s David Connolly and Alba Boshnjaku outline some of the requirements of the CSRD, and why ignoring sustainability is no longer an option for businesses.  They also discuss the importance of an entity having the right mindset, and that companies complying with the CSRD could see real business benefits and additional opportunities.  While approximately 1,000 companies in Ireland will eventually have to comply with the CSRD, there are thousands of other entities that will have to prepare to report on their sustainability information if they are in the value chain of an in-scope company.  This will place an additional burden on SMEs and a recent study undertaken by Niamh Brennan and Sean O’Reilly from UCD, and Louise Gorman from Trinity College Dublin outlines some of these challenges, and how accountants can assist them in managing the impact. A brief explanation of the research is outlined in their article. As accountants, we have a critical role to play in assisting companies, both large and small, to get on their sustainability journey.  We encourage you to upskill and be prepared to play a role in this journey.   Dee Moran is Professional Accountancy Lead at Chartered Accountants Ireland

EU Commission President Ursula von der Leyen will need to summon all her powers of persuasion if she is to deliver on her second term priority to improve EU competitiveness, writes Judy Dempsey Ursula von der Leyen is no pushover. During her first term as head of the EU Commission, the bloc’s powerful executive, she has focused on competition, trade, energy, data protection and climate change, stamping her own indelible mark on the job.  She has been hands-on. Colleagues who have worked with her note her need for control. Delegating has not been von der Leyen’s métier – nor communication, aside from her passionate support for Ukraine.  Her second term is not going to be easy. Yes, von der Leyen has commissioners on board who are aligned with her own conservative political leaning. Yes, she has a few, very experienced commissioners who served under her first term, if not before. And yes, she has her agenda – competitiveness – as her main focus. The number of newly appointed commissioners alone shows how determined von der Leyen is to bolster EU competitiveness in response to shifting global demands, including the rise of artificial intelligence.  Her second term will not be plain sailing, however – for three reasons.  First, many of her 27 commissioners have overlapping dossiers. This will inevitably lead to turf battles. Continued collegiality is not a given.  Second, the EU is obsessed with regulation. Its bureaucratic and regulatory processes often stifle innovation, and this will continue to be the case. Third is the role of EU member states. In recent years, with a few big exceptions, von der Leyen has dealt with countries that prefer to use the EU Council representing member states for their own agenda and interests. This is bad news for von der Leyen. France, and particularly Germany, have increasingly pushed their national interests before that of Europe. It has always been so, but France and Germany, the historic engine of EU integration, are no longer in sync.  French President Emmanual Macron – now a beleaguered leader who only recently formed a government after months of stalemate – wields little influence in the EU.  Macron’s big ideas about making Europe ready to take care of its own security and defence, and his warnings about the need to defend the essential values that make Europe what is today, have had so little traction. This is no thanks to Germany, where Chancellor Olaf Scholz has failed to engage intellectually with either France or the EU.  Scholz’s policies on immigration (border controls on Schengen countries), more monetary integration (blocking a banking union) and more political integration (blocking treaty change to get rid of some veto powers of the member states), point to a squabbling coalition of Social Democrats, pro-business Free Democrats and Greens, all holding up European integration.  They also confirm a German leader reluctant to embrace bigger-picture thinking for Europe’s future. EU member states opposing greater integration can hide behind Berlin. This is why Germany’s political and economic clout used to matter, and for the right reasons. It is different now – to the detriment of the EU and von der Leyen’s goals. Judy Dempsey is Non-resident Senior Fellow at Carnegie Europe *Disclaimer: The views expressed in this column published in the October/November 2024 issue of Accountancy Ireland are the author’s own. The views of contributors to Accountancy Ireland may differ from official Institute policies and do not reflect the views of Chartered Accountants Ireland, its Council, its committees, or the editor.

As the Strategic Banking Corporation of Ireland celebrates its 10th anniversary, Chief Executive June Butler, FCA, tells us about its evolution and the outlook for SMEs today The Strategic Banking Corporation of Ireland (SBCI) was established in 2014 following Ireland’s exit from the EU-IMF programme, which was initiated to support the Irish economy due to the onset of the global financial crisis in 2008. Launched formally on 31 October 2014 by the Department of Finance and the National Treasury Management Agency, the aim of the SBCI at the outset was to ensure businesses could access funding where the private sector could not provide it. Today, the SBCI aims to help Ireland’s SMEs continue to grow, innovate and prosper. June Butler, FCA, was appointed Chief Executive of the SBCI in September 2021.  Tell us about the SBCI, what it does and how it has evolved over the last decade?  Starting out in 2014, the purpose of the SBCI was three-fold: to make access to finance easier for SMEs; bring down the cost of borrowing; and increase competition in the market, giving businesses more finance options. We have really evolved from our initial start-up phase as a provider of low-cost funding to On-Lending Partners to become a promoter and distributor of risk-sharing lending products that meet SMEs’ current financing needs. One of our key strengths is our ability to act as a conduit for EU-wide supports and bring them to the Irish market for the benefit of SMEs here. We have been successful in promoting competition in the SME financing market, by supporting new entrants and helping non-bank lenders diversify their product offering. We now have close to 40 On-Lending Partners, ranging in size from the main banks to smaller providers and Credit Unions. We provide our partners with low-cost funding and, because we can access lower-cost funding from a variety of sources, we can pass this benefit on to them, and they can then pass it onto their SME clients by way of reduced interest rates. Since the SBCI was first established in 2014, we have channelled more than €4 billion in low-cost flexible funding to over 60,000 SMEs in Ireland. You also offer risk-sharing guarantee schemes – how do they work in practical terms? Our business model has expanded from purely providing low-cost liquidity and wholesale funding at the outset to now offering risk-sharing schemes.  We do this in partnership with Government departments, which also provide funding for these schemes, alongside the banks, non-banks and Credit Unions that distribute them.  We have introduced several risk-sharing guarantee schemes, whereby we share the credit risk with the lender. The key benefit here is the availability of lower-cost and longer-term loans for businesses.  Our risk-sharing schemes also reduce the need for security for businesses, which helps more of them access loans because it reduces a “blocker” they might otherwise have faced when seeking finance. We access counter-guarantees from either the European Investment Bank (EIB) or the European Investment Fund. We structure this into a guarantee-type product whereby we provide an 80 percent guarantee to both bank and non-bank lenders. This means they can then provide better funding access to SMEs. Can you tell us about some of the loan schemes you have launched in recent years? In more recent years, I think we have been instrumental in responding to various crises that have limited the availability of credit to businesses in Ireland. Where there is uncertainty, the availability of credit tends to tighten up and our role here is counter-cyclical: we step in to provide guarantee schemes to make sure that credit continues to flow to businesses. We launched the Brexit Loan Scheme in March 2018, for example, in partnership with the Department of Enterprise, Trade and Employment and the Department of Agriculture, Food and the Marine. It was a €300 million scheme aimed at helping SMEs implement necessary changes to address the challenges posed by Brexit. We offered an 80 percent guarantee and that scheme was supported by the InnovFin SME Guarantee Facility, with financial backing from the EU under Horizon 2020 Financial Instruments. We launched the Ukraine Credit Guarantee Scheme in January 2023 – again, in partnership with the Department of Enterprise, Trade and Employment and the Department of Agriculture, Food and the Marine. That scheme facilitated the provision of working capital and medium-term investment finance to businesses adversely affected by the conflict in Ukraine, facing supply chain disruptions and increased input costs. Other examples include the Covid-19 Working Capital Loan Scheme, launched in March 2020, and our Covid-19 Credit Guarantee Scheme, which offered an 80 percent guarantee to participating lenders for SME loans. If you look back to the pandemic and its impact on everyone, including SMEs, there was so much uncertainty in the economy at that time.  Many businesses had to close their doors, but they still needed working capital. There were businesses that spotted opportunities to expand or take advantage of opportunities that arose. That is where we were able to step in with a State-backed guarantee scheme.  The reactive aspect of our role in supporting SMEs and the wider economy is very important. When there is a crisis, and the flow of credit slows, we can step in, make sure the flow of business funding continues, and encourage lenders to provide it. We also take a more strategic view of gaps in the market. Our Growth and Sustainability Loan Scheme, for example, supports SMEs, including farmers and fishers, investing in growth, resilience and climate action. It has been designed to encourage longer-term strategic investment. The SBCI has more recently moved into consumer lending. Can you tell us more about this? Just this year, we have evolved into providing a consumer lending product for the first time, launching a new low-cost Home Energy Upgrade Loan Scheme. The €500 million scheme is designed to help homeowners invest in energy efficiency.  They can borrow between €5,000 and €75,000 on an unsecured basis for a term of up to 10 years, availing of interest rates significantly lower than those available elsewhere in the market. We worked with the Department of the Environment, Climate and Communications on this scheme, which is underpinned by a loan guarantee from the EIB Group and a Government-funded interest rate subsidy. It is the first scheme of its kind for both Ireland and the EIB Group.  Our aim here is to address a gap in the consumer lending market and help promote Ireland’s energy transition by providing low-cost finance for homeowners who want to retrofit their properties to help with both energy efficiency and decarbonisation.  We have also just launched a new Green Transition Finance product for Irish businesses in partnership with Business Venture Partners. It is a €50 million debt fund to support Irish businesses investing in sustainable and green projects and assets, as well as those already operating in a sustainable manner. The loans on offer under this scheme range from €500,000 to €5 million for terms up to 10 years, with competitive interest rates and flexible repayment terms. What is your take on the outlook for SMEs in Ireland today, 10 years after the SBCI was launched?  It is a tale of two halves. On one side, there are a lot of opportunities out there for businesses to explore right now in areas such as digital transformation. Lots of businesses came a long way on this front during the pandemic, when we were working remotely and connecting and doing business online. During that period, we saw investment in things like e-commerce platforms and digital marketing, but there is still quite a way to go.  Digital tools and technologies can really help businesses with customer engagement and efficiency through investment in automated manufacturing and back-office functions, for example.  The second opportunity I would highlight for SMEs relates to sustainability. We are seeing that the SMEs investing in sustainability – be it solar panels, heat pumps or retrofitting their offices – are absolutely reducing costs. This kind of investment has a direct impact on the bottom line, and it is attractive to consumers who are increasingly prioritising green credentials when they choose products and services. The third opportunity for SMEs lies in export markets. We are seeing a lot of smaller businesses looking to identify new revenue streams and they often lie in markets outside Ireland. On the flipside, SMEs in 2024 are facing the challenges of labour market pressures, rising input costs and inflation. All these factors create pressure. The banking landscape has change significantly in the past five years, with the exit of KBC and Ulster Bank from the Irish market impacting the availability of finance.  We have worked hard to establish partnerships with more non-bank finance providers, such as Finance Ireland, Fexco and Linked Finance, so SMEs can have more access to alternative finance options. We are also focusing on Credit Union partnerships. Credit Unions have a national footprint, they are known and trusted in their local communities, and they are now developing into providers of SME finance, which we welcome. The need to focus on attracting new finance entrants, and helping existing players expand their product offering, is important to us at the SBCI.  Talk us through your own career path as a Chartered Accountant prior to taking up your current role with the SBCI. I studied law at Trinity College Dublin and, after that, trained as a Chartered Accountant with PwC. When I left practice in 2003, I joined Bank of Ireland. I started in the Group Internal Audit division and then spent many years in finance in a variety of roles. My last role with Bank of Ireland was in the Business Banking division and it was at that stage that I really developed a passion for working with Irish businesses.  I got to know them. I got to see how driven and innovative they are, so I was honoured when the board of the SBCI selected me for this role, which is also focused on serving Irish businesses, just from a different angle. What do you enjoy most about your role as Chief Executive of the SBCI? I really enjoy working with Irish businesses and feeling like we are genuinely making a difference, because our role is to fill the finance gaps for SMEs and make it easier for businesses to access funding for a whole range of reasons, be it working capital or finance for expansion or exporting into new markets. Every day, we see the benefit of what we are doing. We often hear that SMEs are the lifeblood of the Irish economy, and they really are. They provide significant employment, contribute to their communities and the whole team at the SBCI feels like we are making a difference to this critical sector every day. The part of my job I enjoy most is meeting the people we are helping – be they businesses owners, farmers or fishers – and hearing about the positive impact of what we do. We support a broad cross-section of the SME sector. 

Tom O’Brien, Managing Partner at Forvis Mazars Ireland, talks to Barry McCall about his plans and priorities for the growing firm On 1 June this year, international audit, tax and advisory firm Mazars and Forvis, the eighth largest public accounting firm in the United States, formally joined forces to create a new global network positioning both firms for continued growth. Looking back on the development, Forvis Mazars Ireland Managing Partner Tom O’Brien says it was a natural progression for Mazars. “Obviously Mazars was largely a European Group,” he explains.  “The American issue had been an important strategic question for us for some time. As we grew – and given the size and nature of some of the mandates Mazars were winning – the need for a stronger presence in the US became more pronounced. We had offices in New York and in other cities on the eastern seaboard, but we wanted to expand to have a coast-to-coast presence with a full-service offer for clients.” The question was whether to do that organically or through acquisition and it was answered by the conversation with Forvis. “Forvis was the eighth largest accountancy firm in the US and was of similar size to Mazars,” O’Brien notes.  “It also had a similar offering and capability and approach to client engagement. There was an alignment of views and clear synergies to be had. We saw it as a good fit straight away. It was a win-win for both organisations. Mazars would get a US coast-to-coast presence while Forvis would get a significant presence across Europe.” The deal was not a merger, O’Brien emphasises. “The two firms have retained their independent ownership but operate under the same brand with a common approach to client service, quality standards and work methodologies. Everything is the same in terms of the client experience. This has created a new global top 10 network, the first new entrant into those rankings for a very long time.” He is enthused by the potential of the new network, both for Forvis Mazars Ireland and its clients.  “It is a very exciting time. For our clients with a presence in the US or ambitions to expand into that market, we have a really strong presence there now as well as access to all of the expertise and sectoral specialisms they had come to expect from Mazars here in Europe,” O’Brien says.  “From an Irish perspective, our expectation is that the network will open the door for FDI business and underpin our growth plans for the future.” James Byrne & Company merger Closer to home, Forvis Mazars’ recent merger with James Byrne & Company in Cork marked another important milestone for the firm.  “However hard it was to break into the US, it was even harder to break into Cork,” O’Brien notes with some humour.  “It was always our ambition to be a truly national firm, and you can’t claim to be that without a significant presence in the country’s second largest city.” Once again it was a question of whether this aim would be achieved through organic growth or partnering with another firm.  “When we first met Fiona and John Byrne, we came to the view that partnering was the way to go. When they say that people do business with people, it really is true. Straight away we could see the alignment of culture and values with both sides sharing a common approach to professional practice and client service. It is a really good fit.” Further growth plans O’Brien’s growth ambitions do not end with the merger. “We have a full-service capability in the Cork office with 30 staff at present. We aim to grow this to 60 very, very quickly. With our offices in Galway, Limerick, Cork and Dublin, we really are a national firm now.” Mergers and acquisitions (M&A) have long been part of the Forvis Mazars’s growth strategy. “We’ve never been afraid of it,” O’Brien says.  “More recently, we have been very active in hiring teams where they can add to our existing service offering to clients. We have been quite nimble and open to a variety of options when it comes to growing the practice.” This growth strategy will continue. “I have been with the firm for 20 years and it’s been a very exciting time. We have a very young partner group with an average age in the mid-40s. They are a very ambitious and energetic bunch, and they certainly keep you on your toes. We have achieved high double-digit growth over the last number of years.  “When I became Managing Partner in 2022, I set a target of growing the firm to 750 people and a turnover of €75 million by 2025. We were at €55 million in revenues at the time.  “This year we will exceed the target when we breach €80 million for the first time, and we are now quickly closing in on becoming a €100 million firm. We have grown to 920 staff around the country and are on target to reach 1,000 next year.” This growth is coming from all areas of the firm, but O’Brien highlights recent successes in winning audit business with blue-chip clients, including Bank of America and Wells Fargo among others.  “These types of clients were the traditional preserve of the Big Four, but, as clients see what we can do, they have invited us to pitch for that work. We are very much playing in that sphere now. The market was crying out for alternatives to the traditional large firms, and we are providing that much needed competition.” The Forvis Mazars M&A team has also been involved in several significant transactions this year. “That space is very interesting and has been very strong for us,” O’Brien says.  “In May, we held the inaugural Mazars Irish Private Equity Awards. It was the first event of its kind for the private equity and corporate finance sector in Ireland. We had 500 people in the room and could have had double that, such was the response. That is an indication of our standing and profile in the market.” O’Brien attributes this standing to the firm’s unwavering focus on the client experience. “We strive to ensure it is superior to anything else in the market while delivering the levels of technical excellence our clients have come to expect,” he says. “We are also focused on doing the little things right – things like responsiveness to calls and queries, proactive client engagement, meeting deadlines and a partner-led approach to all client engagements. They all matter. The challenge for us now is to continue to grow our team and invest in technology and emerging business lines to respond to changing client needs.” Economic outlook Looking to the wider economy, O’Brien sees some challenges ahead for Ireland, particularly in the battle for foreign direct investment (FDI).  “When we look back at the various issues that have hit Ireland over recent years, the domestic economy has proven to be remarkably resilient. The FDI sector is strong, but there are certainly headwinds on the horizon,” he says. “The Apple case sets a precedent on competition and state aid rules and there is strong and growing lobbying in the EU from some of the larger member states for an easing of state aid rules across sectors like technology, chips and semiconductors, which will potentially make it more difficult for countries like Ireland to attract that business. “Domestically, everyone knows we have infrastructure, housing and public services issues. When it comes to deciding what to do with the €14 billion Apple windfall, there is an argument that we should listen to the FDI community to address some of its pain points in areas like housing for staff and transport and other obstacles to growth. This perhaps would be a good starting point in deciding what to do with the Apple money.”

As SD Worx plans further expansion in Ireland, Country Lead Eimear Byrne, FCA, talks to Barry McCall about her role in the Belgian company’s entry into the Irish market and ongoing investment In February this year, payroll and HR solutions provider SD Worx announced plans to create 40 jobs in Ireland over two years, growing its team to 115 as part of a €2.9 million investment in its workforce.  More recently, the company unveiled a separate €3 million investment in its payroll offering, which will now be made available to SMEs in Ireland.  Historically, servicing medium and large enterprises with over 250 employees, SD Worx will now offer its payroll solution to smaller businesses across all industries. The move comes as SMEs in Ireland continue to face mounting challenges, including intense competition for top talent, increasing regulations and rising costs. For Eimear Byrne, FCA, Country Lead at SD Worx Ireland, it marks the beginning of a new chapter in a career that has seen her move from the Big Four environment into industry where she played a key role in readying Irish company Intelligo for its 2022 acquisition by Belgium-headquartered SD Worx. “We have scaled up our capabilities so that businesses that may lack the necessary internal resources can keep pace with evolving payroll trends and requirements,” says Byrne. “Our new offering means SMEs can continue to grow and thrive with on-hand payroll support and cost certainty.” Preparing for acquisition The SD Worx brand may be relatively new to Ireland, but its service offering is already well-established here, Byrne says: “Our enterprise-grade payroll solution pays one-in-five employees in Ireland’s corporate sector.” Byrne was appointed as SD Worx Country Lead for Ireland following the Intelligo acquisition, having formerly held the role of Intelligo’s Head of Finance and Operations.  “I was on maternity leave when the approach came from the founders of Intelligo to manage the sale of the company to SD Worx,” she recalls.  “It was a pivotal moment – managing the disposal and preparing for a new chapter in my career. I took charge of every aspect of the process, becoming the key point of contact between the founders and SD Worx. It stands out as a highlight in my career, showcasing what can be achieved when you step up to new challenges.”  Byrne began her career in 2004 in the tax department of KPMG where she dealt with a wide range of clients across a variety of sectors.  “I qualified in accountancy and tax between 2004 and 2008 and got fantastic exposure to the commercial world. It is a great foundation for a career. I have only positive things to say about working for a Big Four professional services firm,” she says. Byrne left KPMG in 2008 to travel for a year. “I felt I had been sitting too long at a desk,” she explains. Moving into industry On her return to Ireland, she decided to move into industry. “While I loved the exposure to a lot of different companies, I wanted to drive one company forward,” she says. “I joined Atlanco Rimec in 2009. It was an Irish-owned and headquartered temporary labour provider, with customers in several overseas countries.  “I was the group accountant and prepared consolidated accounts for the different countries and was also involved in commercial contracts. I decided to move on in 2010. I worked with some fantastic people there, but I felt ready for new opportunities and to pursue the next stage in my career.” From there, Byrne went to work with the late solicitor and businessman Ivor Fitzpatrick as Finance Director for his private businesses.  “Ivor Fitzpatrick owned a number of different businesses in addition to his prestigious law firm, which included telecoms for aviation and maritime industries, the Christina O yacht formerly owned by Aristotle Onassis and hospitality, commercial property, debt management and other interests,” she says.  “Through managing these businesses, I got involved in operations and really enjoyed it. Working with a fascinating visionary like Ivor with such incredible intelligence was a learning experience that shaped my approach to business and management.  “I made the decision to move on when I was starting a family as there was a lot of travel involved and I couldn’t do both.” Improving structure and processes This decision brought Byrne into the next phase of her career when she joined the payroll software company Intelligo in 2016.  “They had always used external accountants and weren’t sure if they needed someone internally, but had been advised to take on a financial controller and I quickly saw opportunities to help the two founders drive the business forward,” she recalls. “I focused on harnessing data that hadn’t been explored, which led to some immediate but significant improvements.  I standardised processes and brought more structure.  “With improved processes and better resource allocation, we were able to respond to customer needs more efficiently, deliver higher service standards and ensure consistent quality across all channels.” The impact on revenue and EBITDA was quite dramatic. “We had compound annual growth of almost 20 percent every year and higher post-COVID.” Byrne also set up other departments to professionalise the management of the company. “The employee base grew by more than 50 percent from when I joined up to our acquisition,” she says.  “I first set up the finance function and then HR. In 2018, I led a project to obtain an independent valuation and complete the buyback of shares to put the entire shareholding into the founders’ hands.  “To facilitate the buyback, we did a corporate restructure and we took on debt finance to ensure the continued growth of the company. It was an invaluable experience for the subsequent acquisition by SD Worx.” Next up for Intelligo was a new legal department. “We had outsourced our legal work but that wasn’t always the best fit for our business. External advisors might not fully understand internal operations,” explains Byrne.  “Evergreen contracts set out ways of operating that no longer align with the business or the industry, for example. I took the lead and revised our contracts, becoming the point of contact for negotiations with every client.  “As a result, we were able to streamline client interactions, reduce operational headaches and ultimately enhance the overall customer experience. We appointed an in-house legal counsel after that to support our continued growth.” Delivering optimum profit Looking back, Byrne says her biggest achievement was ensuring every revenue stream yielded optimum profit.  “It was about getting more structured every year and understanding how to drive efficiency in the business,” she says. The next chapter for Byrne was preparing the exit plan for Intelligo’s two founders. “There was a lot of consolidation in the market. COVID was a big driver of that as it introduced a lot of new payroll regulations overnight.” SD Worx has been providing payroll services across Europe since 1945 and, up until the acquisition, had been using Intelligo software for payroll processing in Ireland.  “They didn’t own payroll IP in Ireland, and they wanted to de-risk their payroll offering to clients. Intelligo had a very impressive client base of over 300 medium-to-large-sized enterprises, many of them international,” Byrne says.  “SD Worx saw Ireland as a hub of business interaction with an excellent crossover with their pre-existing international clients.  “Through acquisition, we still deliver exceptional payroll solutions but can now offer much more by expanding our product portfolio to include workforce management, HR, talent management, data and analytics. We can support in-house service as well as provide outsourced solutions and consultancy.” M&A trajectory in European markets SD Worx has 90,000 customers across Europe and employs 8,000 people. “It is a huge company, which is still growing,” Byrne says. “It is on an M&A trajectory with the aim of being the European leader in integrated payroll and HR solutions, supporting clients along the whole employee journey from recruitment to retirement. My role as Country Lead is to deliver that vision in Ireland.” This vision was the driving force behind the company’s recent entry into Ireland’s SME market for the first time.  “We have taken our mid-market and large enterprise knowledge and expertise and applied that to SMEs,” Byrne says.  “We are also adding new products. Last year, it was workforce management. This year, it is an HR solution. Talent management and an academy for learning and development are next. We will continue to add products as we establish ourselves as an integrated provider of payroll and HR solutions for Ireland.” SD Worx will also continue to innovate and enhance its flagship payroll technology, MegaPay. “Payroll is complicated, and it changes very fast,” Byrne says.  “We need to pivot very quickly to accommodate things like statutory sick pay change, auto-enrolment pensions and enhanced expense reporting, which was as big a change as PAYE modernisation.  “The increased administrative burden makes it difficult for SMEs to stay abreast. As a result, we are seeing demand for webinars and newsletters to keep our clients updated.” Demand for outsourcing integrated payroll and HR services is also on the rise. “If a company does this in-house, there can be a point of exposure,” Byrne says.  “If a person looking after payroll in-house becomes sick, there are compliance and other risks. Outsourcing to SD Worx removes risk and deals with compliance.  “We deliver better data and analytics to our clients who get a more holistic view of how their business is operating and performing. Our integrated HR and payroll and talent management solutions help them manage people costs to drive efficiencies and profitability.”

IDA Chair Feargal O’Rourke, FCA, talks to Accountancy Ireland about the inward investment agency’s plans and priorities at a “critical juncture” in Ireland’s FDI journey Feargal O’Rourke, FCA, assumed the role of Chair of IDA Ireland in January 2024 at a significant time for the inward investment agency, which celebrates its 75th anniversary this year – and, he says, a “critical juncture” in Ireland’s foreign direct investment (FDI) journey. O’Rourke joined the board of IDA Ireland after stepping down as Managing Partner of PwC Ireland in October 2023 following a storied 37-year career with the firm. In his new role, working alongside IDA Ireland Chief Executive Michael Lohan, time is, he says, “of the essence.” “The one thing I am always paranoid about is complacency, and I think you really do need to have a paranoia about that,” O’Rourke tells Accountancy Ireland.  “Right now, I think Ireland has ‘amber lights’ on infrastructure and we need to put the foot down. We need to invest in more housing. We need to invest in the grid. We need to invest in offshore energy.  “My biggest concern is speed. There are plans in place, but I constantly ask myself, ‘Are we moving fast enough? Can we move faster?’ “I think there is a broad consensus emerging that infrastructure is moving up our list of priorities.  “I take the view that capital spend on infrastructure is an investment. It is not an outflow of money. Deferring a project is a cost. It is not a saving because we will have to do it at some point, and it may cost more then.” New five-year strategy The single biggest task for IDA Ireland as an organisation currently is finalising a new five-year strategy, which will run from 2025 to 2029, O’Rourke says.  “We are doing this against the backdrop of significant geopolitical uncertainty. There is a more muted pace of growth in the global economy and more active industrial policy from some competitor nations,” he says. “There is also the challenge of climate change and the opportunity of the green transition, companies globally grappling with the next step on their diverse digitalisation journeys and, of course, the revolution that is taking place in artificial intelligence.” Ireland’s ability to continue competing in this fast-changing world will be dependent on having the right set of enabling conditions in place”, O’Rourke says.  “As we face challenges in terms of our national competitiveness relating to energy costs and renewable energy provision, housing, infrastructure and utilities, countries around the world are vying to win the race for the next generation of FDI growth. “The opportunity cost of not addressing these issues in a timely manner – particularly sustainable energy supply – risks being sizeable,” he warns. Storied career in practice A native of Athlone, O’Rourke studied commerce and accounting at University College Dublin and qualified as a Chartered Accountant with PwC in 1989. He is also an Associate of the Irish Tax Institute and current Chair of the Institute of International and European Affairs, the Irish-based international think tank. “My father left school at 16, so he always placed a big emphasis on education and business,” O’Rourke says. “He thought I should qualify as a Chartered Accountant and the ‘Chartered’ bit was very important to him, because he felt it had a cachet. That was back in the eighties, and I think the qualification still holds a distinction today. “I remember sitting my final accounting exams thinking, ‘I wonder what this bit of paper will do for my life?’ “There is no doubt that having the Chartered Accountant qualification contributed so much to me living out my professional dreams in the years that followed. The status it brought with it is hugely important and I think the standing of the qualification is as strong today as it was when I qualified.” O’Rourke joined PwC in Dublin in 1986 and remained with the firm for 37 years, holding the position of Managing Partner for the last eight. “I joined what was then Price Waterhouse on 8 October 1986, with the intention of qualifying as a Chartered Accountant and then returning home to Athlone,” he recalls. “Thirty-seven years later – to the day – I retired from PwC having had a wonderfully fulfilling career that was beyond any expectations I had when I joined.” His experience with the firm instilled in O’Rourke the importance of strategic planning for long term success – and it is a lesson he has brought with him to IDA Ireland. “You can’t just think about an organisation as it exists today, and the current generation. You must ask yourself, ‘when I’m 20 and 30 years gone, will I have seeded the fields to ensure it continues to succeed long into the future?’” With Central Statistics Office figures released earlier this year predicting Ireland’s population could grow to over seven million by 2057, O’Rourke’s vision for IDA Ireland is equally long term. “In my role with IDA Ireland today, I am thinking ahead to 25 or 30 years from now and asking, ‘what will Ireland look like then?’ “We have got to play our part in advising the system today if we want to have the right industrial base in the years ahead, not just to continue to attract FDI but also to support indigenous businesses and wider society at a time of ongoing population growth. “I feel a responsibility, as do many others in the system, to say, ‘okay, how does this organisation contribute to ensuring that we will have a successful society in which there are plenty of jobs for people? Do we have the infrastructure we need – both societal and industrial – whether that be in terms of housing, energy supply, water or transport?’  “These are as much societal issues as they are business issues and IDA Ireland will play its part. Building capacity is crucial. Ireland is facing infrastructural capacity issues, and they are a priority for IDA Ireland, particularly over the next five to six years.” FDI and global tax developments Having been appointed as a Tax Partner in 1996 and Head of PwC’s Tax Practice in 2011, O’Rourke spent a significant portion of his career working in Foreign Direct Investment (FDI).  “I worked extensively – but not exclusively – with household names from the West Coast of the US. I was privileged to work with many of the companies that now rank among the largest FDI employers in the country,” he says. “I still have the memo in which my then Partner Tadhg O’Donoghue said, ‘I’m going to ask you to focus on a particular area of tax – FDI.’ That one line in a memo almost 40 years ago completely determined my career and my life thereafter.” O’Rourke saw the evolution of Ireland’s FDI landscape firsthand over that span of time. “Tax became central to Ireland’s FDI proposition, delivering a major competitive advantage for us back in the eighties and nineties. It has really played a central role in how Ireland has positioned itself to attract FDI,” he says. As Head of PwC’s Tax Practice, O’Rourke also collaborated extensively with companies, officials, governmental bodies and the Organisation for Economic Cooperation and Development on the Base erosion and profit shifting (BEPS) initiative introduced in 2013 to curb tax avoidance among multinationals operating across different jurisdictions. “Successive Irish Governments over the past 15 years have really got it right on our FDI-related tax policy and we are now seeing the benefits of this in terms of our corporate tax take,” he says.  “That contribution to the State coffers is being used to build hospitals and schools, but other countries in the post-BEPS era are moving fast on their own FDI-friendly tax strategies, and I think we need to move quickly as well and make sure we continue to be agile and responsive, looking around the world and asking, ‘what lessons can we learn here from what others are doing?’” “A world-class organisation” Just over 10 months into his role with IDA Ireland, O’Rourke’s pride in the organisation is palpable. “In sporting terms, IDA Ireland is like Limerick in hurling or Manchester City in football,” O’Rourke says. “We have a fantastic record of success, but once the season is over, we must do it all again. We can survive a year where we are not top of the pile, but we can’t afford to enter a period where we are living off past glories. “You wouldn’t say to the Limerick hurling team, ‘you need to ease off the training for a few years and let everyone else catch up,’ nor would you say to Manchester City, ‘you shouldn’t buy any good players for now.’ “I don’t think IDA Ireland as an organisation should ever say, ‘we are doing really well, we could pull back a bit’. Life doesn’t work like that. Michael Lohan, our Chief Executive, often says, ‘when you turn off the tap, there is no guarantee that, when you turn it back on again, water will come out.’” As it stands, O’Rourke sees IDA Ireland as a “world-class organisation.” “This is not just my own view,” he says. “Over the course of my 37 years in professional services, I was repeatedly told this by clients who had experience of being ‘courted’ by a variety of inward investment agencies from around the world. “Today, our IDA Ireland clients tell me time and again, ‘we feel welcome in Ireland; we feel supported’.” These IDA Ireland client companies employ 300,583 people directly, accounting for 11 percent of total employment in Ireland currently. They spend a combined €35.8 billion annually on payroll and Irish-sourced goods and services, and €15.5 billion in capital expenditure. In total, 248 investments were approved by IDA Ireland in 2023 and a further 131 in the first six months of this year, with the potential to create some 27,000 jobs. “While I expect the pipeline of projects to continue to be strong as we move through 2024, the challenges we face to stay at the forefront of attractive locations to invest in are significant,” O’Rourke says. “If we stand back, there is no doubt that FDI flows have slowed a bit compared to, say, four or five years ago.  “This is, in part, because we have probably already seen the high watermark in globalisation. In retrospect, I think that occurred somewhere towards the end of the last decade.  “The good news for Ireland is that we are continuing to win FDI projects of substance and the 300,000 FDI direct employment figure is a new plateau for us.  “For many years, the benchmark for direct employment was 200,000. Now, our focus is on keeping that figure above 300,000 as we look to build on the next FDI cycle.” Emerging opportunities As IDA Ireland looks to future FDI growth, its focus will be centred on emerging opportunities in the ongoing green and digital transitions reshaping the global economy, O’Rourke says. “We recognise the need to help the Irish operations of global firms transform to thrive in a world that is changing fast.  “We actively partner with client companies on investments in talent development, digitalisation, research and development, innovation and sustainability, including decarbonisation,” he says. “When I was Managing Partner at PwC and we were at our most profitable and successful, we decided we needed to invest heavily in digitisation.  “It wasn’t just an investment in technology, it was an investment in our culture. Even though there were no clouds on the horizon, we could see that, if we stayed still, we might have another few great years – but, really, we needed to invest in the technology to continue growing beyond that. “Our focus now at IDA Ireland is on helping our clients to invest in the areas they need to focus on to do the same – to prepare to continue succeeding in the future. This means supporting them on investment in digitalisation and sustainability.” Collectively, IDA Ireland client companies spend over €7 billion on in-house research, development and innovation (RD&I) annually.  IDA Ireland approved 25 sustainability projects last year, focused on carbon abatement and building Ireland’s green economy.  New RD&I projects won by the semi-state agency in 2023 came with associated client spend commitments of €1.4 billion.  “With the requisite enabling conditions in place at a national level, aligned to emerging FDI attractiveness factors – such as AI skills and renewable, reliable and affordable energy – I think we will be well-placed to capture new investment opportunities,” O’Rourke says. A particular focus is Ireland’s future capacity to generate renewable energy – specifically, offshore energy. “We have been very vocal about the importance and potential of offshore energy. If Ireland gets its offshore energy strategy right – both fixed and floating – we could be in a surplus energy position in 10 years’ time,” he says. “That could transform our capacity to attract energy-intensive multinationals from various industries, because we would potentially be in a situation where have no constraints in relation to our ability to supply green energy.” O’Rourke is, he says, a born optimist. “When it comes to our strategy at IDA Ireland over the next five years, I do genuinely and fully believe that our best years are ahead of us.”

Having ascended to the role of Finance Minister just four months ago, this year’s budget was Minister Jack Chambers’ first at the helm of the finance portfolio but the last we will see from the current Government.  With a general election now firmly on the horizon, Budget 2025 was unsurprisingly brimming with generous giveaways for individual taxpayers, including a €1 billion bouquet of personal tax reductions alongside a €2.2 billion hamper of cost-of-living measures.  The giveaways were spread so universally that most individual taxpayers, even those arguably not in need of them, got some degree of ‘bounce’ from the Government but, in a budget so warmly generous, some constituencies were left out in the cold.  Sweetening the electorate Among the suite of income tax measures announced in Budget 2025 were a €2,000 increase to the standard rate cut-off point, a one percent reduction to the four percent rate of Universal Social Charge and a €125 boost to each of the main personal tax credits.  Taking into account the additional cost-of-living payments also announced (including €250 in new electricity credits, and a double payment of child benefit in November and December) the average worker will be about €1,000 better off over the next 12 months.  Add to this an increase to the inheritance tax thresholds across all groupings and one would be forgiven for thinking this was a Celtic Tiger budget of the early to mid-2000s.  Reacting to the package, the Fiscal Advisory Council pointed out how “only about half of the Government’s €2.2 billion cost-of-living measures were targeted,” and emphasised how “the same supports could have been provided to those most in need at a much lower cost”.  Indeed, in an economy at near full employment with inflation at its lowest since 2021, it’s hard to see how such excessive giveaways, bolstering individual spending power, don’t ultimately risk overheating an already red-hot economy. The opportunity cost  But Budget 2025’s preoccupation with wooing individual voters in the run-up to an imminent election came at a cost to other constituencies, particularly small businesses.  Despite months of assurances from Ministers that concrete steps would be taken in the Budget to address the burgeoning costs of doing business, many SMEs may rightly feel left out of the Government’s wave of generosity.  Some measures will be welcomed, such as a one-off Energy Subsidy Scheme worth about €4,000 to businesses in the hospitality and retail sectors, as well an increase to the VAT registration thresholds for the supply of goods and services. However, no real steps were taken to address the elephant in the room – namely, ballooning labour costs.  Ask any small business across the country (and we have – in our Survey of Small Businesses conducted this summer) and they will tell you that labour costs are the single biggest operating cost they face today.  And labour costs are now on the rise again – with a six percent increase to the minimum wage announced as part of the Budget package and an additional 1.5 percent uptick in staff pension costs coming down the track as part of pensions auto-enrolment, due to be launched next September.  Budget 2025 offered a real opportunity for Government to take meaningful steps to ease these cost burdens and take the pressure off small businesses’ narrowing bottom lines.  One option might have been to lower the rate of Employers’ PRSI by 1.5 percent to mitigate the concurrent cost of pensions auto-enrolment to employers, particularly those who employ workers in and around the minimum wage.  We estimate that doing so would have cost in the region of €63 million per annum based on 164,000 people working full-time at the minimum wage.  Such a step would have made a huge difference to small businesses across the country and comes with a more modest price tag than some of the more gratuitous cost-of-living measures included in the final budget package.  But alas, because it is individuals and not businesses who get to vote on election day, perhaps such measures failed to meet the objective of political expediency.  Stephen Lowry is Head of Public Policy at Chartered Accountants Ireland

The OECD has published a working paper on the implications for OECD tax systems of tax arbitrage through closely held businesses. The paper finds that tax incentives to incorporate and earn capital income through corporations have increased in the last two decades. It shows that there has been an increase in incorporated businesses in many OECD countries, which has been partly driven by tax factors. The paper also finds that, in many countries, a combination of tax system features, related to corporate, dividend, capital gains, gift and inheritance taxation, provide particularly strong incentives to retain earnings inside corporations.

The Institute’s Advocacy and Voice Department is hiring a new Tax Manager. The Department is responsible for the tax and public policy agenda of Chartered Accountants Ireland. We collaborate with expert colleagues drawn from practice and industry, developing, and advocating on policy matters relating to tax, financial reporting, audit and assurance, ethics and governance, and business law. The department numbers over twenty professionals. The successful candidate will report into the Institute's Tax Leader (Head of Tax). You can find more information at the above link. If you are interested in applying, send your CV and a cover letter to hr@charteredaccountants.ie.

Revenue has updated the Tax and Duty Manual which provides information in relation to DAC2 Common Reporting Standard (CRS) reporting in Ireland. The guidance has been updated to provide further clarification on the additional guidance on ResCountry Code (section 7.5). 

The Charities VAT Compensation Scheme aims to reduce the VAT burden on charities and to partially compensate for VAT paid by the charity. Under the scheme, Revenue is to refund €10 million to charities. Revenue will notify eligible charities via their ROS inbox of the refund amount being sent to their designated account. 

Revenue has published the Special Assignee Relief Programme (SARP) statistics for 2022. These provisional statistics are based on analysis of SARP employer returns filed in respect of the 2022 tax year.  From 2012 to 2022, the number of employees claiming SARP has grown from 6 to 428, with the number of employees retained, as reported by employers as a result of the operation of SARP, growing from 6 to 1,569.  SARP provides for relief from Income Tax on 30 percent of income over €75,000 (€100,000 for an employee who arrived on or after 1 January 2023), subject to an upper income threshold, where applicable. There is no exemption from USC. PRSI is payable where the individual is not liable to social insurance contributions in their home country. School fees of up to €5,000 per annum and expenses incurred on one trip home per year, where they are paid for by the employer, are not subject to Income Tax, USC or PRSI.   The aim of the relief is to reduce the cost to employers of assigning skilled individuals in their companies from abroad to take up positions in the Irish-based operations of their employer or an associated company, thereby facilitating the creation of jobs and the development and expansion of businesses in Ireland.    In 2022, 592 employers submitted SARP Employer Returns in respect of 2,663 individuals. The estimated total cost of SARP in 2022 was €48 million, of which €0.3m and €0.5m were in relation to travel and school fees respectively. 36 percent of claimants received relief through payroll. Payroll was operated on a tax equalisation basis for 17 percent of claimants.