Welcome to the latest edition of Technical Roundup. In developments this week, the Financial Reporting Council has published some useful reports covering large private companies in the UK as well as a report to support companies applying the UK Corporate Governance Code 2024, which launched last month. EFRAG and IESBA have launched public consultations on sustainability standards and the European Securities and Markets Authority has published two Consultation Papers on guidelines under Markets in Crypto Assets Regulation (MiCA). Read more on these and other developments that may be of interest to members below. Auditing The FRC has issued an update to the Ethical Standard for Auditors. The standard will become effective on 15 December 2024. The FRC has issued a report which highlights some of the key findings and potential actions from research it commissioned into barriers to entry and growth faced by audit firms in the UK.    Financial Reporting The Irish Auditing & Accounting Supervisory Authority (IAASA) has published a summary of the outcomes of its 2023 financial statement examinations. The European Financial Reporting Advisory Group (EFRAG) has published a Feedback Statement on its response to the International Accounting Standards Board (IASB’s) request for information on the Post-Implementation Review of IFRS 15. The Feedback Statement summarises constituent's feedback, including responses to EFRAG’s draft comment letter and explains how the feedback received was considered by EFRAG in reaching the positions reflected in their final comment letter. The IASB has issued its January 2024 update, as well as a joint update with the International Sustainability Standards Board (ISSB). Podcasts covering both of these updates have also been released by the IASB and IASB/ISSB. The IFRS Interpretations Committee has released a podcast which provides an update on its recent activities, including details of two recent discussions relating to climate-related commitments and disclosure of revenue and expenses for reporting segments. The Financial Reporting Council (FRC) has published a thematic review entitled “Reporting by the UK’s largest private companies”. This report provides details of the quality of reporting in these companies, including areas where the standard could be improved. The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published two Consultation Papers on guidelines under Markets in Crypto Assets Regulation (MiCA), one on reverse solicitation and one on the classification of crypto-assets as financial instruments with comments requested by 29 April 2024. Anti – money laundering Would you like to know more about trust and company service providers (TCSPs)? For more information on what they are and how the Institute supervises members which provide TCSP services please click on the Technical hub anti -money laundering information where a new page dedicated to information about TCSPs has just been published. Sustainability EFRAG has launched a public consultation on the sustainability reporting standards for listed SMEs and for non-listed SMEs who wish to voluntarily report on their sustainability activities. This consultation will remain open until 21 May 2024. It is intended that the listed SME standards will be effective from 1 January 2026 (with a 2 year opt-out) while the voluntary non-listed SME standards are intended to assist SMEs in responding to requests for sustainability information that they receive from business counterparts (i.e., banks, investors or larger companies for which non-listed SMEs are suppliers) in an efficient and proportionate manner. The International Ethics Standards Board for Accountants (IESBA) has launched two exposure drafts on ethical considerations in sustainability reporting and assurance. The Exposure Drafts cover International Ethics Standards for Sustainability Assurance as well as Using the Work of an Expert. Comments are requested by 30 April. The International Sustainability Standards Board (ISSB) has released its January 2024 podcast. Emmanuel Faber and Sue Lloyd (Chair and Vice-Chair of the Committee) discuss recent developments and their priority areas for the upcoming year. The International Federation of Accountants (IFAC’s) recent episode of “The Fast Future with IFAC” includes excerpts from a presentation to IFAC's SMP Advisory Group on topics related to sustainability. The European Environment Agency (EEA) have issued their 2024 update briefing of  ‘The costs to health and the environment from industrial air pollution in Europe’ which presents the latest assessment of the trends in externalities of industrial air pollution from over 10,000 facilities in Europe, from 2012 to 2021. These facilities report data on pollutant releases and transfers to the European Industrial Emissions Portal. The European Central Bank (ECB) has set out its focus areas for 2024 and 2025 which will guide its activities on climate change. The ECB have also set out their planned measures to address the focus areas. The European Parliament has adopted a directive which seeks to protect consumers from greenwashing and misleading marketing practices relating to environmental claims. Other news The 2018 Corporate Governance Code (the Code) was updated in January 2024 following a consultation which concentrated on a limited number of changes. The 2024 Code will apply to financial years beginning on or after 1 January 2025. The FRC has also published guidance to support companies in applying the Code. The Charity Commission of Northern Ireland has announced 31 January 2024 as the first mandatory filing deadline for 1,983 charities registered prior to May 2019. There is also a further 279 charities, registered after May 2019, which have the end of January deadline.  President of the European Commission Ursula von der Leyen has launched the Strategic Dialogue on the Future of Agriculture, a new forum mandated to shape a shared vision for the future of the EU's farming and food system. The European Commission proposes to revise the European Works Councils (EWCs) Directive to further improve social dialogue in the EU. Meaningful information and consultation of employees in key company decisions can help anticipate and manage changes like addressing labour shortages or introducing new technologies. Accountancy Europe has published a factsheet on the Carbon Border Adjustment Mechanism, which is now in enforced in the EU. The factsheet provides an overview of its main provisions. Our last edition of Roundup brought readers some information about the UK’s Economic Crime and Corporate Transparency Act which received royal assent on 26 October 2023. We included a link to an Institute information guide outlining some of the changes which may be of interest to members. In this week’s edition we report that the first changes to UK company law are expected on 4 March Companies House writes that it is aiming to introduce the first set of measures under the Economic Crime and Corporate Transparency Act on that date. Click here for a summary of what changes are expected and how you can sign up for e mail newsletters from Companies House. A new study published by Skillnet Ireland and IDA Ireland has highlighted the need to upskill non-IT employees with key digital and data skills as this has become a requirement for all businesses in order to ensure our companies have a strong talent pipeline capable of adapting to the changing demands of digitalisation. Spring 2024 Legislative Programme The Irish Government recently published its legislative programme for Spring 2024. The link to the press release and the contents of the programme were included in our last edition and below are some of the items in draft legislation which might be relevant to members. An interesting one is the Access to Cash Bill. This Bill is listed for priority drafting. Its aim is to preserve access to cash. The Bill will also look at the resilience of the cash system and the manner in which cash travels around the system in Ireland. This involves two main elements – the regulation of ATM operators and the regulation of Cash in Transit companies. Since the publication of the legislative programme the Government has published the general scheme of the Access to Cash Bill and you can find more details of the general scheme here. Since the Autumn legislative programme in October 2023 the Digital Services Bill and the Charities (Amendment) Bill were initiated and are working their way through the legislative process. The Companies (Corporate Governance, Enforcement and Regulatory Provisions) Bill is still listed as heads in preparation and is on the priority drafting section. The Co-operative Societies Bill and the Miscellaneous Provisions (Transparency and Registration of Limited Partnerships and Business Names) Bill 2023 are still in preparation. Heads are in preparation for a National Cyber Security Bill and work is underway on an EU Data Bill which is to give effect to the EU Data Act. This is an EU regulation, but the Department of Enterprise, Trade and Employment has been advised that primary legislation is needed to enact it. For further technical information and updates please visit the Technical Hub on the Institute website.    This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.  

30 January 2024 – The Irish accountancy profession - comprising the accountancy sector, as well as accountants working across the wider economy - made a €19.8 billion contribution to the Irish economy in 2022, a new report published today by Oxford Economics for the Consultative Committee of Accountancy Bodies (CCAB), has revealed. The report further found that the profession supported over 83,000 jobs in Ireland and generated €1.8 billion in tax revenues in 2022. The profession’s contribution to the Irish economy has increased by 53% since this report was last compiled in 2017.  The profession in the UK and Ireland made a combined €114 billion contribution to the UK and Irish economies in 2022, supporting almost 1 million jobs, and generating €13.7 billion in tax revenues.  Expenditure on external accounting services by businesses in Ireland reached €3.4 billion, and almost £30 billion (£29.3 billion) in the UK in 2022. In both markets, the report estimated that the IT sector was the largest purchaser of accounting services in that year. The same year, the UK also exported £4 billion in accounting services, increasing its share of total UK service exports since 2016 by 0.3% percentage points, despite the changed trading landscape post-Brexit. CCAB said the findings highlight the key role the profession has played supporting businesses over the past five years, helping them to navigate the impacts of the Covid-19 pandemic, Brexit and geo-political crises like the war in Ukraine, as well as the transition to a green economy and new technology.  Julia Penny, CCAB Chair, said  “The significant contributions highlighted in this report underline the value of the accountancy profession to the prosperity of the UK and Ireland.  Accountants are playing a key role in driving economic growth: helping millions of businesses to navigate global challenges and opportunities, as well as leading schemes to boost social mobility and access to the profession.  “It’s not surprising to see that contributions have grown during the past five years given the impact of the pandemic and cost of doing business crisis. Demand for our knowledge and skills remains strong, in part thanks to our expanding roles in dealing with a range of non-financial information. I expect accountants to retain a central role as the profession evolves to further help businesses adapt to the climate emergency and technological advances, issues on which our future economic success and stability depend.” Barry Doyle, Deputy President, Chartered Accountants Ireland said “The figures published today illustrate just how fundamental the accountancy profession is to Ireland’s economic prosperity, something that can be too easy to overlook. It is very encouraging to see both the continued strong growth in demand for the services of the profession, and the extraordinary growth in the scale of the economic contribution to the Irish economy, up 53% since 2017.  “Behind the headline figures are over 83,000 individuals employed by the accountancy profession in Ireland, driving and servicing FDI and Irish business of all sizes and in every single sector of the economy. Accountants play a role in almost every aspect of our economy and society.” Stephen Noonan, Head of ACCA Ireland said “This report highlights the crucial role that the accountancy profession plays in creating a dynamic economy, providing the skillset that supports inward investment, the growth of exports and thriving businesses that create employment across the country. “As the Irish economy evolves and develops in the months and years ahead, with the growth of the renewable and digital economies, the profession will play a key role in supporting business and organisations adapt and grow to a changing environment. To support that, it is incumbent on both the private and public sector to work in partnership to ensure that we retain and recruit the skillset required which will support long term prosperity.”  The report assesses both the economic and wider social impact of the profession to the UK and Ireland, with quantitative analysis supplemented by case studies which provide a snapshot of the positive contributions that accountants are making in the areas of diversity and inclusion; skills; and sustainability.   CCAB is an umbrella organisation for the UK and Ireland’s leading accountancy bodies - ICAEW, ACCA, ICAS, CIPFA and Chartered Accountants Ireland.  Membership of CCAB bodies has grown by 14% since 2017, and these bodies reported more than half a million students registered globally during 2022. Read the full report to discover the breadth of the accountancy profession’s impact and CCAB’s commitment to driving sustainable growth among the organisations, economies, and communities it serves.  ENDS 

Would you like to know more about TCSPs? For more information on what they are and how the Institute supervises members which provide TCSP services please click on the Technical hub anti -money laundering information where a new page dedicated to information about TCSPs has just been published .   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.  

Earlier this year the FRC published an update to its Ethical Standard for auditors, effective from 15 December 2024. The updated ethical standard simplifies the existing ethical standard and provided additional clarity in a limited number of areas. the new standard takes into account recent revisions made to the international IESBA Code of Ethics. there is a new targeted restriction on fees from entities related by a single controlling party. Following feedback to their consultation, the FRC have amended the proposals to ensure that the requirements in the standard are better targeted and proportionate. For example, additional requirements in respect of ethical breach reporting by audit firms to the regulator have been removed. With regard to tax services provided to the controlling shareholders of unlisted companies the FRC is enhancing the independence risk assessment around these services rather than specifically prohibiting them. Alongside the revised Ethical Standard, the FRC has also released guidance for auditors on the application of the Objective, Reasonable and Informed Third Party test, which forms a key part of many requirements in the Ethical Standard. Read the updated Ethical Standard. Read the feedback statement and impact statement. CAI responded to the FRC consultation and you can read our response here.  

Many of you will be aware that the 2022/23 online self-assessment (“SA”) filing deadline is later this week on Wednesday 31 January 2024 which is also the deadline for paying any balancing payment of income tax and Class 4 National Insurance for 2022/23 and the first payment on account for 2023/24. HMRC has issued a reminder that taxpayers can enter into a payment plan to arrange time to pay their outstanding tax bill (broadly, this can be used where the taxpayer owes less than £30,000). The guidance on self-assessment for postmasters affected by the Horizon scandal has also been updated. Reminder: we’d still like to hear from you about the impact of HMRC’s helpline restrictions on filing 2022/23 SA returns by the deadline. Please get in touch when you get the opportunity to do so as we will be accepting feedback into the early weeks of February 2024. 

The minutes from the 124th Joint Vat Consultative Committee meeting, which Chartered Accountants Ireland is represented on, have been published. HMRC has introduced a new form for appealing corporation tax penalties and we update you below on using the agent reference number when a payment is to go to a nominee. HMRC has published initial information on how employers and employees can claim back national insurance contributions previously paid as a result of a recent Upper Tribunal decision (see below) and a consultation has been opened on the draft IR35 (off-payroll working rules) legislation changes which aims to enable taxes already paid by individuals to be deducted when recovering the tax due under PAYE. In Scotland, the Scottish Government has published a draft Statutory Instrument to amend the Land and Buildings Transaction Tax. See also a message from HMRC about agent authorisation duplication of letters.  The agent reference number and nominations  We remind you that from 26 February 2024, if a payment is to be made to a nominee, the agent reference number (“ARN”) must be used on all P87 employment expenses and marriage allowance transfer claim forms submitted to HMRC. The ARN is a unique identifier for each legal entity registered with HMRC as an agent and previously was used by HMRC mainly for internal purposes. However, going forward the ARN will be used more frequently when agents contact or are dealing with HMRC.   Claims for overpaid National Insurance Contributions (“NICs”)  The decision in Laing O’Rourke Services Ltd and Willmott Dixon Holdings Ltd vs HMRC case, which HMRC is not appealing, opens up claims for refunds of employee and employer NICs by way of disregarding part of the car allowance from earnings for NICs purposes if an employee has undertaken or claimed business mileage at less than the maximum 45p a mile.   In two recent Bulletins (November 2023 Agent Update and December 2023 Employer Bulletin) HMRC has provided initial information ahead of full guidance on how employees and employers can backdate claims for refunds.  For a claim to be successful all the existing rules still apply. The disregard should be based on “quantified and evidenced business miles driven”. As a result, claims will not be successful if evidence cannot be provided. No disregard is available on payments made that are within the definition of relevant motoring expenditure if salary is sacrificed from an individual’s pay.   Changes to Scotland’s land and buildings transactions tax (“LBTT”)  The Scottish Government recently published a draft Statutory Instrument which will amend the LBTT.   The changes will introduce a new exemption from LBTT for local authorities and there are various amendments to the additional dwelling supplement (“ADS”), which adds an extra 6 percent supplement to the LBTT paid in Scotland.   The legislation will take effect from 1 April 2024 once approved by the Scottish Parliament.  Duplication of agent authorisation letter  HMRC has advised us that some newly registered agents may receive a copy of their authorisation letter at least twice, if not more. HMRC apologises for this confusion and advises that that there is no need to contact them if duplicate authorisation letters are received.    

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 available. We remind you that the first phase of the UK’s Border Target Operating Model for imports into Great Britain commences later this week from 31 January 2024. And finally, the conclusions of last year’s 2023 Civil Society Forum (“CSF”) between the UK and the EU have been published (Chartered Accountants Ireland participates in the UK Domestic Advisory Group which feeds into the annual UK and CSF meeting). UK Border Target Operating Model (“BTOM”) first phase commences from 31 January 2024  In just two days’ time, the UK’s BTOM commences when new border requirements come into effect when importing certain commodities, including some food, into Great Britain. This marks the start of the introduction of the UK’s new BTOM. Two reminder emails have been sent to us by the UK Government (one from HMRC and one sent on behalf of the Department for the Environment, Food and Rural Affairs) setting out the changes in more detail. You can also read more about the first phase of the BTOM in an article in Accountancy Ireland’s Briefly.   Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:-  Bringing commercial goods into Great Britain in your baggage; Taking commercial goods out of Great Britain in your baggage; Notices made under the Customs (Import Duty) (EU Exit) Regulations 2018; Notices made under the Customs (Export) (EU Exit) Regulations 2019; Declare commercial goods you’re taking out of Great Britain in your accompanied baggage or small vehicles; Report payments and view your allowance for non-customs state aid and customs duty waiver claims; What you can do if things are seized by HMRC or Border Force; The Taxation (Cross-border Trade) (Miscellaneous Amendments) Regulations 2024 and The Ship’s Report, Importation and Exportation by Sea (Amendment) Regulations 2024; Customs declaration completion requirements for Great Britain; Search the register of customs agents and fast parcel operators; Customs Declaration Service communication pack; Appendix 21: Import Declaration Category Data Sets; and Appendix 2: DE 1/11: Additional Procedure Codes of the Customs Declaration Service (CDS).

This month’s tidbits cover guidance on how to confirm the identity of HMRC representatives and a range of corporation tax return forms have been updated.   

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. 

Do you use HMRC online services? Don’t be caught out by the planned downtime to some services. HMRC are warning about the non-availability of specific services on the HMRC website, a range of services are impacted. Check the relevant page for information on planned downtime.    

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. 

Increase of accounting talent in 2–3-year Post Qualified Experience range expected in coming 18 months as professionals return from abroad Qualification now used far more widely outside traditional roles; soft skills increasingly important in profession Chartered Accountants Ireland and Barden announce new partnership to support next generation of students and members   29 January 2024 – The demand for qualified accountants is predicted to reach 10% above pre-pandemic levels in 2024, according to talent advisory and recruitment firm Barden. They also expect an increase in the supply of accounting talent in the 2–3-year PQE range in the coming 18 months, which should alleviate some of the pressure on companies trying to hire at this level.  Commenting Elaine Brady, Managing Partner, Barden Leinster said “Demand for talent is strong locally, and compounding this, the past two years have seen over a 30% increase in newly qualified accountant talent moving internationally after qualifying. An injection of highly qualified talent in the coming months will come as a relief to those hiring. The first five years PQE are a pivotal time for accounting professionals - those that are career orientated should expect to move role, internally or externally, between 2-3 times during this formative period. It’s a competitive space.  “Our data shows us that PQE level and salary level are becoming increasingly disconnected after the 3-year PQE mark - many more variables come into play, and it is no longer about PQE but about the ability to create value for a business outside of the accounting function.”  Chartered Accountants Ireland and Barden have today announced a renewed three-year strategic partnership building and expanding on an existing strong partnership between the two organisations. The partnership is focused on three programmes, the Chartered Accountants Student Society of Ireland (CASSI), Chartered Accountants Ireland Leinster Society and Young Professionals, which have a particularly strong focus on the Institute’s strategic priority of engaging the next generation of students and members. The partnership will build opportunities for connectivity, engagement and belonging in the chartered community.  Commenting Sinead Donovan, President Chartered Accountants Ireland said  “This partnership comes at a time when people skills are becoming increasingly important within the accounting profession, and equally the role that accountants play and the value they create is much wider. For those working in business, many more are having an impact in operational and leadership roles, and in emerging areas such as data analytics and ESG functions. Increasingly Chartered Accountants are using their qualifications to create value outside of the accounting function.  “As a body, it is incumbent on us to ensure that our members are equipped for the expanding remit of our profession. Recruitment data shows that 64% of career opportunity come from your direct network - those you trained with, and those you have worked with, so the importance and direct impact on business growth of the Chartered Accountants member networks cannot be overstated.”  Elaine Brady, Managing Partner, Barden Leinster continued "This strategic partnership between Barden and Chartered Accountants Ireland is the culmination of over a decade of engagement between our two organisations - partnerships of this significance and scale don't just happen overnight.  We're delighted to have built the trust to now support Chartered members from their training through to qualification and through their formative PQE years. Helping people make informed decisions about their future, and enabling those decisions, is what we are all about in Barden; this partnership enables us to be there along each critical step with members as they chart the unknown waters of the future of work.” ENDS  

The CSRD requires business leaders with ESG expertise, strategic vision and ethical leadership who can drive lasting organisational change, writes Michele Stokes With the advent of the Corporate Sustainability Reporting Directive (CSRD), large and listed EU-based firms will be required to collect and provide dependable and standardised sustainability data. This will give stakeholders the opportunity to assess the non-financial performance of companies and evaluate the organisation’s impact on people and the environment. So how will this change the way leaders are recruited? C-suite executives who understand the importance of sustainable and socially responsible business practices are preparing for the CSRD by formulating environmental, social and governance (ESG) strategies that align with their organisation’s goals. Executives will need to possess technical knowledge, strategic thinking and a deep understanding of sustainability principles. They will also require considerable organisational change skills. The future of work Leaders will need to be adept at navigating this transition and engaging with investors, clients, employees and regulators. The collection and handling of CSRD data presents huge technical and organisational challenges. Several companies in industries such as oil and gas, food and beverage, manufacturing, and consumer goods are already using ESG reporting and data management software from IT providers. Process effectiveness will sit across many functions including risk, finance, HR, legal, technology, procurement, supply chain and sustainability. The latter is expected to grow in importance quite substantially. Leading effectively We outline below eight competencies that are essential to lead effectively in the area of sustainability: 1. Sustainability expertise – A strong grasp of ESG sustainability concepts and how these relate to an organisation’s operations and business strategy. 2. Technical expertise – Knowledge of best practice for data management and solutions that enhance firms’ ESG performance. 3. Regulatory knowledge – The ability to interpret and implement mandatory and voluntary reporting regulations effectively. 4. Strategic vision – The integration of sustainability goals with corporate strategy, embedding sustainability objectives in the organisation’s long-term vision. 5. Risk management – The identification and mitigation of ESG risks in compliance with sustainability reporting directives. 6. Ethical leadership – Authenticity and ability to inspire and lead cross-functional teams dedicated to sustainability initiatives. 7. Monitoring and reporting performance – Tracking sustainability initiatives through KPIs and incorporating sustainability data within management reports. 8. Financial acumen – Understanding the financial implications of sustainability initiatives and making sound financial decisions related to sustainability investments. How to recruit for sustainability According to KPMG, 43 percent of CEOs in Ireland view the greatest challenge in their ESG strategy as attracting new talent. The challenge for executive search firms and HR leaders will be in selecting C-suite executives aligned to their organisation’s commitment to sustainability. The recruitment process should be rigorous, comprehensive and include each of the following stages: 1. Define role and responsibilities: Responsibilities should include developing and implementing sustainability strategies, assessing risk, ensuring compliance with relevant standards, reporting on corporate social responsibility (CSR) performance, evaluating technology and engaging with stakeholders. 2. Identify key qualifications and skills: Seek candidates with a strong background in sustainability, ESG practices and driving CSR initiatives. They should demonstrate experience in using technology to drive these initiatives efficiently. 3. Prepare a detailed briefing document: Highlight the company's dedication to CSR in the briefing document and throughout the assessment process. 4. Conduct comprehensive competency-based interviews: Assess candidate knowledge of CSR, values and ability to drive sustainable practices. Seek evidence of implementing CSR programmes and their outcomes and ascertain their approach to stakeholder engagement. 5. Evaluate cultural alignment and leadership proficiency: Evaluate the candidate's leadership style for alignment with company culture. Executives should possess the ability to motivate and guide teams towards enduring CSRD objectives. 6. Plan onboarding and integration: Formulate an onboarding strategy that encompasses an introduction to the company's CSR initiatives and organise introductions to key stakeholders. Role specifications will vary depending on the size, scale and complexity of an organisation. However, a commitment to sustainability and a willingness to adapt are essential for C-suite leaders to effectively navigate compliance with the CSRD and broader sustainability initiatives. Michele Stokes, is Director and Head of Research at HRM Search Partners

The explosive growth of AI has transformative potential but also raises critical privacy concerns that must be addressed, writes Pat Moran The world of artificial intelligence (AI) took a massive leap forward with the emergence of ChatGPT in November 2022. Since then, there has been a surge in the design and implementation of AI use cases across industries such as healthcare, retail, financial services, manufacturing and others. While the emergence of AI is transformative, this powerful tool is not without its challenges, particularly the profound privacy concerns it raises. As organisations eagerly harness the potential of AI, it is vital to know the associated privacy risks, such as: Data collection and breaches – As AI models evolve, their training datasets will likely grow, increasing the risk of personal and special category data being included. These datasets must be stored and processed securely while training AI systems. Algorithmic bias and discrimination – Biased algorithms may inadvertently perpetuate biases and lead to decisions that could negatively impact certain groups of people without the organisation’s intention to discriminate. Data subject requests – Once the AI systems are trained and deployed, responding to certain data subject requests becomes increasingly difficult. Transparency – As AI systems become commonplace in organisations, users will increasingly unknowingly interact with these systems, including instances where users are affected by automated decision-making. Regulatory requirements and industry standards – Even though AI is considered a novel technology, there are existing and upcoming regulations and standards that define and guide its usage. Organisations must demonstrate compliance with these regulations and standards to maintain customer trust and meet procurement standards in the market. Misuse of personal data in AI-enabled cyberattacks – Malicious actors have begun leveraging personal data such as audio clips and deep-fake content for advanced phishing attempts and other scams. Inaccurate responses – It is common for generative AI programs to respond based on probabilities identified within the data sets used to train the AI instead of actual, accurate data points. This can result in inaccurate responses and may cause issues if users do not verify the authenticity of the system’s responses. Organisational changes for AI To successfully traverse the concerns listed above while developing and integrating AI systems, organisations should consider the following best practices: AI governance: The teams involved in developing AI governance should be interdisciplinary, including teams in AI development, legal, privacy, information security, customer success and others. Privacy by design: The foundation of responsible AI lies in the concept of ‘privacy by design’, which states that data protection and privacy considerations must be implemented throughout the development lifecycle for any AI system. This includes incorporating privacy-enhancing technologies, ensuring appropriate security, compliance with regulatory requirements and other privacy-specific principles. Some AI systems have a ‘black box’-like nature, which makes it harder to detect and fix ethical, privacy and regulatory issues once deployed, increasing the need for privacy by design. Further, there might be other processes that pose too high a risk to move towards automation through AI and will require controls such as “a human in the loop”. Transparency: Users must be provided with clear and transparent communication in the form of privacy notices and other means including: confirmation that AI systems are used to process their data (including details of automated decision-making, if present); how their data is collected and processed; how long it will be stored; an outline of their rights, etc. The information helps users provide informed consent and builds trust in AI systems as well as the organisation. Fairness: An important step is to perform regular audits of AI systems to test their performance and ensure no bias or discrimination against users. The review should include the automated decision-making algorithm, and the process by which the algorithm makes decisions should be transparent and explainable. Data management: Ensure data ingested by the AI system during training is lawfully obtained, high-quality, and rigorous vetting and anonymisation have been performed. Technologies such as pseudonymisation or data aggregation should be implemented to ensure compliance with data minimisation and retention privacy principles. Up-to-date records of processing activities should also be maintained to ensure data is managed effectively throughout its lifecycle. Remember, organisations cannot use publicly available data to train AI systems without a valid lawful basis. Risk management, compliance and information security: A risk-based approach, including a data protection impact assessment, should be implemented to assess the level of risk involved before AI systems are deployed. The organisation should also sign off on the risk levels, controls and mitigations. AI compliance monitoring should be incorporated into the organisational, regulatory compliance programme or privacy programme. The wider organisational information security programme should include AI systems and their underlying data to prevent data breaches and malicious attacks. Technical and organisational measures such as encryption, data masking, password management, access controls and network security should be implemented. Employee training: As AI is a new technology, employees must be trained periodically on responsible AI usage. Training should include the privacy impact of AI systems, compliance with data protection regulations while using AI, misuse of personal data in AI-enabled cyberattacks and how to guard against it, and data protection best practices. Conclusion The advent of AI may be compared to the invention of the combustion engine. While organisations can move faster, they will also require stronger brakes. These brakes may address these multifaceted concerns, which necessitates a holistic approach, combining technological innovation, ethical practices, user empowerment and regulatory adherence. Organisations’ responsibility will be to innovate and ensure that innovation aligns with the values of privacy, ethics and user trust. Pat Moran is the Leader of Cybersecurity Practice at PwC.

The end of January sees several customs changes that will have a significant impact on Irish exporters to the UK. Brian McNamara discusses what you need to know to avoid delays and charges After several delays, HMRC will finally introduce full UK import checks on goods coming from the island of Ireland. On the same day, the UK Department for Environment, Food & Rural Affairs (DEFRA) import controls will also begin for certain food and plant products coming from the European Union. Below are three important points businesses moving goods to the UK should be aware of in relation to these changes: 1. UK import declaration and goods movement reference The biggest change from 31 January is that UK customs filings must be done prior to departure of the goods. Up to this point, there has been an easement in place allowing the import declaration to be carried out after the event. From Wednesday next, if the UK import declaration has not been submitted, the goods simply won’t get on the ferry in Dublin or Rosslare. Further, truck drivers will need to scan a goods movement reference (GMR) document when checking in with the ferry company. The import declarations for all goods on the truck need to go into the GMR. Exporters should talk to all parties in their supply chain (freight companies, clearance agents and UK suppliers) and get comfort that all necessary documents will be in place to ensure their goods keep moving. 2. DEFRA controls The 31 January also sees the introduction of health controls on the import of certain foods of animal origin (FOAO), plants and plant products from the EU. While the EU insisted on such checks on UK imports straight away on 1 January 2021, the UK government elected to delay the introduction of a similar regime. These DEFRA import requirements include the advance notification of the consignment on the UK’s IPAFFS system, and the submission of an export health certificate for certain goods. DEFRA has classified all FOAO, plants and plant products as either low, medium or high risk. The exact requirements each category of goods is subject to will depend on their risk classification. Exporters in the agri-food and plant industries should get a clear picture of the risk category of their goods and ensure all necessary steps are taken. As with the general UK import controls, if the correct submissions are not made, the goods won’t move. 3. Repairs/goods moving for processing Ireland is a smaller market than the UK. In some industries there isn’t the same level of capability locally, so it’s not unusual for goods to go to the UK for repair or further processing. A common misconception concerning customs is that, if goods are not being bought/sold, people think there is no import duty due on them – machinery moving to the UK temporarily for repair, for example. This is not the case, however. Once goods cross a customs frontier, an import declaration is required, and the goods are potentially liable to import duty. It is possible to gain relief from import duties on goods entering the UK temporarily by using Customs Special Procedures such as Inward Processing or Temporary Admission. However, businesses should be aware that it can take time to properly put these procedures in place. Taking short cuts could lead to the goods getting stuck and/or incurring import duty and VAT. So to an extent, the full impact of Brexit will only now be felt by Irish companies moving goods to the UK. To stay on top of this, businesses should make sure that all the correct documents are in place to keep their goods moving, minimise import duty and stay customs compliant. Brian McNamara is MD at SwiftFile Customs.

In Irish news, the Minister for Finance urges businesses with warehoused debt to engage with Revenue in agreeing flexible payment arrangements and Revenue provides an update on enhanced employer reporting. In UK news, we issue another reminder of the 2022/23 self-assessment filing deadline which now includes importance guidance for postmasters affected by the Horizon scandal and the Government has published its promised update on tax simplification. In International news, Zambia joins the Global Forum on Transparency and Exchange of Information.  Ireland The Minister for Finance is urging businesses with warehoused debt to engage with Revenue in agreeing flexible payment arrangements. Revenue has provided insight into one aspect that is causing some enhanced reporting requirement (ERR) submissions to be rejected. UK Read our reminder about the 2022/23 self-assessment filing deadline which also contains important guidance for postmasters affected by the Horizon scandal. Mandatory payrolling of benefits in kind from April 2026 features in the Government’s recent update on tax simplification. International Zambia has become the 171st member of the Global Forum on Transparency and Exchange of Information for Tax Purposes (the Global Forum). Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount. You can also read this week’s EU exit corner here.  

Twelfth sanctions package The EU  adopted a twelfth package of sanctions on 18 December 2023.Please see attached press release providing details . Some of the measures include a new obligation to contractually prohibit re-exportation of sensitive goods to Russia. Exporters will be required to contractually prohibit the re-exportation to Russia and re-exportation for use in Russia when selling, supplying, transferring or exporting to a third country (with certain exceptions) goods or technology such as aviation and space items, jet fuel and additives and firearms and other arms and ammunition . Other measures include financial restrictions such as a ban on Russian nationals owning, controlling or holding any posts on the governing bodies of those providing crypto-asset wallet, account or custody services to Russian persons and residents. The existing prohibition on the provision of services will be extended to include a ban on the provision of software for the management of enterprises and software for industrial design and manufacture. A new measure is introduced that will require the notification of certain transfers of funds out of the EU from EU entities directly or indirectly owned by more than 40% by Russians or entities established in Russia. Member States must designate by October 31, 2024, a national authority to identify and trace funds and economic resources belonging to, or owned, held, or controlled by designated individuals and entities located in their jurisdiction, to prevent and detect attempts or instances of sanctions violations or circumvention. Click here for Q&A from the European Commission on the twelfth package and here to see the consolidated FAQs from the European Commission. OFSI Annual review On 14 December 2023, the Office of Financial Sanctions Implementation (OFSI) published its Annual Review for the financial year 2022 to 2023. It states that in the medium term the outlook indicates continued intensity for financial sanctions. The report contains reporting on assets frozen under UK financial sanctions regulations. The review discloses that £22.7 billion of assets have been frozen in relation to Russia and OFSI staffing has increased significantly. However, there has been no fines for a post-Feb 2022 sanctions breach in relation to the UK's Russia sanctions regime. Penalties for the violation of Union restrictive measures  Currently member states have different definitions of what constitutes a violation of restrictive measures and what penalties should be applied in the event of such a violation. On 12 December 2023 the EU Council and Parliament reach political agreement to criminalise violation of EU sanctions .Please click here for the proposal made by the EU council in May 2023  in relation to the definition of criminal offences and penalties for the violation of Union restrictive measures  , the press release of June 2023 and the press release on December 2023  . This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.    

Revenue has updated the Tax and Duty Manual for annual average exchange rates to include the average market mid-closing rate v Euro, for the calendar year 2023. The Lloyds sterling conversion rates have been removed from this manual as they are no longer relevant. 

Revenue has published a new version of the Form IREF on its website in the Related Forms panel. Irish Real Estate Funds (IREFs) with accounting periods ending between 1 January 2023 and 30 June 2023 are required to file this updated Form IREF on or before 30 January 2024, as provided by section 739R(2) TCA 1997. Further information is available in eBrief no.025/24. 

Zambia has become the 171st member of the Global Forum on Transparency and Exchange of Information for Tax Purposes (the Global Forum).  Like all other members, Zambia commits to combatting offshore tax evasion through the implementation of the internationally agreed standards of exchange of information on request (EOIR) and automatic exchange of financial account information (AEOI). Zambia is the 39th African member to join the Global Forum and the sixth African country to join in the past eighteen months.