Better long-term support for the SME sector was advocated for by Director of Advocacy and Voice, Cróna Clohisey, and Institute President Barry Doyle who both represented Chartered Accountants Ireland at the National Economic Dialogue (NED) last week. The NED provides a forum for public consultation and debate ahead of Budget 2025 and this year’s theme was challenges and opportunities in a more shock-prone world. The Institute representatives also emphasised to Ministers the importance of careful consideration around the timing of new regulations and their impact on businesses, the need to simplify the tax system, in addition to enhancing the supply of childcare places. Documents and speeches from the NED can be found on gov.ie.

In its response to the consultation “Raising standards in the tax advice market – strengthening the regulatory framework and improving registration” which examined three different approaches to regulate the UK tax agent market in future, the Institute’s Northern Ireland Tax Committee sets out that its preferred approach is mandatory membership of a recognised Professional Body. However, the Committee also tells HMRC that additional regulation of practising members of Chartered Accountants Ireland is not needed. The Committee’s full response can be read in the Tax Representations section of our website.  The Committee also recommended that there should be a minimum transition period of not less than five years to ensure that the change is properly implemented, and the market is able to fully prepare and adjust. It is also recommended that HMRC consider what transitional arrangements can be introduced once a decision has been made on the approach to be taken.  

The Spring Finance Bill 2024 (official title Finance (No. 2) Bill 2023-24), which reflects many of the tax measures announced as part of the Spring Budget, received Royal Assent last Tuesday 28 May just before Parliament was dissolved on 30 May. Finance (No.2) Act 2024 now has force of law as Royal Assent is the final stage of a bill's passage through Parliament.   Some of the measures included in the Act are as follows:-  the higher rate of capital gains tax on disposals of residential properties is reduced from 28 percent to 24 percent for disposals from 6 April 2024;   the thresholds for the high income child benefit charge increased from 2024/25 onwards from £50,000 to £60,000 (lower threshold) and £60,000 to £80,000 (higher threshold); and  multiple dwellings relief for stamp duty land tax is abolished where the effective date falls on or after 1 June 2024. This change is subject to transitional arrangements. 

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 finally, we issue a final reminder that from today, Tuesday 4 June 2024, all export declarations must be made via the Customs Declarations Service, and not CHIEF.  Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:-  UK Trade Tariff: European Union and new member states;  UK Trade Tariff: preferential trade arrangements for countries outside the UK and EU;  UK Trade Tariff: relief from customs and excise duties and VAT;  UK Trade Tariff: end-use relief on goods used for a prescribed use;  UK Trade Tariff: VAT;  UK Trade Tariff: valuing goods;  UK Trade Tariff: appeals;  Managing your customs warehouse; and  Notices made under the Taxation (Cross-border Trade) Act 2018. 

Check out the latest items on the Agent Forum. Remember, in order to view each item, you must be signed up and logged in.   All agents, who are a member of a professional body, are invited to join HMRC’s Agent Forum. This dedicated Agent Forum is hosted in a private area within the HMRC’s Online Taxpayer Forum. You can interact with other agents and HMRC experts to discuss topical issues and processes. 

Technical Alert 02/2024 – Sample Engagement Letter Terms in respect to the provision of Limited Assurance under the Corporate Sustainability Reporting Directive A Technical Alert (TA) has been issued to provide assistance to members when drafting engagement letters in respect to limited assurance engagements under the Corporate Sustainability Reporting Directive (“CSRD”) which has yet to be transposed into Irish legislation. Until this transposition occurs (expected July 2024), in the interim and to allow engagement planning to commence, these engagement letter terms may be used to implement a formal contract with the entity. Addendums and/or replacement engagement letter terms may be required where significant changes are necessary; members are advised to note the important caveats in the preface to this TA. The engagement letter terms have been drafted based on current guidance in issue which may change as the CSRD regulatory landscape changes. In addition the applicable standard used is the International Standard on Assurance Engagements (ISAE) 3000 (Revised) issued by the International Auditing and Assurance Standards Board (IAASB). This may be subject to change, depending on the assurance standard that is specified for use in Ireland for CSRD sustainability assurance engagements by the Irish Auditing and Accounting Supervisory Authority (IAASA). You can access the TA here.

The Financial Reporting Council (FRC) has published anonymised key findings and good practices reported by its Audit Quality Review (AQR) team in relation to their 2020/21 audit quality inspections at the seven largest audit firms. https://frc.org.uk/news/may-2022-(1)/frc-publishes-inspection-key-findings-and-good-(1)

Just 17% of Chartered Accountants in Northern Ireland believe that prospects for the NI economy in 2024 are good with over half (59%) seeing the economy as either stagnant or slowing, according to the Institute’s latest Financial Confidence Survey. Feedback from members working in business, practice and across the public sector have cited ongoing skills shortages, rising inflation and cutbacks in government spending as contributing to this dampened outlook. On a more positive note, an overwhelming majority of members (87%) view the dual-market access afforded to Northern Ireland post-Brexit as its biggest opportunity for growth over the next decade. Chartered Accountants Ulster Society is a district society of Chartered Accountants Ireland, Ireland’s oldest and largest professional body of accountants. Founded in 1906, the Ulster Society has over 5,000 members throughout Northern Ireland. Additional survey insights: Two-thirds of members support the Executive pursuing the introduction of a lower rate of corporation tax for Northern Ireland Over half of members cite the need to address public sector inefficiency as a top priority to make the public finances more sustainable Two-thirds of members believe that while Northern Ireland offers a clear investment proposition to attract foreign direct investment to the region, more government supports are needed to bolster this offering 8 in 10 members believe childcare in Northern Ireland is currently unaffordable with 3 in 5 respondents reporting they have had to reduce their working hours as a result. Commenting, Chair of Chartered Accountants Ireland Ulster Society Paul Millar said:  “Despite the economic headwinds facing the economy as a result of inflation, skills shortages and the rising cost of doing business, Northern Ireland ultimately has the opportunity to reverse these trends by fully taking advantage of our unique trading position post-Brexit. “In this survey, a significant majority of our members rightly point to the dual EU/UK market access afforded to Northern Ireland as our biggest opportunity for growth over the next decade. If we can combine this with the introduction of a competitive corporation tax rate and an improved package of business supports to attract FDI, the effect on the economy could be transformative”. Commenting, Barry Doyle, President of Chartered Accountants Ireland said: “Financial confidence, while still muted, is recovering on 2022 levels. There is a notable rise in those that believe the economy is growing, and a sharp drop in those who feel that financial distress is increasing. The accountancy profession is fundamental to economic prosperity right across the island of Ireland, with almost 28,000 members supporting businesses on these shores alone. We have played a critical role in helping businesses in every sector to navigate uncertainty over the last few years, and we are ready to engage with business and political partners with renewed vigour to ensure Northern Ireland can avail of this economic opportunity.”   ENDS

The Institute recently hosted a webinar on the Small Companies Administrative Rescue Process (SCARP) - Practical Issues. This discussion with David Swinburne and Philip Maher of Mazars included how to prepare for a SCARP, what to look out for and key matters to be aware of when considering the process. There was also discussion around some practical issues including how SCARP is working in practice, dealing with creditors and excludable creditors.  The recording is available here. 

Last month we updated readers on developments in this space ahead of HMRC’s plan to widen the beta trial in 2024/25, commencing from 22 April. As set out in that update, HMRC has now expanded the beta trial and recently sent an email to agents providing information on how to sign qualifying clients up to the Making Tax Digital (“MTD”) for income tax trial. Further updates are set out below.   Suspension of meetings  The Institute is currently considering how best to support members in their preparations for this change and we will continue to attend HMRC forums on MTD. However, it should be noted that due to the pre-election period (known as purdah), HMRC has now suspended some forum meetings, including meetings on MTD.  Technical consultation on new regulations  HMRC has launched a technical consultation on proposed new regulations (“The Penalties for Failure to Pay Tax (Assessments) Regulations 2024”), which is running until 10 June 2024.   These draft regulations relate to the reformed penalty system for late payment of tax, which is set out in Schedule 26 to the Finance Act 2021. Penalty reform began for VAT taxpayers from 1 January 2023, and from April 2024 for Income Tax Self-Assessment (“SA”) for those participating in the MTD for income tax beta trial. For all other Income Tax SA taxpayers, penalty reform will commence from April 2026 as MTD for income tax begins to be mandated  Current legislation allows HMRC to assess a second late payment penalty within a two-year assessment time limit, at the point the outstanding tax is paid in full. However, HMRC is not able to assess this penalty if the tax remains unpaid. The proposed legislative change will allow the second payment penalty to be assessed towards the end of the time limit, in circumstances where the outstanding tax has not yet been paid in full. This will mean taxpayers will not be able to intentionally avoid a second late payment penalty by not paying their outstanding tax before the end of the two-year time limit.   New MTD manual   A new manual on how to use MTD for income tax has now been published. Since our last update, the number of available software packages, which already includes some of the big players, has been expanded from five to seven, with a range of other software packages in development. 

Today we are issuing a final reminder that the deadline for employers to provide employees with their P60 for 2023/24, either on paper or electronically, is Friday 31 May 2024. The P60 summarises the employee’s total pay and deductions for the year.   By that date, employers must give a P60 to all employees on payroll who were working for them on the last day of the tax year (5 April 2024). If an employer is exempt from filing payroll online, copies of P60s can be ordered from HMRC. 

After the Spring Budget took place on Wednesday 6 March, the Spring Finance Bill 2024 (official title Finance (No. 2) Bill 2023-24) was published. The Bill reflects many of the tax measures announced as part of the Spring Budget. It is currently awaiting Royal Assent with many stages having taken place at speed last week due to the announcement of the General Election which will take place on Thursday 4 July. Parliament is to be dissolved later this week on Thursday 30 May. 

In this week’s miscellaneous updates, HMRC has published guidance on using an agent to claim certain VAT refunds and guidance is also available for legal representatives on the information they need to tell HMRC to calculate the lump sum death benefit charge. The latest Agent Update is available which covers a range of areas and issues and HMRC is conducting research on the Income Record Viewer. And finally, HMRC’s latest Stakeholder Digest has been released which includes news of an update to HMRC’s Agent Standard, the standard which sets out HMRC’s expectations of tax agents and advisers in their dealings with HMRC and an overview of the way HMRC tackles the minority of agents who do not meet the standard.  Using an agent to claim VAT refunds  HMRC has added a section on using an agent to the following guidance pages:  VAT refunds for constructing a new charity building;  VAT refunds for new builds if you’re a DIY housebuilder; and  VAT refunds for conversions if you're a DIY housebuilder.  Guidance on lump sum death benefits and the abolition of the lifetime allowance  HMRC has published guidance for legal representatives on the information they need to provide to HMRC when calculating the lump sum death benefit charge. The legal representative is responsible for checking whether a chargeable amount arose, and for reporting any chargeable excess over the lump sum death benefit allowance to HMRC.   HMRC has also published a set of over 100 FAQs on the abolition of the lifetime allowance for pension schemes.  Latest Agent Update  Agent update: issue 120 is available now. Get the latest guidance and information including: moving all exports to the Customs Declaration Service;  the enhanced check your State Pension forecast service is now available;  how you could benefit from joining the UK Internal Market Scheme;  Investment Zone tax reliefs guidance; and  reporting profits on a tax year basis from 2024/25.  Research on the Income Record Viewer  HMRC is conducting research on the Income Record Viewer (“IRV”), which is their online tool for agents to view client information, such as tax code, pay and tax details and employment history. HMRC has launched a survey on the tool with a view to making future improvements. Responses to the survey are anonymous.  

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 and Cabinet Officer Borders bulletins are also available. We issue another reminder that there is now just over a week to go until the 4 June 2024 deadline for making all export declarations via the Customs Declarations Service and not CHIEF. And finally, the National Audit Office has published its report on implementing an effective trade border in the UK.  NAO report   The NAO’s report, which was recently published, focuses on the movement of goods across the border. It covers:  the operation of the border since the end of the transition period in December 2020 (Part One), the introduction of a full border control regime and future risks (Part Two), and challenges and opportunities relating to the management of the border (Part Three); and  the implementation of arrangements relating to Northern Ireland (Part Four).   The report is based on information available up to April 2024 and has not evaluated the implementation of the new import controls introduced from 30 April 2024.  The report concludes as follows:  “Leaving the EU customs union and single market created large-scale change in arrangements for the movement of goods across the UK border. More than three years after the end of the transition period, full import controls are still not in place. In addition, the model’s operation is still to be tested and the government may not be able to apply controls consistently as the controls are phased in.  The government’s new border target operating model should reduce costs to traders in comparison to its initial plans. However, repeated delays in implementing controls have meant ongoing uncertainty and an increase in risk, and the government and border stakeholders have also incurred unnecessary costs. This could have been avoided if the government had established a clearer vision of how the border should operate from the start and had taken a more strategic and planned approach to implementation.  The government’s 2025 UK Border Strategy includes ambitious plans to use technology and data to facilitate the passage of legitimate trade, while still identifying people and goods at risk. Most stakeholders agree with this overall approach. However, there is no timetable for achieving these ambitions, and the extended phasing of the introduction of full import controls has meant slower progress on other elements of the Strategy.  It is a considerable challenge to manage several large programmes involving multiple departments and external stakeholders, and we have highlighted the delivery risks. To improve its chances of success, the government needs strong mechanisms for delivery and accountability, a more realistic approach to digital transformation, and the means to assess and report on border performance to enable improvement over time.  The UK government and the EU have agreed arrangements to simplify the movement of goods from GB to NI, and the UK government and NI authorities are working to implement these. However, some details remain to be confirmed, including the operational implications of the government’s recent Safeguarding the Union Command Paper. If NI is to benefit from its unique position, the UK government must provide the clarity required to give businesses the confidence to invest in and trade with NI and provide sufficient support to the Northern Ireland Civil Service to help it effectively enact its new responsibilities.”  Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:  Navigate the CDS Declaration Instructions for Imports;  List of customs training providers;  Goods Vehicle Movement Service codes for Data Element 5/23 of the Customs Declaration Service;  Apply to use simplified procedures for import or export (C&E48);  Report exports that arrived or left a UK port that were not notified in CDS;  Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS);  External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service;  Notices made under the Taxation (Cross-border Trade) Act 2018;  Country codes for the Customs Declaration Service;  Currency codes for Data Element 4/10 of the Customs Declaration Service;  CDS Declaration Completion Instructions for Imports; and  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service. 

The Institute is aware of an email that was circulated, claiming to be from Chartered Accountants Ireland, and relating to the payment of member subscriptions. Please note this email was not sent by the Institute.  Below are a few tips to help members to spot phishing and other malicious emails.   Check the sender's email address and the domain name carefully. Phishing emails may come from addresses (a URL) that look similar to legitimate ones but have slight misspellings or additional characters. Institute emails will come from @charteredaccountants.ie  Scammers will often try to scare you into acting impulsively or urgently. Stop and think before acting, especially if an email is instructing you to act quickly.  Clicking a link in an email may direct you to a fake or malicious website. To stay safe, navigate yourself directly to the official website.  When you receive an email, stop and look for red flags. For example, emails that were sent outside of business hours, that contain spelling or grammatical errors, or unusual greetings or sign offs. Be cautious of unexpected opportunities. If something seems too good to be true, it probably is.    

Nicola Flannery outlines how organisations can navigate the expanding landscape of AI by focusing on ethical deployment, regulatory compliance, and building consumer trust for sustainable growth and innovation The true societal impact of Artificial Intelligence (AI) systems is yet to be fully realised. However, many already see AI as an engine for productivity and economic growth. As organisations compete to be the first to unlock and realise AI's full potential, governments and regulators worldwide have started the challenging task of creating legislation and regulatory frameworks around a constantly evolving technology. While there is still uncertainty around the risks due to AI technologies, some caution must be displayed to truly understand these, particularly where risks and harms to individuals may arise. In addition, privacy and security concerns are still the leading causes of limiting investments in AI-based solutions. However, with the current buzz around AI, even an organisation not currently considering it will be inclined to do so as the technologies evolve and mature. From this perspective, it is important to start thinking about AI use cases for your business and be ready to implement such solutions in a manner that builds customer confidence and aligns with the regulatory requirements. There is no doubt that companies that have an issue with how and where they deploy AI technologies will suffer from significant reputational damage. Trustworthy AI While the risks of AI technology do exist, there is also no doubt about the benefits that can be realised. However, the social and economic opportunities of AI may not be fully gained if the public’s concerns about the risks of AI outweigh their perception of the benefits. Therefore, it is crucial to ensure that AI technologies evolve and are deployed in ways that consumers and users can reasonably trust. Trustworthy AI, also known as ethical or responsible AI, has been proposed to mitigate the risks and enhance consumer/user trust in such systems. This is an umbrella term that consolidates several components which, according to the independent high-level expert group on AI established by the European Commission, consist of the premise that Trustworthy AI must be: lawful, respecting all applicable laws and regulations; ethical, respecting ethical principles and values; and robust, from a technical perspective, but also considering the social environment. Applying a human-centric, trustworthy AI-by-design approach will go a long way towards propelling innovative AI efforts while being aware of the risks that must be mitigated. Six dimensions for trustworthy AI Fair and impartial AI systems should make decisions that follow a consistent process and apply rules fairly. They should also incorporate internal and external checks to remove biases that might lead to discriminatory or differential outcomes, helping ensure results that are not merely technically correct but considerate of the social good. Transparent, documented and explainable AI systems may not operate as “black boxes”; all parties engaging with an AI should be informed that they are doing so and be able to inquire how and why the system is making decisions. Responsible and accountable The increasing complexity and autonomy of AI systems may obscure the ultimate responsibility and accountability of companies and people behind the decisions and actions of these systems; policies should be in place to clearly assign liability and help ensure that parties impacted by AI can seek appropriate recourse. Safe and secure Just as we currently depend on the consistent performance of professionals to help ensure that our daily activities are safe and healthy, we should be able to depend on equivalent or even greater reliability as we merge our systems with AI. Respectful of privacy As AI systems often rely on gathering large amounts of data to accomplish their tasks effectively, we should ensure that all data is collected appropriately, with full awareness and consent, and then securely deleted or otherwise protected from unsanctioned use. Robust and reliable As AI systems take greater control over more critical processes, the danger of cyberattacks and other harms expands significantly. Appropriate security measures should be implemented to help ensure the integrity and safety of the data and algorithms that drive AI. Nicola Flannery is Director of Data Privacy & Internet Regulation at Deloitte

CEOs are leveraging M&A for tech-driven growth and market expansion, embodying innovation and sustainability in a dynamic business landscape, explains Fergal McAleavey In the rapidly evolving business landscape of 2024, global CEOs continue to use mergers and acquisitions (M&A) to navigate innovation and transformation across their businesses.  The latest CEO Outlook Pulse Survey from EY shows businesses are engaging in M&A activity with renewed vigour, considering it a strategic support for addressing key priorities. The survey found that acquiring technology, new production capabilities and innovative startups, growing market share and accessing new geographies stood out as the top three strategic drivers for CEOs pursuing M&A. Irish M&A: growth and innovation In Ireland, the M&A landscape is particularly vibrant, with CEOs and investors showing a keen interest in a variety of transaction opportunities, from trade sales to private equity investment to strategic alliances. Ireland's thriving tech sector and business-friendly climate have fuelled a boom in deal-making, outpacing the UK and EU. This is likely to continue as companies pursue innovative technologies and seek to capitalise on the entrepreneurial energy of startups that have scaled. The strategic imperatives for Irish M&A are expected to align with global patterns, emphasising the acquisition of larger market shares, expansion into new markets, and the integration of advanced technology into existing operations. This is especially pertinent for Ireland, given its status as a European tech hub.  Ensuring strategic objectives are met CEOs are also signalling their readiness to streamline their portfolios, shedding assets to address ESG goals and refine their focus for the challenges ahead. Sustainability due diligence is playing an ever-increasing role in M&A transactions to assist buyers and sellers to ensure that those deals are aligned with their own corporate sustainability objectives. This strategic deal-making is not merely a short-term solution but is part of a broader, long-term vision to build resilience and adaptability for an unpredictable future. Irish CEOs' strategy With global funding markets more receptive in 2024, Irish acquirers may find it easier to secure financing for deals and may be the target of larger companies seeking to expand their geographic footprint or product offering. However, they must remain cautious of potential market tightening as political events unfold. For those looking to divest, the market's increasing appetite for acquisitions and the continued resurgence of private equity (PE) could provide favourable conditions. Nonetheless, the timing of PE's full-fledged return to the M&A space remains a little uncertain for large transactions as they await potential interest rate decreases, particularly in the Eurozone and the UK. Irish companies must stay attuned to shifts in monetary policy that could influence the M&A landscape.  To provide corporate sellers with more control over M&A transactions, particularly as a counter-measure to lengthy deal timelines that have become a feature of the M&A market in the last few years, time is well spent by those sellers preparing potential divestment assets for sale, including anticipating issues of particular relevance to likely buyers of those assets and identifying potential regulatory approval requirements that may add to longer deal timelines. Sell-side due diligence of prospective buyers can also be warranted to help flush out any potential roadblocks or delays that may arise from ever-increasing competition law, foreign direct investment and foreign state aid regime requirements.  The M&A momentum for the remaining months of 2024 is characterised by strategic foresight, adaptability, and a commitment to sustainability, as both global and Irish corporate leaders and investors navigate the complexities of a rapidly evolving business world. Fergal McAleavey is Partner of Corporate Finance – Strategy and Transactions at EY

The topic of whether a strong labour market delivers a good labour market is gaining significant attention, particularly since the Economy Minister has underscored the importance of ‘good jobs’ , says Martha Sargent The latest labour market statistics reveal a positive trend: between December and February 2024, unemployment stood at record lows (2.2%), and employment rates reached 71.7 percent, the highest level since the pandemic, indicating a potential improvement in job quality. For the first time since 2001, Northern Ireland did not have the highest level of economically inactive (26.7%) in the UK, with higher rates across Wales (28.1%) and the northeast (26.9%). The strength of the labour market creates a context in which we can challenge ourselves on whether the jobs we have are ‘good’. This has not always been the case. Since the pandemic and the Great Financial Crash, Northern Ireland’s focus has been the retention and recovery of jobs through downturns. In total, Northern Ireland lost over 40,000 jobs following these economic shocks. Encouragingly, as the recovery has taken hold, Northern Ireland reached peak levels of employment with over 904,000 jobs in 2022. So, what does this tell us about the quality of jobs available? Building a resilient economy, one that’s focused on jobs that suit the individual and promotes the overall economy, is a pressing need. This requires a strong emphasis on good, quality jobs—a concept that has now become a cornerstone of the Department for Economy's policy following the Economy Minister Conor Murphy’s  ‘economic vision’, which states “the promotion of good jobs” as one of four key objectives, along with promoting regional balance, raising productivity and reducing carbon emissions. This idea of ‘good jobs’ has also been promoted in the Resolution Foundation’s Creating a Good-Jobs Economy in the UK, in which it found that the British economy falls short on inequality metrics and that regional patterns in productivity play out in job quality. What makes a “good job”? For now, Northern Ireland does not have a clearly defined position on what a ‘good’ job is. What is clear is that it is a mix of areas such as pay, job satisfaction, HR policies, inclusivity, etc., and as such, is debated among policymakers, academics, and economists. In fact, the Department for Economy is currently debating such concepts as part of its measure for the ‘good jobs’ objective announced in the Minister’s economic vision. The Resolution Foundation has provided some insight into what makes a ‘good job’, such as work that pays well enough to allow for a reasonable living standard, stability and security, and opportunities for career progression. Northern Ireland’s New Decade New Approach 2020 includes decent working conditions, security of tenure and a worker's level of autonomy in the analysis, and more recently, the Nevin Economic Research Institute labelled ‘good jobs’ as being secure with strong employee-management relations. The body of research on ‘good jobs’ has highlighted that there is no clear path to tread in measuring or observing ‘good jobs’ for the Department of the Economy. However, Northern Ireland Statistics and Research Agency's Work Quality reports can provide some insight into the indicators that could be used. The latest data for some elements of consideration shows that 84.5 percent of all employee jobs are paid the real living wage or above; 96.9 percent are in secure employment; and 78.4 percent reported having job satisfaction. Thinking about ‘good jobs’ provides a more holistic approach to economic development. Improvements to well-being because of a ‘good job’ are expected to lead to wider economic benefits for society and the individual. Firms that place value on ‘good jobs’ should also experience higher levels of job satisfaction among workers, leading to an increase in productivity and a reduction in staff turnover and should attract more talent. A people-focused approach to ‘good jobs’ encourages security of employment, training and skills development to achieve the national skills gap challenge. As the old saying goes, ‘If you can measure it, you can manage it’. We should add ‘if you can define it, you can measure it’. Seeing the Department take steps toward defining and tracking ‘good jobs’ can only serve to strengthen the economy and add to Northern Ireland being viewed as a more attractive place to do business. Martha Sargent is Assistant Manager of Economic Advisory at Grant Thornton Northern Ireland

Terence O’Rourke has been recognised for his contribution to the accountancy profession over several decades. He received the “Outstanding Contribution to Accountancy” award at the 2024 Irish Accountancy Awards in Dublin.  This category recognises an individual whose work demonstrates a sustained commitment to the advancement of the profession. It recognises the exceptional abilities and achievements of the recipient, as well as their commitment to the organisations and teams they have worked with, and to the industry overall. Previous recipients of the award include Elaine Coughlan, FCA, Dr Laurence Crowley, CBE, FCA and Dr Margaret Downes FCA, and Professor Patricia Barker. Accepting the award, Terence O’Rourke said  “I believe that success in the accountancy profession is not just about numbers and balance sheets, but building trusting relationships, providing valuable insights, and making a positive impact on the businesses and individuals we serve. It is about dedication to continuous learning, adapting to new technologies, and staying ahead of the ever-changing regulatory landscape.   “As we navigate unprecedented challenges and uncertainties, the role of accountants becomes even more crucial. We must leverage our expertise to help businesses thrive, make informed decisions, and safeguard financial stability. We must uphold the values of transparency, accountability, and professionalism in everything we do.”   Chief Executive of Chartered Accountants Ireland, Barry Dempsey said   “In preparing for this evening, I was struck by Terence’s centrality in this profession over many years, on behalf of his firm, the profession, and on behalf of the state. Terence led KPMG in Ireland for two terms, and served on the KPMG Global Executive Team, navigating the end of the boom years and some of the most turbulent times in Irish corporate life.     “From early in his career, Terence contributed to the development of the profession, as Chair of the Institute’s Regulatory Standards Council Committee, a member of the Chartered Accountants Regulatory Board, a Council member, and as President of this Institute.  Terence served as the Institute’s representative to the government-initiated Review Group on Auditing in 2000 which led to a new regulatory regime for auditing in Ireland. I congratulate Terence and thank him for his support to so many in the profession over so many years.”   The Irish Accountancy Awards were launched in 2016 to celebrate excellence in the accountancy profession across a total of 27 categories.    ENDS    

Introduction Readers will know that sanctions are adopted at EU level but may or may not be aware that enforcement relies on member states amongst which definitions of sanctions violation and associated penalties vary. These inconsistencies led to a concern in the EU about undermining of the EU sanctions regime and that potential offenders would deliberately act in jurisdictions where penalties were lighter. Click here for a briefing document by the EU Parliament which wrote ”…The significant differences between national systems, particularly in terms of offences and penalties for breaches of EU sanctions, are thought to weaken their efficacy and the EU's credibility….”  On 24 April 2024 the European Union adopted a directive to harmonise criminal offences for violation of EU sanctions. (the “Directive”). Click here for a link to a European Parliament press release on the Directive. The Directive was introduced to limit sanctions circumvention and to tighten enforcement. The Directive provides a common definition of what constitutes a violation of EU sanctions and provides for penalties for the violation of European Union restrictive measures. The Directive provides for criminalisation for an intentional violation of sanctions but also where there is serious negligence in the circumstances set out in the Directive. It also criminalises attempted violations. What constitutes a criminal offence and exemptions? Article 3 sets out conduct constituting a criminal offence. These include failing to freeze funds, not respecting travel bans or goods embargoes, transferring funds to persons subject to sanctions, or doing business with state-owned entities of countries under sanction. Providing financial services in violation of sanctions will also become a punishable offence. Inciting, aiding, or abetting the commission of offences is also a criminal offence. Member states can exempt conduct from criminal sanction for violations involving funds, economic resources, goods, services, transactions, or activities of a value of less than €10,000.  An exemption is also given for legal professionals regarding information obtained while ascertaining the legal position of a client or defending or representing judicial proceedings. There is also an exemption for providing humanitarian assistance. Penalties The Directive provides for prison sentences and fines. It also includes measures such as withdrawal of permits and authorisations, disqualifications, and temporary bans on running for public office. For natural persons penalties can be between one and five years’ imprisonment depending on the seriousness of the offence. The Directive also provides for liability and penalties for legal persons. Maximum fines can be from 1% to 5% of worldwide turnover of a legal person, depending on the offence. Directive on combatting money laundering by criminal law (2018/1673) amended The definition of criminal activity is amended in this directive to add the violation of Union restrictive measures as a new criminal activity. Entry into force The Directive enters into force on 19 May 2024 and member states have until 20 May 2025 to implement it into national law. This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.