The attention of Institute firms with UK audit registration is drawn to an open consultation in relation to proposed changes to the UK Audit Regulations. The UK Audit Regulations are issued jointly by Chartered Accountants Ireland (the Institute), the Institute of Chartered Accountants in England and Wales (ICAEW) and the Institute of Chartered Accountants of Scotland (ICAS).  This consultation is being hosted by ICAEW.    The consultation proposes to make changes to the UK Audit Regulations which would require UK audit registered firms to notify their registering body when they are appointed as auditors to certain entities. The consultation is available to read here.  Feedback can be provided, by 6 September, via the online consultation portal or by emailing professionalstandards@charteredaccountants.ie.

Read more on changes to company law to be implemented by the Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024. 2024 Amendments to Companies Act 2014

As businesses navigate technological disruptions, economic fluctuations and global crises, leaders must prioritise investing in resilience, writes Neil Hughes Resilience is defined as the ability to adapt to change positively, recover from difficulties and persist in facing challenges. The pace of change in business today is relentless, and for business leaders, resilience is a more crucial attribute than ever. Organisations need leaders capable of staying focused, being consistent and remaining inclusive under pressure. Building a resilient workforce can help organisations to navigate change more effectively, sustaining competitive advantage, growth and long-term success. Best practice suggests several key areas of focus for leaders and organisations to consider. Prioritising wellbeing and mental health According to a 2023 survey by the Chartered Institute of Personnel and Development, 76 percent of UK employees reported that mental health support at work directly contributes to their overall job satisfaction. Mental health is foundational to resilience. Business leaders should strive to create a supportive environment that prioritises mental health through comprehensive wellness programmes. This includes providing access to mental health professionals and resilience tools to support employees in managing stress and adapting to change. Encouraging open conversations about mental health can foster a culture where employees feel safe and supported. Fostering a resilient and inclusive team culture Resilience should be embedded within the organisational culture. Leaders must foster a workplace culture that encourages collaboration, open communication and psychological safety, where small wins are recognised, feedback is encouraged and acted on and failures are seen as learning opportunities rather than setbacks. Creating an inclusive culture where diverse perspectives are valued can enhance problem-solving and innovation. Regular team-building activities, training focused on resilience, and creating a safe space for employees to voice their concerns can significantly boost team morale and cohesion. Investing in continuous learning and development Continuous learning is critical to building a resilient workforce. By investing in ongoing training and development programmes, leaders can equip employees with the skills needed to adapt to new challenges. Offering opportunities for professional growth helps employees stay current and confident in their roles. Encouraging a growth mindset, where challenges are seen as opportunities for learning, can foster resilience and innovation. Role modelling resilience and self-care To lead effectively, business leaders need to invest in their own wellbeing and resilience. Resilient leaders are those who continuously learn, adapt, and maintain their physical and mental health. This involves regular training, seeking coaching or mentorship, and embracing a growth mindset. Leaders who prioritise self-care practices such as regular exercise, adequate sleep, and mindfulness activities can manage stress more effectively, maintaining mental agility. . Leaders play a critical role in modelling resilience and those leaders who prioritise resilience not only enhance their capacity to grow and move forward in the face of adversity but also inspire their teams to do the same. Whilst building resilience involves effort, commitment and time, it can be the protective layer required to equip leaders, their teams and organisations to face the challenges of the ever-changing landscape of work. Neil Hughes is a Director in People and Change Consulting at Grant Thornton Northern Ireland

Sandra Healy explains the importance of a strong organisational culture and how it can lead to satisfied and long-term employees Organisational culture is the personality of the organisation, shaping how employees interact with each other, management and customers. A strong organisational culture can have a significant impact on employee retention because it creates a sense of belonging and purpose. When employees feel that they are part of a community that shares their values and goals, they are more likely to stay with the company for the long term.  A positive organisational culture can also lead to greater employee engagement. When employees feel that their work is meaningful and that they are making a difference, they are more likely to be motivated and productive. This can lead to better business outcomes, such as increased revenue and customer satisfaction.  On the other hand, a negative organisational culture can have the opposite effect. If employees feel that they are not valued or that their contributions are not recognised, they may become disengaged and demotivated leading to high turnover rates.  Organisational culture can impact employee retention in other ways, as well. A strong culture of work-life balance can help employees feel that they are able to maintain a healthy balance between their personal and professional lives. Similarly, a culture of learning and development can help employees feel that they are growing and developing professionally.  Key components to a good organisational culture  A strong organisational culture is built on a foundation of shared values and beliefs that guide the behaviour of employees. These values and beliefs are communicated through various channels, such as company mission statements, vision statements, and core values. When employees understand and embrace these values, they are more likely to feel a sense of belonging and purpose within the organisation.  Another key component of a strong organisational culture is effective communication. Leaders who communicate regularly and transparently with their employees can help to build trust and foster a sense of community within the organisation. Employee recognition and appreciation are also important components of a strong organisational culture. When employees feel that their contributions are valued and recognised, they are more likely to feel motivated and engaged in their work. Finally, a strong organisational culture is one that promotes work-life balance and employee well-being. When employees feel that their personal needs and well-being are valued by the organisation, they are more likely to feel satisfied and committed to their work. Measuring organisational culture Measuring the current organisational culture can be done through various methods: Surveys can be distributed to employees to gather their opinions on the company's values, communication, leadership, and overall culture. Interviews with key personnel such as managers and executives can provide insight into the company's goals and how they align with the culture. Focus groups can also be conducted to gather opinions from a diverse group of employees. These methods can help identify areas where the company's culture is strong and where it needs improvement.  Another way to measure the organisational culture is to look at employee turnover rates. High turnover rates can indicate a negative or toxic culture, while low turnover rates can indicate a positive and supportive culture. Exit interviews can also provide valuable feedback on why employees are leaving and what can be improved to retain them.  Once the current organisational culture has been measured, the company can identify areas for improvement by analysing the data collected from surveys, interviews, focus groups, employee turnover and exit interviews, then create an action plan to address the areas that need improvement. Improving the organisational culture is an ongoing process. The company should regularly measure the culture and make adjustments as needed. This will help ensure that the culture remains strong and supportive, leading to greater employee engagement and retention.  Best practice One of the best practices for building a positive and inclusive organisational culture is to establish a clear set of values and principles that guide the organisation's actions and decisions and then communicated to all employees and integrated into all aspects of the company's operations. Organisations must also encourage open communication and collaboration among employees by engaging everyone in regular team-building activities, open-door policies, and opportunities for feedback and input. When employees feel that their voices are heard and their contributions are valued, they are more likely to feel invested in the success of the organisation and less likely to seek opportunities elsewhere.  Creating a supportive and inclusive work environment is also crucial for building a positive organisational culture. This means promoting diversity and inclusivity in all aspects of the workplace, from hiring practices to daily interactions among employees. Finally, it is important to create formal recognition programs, such as employee of the month awards or performance bonuses, as well as through informal gestures such as thank-you notes or public praise. When employees feel that their hard work and dedication are appreciated, they are more likely to feel motivated and committed to the organisation over the long term.  Sandra Healy is Founder of Inclusio

Businesses need clever strategies to counter the cyber security challenges arising from the emergence of artificial intelligence, writes Puneet Kukreja The enormous power of generative artificial intelligence (GenAI) and large language models (LLMs) is just beginning to be understood. Its capacity to automate and accelerate business processes is only starting to be explored fully. As is the case with the deployment of any new technology, however, GenAI brings with it new cyber vulnerabilities. Cyber security matters are emerging as a key concern for technology leaders in Ireland amid the surge of AI-enabled cyber attacks. According to the EY Ireland Tech Leaders Outlook Survey 2024, the percentage of respondents who identified elevated cyber risks and the management of data protection and data flows as critical challenges has risen to 61 percent, up from 53 percent in 2023. Like the move to the cloud over a decade ago, the technology will create new cyber exposures and increase the attack surface for cyber criminals. For example, consideration needs to be given to securing the LLMs that gather and analyse data from various departments within the organisation. Ensuring the secure collection and transmission of this data is paramount, as is the fortification and security of the model itself. Monitoring emerging vulnerabilities closely This is not a reason to shy away from the technology. It is simply a reminder that it must be treated in the same way as any new IT investment from a cyber security point of view. Few organisations would risk connecting an unsecured PC or laptop to their network and the same approach should apply to AI. AI in cyber security is a double-edged sword. Where it empowers organisations with enhanced security capabilities, it also equips cyber criminals with similar tools by enabling individuals lacking advanced coding skills to leverage GenAI and create malicious code efficiently. With just a few prompts, GenAI can quickly generate code to identify and exploit vulnerabilities within an organisation's network, a task achievable within minutes. Change approach, not budget The good news for organisations and for Chief Information Security Officers (CISOs) is that they do not necessarily have to make significant new cyber security investments to restore the balance. The first step is to focus on what you already have. It is not a question of a new investment in cyber security, rather a new approach. In the same way as the cloud changed the shape of organisations’ networks and cyber defences had to be extended to cover the new expanded perimeter, existing defence systems will need modification to bring GenAI models within their orbit. Stolen credentials present a grave peril to organisations. To bolster security beyond passwords and multi-factor authentication (MFA), organisations can deploy AI-driven solutions that monitor user behaviour for unusual login patterns or atypical actions. These systems scrutinise user interactions with critical infrastructure and can swiftly detect unauthorised access attempts or transactions. Adopting this strategy enhances cyber security defences by integrating AI technology that can strengthen existing measures and counter new threats with speed and efficacy. Procurement processes will also play an important role. Organisations must ensure that they are not buying trouble when they invest in GenAI. They need to interrogate vendors very closely to ensure that the systems they are acquiring are secure and do not bring increased vulnerabilities with them. Of course, organisations will need to invest in upgrades to guard against the AI-driven increased sophistication of phishing and other cyberattacks, but this can be accommodated within normal cyber budgets. Finally, it cannot be emphasised enough that GenAI will not offer a silver bullet to organisations seeking to bolster their cyber defences. Humans: the last line of defence While organisations exploit the potential of advanced AI, they need to be mindful of the advent of new cyber vulnerabilities. Using existing cyber security measures to protect AI systems and applying rigorous due diligence to the purchase of such systems will help deal with the heightened threat, as will increased awareness of the new environment. While it undoubtedly offers the ability to further automate certain elements of cyber defence and to enhance threat detection, this will not replace any of the existing cyber security systems in place or the human as the last line of defence. Puneet Kukreja is Cyber Security Leader at EY

Institute highlights significant value AI will still add to the work of chartered accountants as automation is embraced   Chartered Accountants Ireland has been transforming its ACA qualification since 2017 using AI powered technologies to produce accountants of the future Institute notes today’s reports from Government on impact of AI on the Irish economy and workforce Chartered Accountants Ireland has highlighted how the profession is embracing the opportunities provided by automation and the critical role that AI is playing in moving its members’ work up the value chain. As businesses grapple with increased data volumes, complex regulations and a growing need for real-time information, AI is a game-changer for accountants by enabling them to focus on critical tasks such as analytics and advisory work.  Recent research from Chartered Accountants Worldwide shows that 75% of Irish financial decision makers surveyed do not ultimately believe that the value that chartered accountants provide could be replaced by automated systems, noting the importance of human judgement and decision making in their work.  The Institute’s comments come as the Department of Enterprise Trade and Employment and the Department of Finance launch new reports today on the impact of AI on the Irish economy and workforce.  Futureproofing education for the next generation  Since 2017, Chartered Accountants Ireland has been transforming the content and delivery of its ACA qualification, using AI powered technologies such as adaptive learning, robotic process automation (RPA), and data analytics. This transformation will continue to evolve.  Crona Clohisey, Director of Public Affairs at Chartered Accountants Ireland said:  “Over the past several years, our education team has carried out extensive research on the learning and training needs of the next generation to ensure that we are producing accountants of the future. The outputs have already been put into practice with students accessing the latest advances in technology and emerging accounting practices using a blend of the most up-to-date technology and teaching methods.  “These initiatives underscore the profession’s early adoption of the benefits AI can bring, and our members’ desire to adopt it in their work. By using AI to prepare accounts and to tackle and streamline more routine tasks, chartered accountants are embracing the positive disruption brought about by AI to focus more on providing strategic business insights for informed decision-making. Accountants who do so will thrive, so our curriculum fully recognises and embraces this reality. “We note the Government’s new reports in this important area, and we look forward to continuing the journey our profession has been on to date.” Chartered Accountants Ireland is Ireland’s leading professional accountancy body, representing almost 33,000 members and educating 7,000 students. Institute members provide leadership in business, the public sector and professional practice, bringing experience, expertise, and strict standards to their work for, and with, businesses in every sector.  Commenting, Barry Doyle, President of Chartered Accountants Ireland said:  “As with every technological development over the Institute’s 136-year history, the profession has always adapted and integrated innovations, with AI being just the latest. Moving from the traditional paper ledger to automated bookkeeping for example was transformative in the services that chartered accountants were able to offer. AI will ease the administrative burden on accountants and equip them with reliable data and insights to better serve their industries. “AI will not replace human judgement or strategic decision making, but critically it will throw up a series of ethical dilemmas for organisations in the coming months and years. Our members, bound by strict codes of ethics, are well positioned to navigate these; indeed, this goes to the heart of our dual mandate, working in the interests of both the economy and society.”  ENDS  Research referenced was commissioned by Chartered Accountants Worldwide and conducted by Edelman Data & Intelligence.

After discussions with the Northern Ireland Tax Committee about concerning behaviours of certain R&D tax relief advisers, the Institute contacted HMRC to suggest that a process could be developed to enable reporting of these concerns. In a recent meeting with HMRC, we were advised that a process is now available via what HMRC refer to as the Professional Bodies mailbox. The mailbox should only be used by members of a recognised tax or accountancy Professional Body to report concerns about a potential rogue R&D adviser and should not be used for any other purpose. As yet, HMRC has not specifically defined ‘recognised body’ for this purpose but has advised that Chartered Accountants Ireland falls within this.  When using this mailbox, please provide information about the potential breach only and not details of specific claims. HMRC will use this in their compliance strategy for R&D agents. Following receipt of the email, if HMRC requires any further information they will make contact with the person who made the initial report. The email address to use to make a report is wmbciandrprofessionalbodies@hmrc.gov.uk.   To date HMRC has not formally publicised this and is not planning to undertake any activity at the minute due to the pre-election period.  

In this week’s miscellaneous updates, HMRC is encouraging students to use the HMRC app to speed up student loan applications and the latest list of non-compliant employers under National Minimum Wage legislation has been published. HMRC’s latest schedule of live and recorded webinars for tax agents is available for booking. Spaces are limited, so take a look now and save your place. HMRC has also published meeting notes from the most recent Guidance Strategy Forum and guidance has now been issued on how in-scope multinational groups can register for the UK’s Pillar Two regime.  Use the HMRC app for student loan applications  HMRC is encouraging students to use the HMRC app to speed up student loan applications. With many students planning their next steps in life, those starting university in September can ‘tap the app’ to get National Insurance and tax information they need to complete their student finance applications, HMRC has said.  Anyone applying for a student loan for the 2024/25 academic year is encouraged to start their application now to get the essential details they need via the app. HMRC has produced a video to encourage students to save time by downloading the app.  Non-compliant employers named in latest National Minimum Wage list  The Department for Business and Trade has published its annual list of employers who failed to pay the National Minimum Wage (“NMW”). This year marks 25 years since the introduction of the NMW which was increased from 1 April 2024, as was the National Living Wage.   The press release accompanying the annual report explains that if workers suspect they are being underpaid, they can visit www.gov.uk/checkyourpay to find out more about what they can do. Workers can also call the acas helpline on 0300 123 1100 or visit their website for free, impartial and confidential advice or complain to HMRC at Pay and work rights helpline and complaints.  Registration for UK’s Pillar Two regime  HMRC has issued guidance on how in-scope multinational groups can register for the UK’s Pillar Two regime. Broadly, registration via HMRC’s online service is required within six months from the end of the first accounting period beginning on or after 31 December 2023 for in scope groups. This is the first phase of HMRC’s plans to ‘go live’ with the Pillar Two Top-up Taxes online service.  

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service Bulletin is also available, and the Windsor Framework Democratic Scrutiny Committee has published its first report.  Windsor Framework Democratic Scrutiny Committee publishes first report  The Windsor Framework Democratic Scrutiny Committee has published its first report which sets out the conclusions of its inquiry into a published replacement EU act on geographical indications for wine, spirit drinks and agricultural products. The main focus of the Committee’s inquiry was on the two conditions to be satisfied for the Stormont Brake to be used. You can read more about the contents of the report in the Brexit and Beyond 3 June 2024 newsletter published by the by the Northern Ireland Assembly’s EU Affairs Team.  The Windsor Framework Democratic Scrutiny Committee is a standing committee of the Northern Ireland Assembly. The Committee’s functions include:-  Examining and considering new EU acts and replacement EU acts;  Conducting inquiries and publishing reports in relation to replacement EU acts;  Engaging with businesses, civil society, and others in relation to replacement EU acts;  Engaging with the UK Government in relation to replacement EU acts;  Engaging with Ministers of Northern Ireland departments and the NI Executive in relation to replacement EU acts; and Dealing with other matters such as legislative proposals which may become new EU acts or replacement EU acts.  Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:- Attending an inland border facility;  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service;  CDS Declaration Completion Instructions for Imports;  CDS BIRDS Declarations and Customs Clearance Request completion instructions;  Customs declarants and declaration volumes for international trade in 2023; and  Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS) 

This month’s tidbits cover an updated HMRC organisation chart and the latest fuel advisory rates. HM Revenue and Customs' organisation chart;  Advisory fuel rates;  Check genuine HMRC contact that uses more than one communication method;  Set up as a sole trader: step by step;  List of approved professional organisations and learned societies (List 3);  Disability, mental health and wellbeing at HM Revenue and Customs;  Compliance checks: Corresponding with HMRC electronically — CC/FS83;  Authorise a tax agent (64-8);  Apply for a refund of Class 2 National Insurance contributions (CA8480);  Updating your tax agent contact details with HMRC;  Register your limited company as a subcontractor or apply for gross payment status, or both;  Complaints from External Customers about the Conduct of HMRC staff Guidance;  Claim a refund of Income Tax deducted from savings and investments (R40);  Tell HMRC your company is dormant for Corporation Tax;  Named tax avoidance schemes, promoters, enablers, and suppliers;  Tell HMRC about your Employment Related Securities schemes;  Give temporary authorisation to allow HMRC to deal with your tax adviser (COMP1);  Claim to reduce payments on account;  Apply for a certificate confirming you will pay UK National Insurance when working temporarily abroad (CA3822);  Construction Industry Scheme: CIS 340;  Double Taxation Treaty Passport Scheme register;  Completing your Company Tax Return;  National Minimum Wage information for employers;  Tax-free savings newsletter 11; and  Employment Related Securities Bulletin 54 (February 2024). 

Effective dialogue between stakeholders enables informed and evidence-based policy-making. The Platform for Tax Good Governance was established in 2013 to bring together non-government and government stakeholders to tackle issues arising in the field of taxation, such as cross-border taxation, aggressive tax planning, double taxation, and double non-taxation. The Commission has decided to establish a new expert group to continue the work of the Platform for Tax Good Governance.

Revenue has updated the Tax and Duty Manual which provides guidance on the particulars to be supplied by new companies. The guidance has been updated in paragraph 1 to include information on the National Registrations Unit (formerly the National Companies Unit).

Section 124 SDCA 1999 provides for a charge to stamp duty on credit cards and charge cards. Revenue has updated the Stamp Duty Manual to provide further guidance on charge cards, specifically on company charge cards (paragraph 4.3).

Section 83DA SDCA 1999 provides for a full repayment of stamp duty paid on the acquisition of a residential property where, within 12 months of acquiring the property, the accountable person sells it to an eligible applicant within the meaning of the Affordable Housing Act 2021. Revenue has updated the Stamp Duty Manual which provides guidance on how to make a repayment claim under section 83DA SDCA 1999. The guidance has been updated to clarify that: Only those persons that are directly involved in the provision of affordable housing are eligible to claim a repayment under section 83DA Eligibility for a repayment will only arise if the sale of the property to an eligible applicant is charged to stamp duty under the CONVEYANCE or TRANSFER on sale head of charge. 

Section 837 TCA 1997 entitles a member of the clergy or a minister of any religious denomination to claim certain deductions against any profits, fees or emoluments arising from their profession. Revenue has updated the Tax and Duty Manual regarding the Representative Church Body Cost of Living Accommodation Allowance to include the allowance for 2023, with updated examples.

Revenue has updated the Tax and Duty Manual which provides guidance on the Rent-a-room Relief. Section 216A TCA 1997 exempts certain sums arising to an individual in respect of letting rooms, for residential purposes, and the provision of meals or other services in connection with the letting. The guidance, including relevant examples, has been updated to: Clarify when relief is not available between family members Detail how the Rent Tax Credit interacts with the rent-a-room relief (section 7.2) Confirm that the Mortgage Interest Tax Credit does not affect entitlement to rent-a-room relief (section 7.3).

Revenue has update the Tax and Duty Manual which provides guidance on the tax treatment of the reimbursement of expenses of travel and subsistence to office holders and employees, as follows: Guidance regarding the mandatory reporting by employers under Enhanced Reporting Requirements (ERR) as the payment of travel and subsistence expenses free of tax comes within the scope of the ERR (paragraph 1.4) Increased Civil Service subsistence rates applicable from 14 December 2023 (appendix 1).

Revenue has updated the Tax and Duty Manual regarding payments made without deduction of income tax to reflect the change in tax bands introduced by Finance (No. 2) Act 2023, with updated examples where relevant. The updated guidance also clarifies that re-grossing will apply by reference to the applicable income tax rate only, i.e., Universal Social Charge (USC) and PRSI will not be included for the purposes of calculating the re-grossed amount. Where an employer makes payments without the deduction of income tax which fall within the provisions of section 986A TCA 1997, the employer is liable to pay the amount of tax due in respect of the re-grossed amount of the payment.  Re-grossing applies where either there is total non-operation of PAYE in respect of emoluments to an employee or an employer disguises the payment of emoluments.

The Central Statistics Office has published the Quarterly National Accounts for the first quarter of 2024. Modified Domestic Demand (MDD), a broad measure of underlying domestic activity that covers personal, government, and investment spending, went up by 1.4 percent in Q1 2024. The globalised industry (excl. construction) sector contracted by 6.5 percent in Q1 2024 as compared with Q4 2023, reflecting the volatility of production in the multinational sectors. While there was a mixed picture for sectors focused on the domestic market, overall there was growth of 1.7 percent for the sectors combined. Commenting on the figures, Minister for Finance, Michael McGrath T.D., said: “While GDP was up in the first quarter, I recognise that GDP continued to fall on an annual basis at the start of this year. As is widely acknowledged, GDP is not a useful measure in assessing the living standards of domestic residents, given the outsized role the multinational sector plays in our economy. The annual decline reflects the volatile nature of multinational production, which can swing significantly from one quarter to another. In terms of the domestic economy, I am encouraged to see that Modified Domestic Demand – my preferred metric – grew strongly in the first quarter of this year. Importantly, consumer spending meaningfully contributed to this growth, increasing by 0.6 per cent over the quarter. Clearly this a reflection of the continued strength of the labour market, with almost three quarters of the working age population now in work. Additionally, the significant easing in inflation over recent months has come as welcome relief for households and businesses alike. The strength of investment by firms over the quarter has also been a positive development. This investment, primarily by the multinational sector, will boost the productive capacity in our economy and will bring with it increased employment and exports in the years ahead. I also expect housing supply to continue to grow solidly in the year ahead, with over 50,000 new units commenced in the twelve months to April 2024. Looking ahead, inflationary pressures are now returning to more normal levels and this should bring with it a boost to household real disposable incomes. As the year progresses, the increase in real incomes should further support growth in our domestic economy. That said, we are nevertheless living through a time fraught with uncertainty, geopolitical tensions and a changing economic landscape. Against this backdrop, Government remains committed to careful budgetary management. We will continue to strike the right balance, ensuring that spending is both sufficient and sustainable, meeting the needs of today without compromising the future needs of our people in the years to come.”

The Department of Finance and the Department of Public Expenditure, NDP Delivery and Reform have published the Fiscal Monitor for May 2024. This month’s report shows an increase in tax revenue to end-May of €1.2 billion (up 6.2 percent). The increase was driven by strong VAT receipts, up €0.4 billion (12.2 percent) on the same period last year. Income tax receipts increased by €0.9 billion (6.7 percent) when compared with the same period in 2023. Corporation tax receipts showed a recovery from the decline in quarter 1 and are now on a par with the same period last year. Commenting on the figures, the Minister for Finance, Michael McGrath T.D. said: “May is an important month for tax revenues in the exchequer calendar and the positive performance is a welcome indicator of the strength of our economy, most clearly reflected in the healthy growth in income tax and VAT revenues. With a record 2.71 million now at work in Ireland and incomes rising faster than the rate of inflation, living standards are improving again and consumer activity in our economy is being supported. Of course, the most notable feature of the May tax outturn is the spike in corporation tax receipts. As a result, overall corporate tax revenues have recovered after a sharp drop in the first quarter of the year and are now level with the same period last year. I would caution, however, that the significant volatility, in both directions, we have seen from month-to-month in this revenue stream is yet more evidence of the unreliability of these highly concentrated receipts, and the associated risks this brings to our public finances. The fact that we are highly dependent for a large portion of our corporate tax receipts on a very small number of companies requires a decisive policy response to ensure our public finances are sustainable into the future. We cannot necessarily rely on some of these receipts into the future. That is why the setting up of the Future Ireland Fund, and the Infrastructure, Climate and Nature Fund is a landmark and necessary policy development and one I am determined to deliver on. This vulnerability underscores the importance of continuing to pursue a balanced and sustainable budgetary policy. With this in mind, Government will set out the fiscal parameters for Budget 2025 in the Summer Economic Statement in the coming weeks.”