As Chartered Accountants prepare for 2024, Ross Boyd outlines key measures to stay one step ahead in a challenging climate Whilst the dawn of a New Year brings with it a sense of hope and often optimism, accountants across the world should brace for a difficult 2024.  I established my practice over a decade ago, having earned my stripes for about 15 years before that, but in all that time I’ve never experienced such volatility and uncertainty.  The year that’s gone has presented the most complex economic test of a generation with the impact of two wars, Brexit and the pandemic completely transforming the business landscape.  I commend my fellow Chartered Accountants for powering through and continuing to do their best for their clients, and their own teams.  Chartered Accountants across the island will already be preparing for a tough 2024, aware of the implications of the current economic climate. The accountancy sector faces additional hurdles, including a skills shortage, retention issues, the continued rise of artificial intelligence and digital tools, and ongoing consolidation across the sector.  While changing business taxation is a big issue in the North, talent and technology are two common themes facing businesses across the island on the cusp of the New Year. Change continues at a relentless pace, and we must pause, embrace and adapt to remain relevant. Here are the key areas I recommend you focus on now, so that you can grow your business and continue to provide trusted and expert counsel to your clients.  Talent Labour shortages, paired with the capacity pressures these shortages cause, are likely to be the most pressing issues restricting growth across many sectors in 2024. Unfortunately, the war on talent is a trend our own sector will continue to battle too.  To put it bluntly, the sector’s image needs reinvention if it’s to continue attracting and retaining talent.  And to put it even more bluntly, investing in human capital is non-negotiable – after all, talent and growth are entirely correlated. As employers, we must adopt a two-pronged approach here.  First, we must invest in existing employees to support their continued contribution to the sector. I would advise any practice to objectively assess their employees’ skill sets and put the necessary plans in place to help them develop.  These development plans should look beyond ‘number crunching’ and financial recording to include a broader set of responsibilities, such as analysing forecasts, identifying emerging trends and networking.  It is crucial we ensure that the role of the Chartered Accountant isn’t limited or constrained, and that it is clearly positioned as that of strategic advisor. Second, we must focus on creating the type of organisation – and providing the kind of leadership – people want today.  Organisations that prioritise diversity, inclusion and flexibility are proven to have higher employee retention, and this is becoming even clearer post-pandemic as Gen Z becomes more present in the workplace.  Now aged between 11 and 26, this generation will account for 27 percent of the workforce by 2025.  At RBCA, we have spent a lot of time developing our graduate programme so that we can give our trainee recruits every opportunity to thrive, including supporting their interpersonal development. We also recently invested in a new office in Belfast to provide a physical environment that supports productivity and learning, and our annual Away Days continue to be invaluable to the culture of RBCA.  Technology  We have all come to understand the importance of digital tools in recent years and it is critical that, in 2024, we continue to use technology to improve both efficiency and security.  At RBCA, we moved to cloud computing in 2011 and we recently invested in new cloud technology, successfully tackling our tech stack. Some ill-advised pundits would argue that accountancy’s future is limited in our increasingly digital world, but our experience is that new accounting technologies have been complementary to our work.  Technology will never replace our profession, however. Why? Because, in my opinion, people will always buy into people.  Relationships and quality communications are the greatest tools at the disposal of today’s Chartered Accountant, providing that crucial competitive edge.  Often, we are so focused on our clients’ businesses and their success that we don’t focus enough on the resilience of our own, but it’s vital that we harness the passion and commitment that exists across the sector to thrive in the New Year.  Ross Boyd is founder and director of RBCA, a Belfast-based Chartered Accountancy 

From education and the next generation, advances in technology and the evolving role of the accountant, to business and the economy, what can we expect in the New Year? As we look ahead to the New Year and the opportunities and challenges it will bring for society and the economy, our District Society Chairs give us their take on what lies ahead for the profession in 2024. Brendan Brophy, Chair of the Young Professionals Committee The accountancy profession is poised for transformative developments in 2024 and young professionals will find themselves at the forefront of this dynamic landscape.  The coming year promises a paradigm shift in the role of accountants in business.  Beyond the traditional domains of financial reporting and compliance, there is a growing emphasis on strategic financial management. Young professionals are expected, not only to interpret financial data, but also leverage their insights to drive business decisions. Our ability to communicate financial information in a clear and compelling manner is becoming as crucial as the technical expertise itself. In Ireland, where the business ecosystem is marked by resilience and innovation, the role of accountants is expanding to encompass a broader spectrum of advisory services.  Accountants are increasingly being called upon to provide strategic insights that guide organisations through economic uncertainties and market fluctuations. The expectation is for accountants to be proactive contributors to organisational growth, acting as trusted advisors who understand the intricacies of both finance and business operations. Advancements in technology continue to reshape the profession and we can expect to see this trend accelerate in the year ahead.  Automation and artificial intelligence are streamlining routine tasks, allowing accountants to focus on higher-value activities such as analysis, interpretation and strategic planning. As a young professional, staying abreast of these technological developments and embracing them as tools for efficiency will be paramount. Morna Canty Ahern, Chair, Chartered Accountants Ireland Midwest Society An accountant will always have a seat at the table and, for some, the shift in the traditional role of accountant is the ghost of Christmas past. Currently, we find ourselves as a profession in high demand but facing a lack of supply.  The many routes to qualify as an accountant – along with the Government’s renewed focus on apprenticeships – means that our sector can now actively address the skill shortage we face and meet the demand for high-quality professionals through education.  Education is the ‘gateway to the future’ in building the Chartered brand, but it does not end with our qualification. Education is a cycle, a continuous process of learning and acquiring knowledge pre- and post-qualification. Chartered Accountants are always seeking opportunities to learn and our education must emphasise and support the reality of our role today, and not the traditional role of the ghost of Christmas past. Through technology, our role now is to provide leadership in business, rather than simply counting costs.  Despite this, fewer young people are choosing a career in accountancy and this is because the role of the modern accountant is not accurately portrayed to students at second and third level.  We welcome the commitment by the Department of Education to review the second-level accounting syllabus.  A focus on promoting the true working life of today’s accountant through educational campaigns by our members will help the next generation to visualise a future in our profession. Becoming an accountant is a commitment to lifelong learning and, as we approach 2024, we need to develop educational access programmes in partnership with third-level institutions so we can engage and encourage younger generations to become accountants.  Our members are natural mentors, often contributing at many levels to their local economy and offering support to their communities.  A renewed focus in 2024 on engagement with the Institute and our District Societies will help to deepen these relationships and strengthen the value attributed to the role of the Chartered Accountant in communities around the country.  As a profession, we are not just ‘about numbers’; our unique ability to strategically shape organisations through trusted advice and guidance contributes far beyond the balance sheet. James Fox, Chair, Chartered Accountants Ireland Cork Society It has been great to see the theme of #NextGen at the forefront of Chartered Accountants Ireland in 2023, building on previous discussions with national policymakers regarding the potential changes required to the Leaving Cert accounting syllabus. I see this process as being a key driver for promoting the profession, keeping up to date with advances in technology and encouraging younger generations to pursue a career in accountancy. The future of accountancy as a career is a hot topic and one I expect to see further discussion on in 2024.  Having spoken to many students and second-level teachers since I became Chair of our Cork Society, I can see that there is still work to be done to change perceptions of what a career in accountancy is really like. In 2024, I will continue to listen to our members, to key stakeholders in second- and third-level education and to the next generation themselves, to see how Chartered Accountants Ireland can remain not just relevant, but at the forefront of shaping the national dialogue and influencing policymakers. It is important that we clearly demonstrate how Chartered Accountants continue to play a crucial role in industry, practice and many other sectors, and in the midst of rapid developments in technology. A career as a Chartered Accountant is varied, interesting and dynamic, and the academic curriculum and internship programmes on offer to the younger generation must reflect this. I would also hope, in 2024, that further light is shone on the supports small-to-medium sized practices need as we move forward. They play a vital role at a local and national level and are at the coalface of our profession, supporting entrepreneurs and training new members. It is vital that these practices get sufficient support to grow and thrive in the future, particularly with regard to technology, and I hope that this is high on the agenda nationally in 2024. Des Gibney, Chair of Chartered Accountants Ireland Leinster Society Despite the economic impact of COVID-19 and the negative impacts of high inflation, soaring energy costs, rising interest rates and over €2 billion in warehoused Revenue debt, business insolvencies in Ireland remain at the same level as 2019, which itself marked a historic low. The sectors bearing the brunt of these economic pressures currently include construction, hospitality and retail. I predict that the commercial property sector in Ireland will also come under significant pressure over the next 12 to 18 months due to a combination of higher interest rates and the prevalence of hybrid working. Between 2012 and 2018, insolvencies averaged 1,000 per annum. Recent figures indicate that we can expect 600 corporate insolvencies this year, so we are not faring too badly, relatively speaking, despite the macro-economic situation worsening since 2018. I believe there is a combination of reasons for the low level of corporate insolvencies we are currently seeing, including uptake of formal restructuring procedures such as the Small Company Administrative Rescue Process (SCARP) and examinership. Generous Government supports made available over the COVID period have helped.   The Government has also played its part by providing struggling SMEs with the SCARP option, which can save a company where it is insolvent but has a viable business. It is a cheaper and faster process than examinership. However, since the legislation was enacted in 2021 there have been approximately 50 SCARP appointments. Thirty companies were approved, nine failed and the balance were restructured outside the process. This level of uptake is disappointing. However, SCARP is still in the early stages and we must remember that uptake of the examinership legislation brought in back in the nineties was also initially very low. Having advised companies on insolvency and restructuring matters for decades, my experience has been that owners and directors tend to put off taking formal action until they are left with no other option. In some regards, particularly in the case of family-owned businesses, I understand this reluctance. The most common source of corporate pressure comes from either a creditor or the prospect of the company imminently running out of cash and being unable to meet their wage bill. Once matters reach this stage, the options available to the company reduce significantly.  To avoid this, my advice to business advisors, directors and shareholders is to understand the statutory responsibilities of directors when the company is approaching insolvency and the implications this may have for their other business interests or employments.  The next step is to explore the options available to the company by seeking advice early from an experienced insolvency practitioner. Marion Prendergast, Chair of Chartered Accountants Ireland Northwest Society The prospects for the Northwest region in 2024 are undeniably positive, drawing on my first hand experience as a member of the Northwest Society and my role in the regional public sector. In the wake of the COVID-19 pandemic, there has been a notable influx of professionals choosing the Northwest for work across diverse industries, setting the stage for robust economic growth. As Chair of the Northwest Society, I’ve had the privilege of connecting with numerous members who have either returned from overseas or opted to move here from bustling urban areas.  The common thread in these decisions is the pursuit of better work-life balance, reduced commuting times and a focus on family support – benefits the Northwest region provides. In my role as Head of Finance at Sligo University Hospital, I’ve witnessed the successful recruitment of highly skilled expatriates choosing to return home. Unlike in the past, when we might have competed with larger city hospitals, the appeal of the Northwest is now a major draw for individuals relocating to the region and contributing to the local economy. Nevertheless, like any region, the Northwest faces challenges that demand attention. Our road and rail networks require substantial investment, with the N17 urgently needing upgrading as the main connection to Ireland West Airport. Additionally, improved road connections to Northern Ireland and faster rail links to the capital are essential for accommodating the needs of remote workers effectively. Addressing the housing shortage, particularly for families, requires increased investment. While these challenges are widely acknowledged and are high on the Government’s agenda, their resolution is crucial for the Northwest to retain its appeal to high-calibre talent. As members of Chartered Accountants Ireland, we are well-equipped to play a pivotal role in finding solutions. Our diverse membership spans various industries and functions, and our local District Societies serve as vital connectors, especially for those engaged in remote work.  The view from London The members of the London Society Committee were pleased to see an increased appetite for in-person events throughout 2023 and we expect this trend to continue, writes Michael Gilmartin, Chair of Chartered Accountants Ireland London Society. In 2024, however, we expect demand for in-person events to be driven not by pent-up demand post-COVID but by a softer labour market in which companies may start to mandate more compulsory days in-office. The UK economy is forecast to grow by a modest one percent in 2024 and there remains much uncertainty globally.  Given the financially challenging times, it is vitally important that we continue to be a force for good within the Irish community in and around London. Our biggest challenge is trying to engage with members who are based in the Greater London Area.  This isn’t unique to the London Society, but with a population in excess of 9.5 million people in Greater London, we will always face intense competition vying for our members’ attention. The interests of our members continue to evolve to reflect those of wider society and we will continue to offer novel, less traditional events in 2024.  Michael Gilmartin is Transformation Director, Dentsu International The view from Northern Ireland There’s a lot to be positive about in Northern Ireland, particularly when it comes to the creativity, innovation, drive and resilience in the business community, writes Paul Millar, Chair of Chartered Accountants Ireland Ulster Society. We have entrepreneurs who have a positive vision for Northern Ireland and who have the drive to realise this vision.  There are significant sectoral strengths in areas such as digital and ICT, life and health science, advanced manufacturing, fintech, agri-food and the creative industries – and we have great renewable energy potential. Twenty-five years on from the Good Friday/Belfast Agreement, there is also a great level of interest from US investors in supporting businesses in Northern Ireland. In recent months, we’ve seen the US Special Envoy to Northern Ireland, Joe Kennedy III, lead a trade mission of 50 US executives to Northern Ireland.  There is a clear message that Northern Ireland has something to offer – growth potential, a skilled workforce and unique dual market access to the UK and EU. We could be on the verge of something special. The US is Northern Ireland’s largest source of foreign direct investment, supplying 45 percent of projects in the last 20 years. One-third of all foreign direct investment and 51 percent of the jobs created have come from the US.  A growing interest in further investment could be a great sign. It could be a catalyst to boost everything else within our society, from health and education to housing and wellbeing. Of course, there are challenges. The cost-of-living crisis, and the cost of doing business, continue to be difficult for everyone. Just about every sector is facing a skills shortage and when we need leadership the most, we continue to face a democratic deficit at Stormont. Public services are in a difficult position. There are substantial pressures on public sector finances and significant budget overspends to deal with. We need a devolved administration back up and running at Stormont to deal with these issues. At the time of writing, there have been positive signs that perhaps the Executive and Assembly suspension could end soon. We urgently need this to be the case. Paul Millar is Chief Executive of Whiterock Finance

Accountancy Europe Board Member Shauna Greely tells us about the organisation and its work and priorities for the year ahead  Accountancy Europe is a representative body based in Brussels at the heart of the European Union and I am a Vice President and Board Member. Our focus is to give a unified voice to the accountancy profession in Europe, including Chartered Accountants across the island of Ireland, and to ensure that your perspectives, priorities and insights are heard by the policy makers, regulators and standard-setting bodies operating at a European level. For me, this is particularly important because Ireland is a proud member of the EU and I am proud to be able to represent members of Chartered Accountants Ireland in Europe. Accountancy Europe is heavily engaged with accounting standard setters, such as the European Financial Reporting Advisory Group, the International Accounting Standards Board and other key stakeholders involved in the interests of the accountancy profession. Accountancy Europe helps inform European policy debate in areas such as sustainability, SMEs, tax, reporting and audit – and promotes high-quality financial reporting, auditing and ethical standards.  One of our biggest priorities right now is combatting climate change and the crucial role sustainability reporting has to play in reducing carbon emissions and ensuring that companies are operating as sustainably as they can. I am concerned about climate change and the impacts this is starting to have on all our lives. I hope that Accountancy Europe and the profession as a whole can play its part in raising awareness about climate change impacts and sustainability, so that we can bring about positive change. It is vital that we get this right and that the right level of reporting is introduced for organisations, both large and small, across the EU.  Sustainability reporting brings to mind the saying, “What gets measured gets done”. It has such an enormously important role to play in combatting climate change and puts the accountancy profession front and centre in these efforts. This is all the more important because the younger generation of professionals coming into the workplace have a social conscience. They want to do good in their lives and in their work, and they want to be part of professions and organisations that are doing good and can attest to it. The accountancy profession is at the coalface of climate reporting and Accountancy Europe ensures that this pivotal role is represented as one voice to the European Parliament, the European Commission and the policy makers in Brussels who are shaping the future of the EU. Shauna Greely is a Senior Finance Business Partner with Ulster Bank and past President of Chartered Accountants Ireland  

IFAC Board Member Joan Curry tells us about the organisation and its work and priorities for the year ahead  The International Federation of Accountants (IFAC) is the global voice for the accountancy profession. I describe it as the members’ body for members’ bodies.  IFAC was established in 1977 at the 11th World Congress of Accountants in Germany. At that time, there was recognition that the profession needed a global voice and perspective. Now, IFAC represents 180 member and associate organisations in 135 jurisdictions, including Chartered Accountants Ireland. Its reach extends to millions of accountants worldwide.  At this high level, IFAC represents the public interest by advocating for, and amplifying, the relevance, reputation and value of our profession globally. We operate across three pillars: supporting the development, adoption and implementation of international standards; ensuring the highest-quality education for the profession; and looking to the future to identify and respond to emerging developments so that we can ensure the profession is future-ready. I joined the IFAC Board in November 2019 and am one of 23 Board Members from around the world. We govern and oversee the operations of IFAC, ensuring that its mission and vision are progressed through its organisational structures. Coming into 2024 and as the world becomes ever more connected and integrated, our priority is to ensure the continuation and enhancement of trust and confidence in the accountancy profession. This is our North Star, both at a global level and in every jurisdiction in which our members operate. To this end, we have introduced a set of reforms in recent years to help maintain the independence of standard setting. There is now a structure that allows standard setting to be developed and delivered in an independent arena, rather than under the banner of IFAC.  In creating this new structure, IFAC supports, monitors, promotes and advocates for the work of the standard-setting boards in developing independent standards across audit, assurance and ethics. These standards are directed towards the areas of greatest public interest and underpin trust and confidence in the profession. This is important in every sense but especially so given the global drive to develop sustainability reporting standards so that the profession can play its part in tackling climate change. IFAC represents the profession in supporting the delivery of the G20’s Sustainable Development Goals and ensures our voice is heard on issues with global impact, such as climate change. We will continue to be future-focused and to ensure that issues of importance to all accountants, including the younger generation, are at the heart of IFAC’s mission and vision.  We recognise the diversity of thought and inclusion required to maintain the relevance of the profession into the future and the importance of our role in envisioning how the profession will evolve and the impact we can make in the years ahead. Joan Curry is Head of Finance at the Department of Transport and a member of the Council of Chartered Accountants Ireland

Minister for Finance Michael McGrath outlines his expectations for the Irish economy and business in 2024 Over the past number of years, our economy and society have weathered multiple unprecedented challenges: Brexit, a once-in-a-century pandemic followed by the Russian invasion of Ukraine, and the associated impact on energy prices and inflation.  Yet despite all these headwinds and reinforced by Government support, our economy has proven remarkably resilient, with our labour market essentially at full employment and public finances on a positive trajectory. As we look ahead to 2024, I am encouraged by the strength our economy has demonstrated in the wake of so many external shocks.  Next year, Modified Domestic Demand (MDD) – my preferred measure of the domestic economy – is forecast to grow by 2.2 per cent. While this is lower than the growth we have experienced in recent years, it compares favourably with the outlook for many of our competitors. The increase in financing costs facing businesses because of this monetary policy tightening is unfortunately a challenge Irish business will continue to contend with in 2024.  This greater burden comes at a time in which businesses are already facing inflation at multi-decade highs.  Thankfully, there is some evidence that we have now turned a corner on inflation. Inflation is expected to continue to ease over the coming months with the rate projected to fall just below three percent next year.  It is important to note that the outlook for ‘core’ inflation – which excludes energy and unprocessed food – has proven to be more persistent as inflationary pressures have become broader.  Looking at the international picture, the balance of risk is very much tilted towards the downside.  A small, open economy like Ireland is particularly vulnerable to global economic developments. Geopolitical tensions and further changes to monetary policy are key risks facing our economy over the coming period. As Minister for Finance, one of my priorities is to ensure that businesses have the support they need amidst all these challenges.  In the lead-up to Budget 2024, I examined the tax reliefs and supports available to Irish businesses and met with, and listened to, the views of stakeholders from across the country.  Based on this, I announced a wide-ranging package of measures to support enterprise in Budget 2024.   Among these measures, I am increasing the Research and Development (R&D) Tax Credit from 25 percent to 30 percent. The first-year payment threshold is also being doubled from €25,000 to €50,000, which will provide valuable cashflow support to companies engaged in smaller R&D projects.  These amendments will ensure that Ireland remains competitive in attracting employment and investment in R&D.  I am also introducing a new targeted Capital Gains Tax relief that will allow angel investors to benefit from a reduced 16 percent rate of CGT when they dispose of a qualifying investment for gains up to twice the value of their investment.  This relief aims to encourage investment in this important sector of our economy, helping these enterprises access the necessary capital to grow and develop. In the same vein, I am also enhancing the Employment Investment Incentive Scheme by standardising the investment period to four years for all investments, and doubling the amount an investor can claim relief on for four-year investments to €500,000.  Further changes are also being made to the scheme to ensure that it is compliant with the new EU General Block Exemption Regulation.  To support Irish SMEs in engaging key employees, I have recently commenced the outstanding Finance Act 2022 amendments to the Key Employee Engagement Programme, following receipt of State aid approval from the European Commission.  This includes an extension of the scheme to the end of 2025 and doubling the amount of issued, but unexercised, qualifying shares a company can hold from €3 million to  €6 million.  In my engagement with stakeholders, a clear message has emerged: businesses find the administrative requirements of tax supports and schemes to be complex.  To examine this issue, Revenue will be establishing a subgroup of the Tax Administration Liaison Committee (TLAC).  This group will examine Revenue-administered tax schemes and reliefs for business, with a focus on identifying any opportunities to simplify and modernise the administration of business supports. It will report on its findings in the course of 2024.  My department will also undertake several reviews in 2024 to further examine how specific enterprise support reliefs and schemes can work better for Irish business.  I am very optimistic for the future of business in Ireland. The suite of enterprise tax measures announced in Budget 2024 is a sign of our commitment to ensuring that Ireland is an attractive location for start-ups and scale-ups across a range of sectors.  Michael McGrath, FCA, is Minister for Finance and a TD for Cork South Central

The objectives of the National Action Plan Against Racism will be implemented within the Institute, and among members and students, under a recently unveiled Ethnicity Network Group initiative At Chartered Accountants House on a recent evening in late October, members of the Ethnicity Network Group (ENG) announced their plans to implement the objectives of the National Action Plan Against Racism (NAPAR) within the Institute. The ENG is committed to supporting the implementation of NAPAR recommendations within the Institute both as a professional body and employer, explains Deborah Somorin, ENG founder and Co-Chair.  “The National Action Plan Against Racism will be a catalyst for creating more equitable, diverse and inclusive workplaces for people from ethnic minority backgrounds in Ireland,” says Somorin, who is Manager, People Advisory Services, EY Ireland. “Organisations will now acknowledge that racism exists in Ireland and hopefully put in place policies to create authentically anti-racist environments where everyone has fair access to opportunities to gain employment and grow in their careers.” As well as supporting the implementation of NAPAR recommendations within the Institute, Somorin and her ENG colleagues are also committed to supporting members and students who want to implement the recommendations within their own organisations. This is especially important given the recent rise in anti-immigration narratives in Ireland – and the profession is not immune, explains Somorin’s ENG Co-Chair Aisling McCaffrey, Director of Sustainability and Financial Services Advisory at Grant Thorton. “A recent Chartered Accountants Ireland survey found that 43 percent of members and 66 percent of students have personally witnessed or heard someone else being discriminated against in the workplace,” says McCaffrey.  “The survey also found 28 percent of people who identified as being an ethnicity other than white felt their ethnicity had a negative impact on their career as a Chartered Accountant. Only three percent of people who identified as being white responded the same.” The development of NAPAR This isn’t the first time Ireland has attempted to tackle the issue of racism. The country’s first National Action Plan Against Racism was introduced in 2005. When it ended in 2008, however, it was not renewed, leaving “an important vacuum contributing to a ‘normalisation’ of racism”, according to a report by the European Commission against Racism and Intolerance, published in 2019. The UN High Commissioner for Human Rights issued guidelines on creating a new National Action Plan Against Racial Discrimination in 2014. In turn, Ireland – with a mandate established under the Irish Human Rights and Equality Commission Act – created the Irish Human Rights and Equality Commission in 2014. Its purpose was to “protect and promote human rights and equality in Ireland and build a culture of respect for human rights, equality and intercultural understanding in the State”. An Anti-Racism Committee was subsequently established in 2020 by then Minister of State at the Department of Justice and Equality, David Stanton TD.  The committee was given the mandate to conduct research on racism in Ireland, research best practice in other countries and come up with recommendations to tackle racism here. “We did a number of interviews and consultation processes with different departments and ministers, agencies and bodies,” explains Dr Bashir Otukoya, Anti-Racism Committee member, law lecturer and Higher Executive Officer for the Courts Service.  Dr Otukoya took part in a panel discussion at the October launch of the ENG’s NAPAR initiative at Chartered Accountants House. “We had hundreds of written submissions from members of the public, and we put all of that together to end up with NAPAR,” he says. “Each of the board and community members have their own expertise in different fields, like human rights, anti-discrimination and equality law – and [we have] members of communities that are affected by racism. We went at it from an angle of experience and knowledge.” For ENG member Reabetswe Moutlana, Audit Manager at EY, one of the most important aspects of NAPAR is the momentum it creates for collective action. “NAPAR recognises that the journey towards an inclusive society is a collective journey and, therefore, puts the onus on everyone – the State, private actors, organisations and individuals – to work together to make Ireland a safe place for all,” says Moutlana. “The Action Plan also focuses on a victim/minority-centred approach. The key principle of the plan is that ‘affected groups should participate in the development and oversight of all government policy initiatives and targeted measures to address racism…This essentially means that this is a plan created by affected persons, for affected persons.” NAPAR and the Ethnicity Network Group Established in 2022, the mission of the Ethnicity Network Group within Chartered Accountants Ireland is to promote a sense of belonging and inclusion for people who belong to Traveller, Black, Asian and other minority ethnic groups within the profession. “As such, we see it as our role to promote awareness of NAPAR, provide suggestions for key actions across the profession and assist with its implementation where possible,” says Deborah Somorin. Both Somorin and Dr Otukoya recognise that the strengths of the plan are its five key objectives, comprising very specific action points and target dates. The plan also acknowledges the intersectionality between racism and other forms of oppression, and that the required actions and remedies cannot follow a one-size-fits-all approach.  “We were very careful with how we set the objectives in NAPAR,” explains Dr Otukoya. “We wanted it to be relatable to everyday citizens. So, objectives like being seen, being equal, being heard, and being counted were [designed to be] persuasive and in plain language, usable and implementable by anyone.” NAPAR awareness Even though NAPAR was launched on 21 March 2023, few members present at the ENG event at Chartered Accountants House in October were aware of it, according to McCaffrey.  “This could indicate a lack of awareness around the plan, which means that it is more difficult to keep those in charge of it accountable for the actions proposed, especially as this is more of a short to longer-term plan,” she says. “We want as many people as possible to know about NAPAR and become allies towards creating a safe and equal environment while also promoting it. It’s important that the responsibility for raising awareness and promoting NAPAR does not solely rest on affected persons. This is a collective journey.” NAPAR and the Institute The Ethnicity Network Group has devised a four-step plan to integrate NAPAR into the operations of the Institute, explains Somorin: We will support Chartered Accountants Ireland in its role as an employer, in creating an anti-racist working environment by implementing relevant NAPAR actions; We plan to work with decision-makers to implement NAPAR actions related to Chartered Accountants Ireland’s role as a professional educational body; We will develop members’ and students’ awareness and understanding of NAPAR and how they can implement it within their organisations; and We plan to roll out the industry’s first Ethnicity Pay Gap report. NAPAR can positively influence the world of work, not just for employees, but also employers, Somorin believes. “As noted in NAPAR, inclusive communities are vital to ensure that minority ethnic groups feel a sense of safety, connection and belonging,” she says.  “For employees, we believe that being part of an inclusive workplace, where the impacts of racism are acknowledged and addressed, creates an enabling environment for individuals to reach their highest potential.  “For employers, I believe that embedding key considerations linked to NAPAR will lead to improved retention of staff and, in turn, increase access to a more diverse talent pool.  “This increase in diversity enables companies to relate better to all customers and clients, promotes balanced internal discussion and challenges thinking, which often results in driving innovation – all of which is good for business.” *Written by Liz Riley Northern Ireland Racial Equality Strategy 2015–2025 In Northern Ireland, The Racial Equality Strategy 2015–2025 was launched in December 2015. Alfie Wong, MBE, is Head of Racial Equality Delivery at The Executive Office, Northern Ireland Civil Service (NICS) Race and Ethnicity Champion, founder of NICS Race and Ethnicity Network and Chartered Accountant. Here, he outlines the key outcomes of the strategy: - Outcome 1: Equality of service provision People from a minority ethnic background can access and benefit from all public services equally. - Outcome 2: Elimination of prejudice, racism and hate crime Effective protection and redress are provided against all manifestations of racism and racist crime, and a victim-centred approach is promoted. - Outcome 3: Increased participation, representation and belonging People from minority ethnic backgrounds participate, and are represented fully, in all aspects of life – public, political, economic, social and cultural – and enjoy a shared sense of belonging. - Outcome 4: Cultural diversity is celebrated The rights of people from minority ethnic backgrounds to maintain their culture and traditions in line with human rights norms – and to pass them on to subsequent generations – are recognised and supported.

The International Accounting Standards Board (IASB) has launched a consultation on improved accounting requirements for financial instruments with characteristics of debt and equity. In the exposure draft, the IASB proposes; to clarify the underlying classification principles of IAS 32 to help companies distinguish between debt and equity; to require companies to disclose information to further explain the complexities of instruments that have both debt and equity features; and to issue new presentation requirements for amounts—including profit and total comprehensive income—attributable to ordinary shareholders separate to the amounts attributable to other holders of equity instruments. The consultation remains open until 29 March 2024.

The Institute has issued revised Anti-Money Laundering (AML) Supervision Regulations, trust and company service providers (TCSPs) and bookkeepers, Ireland (AML Supervision Regulations) replacing and renaming the Money Laundering Supervision Regulations.  The revised AML Supervision Regulations are effective from 1 January 2024. To whom do the AML Supervision Regulations apply? The AML Supervision Regulations provide for the Institute’s AML supervision of entities which are within the Institute’s statutory remit as an AML supervisor in Ireland, but which are not subject to the Institute’s Public Practice Regulations.  In general terms, these entities are TCSPs and/or bookkeepers which count Institute members amongst the principals of the entity.  Whether a particular TCSP or bookkeeper is within the Institute’s AML supervisory remit or that of another competent authority is determined, in accordance with AML legislation and agreements between the competent authorities, with reference to the composition of the principals at the specific TCSP or bookkeeper entity.  The AML Supervision Regulations provide further information in this regard. What changes do the revised AML Supervision Regulations bring for Institute registered TCSPs and bookkeepers? Revisions to the AML Supervision Regulations include: A revised introduction and new guidance at Appendix 1 to enhance clarity as regards scope of the AML Supervision Regulations; New requirement for a registered TCSP and/or bookkeeper to ensure that every principal is either a member of the Institute or has been granted AML affiliate status by 1 January 2025.During 2024 the Institute will engage with the Money Laundering Compliance Principals at registered TCSPs and bookkeepers to facilitate compliance with this requirement; New requirement for a registered TCSP and/or bookkeeper to make a declaration, on behalf of the entity, acknowledging the entity’s obligations under Institute Bye-Laws and Regulations and AML legislation. A mechanism to ensure that the Institute can remove a persistently non-compliant entity from its supervisory remit.Where the Institute cannot continue to be responsible for AML supervision of a TCSP or bookkeeper by virtue of a decision of an Institute regulatory Committee or Disciplinary Body to de-register (or refuse registration to) the entity, it is not appropriate for a member of the Institute to remain as a principal at that entity.The revised AML Supervision Regulations provide that an Institute member ceases to be an Institute member where he/she continues to act as a principal at a registrable TCSP and/or bookkeeper within 90 days of that entity being refused registration or de-registered by a regulatory Committee or a Disciplinary Body of the Institute. Guidance: Revised AML Supervision Regulations Guidance is available on the Institute’s website. Previous editions: The revised AML Supervision Regulations replace the previous edition of the Money Laundering Supervision Regulations which remain available to read in the Institute’s online archive of Regulations.  

Revised Public Practice Regulations – effective 1 January 2024 The Institute has issued revised Public Practice Regulations with effect from 1 January 2024.    Institute members engaged in public practice comply with the Public Practice Regulations.  Key revisions are summarised below: Anti-money laundering (AML) supervision: The revised Public Practice Regulations include explicit reference to the Institute’s role as AML supervisor for practising firms.    While firms are familiar with AML supervision and already engage with the Institute in this regard, the revised Public Practice Regulations introduce some new regulatory obligations in this regard.  In particular, the revised Public Practice Regulations: Include a new chapter addressing AML supervision; Define an ‘AML supervised firm’; Require an AML supervised firm to ensure that each of the firm’s principals is either a member of the Institute or has been granted AML affiliate status by 1 January 2025. During 2024 the Institute will engage with the Money Laundering Compliance Principals at AML supervised firms to facilitate compliance with this requirement; Require all AML supervised firms to make a declaration, on behalf of the firm, acknowledging the firm’s obligations under Institute Bye-Laws and Regulations and AML legislation.This declaration will be sought as part of the firm annual return process going forward; Include explicit ongoing fit and proper requirements for beneficial owners, principals and relevant managers at AML supervised firms. Professional indemnity insurance (PII) requirements for authorised investment business firms, Ireland Regulation 7.18A of the Public Practice Regulations reflects a new Central Bank of Ireland requirement for firms authorised by the Institute for investment business (IB) to have specific minimum professional indemnity insurance (PII) which is ringfenced for IB claims.   The Institute has written directly to the IB compliance principals outlining the revised PII requirements.    This topic is covered in more detail in the August edition of the Professional Standards Regulatory Bulletin. Simplified regime for potential ‘dual- PC’ holders Chapter 5 of the revised Public Practice Regulations provides that an Institute member engaged in public practice is exempt from the requirement to hold an Institute practising certificate (PC) where that individual is a member of, and holds a PC from, another specified accountancy body.    While these dual-membership cases are infrequent, the revised approach streamlines regulatory processes between the accountancy bodies, simplifies compliance for individuals and minimises the risk of regulatory gaps or duplication.  Institute PC regime applies only to Ireland and the UK The definition of practising certificate has been revised to state that the Institute’s PC regime applies only to public practice in Ireland and the UK.  This is a clarification and not a change to the Institute’s PC regime.  Where members engage in public practice in jurisdictions other than Ireland or the UK the member complies with any local requirements regarding public practice in that jurisdiction.  Guidance: Revised Public Practice Regulations Guidance is available on the Institute’s website. Previous editions: The revised Public Practice Regulations replace the previous edition of the Public Practice Regulations which remain available to read in the Institute’s online archive of Regulations.  

Last week the Autumn Finance Bill 2023 was published and had its first reading in the House of Commons. The Bill contains many of the measures announced by the Chancellor in the Autumn Statement the previous week. A date for second reading of the Bill has not yet been scheduled.  HMRC also sent the below message about the announcements in the Autumn Statement in relation to the cash basis:-  “As you hopefully will have seen, at Autumn Statement the government announced that it would be proceeding with the proposals set out in the consultation on expanding the income tax cash basis, which was launched earlier in the year. I would recommend reading the Summary of Responses and Tax Information and Impact Note for further details of these changes, but in summary the government will:  remove the turnover thresholds for businesses to use the cash basis  set the cash basis as the default method of calculating taxable profits, with an opt-out for accruals  remove the £500 limit on interest deductions in the cash basis, aligning the rules with accruals  remove the restrictions on using relief for losses made in the cash basis, aligning the rules with accruals.  Thank you for your valuable feedback as part of this consultation, and in particular for your feedback on the interest and loss relief restrictions that the government has decided to remove entirely, rather than slightly relax.  Yesterday the Finance Bill was published, which includes legislation to give effect to the expansion of the cash basis at section 16 and schedule 10. I’d encourage you to look over this legislation and let me know if you have any questions or feedback on how it might operate, or if you can see any significant issues or problems with the legislation which would mean that it wouldn’t work as intended.  You may also notice in the legislation that we have removed the need for a business to show that there is a change in circumstances relating to the trade before withdrawing an election to use GAAP (cash basis in the current legislation, section 31D(3)(a)). The election to use GAAP is also particular to a trade, rather than a person as a whole. This better reflects the reality of tax returns showing a box to use the cash basis (in the future, GAAP) per self-employment and partnership page, and allows for a greater degree of flexibility in an individual being able to use GAAP for some of their trades and cash basis for others.  The government has also published a description of the legislation in the accompanying Explanatory Note to the Bill, which provides some extra background for the legislation.”  If you have any feedback in relation to the changes to the cash basis, please get in touch. 

In last month’s Autumn Statement, it was announced that the “undertaxed profits rule” (“UPR”) will take effect in the UK for accounting periods beginning on or after 31 December 2024. This is to be legislated for in a future Finance Bill, although draft legislation is available in a policy paper. The UPR aims to ensure that any top-up taxes that are not paid under another jurisdiction’s Pillar Two rules are brought into charge in the UK.  In addition, the Government is legislating for the technical amendments published in draft in July and September in the Autumn Finance Bill 2023.  Pillar Two aims to ensure that Multinational Enterprises (“MNEs”) will be subject to a minimum 15 percent effective tax rate in every jurisdiction in which they operate and will apply to in-scope groups’ accounting periods beginning on or after 31 December 2023.  As it is important that the UK implements Pillar Two to a similar timeline as other countries, the Government will continue to monitor international developments on implementation.  

From investing in HMRC’s ability to manage tax debts, to construction industry scheme reforms, to tougher consequences for promoters of tax avoidance, we outline below the key announcements in this area. Disappointingly, no additional investment was made to tackle HMRC’s ongoing poor service levels. HMRC debt management capability   The Government is investing a further £163 million with the aim of improving HMRC’s ability to manage tax debts. The aim of this is “to allow HMRC to better distinguish between those who can afford to settle their tax debts, but choose not to, from those who are temporarily unable to pay and need support.”   HMRC will also be expanding its debt management capacity to “support both individual and business taxpayers out of debt faster and collect debts that are due”.   Construction Industry Scheme (“CIS”) reform to gross payment status  The Government is introducing reforms in the Autumn Finance Bill 2023 to the CIS which will add VAT to part of the Gross Payment Status (“GPS”) compliance test. The objective is to give HMRC more power to remove GPS immediately in cases of suspected fraud. Alongside this, the Government also announced simplifications to other aspects of the scheme, which will be subject to technical consultation.   Promoters of tax avoidance   Legislation is included in the Autumn Finance Bill 2023 to introduce tougher consequences for promoters of tax avoidance schemes. These include a new criminal offence for those who continue to promote avoidance schemes after receiving a notice requiring them to stop, and a new power enabling HMRC to bring disqualification action against directors of companies involved in promoting tax avoidance, including those who control or exercise influence over a company. These changes will take effect from the date of Royal Assent of the Autumn Finance Bill 2023.   Improving the data HMRC collects    As previously announced, the Autumn Finance Bill 2023 includes legislation that will require employers, company directors, and the self-employed to provide additional data to HMRC. These changes will take effect from the tax year 2025/26. 

A range of VAT measures featured from VAT relief to energy saving materials, to the treatment of private hire vehicles.  Reforms to Energy-Saving Materials   Following a call for evidence, the Government intends to expand the VAT relief available on the installation of energy-saving materials by extending the relief to additional technologies, such as water-source heat pumps, and bringing buildings used solely for a relevant charitable purpose within scope.   As a result of the Windsor Framework, these reforms will be implemented UK-wide in February 2024. Full details on these reforms will be published shortly.  Private hire vehicles   The Government will consult in early 2024 on the impacts of the July 2023 High Court ruling in Uber Britannia Ltd v Sefton MBC.   This case considered the regulation of Uber's business model outside of London, and specifically whether the private hire vehicle operator is acting as a principal when entering into a contractual obligation with the passenger to provide the journey. This potentially has VAT consequences in terms of whether the private hire vehicle operator is acting as a principal or an agent for the purposes of charging VAT.  VAT retail export scheme   The Government continues to review the rules of this scheme and thanks industry for submissions on the scheme and the associated airside scheme (tax-free shopping). The Government will continue to accept representations and will consider any new information carefully alongside broader data.   Sanitary products   The scope of the current VAT zero rate relief on women’s sanitary products is being extended to include reusable sanitary underwear from 1 January 2024. 

The main Autumn Statement 2023 publication contained details throughout of a range of measures and changes which did not specifically feature in the Chancellor’s main speech. We summarise these below. The Government will tackle the long-standing problem of “small pot” pensions and intends to launch a call for evidence on a lifetime provider model which would allow individuals to have contributions paid into their existing pension scheme when they change employer, providing greater agency and control over their pension. This call for evidence will also examine a potential expanded role for collective defined contribution schemes in future. The Government will also introduce the multiple default consolidator model to enable a small number of authorised schemes to act as a consolidator for eligible pension pots under £1,000;  As confirmed by HM Treasury in October, the Government will legislate to extend the Enterprise Investment Scheme and Venture Capital Trusts to 2035 hence they will not end as originally intended on 5 April 2025;  The Government is currently reviewing responses to the consultation on taxation of environmental land management and ecosystem service markets and will respond in due course;  The Growth Market Exemption, which provides relief from Stamp Duty and Stamp Duty Reserve Tax, is being extended to include smaller, innovative growth markets. This extension will also increase the threshold for the market capitalisation condition that is used within the exemption from £170 million to £450 million. These changes are included in the Autumn Finance Bill 2023 for implementation from 1 January 2024;   The offshore receipts in respect of intangible property (“ORIP”) rules are being abolished in respect of income arising from 31 December 2024. This repeal will be legislated for in a future Finance Bill, and will take place alongside the introduction of the Pillar Two Undertaxed Profits Rule, which aims to more comprehensively discourage the multinational tax-planning arrangements that ORIP sought to counter;   Exempting legislation is included in the Autumn Finance Bill 2023 to exempt from corporation tax compensation payments made under the Historical Shortfall Scheme, Group Litigation Order schemes, Suspension Remuneration Review or Post Office Process Review Scheme. This draft legislation aligns the taxation of onward payments of compensation to that of individual recipients;  Further to the publication of draft legislation on 18 July 2023, the Government is making amendments to the rules for Real Estate Investment Trusts which aim to enhance the competitiveness of the regime. The changes will take effect from the date of Royal Assent of the Autumn Finance Bill 2023, and will apply to accounting periods ending on or after 1 April 2023, or, where relevant, will be deemed to have always had effect;  The annual chargeable amounts under the Annual Tax on Enveloped Dwellings regime will be increased in 2024/25 in accordance with September 2023’s CPI figure of 6.7 percent. The Government will implement this change in the usual way through a Treasury Order;  There will be no changes to the van benefit charge and the car and van fuel benefit charges in 2024/25 hence these will remain at their 2023/24 levels;   Vehicle excise duty (“VED”) rates for cars, vans and motorcycles will increase from 1 April 2024 in line with inflation. To support the haulage sector, the VED rates for HGVs and the HGV levy will both remain unchanged from their 2023/24 rates in 2024/25;  Alcohol duties were frozen until 1 August 2024 with the annual increase decision also delayed to the Spring Budget 2024 in order to give businesses time to adapt to the new duty system introduced on 1 August 2023;  Duty rates on all tobacco products increased by RPI plus 2 percent from 6pm on 22 November 2023 and are included in the Autumn Finance Bill 2023. To reduce the gap with cigarette duty, the rate on hand-rolling tobacco increased by RPI plus 12 percent;   The Gross Gaming Yield bandings for gaming duty are frozen from 1 April 2024 until 31 March 2025;   The Government will consult shortly on proposals to bring remote gambling (meaning gambling offered over the internet, telephone, TV, and radio) into a single tax, rather than taxing it through a three-tax structure;   The Government will legislate so that, where the substantive decision to proceed with a project to create a new electricity generation station or expand an existing generating station is made on or after 22 November 2023, receipts from that new generating station or additional capacity will not be subject to the Electricity Generator Levy;  The Government is legislating in the Autumn Finance Bill 2023 to increase the Plastic Packaging Tax rate in line with CPI, from 1 April 2024, to £217.85 per tonne. To ensure the Plastic Packaging Tax continues to incentivise the use of recycled plastic in packaging, an evaluation plan will also be published by the end of the year in order to gather further evidence to inform the future trajectory of the rate and recycled plastic content threshold;   The Government will increase the Aggregates Levy rate in line with RPI, from 1 April 2025 to £2.08 per tonne; and  A technical change is being made to section 660 of the Income Tax (Earnings and Pensions) Act 2003 in the Autumn Finance Bill 2023, to ensure that the legislative reference to the Scottish Government’s Carer Allowance Supplement is correct. 

This week we bring you news about the need to include an agent reference number on P87 forms (employment expenses claims) and marriage allowance claim forms from 26 February 2024 and the VAT DIY housebuilder’s scheme is going digital from tomorrow, Tuesday 5 December. The UK and other jurisdictions recently announced their intention to implement the OECD’s Crypto-Asset Reporting Framework. HMRC is seeking feedback on its Annual Report publication and the latest advisory fuel rates which apply from 1 December are also available. And finally, the latest news and information bulletin from HMRC is available.  Change to P87 and marriage allowance forms from February 2024   Agent Update 114 recently confirmed that from 26‌‌‌ ‌‌February 2024, paid tax agents submitting form P87 (claims for relief from employment expenses) and marriage allowance claims on behalf of clients will be required to provide the agent reference number when submitting the forms if the agent wishes to receive the related repayment.   If the agent reference number is not provided, the related repayment will be paid to the taxpayer and not the agent, even if the repayment has previously been nominated to be paid to them. This change is part of HMRC’s continuing drive to protect taxpayers from the behaviours of certain repayment agents.  VAT DIY housebuilder’s scheme to go digital  As announced in the 2023 Spring Budget, the Government is legislating to digitise the VAT DIY housebuilders’ scheme from tomorrow, Tuesday 5 December. However, we understand that paper based claims will also remain possible if the digital process cannot be used. The time limit for making claims is also to be extended from three to six months after completion of the build.   By way of reminder, this scheme allows DIY housebuilders to reclaim VAT incurred and paid by them on building materials for any part of a house build which they undertake themselves and is also available to individuals converting a non-residential building into their own home.   The legislation to make these changes was laid recently. The associated Statutory Instrument  and tax information and impact note are as follows:-   The Value Added Tax (Refunds to “Do-It-Yourself” Builders) (Amendment of Method and Time for Making Claims) Regulations 2023; and  VAT: Digitisation of claims and extending time limit for DIY Housebuilders Scheme.   HMRC will be publishing new guidance when the changes go live tomorrow.  HMRC Annual Report  HMRC publishes its Annual Report and Accounts each year in July and want to make sure it's as helpful as possible to those who read it.  They would like feedback on how you use the Annual Report. Does it contain the information you need? Is it well presented and easy to read and find what you're looking for? How could it be improved? By taking a few minutes to complete this short form and give HMRC some feedback on their Annual Report and Accounts, you can help HMRC to make its performance reporting more accessible and effective. 

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 Office Borders bulletins are also available. HMRC has also issued an email about the first phase of its Border Targeted Operating Model which takes effect in just under ten weeks, and will impact on movements of goods from Ireland to Great Britain. The email contains important details of actions which need to be taken and how to prepare for these changes. Miscellaneous guidance, publications etc.   The following updated guidance, and publications relevant to EU exit are available:-  Customs, VAT and excise UK transition legislation from 1 January 2021;  Reference documents for The Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020;  Reference Document for The Customs (Origin of Chargeable Goods) (EU Exit) Regulations 2020;  Reference document for authorised use: eligible goods and authorised uses;  Trade Specialised Committee on Goods;  Joint statement from the Specialised Committee on Financial Provisions, 26 October 2023; and  EM on Windsor Framework customs arrangements. 

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 is also holding webinars which aim to explain its compliance professional standards. A webinar is also being held tomorrow (Tuesday 5 December) on the National Minimum Wage in the care sector.  Compliance and professional standards  HMRC is holding webinars which aim to explain its compliance professional standards. The webinars are scheduled for the following dates and times and will be recorded and available to view thereafter:-  8 December 2023 - 13:45; and  15 December 2023 - 15:45.  National minimum wage   HMRC’s National Minimum Wage team are holding a live webinar to talk through common issues found in the care sector, and how employers can protect their workers’ rights. There will also be a panel of experts on hand to answer questions on the topic - register here. 

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. 

In a new report, the European Commission analyses the solidarity contribution applied on the unexpected surplus profits for the fossil fuel industry which arose during the 2022 energy crisis. The report sheds light on market developments in the fossil fuels sector covered by this emergency intervention since the measure was adopted in autumn 2022.