The Financial Reporting Technical Committee of Chartered Accountants Ireland has responded to The Financial Reporting Council’s recent exposure draft ‘FRED 83’. The amendments proposed in this exposure draft address how deferred tax should be accounted for where a company is subject to the Organisation for Economic Co-operation and Development’s (OECD) Pillar Two Model Rules. In December 2021, the OECD published its Pillar Two model rules. The rules are part of a two-pillar solution to address the tax challenges arising from the digitalisation of the economy. The Pillar Two model rules: aim to ensure that large multinational groups pay a minimum amount of tax on income arising in each jurisdiction in which they operate; and would achieve that aim by applying a system of top-up taxes that results in the total amount of taxes payable on excess profit in each jurisdiction representing at least the minimum rate of 15%. The proposals by the FRC introduce temporary exceptions to the accounting for deferred taxes arising from these rules, along with targeted disclosure. These rules will impact only a small number of companies as the Pillar Two rules are intended to apply to multinational groups with consolidated revenue over €750 million, subject to certain exclusions.

Professor Patricia Barker has been recognised for her contribution to the accountancy profession. She received the “Outstanding Contribution to Accountancy” award at the 2023 Irish Accountancy Awards in Dublin. Professor Barker sat her accounting exams 50 years ago this year, becoming only the 20th female chartered accountant in Ireland in 1973. The Outstanding Contribution category recognises an individual whose work demonstrates a sustained commitment to the advancement of the profession. It recognises the exceptional abilities and achievements of Professor Barker, as well as her commitment to the organisations and teams she has worked with, and to the industry overall. Previous recipients of the award include Elaine Coughlan, FCA, Dr Laurence Crowley, CBE, FCA and Dr Margaret Downes FCA.   Chief Executive of Chartered Accountants Ireland, Barry Dempsey said  “Patricia Barker has devoted decades of service to the advancement of the chartered accountancy profession in Ireland, and around the world, and the Institute was fortunate to have her expertise on Council for almost a decade. She played an integral role in the advancement of education in accounting and finance over many years. At a time when it is more critical than ever that we attract a new generation of students into the profession, we have a renewed appreciation of the importance of her work. “The extent of her engagement beyond the profession however, on such a variety of boards and international bodies, is an outstanding embodiment of the role that Chartered Accountants can and should play in society. Her devotion to fostering higher ethical standards, greater equality and protecting basic human rights is a source of enormous pride for all of us who have had the pleasure of working alongside her at different junctures.” Accepting the award, Professor Barker said “It’s such an honour to accept this recognition. Our profession opened up to women in 1918, and it’s encouraging to see women now making up 50% of our numbers. It’s so important for women to act as mentors to other women entering the profession. “There is so much opportunity in the modern profession beyond the conventional accounting roles, and I would encourage chartered accountants to entertain opportunities to expand their careers, even it seems risky.  The sense of anxiety that accompanies these opportunities should also be embraced and balanced by a set of personally developed ethical values.” The Irish Accountancy Awards were launched in 2016 to celebrate excellence in the accountancy profession across a total of 27 categories.  

Following the Central Bank of Ireland’s Dear CEO letter of 20 January 2023 and, in particular, the requirement that payment and e-money firms obtain a specific audit of their compliance with the safeguarding requirements under the PSR/EMR an acceptable format for these engagements has been agreed. We will issue guidance to our members on performing these engagements in due course.  Payment and e-money firms are required to prepare a detailed document setting out a description of aspects of their organisational arrangements to secure their compliance with the relevant safeguarding requirements under the PSR/EMR.   Theses forms should also prepare an assertion, approved by the Board of directors, stating that in all material respects 1 the description is fairly presented, and 2 the controls and processes included in the description were operating as described at the reference date. Further details are outlined in the Safeguarding Notice to Payment and E-Money Firms. These reports are due by 31 October 2023.  Members will be informed via eNews when our guidance is published. 

Last week Chartered Accountants Ireland attended a special meeting of the Northern Ireland Joint Customs Consultative Committee at which Government Officials provided an update on the Windsor Framework. The key messages for current goods movements from the first meeting in February after announcement of the WF remain the same. Other matters of interest are outlined below and we will feature more in Chartered Accountants Tax News over the next few weeks. The Institute has been pressing the UK Government on several EU exit matters for some time now. Updates were provided in the meeting on the Trader Support Service (“TSS”) and the long awaited reimbursement scheme, in addition to some other key areas. Trader Support Service (“TSS”) The message remains that the Government recognises both the significant support the TSS has provided to businesses and the large number of traders that have benefitted from its assistance since 2021. The TSS will continue to support traders throughout 2023 to meet the requirements under the Northern Ireland Protocol. Traders will continue to be supported to understand the new Windsor Framework requirements and what it means for them. Reimbursement scheme The timeline for the scheme to open is summer 2023. Claimants will not need to be registered under the UK Trader Scheme or the new UK Internal Market Scheme in order to claim a reimbursement of tariffs. Evidence must be provided to support reimbursement scheme claims and this must retained by claimants. HMRC will provide examples of supporting evidence in guidance. Bulk claims will be possible. We asked what the expected timeframe for refunds is likely to be and HMRC reflected that as the scheme is likely to see significant demand initially, a timeframe cannot initially be provided. The scheme will apply to reimbursement of tariffs paid on goods classed as being at risk which later become/became not at risk under the original Protocol and on goods which move in the new red lane which should originally have been green lane movements under the Windsor Framework. The time limit in which claims must be made will be standardised after a period of time and set out in guidance. However initially, claims will be possible back to 1 January 2021. A new improved customs duty waiver scheme will also be available via a digital process. More information on the scheme is expected to be available in the next few weeks. New UK Internal Market Scheme The expanded UK Trader Scheme will be known as the UK Internal Market Scheme (“UK IMS”) and is expected to open for reauthorisation of existing UK Trader Scheme users in early June with the scheme commencing from 1 October 2023. The UK IMS will underpin green lane movements. More information on the scheme and how to apply will follow in the coming weeks as will more detailed guidance on green and red lane movements and how these will operate, including the data sets required for each (8 digits for red lane and 6 digits for green lane). The new UK IMS will be open to traders established anywhere in the UK and will enable participants to set up a unique goods profile for their movements.

Earlier this month, the Institute made a submission to the House of Lords inquiry into the Windsor Framework (“WF”) which has now been accepted by the Committee as evidence. The submission focuses on the ongoing need for a permanent solution to the lack of customs intermediaries/capacity in the Northern Ireland market, the vital role of the Trader Support Service and it also highlights the importance of guidance. Not enough detail is currently available on how the new Trade Operating Model (“TOM”) will operate on a practical level, particularly regarding customs and the operation of the new processes for red and green lanes. It is therefore important that HM Government provides operational detail on the new TOM as soon as possible, via detailed guidance (developed in conjunction with stakeholders and containing case study examples), and underpinning legislation, so that businesses can assess before it comes into operation how this impacts on their specific supply chain and prepare accordingly, including identifying any challenges. This is especially important given disparities which have been identified between the UK and EU’s publications on the WF. Any new processes to be introduced must also be tried and tested and some uncertainties also remain around the ‘at risk’ test which other bodies have already highlighted; these must be ironed out before the new TOM is introduced. It is also currently unclear how the many and varied types of goods movements from GB into NI will specifically be dealt with, including goods moving from the EU to GB and onward to NI. Unless detailed guidance is available well in advance, trade disruption is likely to occur and there may be further withdrawal from the NI market by some GB traders. Overall, the WF risks fixing problems for some supply chains only to shift new and different problems, burdens and frictions onto others. Ultimately, until accompanying legislation, detailed policy and guidance, and information on new processes is provided, it is difficult for NI businesses to fully assess and consider the practical impact on trading routes and identify any unintended or knock-on consequences.

HMRC recently closed the VAT registration helpline (from 22 May 2023), a subsidiary of the VAT helpline, which was dedicated specifically to helping taxpayers with queries around their VAT registration application. Advisers from this helpline are being redeployed to spend their time processing VAT registration applications instead of answering calls through the helpline. The closure of the helpline was not consulted on in advance of the announcement. Read the full email from HMRC.

The latest Agent Update and News and Information Bulletin are available from HMRC. Agent Update: issue 108 is available now. Get the latest guidance and information, which features the following this month:- Changes to the HMRC VAT online account from 15‌‌‌ May 2023 – are businesses software-ready? Self-Assessment threshold change; Repayment agent registration – check if you need an agent services account to submit repayment claims; and Employment related securities – end of year return deadline.

This month’s tidbits cover the latest bulletins from HMRC and updated guidance in several areas.

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. Read the Institute’s submission to the House of Lords inquiry into the Windsor Framework and The Retained EU Law Bill is proceeding through the final stages in the House of Lords. The latest Trader Support Service and Borders Weekly Stakeholder Bulletins are also available and we bring you news of an enhancement to the Goods Vehicle Movements Service (“GVMS”). Enhancement to the GVMS. From 16 May 2023, HMRC introduced an enhancement to the GVMS which means that taxpayers can now upload up to 2,500 Import Movement Reference Numbers for EU to Great Britain movements. Retained EU law bill Report stage of Retained EU Law (Revocation and Reform) Bill took place last week on 15 and 16 May in the House of Lords. Peers in the House proposed amendments to the Bill, with the Government defeated on several occasions. One significant amendment was made for changes to the Bill to be subject to greater parliamentary scrutiny via referral to a Joint Committee of both Houses of Parliament.   Miscellaneous updated guidance etc. The latest guidance updates, and publications relevant to EU exit are as follows:- Schedule of Retained EU law; Pay no import duties or VAT on importing goods for testing; Pay no import duty and VAT on importing commercial samples; Pay no import duty or VAT on donated medical equipment; Pay no Customs Duty or VAT on blood grouping, tissue typing and therapeutic substances; and Pay no import duty or VAT when importing animals for scientific research.

Viet Nam recently deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). The MLI will enter into force in Viet Nam from 1 September 2023.

In a competitive business landscape, recruiting top talent is a strategic imperative for organisations. Paul O’Donnell unveils the three Cs to attracting and securing the best candidates for your organisation’s success Great talent makes great organisations, not just because of their higher productivity but also the influence they have on the commitment and standards of others. Great talent is scarce, and as we head into more uncertain economic times the “war for talent”, as framed by Steven Hankin of McKinsey back in the 1990s, has already kicked off. Whether you hire directly or work with a search partner, the process of winning great candidates demands real attention to the full hiring cycle. To attract really great talent, organisations need more than the basics of a good recruiting process. Here are three key questions to ask and steps to take to ensure the best candidates say yes to your organisation. 1. Communication: What can your target talent pool read about you online? If you have a talent acquisition team or marketing function, dedicate a resource to continuously evaluating how the outside world sees your firm. What compelling story will your target talent pool read about the difference your organisation makes to its customers and community? What messages can they see from current employees as advocates for working with you? Where does your target talent pool like to spend time online, and is your message strongest here? 2. Contribution: What problem exists in your organisation by not having this role filled? Role and organisational purpose are the top attractions for the best talent. Does the organisation’s purpose matter to the candidate, and is your organisation the right place to address it? What difference can their effort make for stakeholders? These are your key questions externally and during your hiring process. 3. Character: What traits in the candidate does your firm want for the whole organisation? Complementary culture and values between a high performer and your organisation are essential. Losing a high performer over a lack of values alignment is optically poor and will reverberate internally and externally. Conversely, great talent can be extremely influential in changing the behaviour of those around them, so mapping the characteristics you seek for the whole company before hiring anyone new is vital. In an excellent article in MIT Sloan Management Review, “Make Leader Character Your Competitive Edge”, Mary Crossan, Bill Furlong and Robert D. Austin describe how character, when valued equal to competence, can result in better decisions and outcomes. The next time you hire externally, consider communication, contribution and character to put your own organisation first in the candidate’s decision-making process. Paul O’Donnell is CEO of HRM Search Partners

As artificial intelligence increasingly becomes integral to business operations, establishing an effective AI policy is crucial for boards. Stephen Conmy delves into the key steps boards should take to create a comprehensive AI policy  Creating your company’s artificial intelligence (AI) policy involves carefully considering various ethical, legal and operational aspects. Here’s a 10-step guide to how a board of directors can develop an AI policy – and communicate it effectively to the executive management team and staff. 1. Establish a working group Form a working group of board members, executives and relevant stakeholders to lead the AI policy development process. This group will oversee policy creation, gather necessary expertise and ensure representation from various departments and stakeholders. 2. Educate the board All board members should have a foundational understanding of AI and its ethical implications. Board members should have training sessions or workshops to familiarise themselves with essential AI concepts, such as algorithmic bias, privacy concerns and AI’s potential impact on employment. 3. Define the policy’s objectives Identify your organisation’s primary objectives in adopting AI technology. These objectives will shape the overall direction of the policy. This may include improving your company’s efficiency, enhancing customer experience or promoting innovation. 4. Assess the ethical principles and values Determine the ethical principles and values that guide AI development and deployment within your organisation. It would help if you considered fairness, transparency, accountability and well-being concepts. These principles will help establish a solid ethical foundation for the AI policy. 5. Evaluate legal and regulatory compliance Understand the legal and regulatory landscape surrounding AI, including data protection laws, privacy regulations and industry-specific guidelines. Ensure the AI policy meets these requirements to avoid legal risks and uphold compliance. 6. Identify potential AI use cases and risks Identify the specific use cases and applications of AI within your organisation – where will it be used, by whom and for what purpose? Assess the associated risks, including potential biases, security vulnerabilities and unintended consequences. Next, develop guidelines and best practices to mitigate these risks. 7. Establish accountability and governance Who will be responsible for your AI policy? Define the roles and responsibilities of stakeholders involved in AI development, deployment and monitoring. Establish clear lines of accountability and governance mechanisms to ensure ethical decision-making and risk management throughout the AI life cycle. 8. Ensure transparency and explainability Promote transparency and explainability in AI systems by requiring clear documentation, responsible data practices and understandable algorithms. Ensure that stakeholders, including employees and customers, can comprehend the basis of AI decisions and raise concerns if necessary. 9. Encourage continuous monitoring and evaluation Implement mechanisms to monitor an AI system’s performance, impact and adherence to ethical standards over time. Regularly evaluate the policy’s effectiveness and make necessary adjustments based on feedback and emerging best practices. 10. Communicate the AI policy Craft a comprehensive AI policy document that encompasses all the elements above. The policy should be written in clear, accessible language and provide practical guidance. Communicate the policy approach to the executive team and staff through various channels, such as company-wide emails, town hall meetings and training sessions. Stephen Conmy is Head of Content at The Corporate Governance Institute

The Economic Crime and Corporate Transparency Bill 2022 aims to bolster corporate transparency and combat economic crime. Maeve Hunt explains the two key takeaways for entities registered at Companies House and their directors In the single biggest change to the role of the UK Register of Companies since it was created in 1844, the Economic Crime and Corporate Transparency Bill 2022 seeks to make a number of modifications to company law with the aim of enhancing corporate transparency and reducing economic crime. To facilitate this, the Bill seeks to make further provisions about companies, limited partnerships and other kinds of corporate entities, and around the registration of overseas entities. The legislation, on receiving Royal Assent, will affect all those who interact with Companies House, whether individuals (directors, secretaries and people with significant control of entities registered at Companies House) or entities, including companies, limited partnerships, limited liability partnerships and overseas businesses. There will also be an impact on agents of such entities, such as those who provide company secretarial services. At the time of writing, the Bill is in the reporting stage in the House of Lords, which gives all members of the Lords a further opportunity to examine and make amendments to the Bill. Once the Bill becomes legislation, there will be a period of transition to allow individuals and companies sufficient time to comply with the additional requirements. There are two key considerations for entities registered at Companies House and their directors: identity verification and increased filing on the Register.   Identity verification To enhance the transparency of controllers and owners of businesses on the Register, Companies House will introduce mandatory ID verification for directors, company secretaries, people with significant control and others associated with those entities, such as their agents. The ID verification process will use technology to verify the identity of the person in question by comparing their photograph with an official government ID, such as a UK-issued passport. A director, company secretary or person with significant control will not be considered legally appointed until the ID verification process is completed, and they will be unable to act in that capacity or make filings at Companies House. This will cover both UK-resident and non-UK-resident individuals. For newly appointed individuals, the process will need to be completed prior to appointment. For existing roles, there will be a transition process to allow ID verification to be completed. If the verification is not completed within this timeframe, the individual will be removed from their role in that entity. Separate provisions will cover those who do not hold UK-issued identification, such as overseas nationals, or those unable to use the web-based service. For corporate directorships, similar provisions will also apply. A UK company will only be able to be appointed as a corporate director when all its directors are natural persons, and those natural persons are subject to appropriate ID verification checks. Non-UK companies will no longer be permitted to act as corporate directors. These provisions also extend to directors of overseas companies registered at Companies House. Improving financial information on the Register Currently, 3.1 million sets of accounts are published on the Register each year, and access to these accounts is arguably the most valuable service that the Register provides. Companies House will require all financial statements submitted to be in Inline Extensible Business Reporting Language (iXBRL) format. These tags are machine-readable, which will make the data easier to interrogate, compare and check, aiding Companies House in carrying out its new responsibilities for maintaining the integrity of the data it holds, identifying and addressing errors, and sharing data under certain strict conditions with other bodies such as law enforcement. Companies House currently accepts accounts in iXBRL format, as well as in paper format and most companies will be required to include a set of accounts in a similar, but not identical, format when filing their corporation tax returns with HMRC. There are currently reduced filing options for some companies where they meet the ‘small’ or ‘micro’ criteria set out in the Companies Act 2006. Such entities currently have an exemption from filing their Profit & Loss Account, and, for small companies, a Directors’ Report. A micro company is exempt from having to prepare a Directors’ Report. These reduced filing options will be removed, meaning small and micro companies will file their full financial statements, including a Profit & Loss Account and Directors’ Report (where applicable), which will be publicly available. Maeve Hunt is a Director of Audit and Assurance at Grant Thornton NI

Welcome to this week’s Technical Roundup.    In developments this week, the European Financial Reporting Advisory Group is holding a symposium on Connectivity between financial reporting and sustainability reporting at the European Accounting Association Annual Congress which will take place in Helsinki and Espoo on 26 May, 2023; the Joint Committee of the European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) has published its 2022 Annual Report, which provides an account of its joint work completed over the past year.  Read more on these and other developments that may be of interest to members below.  Financial Reporting IAASA, Ireland’s accounting enforcer, has published a Paper “Transparency Regulations – information requests”. This Paper lists some information requests that IAASA has made to companies as part of its financial statement examinations. In its recent letter to the EC’s President Ursula von der Leyen & Commissioner Mairead McGuinness, Accountancy Europe have addressed the recent commitments by the EC to simplify reporting requirements in the green, digital and economic thematic areas. Specifically, the EC have recommended that any upcoming legislative proposals should not be rushed, should be based on independent and costed impact assessments, should be subject to public consultation and should be field tested. The Financial Reporting Council (FRC) has issued Amendments to Basis for Conclusions FRS 101 Reduced Disclosure Framework - 2022/23 cycle. This completes the annual review by the FRC of the FRS 101 standard, which proposed no amendments. The International Accounting Standards Board (IASB) has issued amendments to IAS 12 Income Taxes. The amendments give companies temporary relief from accounting for deferred taxes arising from the Organisation for Economic Co-operation and Development’s (OECD) international tax reform. The IASB has also issued amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosure. These amendments are intended to enhance the transparency of supplier finance arrangements and include additional disclosures. The changes are effective for accounting periods beginning on or after 1 January 2024. The European Financial Reporting Advisory Group (EFRAG) is asking for preparers to provide input to an academic study on the effects of the adoptions of IFRS 15. This is to assist in EFRAG’s work on the post-implementation review of the standard. The UK’s Department for Business and Trade is seeking views on the non-financial reporting requirements UK companies need to comply with to produce their annual report, and whether company size thresholds remain appropriate. This consultation remains open until 16 August. The European Financial Reporting Advisory Group (EFRAG) is holding a symposium on Connectivity between financial reporting and sustainability reporting at the European Accounting Association Annual Congress which will take place in Helsinki and Espoo on 26 May, 2023. Audit The Financial Reporting Council (FRC) has announced the Audit Committees and the External Audit: Minimum Standard, which comes after careful consideration of the consultation responses received from stakeholders. Corporate Governance The Financial Reporting Council has launched a public consultation on proposed revisions to the UK Corporate Governance Code. This follows the UK Government's response to the White Paper, Restoring Trust in Audit and Corporate Governance, which identified areas of reform related to a particular focus on directors' responsibilities for internal control, risk, audit and corporate reporting. Comments on the questions set out in this consultation document are requested by Wednesday 13 September 2023. Other Safeguarding reports for payment and electronic money firms The Central Bank of Ireland have issued a communication to clarify the nature of the specific audit of compliance with the safeguarding requirements under the Payment Services Regulations (PSR)/ Electronic Money Regulations (EMR), as communicated in the Central Bank’s letter dated 20 January 2023, addressed to all payment and electronic money institutions authorised in Ireland. The European Securities and Markets Authority (ESMA) is consulting on draft regulatory technical standards (RTS) under the revised ELTIF Regulation. Interested stakeholders are invited to provide input by 24 August 2023.  ESMA will consider the feedback it receives to this consultation in Q3/Q4 2023 and expects to publish a final report and submit the draft technical standards to the European Commission for endorsement by 10 January 2024. The Joint Committee of the European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) has  published its 2022 Annual Report, which provides an account of its joint work completed over the past year.  It focused on issues of cross-sectoral relevance, such as joint risk assessment, sustainable finance, digitalisation, consumer protection, securitisation, financial conglomerates, and central clearing. Sustainability Accountancy Europe has announced that it has joined EU Green Week, which raises awareness, promotes and discusses European environmental policy. For further technical information and updates please visit the Technical Hub on the Institute website. Technical Hub on the Institute website.     

In this week’s EU exit bulletin, we bring you the latest guidance updates and publications relevant to EU exit. The House of Lords Protocol Sub-Committee is continuing its inquiry into the Windsor Framework. And the latest Trader Support Service and Borders Weekly Stakeholder Bulletins are also available. Miscellaneous updated guidance etc. The latest guidance updates, and publications relevant to EU exit are as follows:- Check simplified procedure value rates for fresh fruit and vegetables; Additional Information (AI) Statement Codes for Data Element 2/2 of the Customs Declaration Service (CDS); Search the register of customs agents and fast parcel operators; Authorised Consignee Temporary Storage (ACTS) location codes for Data Element 5/23 of the Customs Declaration Service; Appendix 1: DE 1/10: Requested and Previous Procedure Codes of the Customs Declaration Service (CDS); Place of loading codes for Data Element 5/21 of the Customs Declaration Service; UK customs office codes for Data Element 5/12 of the Customs Declaration Service; Appendix 2: DE 1/11: Additional Procedure Codes; and Customs Declaration Completion Requirements for The Northern Ireland Protocol.

On 18 May 2023, the Institute responded to the International Ethics Standards Board (IESBA) invitation for comments on their “Proposed Revisions to the Code Addressing Tax Planning and Related Services”. The proposals to amend the Code of Ethics for Professional Accountants are based on recommendations following extensive stakeholder engagement and review by the IESBA since 2019. The review was in response to increased public attention on the topic of tax avoidance, revelations arising from the “Paradise Papers” and the “Pandora Papers”, and global focus on the legality of tax mitigation schemes. The proposals define ‘Tax Planning and Related Activities’ as “a broad range of services designed to assist a client, whether an individual or an entity, in structuring the client’s affairs in a tax-efficient manner”. The IESBA builds upon the principles-based framework of the Code of Ethics and outlines the responsibilities of all professional accountants in respect of these services. Further requirements and guidance are included for Professional Accountants in Public Practice (PAPPs) and Professional Accountants in Business (PAIBs). The key IESBA proposals include: Outlining professional accountants’ public interest role in relation to tax planning services; Requirements in respect of any anti-avoidance legislation court or tax authority rulings, and addressing non-compliance with laws and regulations; Requirements for establishing a credible basis for tax planning advice and carrying out a ‘stand back test’ that considers “the reputational, commercial and wider economic consequences that could arise from the way stakeholders might view” the tax planning arrangement; Examples of ethical threats that can arise from providing tax planning advice, including potential steps professional accountants can take to either eliminate or safeguard against these; Requirements for communicating with clients or employers, including steps to take in the event of disagreement in respect of tax planning; and Requirements in relation to obtaining second opinions, referring or recommending third-party tax planning solutions or advisors. Some of the key points in the Institute’s response to the IESBA proposals focused on: The current size of the Code of Ethics and the opportunity to embed some of the proposals into existing requirements of the Code, including the Conceptual Framework; Concerns regarding the broad definition of ’tax planning’ and the necessity to include ‘related services’, which are typically more closely associated with routine compliance, such as the filing of tax returns and representing clients on compliance issues using tax authorities’ dispute-resolution mechanisms; Requesting further guidance on ‘credible basis’ and ‘stand-back’ tests, and positioning of these as part of the Conceptual Framework alongside other professional judgement requirements. Highlighting the important role of professional accountants in reducing the risk of unexpected tax costs for all taxpayers and ensuring higher compliance rates and collection of tax by assisting clients and employing organisations navigate complex local and global tax requirements; To consider the primacy and responsibility of local tax authorities in the enforcement of tax compliance, the policing of appropriate tax planning and their independent mechanisms to be first arbitrator in making a ruling rather than a court of law or a professional body; Highlighting the issue of competitiveness in the accountancy profession, the capacity of the profession to police and enforce new standards, and the need for a level playing field that ensures tax advisors who are not professional accountants are also accountable to high standards of ethical behaviour; and Providing suggestions in areas such as identifying threats and implementing adequate safeguards, the consideration of multiple uncertainties, and further considerations of the context and role of Professional Accountants in Business in respect of tax planning. The Chartered Accountants Ireland response to the IESBA is available here. The IESBA proposals are available on their website here. Níall Fitzgerald, Head of Ethics and Governance, Chartered Accountants Ireland  

The deadline for completing your 2022 CPD Declaration has now passed. We requested that it was completed and submitted by 28 April 2023. We would be grateful if you could complete your online CPD Declaration for monitoring purposes, by 31 May 2023. If you are unable to meet this timescale, please contact us immediately. Failure to submit your CPD Declaration in respect of the 2022 CPD year may result in this matter being referred to the Quality Assurance Committee. This may result in regulatory action, including an immediate audit inspection, the imposition of a regulatory penalty or the withdrawal of your audit registration. Further information on the IAASA CPD Guidelines, including checklists and specimen CPD records are available on the Institute’s website here.  If you need further assistance, please email any queries to ricpdobligations@charteredaccountants.ie  

The CCAB-I Insolvency Committee has today published Technical Alert 03 2023 Changes to examinership regulations. This Technical Alert provides updates on significant changes to the examinership process following the introduction of The European Union (Preventive Restructuring) Regulations 2022 (SI 380/2022) and outlines a number of the key amendments to Companies Act 2014 arising from the transposition of EU Directive 2019/1023.

The Institute is considering making submissions to HMRC on two consultations which are currently open and would welcome your views by 1pm on Monday 29 May 2023. More detail on each consultation is available at the consultation link. Expanding the cash basis – closes 7 June 2023 This consultation is seeking views on options for extending the income tax cash basis for self-employed businesses which would allow more businesses to use the simpler regime. Simplifying and modernising HMRC's Income Tax services through the tax administration framework – closes 7 June 2023 This discussion document explores how HMRC can simplify and modernise HMRC’s income tax services as part of its Tax Administration Framework Review. It sets out HMRC’s intention to move to a digital by default approach for some of its outputs, seeks views on improving Pay As You Earn processes, and launches a review of the Income Tax Self-Assessment criteria.

The deadline for employers to provide employees with their P60 for 2022/23, either on paper or electronically, is Wednesday 31 May 2023. The P60 summarises the employee’s total pay and deductions for the year. By that date, employers must give a P60 to all employees on payroll who were working for them on the last day of the tax year (5 April 2023). If an employer is exempt from filing payroll online, copies of P60s can be ordered from HMRC.