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

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

Tackling systemic hurdles to the long-term economic health of Ireland’s SMEs will be a top priority for Chartered Accountants Ireland’s incoming President. Barry Doyle, Investment Director of MASV, takes up the office of President today following the Institute’s 136th AGM in Dublin, bringing considerable experience of advising and scaling successful businesses. On the same day, Chartered Accountants Ireland has published a new thought leadership paper informed by the views of its 33,000 members, setting out the measures that it believes will achieve strategic, systemic improvements for SMEs operating across Ireland. Chartered Accountants Ireland is the largest and longest-established professional accountancy body on the island of Ireland. Extensive engagement with members, two-thirds of whom work in business, over the last year has led to the publication of today’s paper, which sets out practical and progressive measures aimed at achieving sustainable, long-term progress. Measures include: Further increases to the thresholds for Employer PRSI so all wages up to the minimum wage are exempt and wages up to the living wage are at the reduced rate of 8.8%. No extension to the Enhanced Reporting Requirements (ERR) for at least three years and not before an appropriate cost-benefit analysis of the current system has been completed. Reducing Capital Gains Tax (CGT) from 33% to 25% to stimulate business and personal transactions that will bring additional funds into the Exchequer. Wider SME eligibility for grants to include more ‘traditional’ industries and the service sector. A more prominent role for the Strategic Banking Corporation of Ireland (SBCI) in encouraging banks to provide low-cost credit to SMEs, and to underwrite this credit. New opportunities for Credit Unions to increase SME lending by adapting Central Bank regulations, e.g. lending limits. Commenting, President of Chartered Accountants Ireland Barry Doyle said “Record corporation tax receipts will not always be with us. There’s a strategic imperative to ensure economic health for SMEs long-term. This can only come from understanding the unique challenges facing them, not simply by virtue of their size, but also specific to the sector they operate in, and supports they need. Our members have first-hand experience of the cost and administrative burdens that SMEs are encountering, and the proposals we are publishing today are tailored to address these. “The package announced this week by Government is a positive step, but we must ensure that a strategic lens is adopted in tackling what are stubborn, systemic hurdles. What we are publishing today is a blueprint that in the long-term will effect change if implemented. Further Government commitment yesterday to this sector in Budget 2025 is welcome, this is a commitment that will need to endure even as we move towards a new Government next year.”   The Institute’s proposals are grouped under four headings: resilience and growth, Government supports and funding, sources of business finance, and reducing the cost of business through the tax system. Among the proposed measures are: Alleviating administrative and cost burdens for SMEs Further reducing an employer's PRSI bill by benchmarking the thresholds with the minimum and living wages: Weekly wages between €495.30 and €577.20 should be subject to the 8.8% rate of Employer PRSI, i.e. earnings between the minimum wage and living wage (which is suggested to be €14.80 per hour or €577.20 per week based on a 39-hour work week). Weekly wages above €577.20 are subject to full Employer PRSI. Enhancing the scope of Revised Entrepreneur Relief to encourage investment and growth and ending tax discrimination so that professional service companies can benefit from the various investment reliefs available to comparable trading companies. Removing the real time reporting requirement for enhanced reporting requirements (ERR) for employers – replacing it with monthly or annual returns. Additionally, we ask for a commitment from Government not to extend ERR for at least three years until the system is embedded and an appropriate cost-benefit analysis of the current system has been properly completed. Commenting, Cróna Clohisey, Director of Public Affairs, Chartered Accountants Ireland said “SMEs have faced an unprecedented number of new legislative requirements in recent months which significantly adds to their cost and administrative burden. In 2024 alone, the minimum wage has increased by 12% and additional sick leave entitlements have added 1% to payroll costs. From 1 October, the rate of Employer, Self-Employed and Employee PRSI will increase by 0.1%, while pensions auto-enrolment will add a further 1.5% in costs during 2025 as many employers will now be mandated to operate a second employee pension scheme alongside their existing staff pension plans. “While the Debt Warehousing Scheme has mitigated part of these challenges for some businesses, Government needs to be cognisant of this challenge when implementing new labour regulations, having regard to the timing and suitability of these. An ‘SME Test’, as announced this week will perform most effectively if close engagement with business is built in from the outset.” Improving access to business supports Chartered Accountants Ireland believes that more resilient businesses will be better positioned to weather crises and uncertainty, and have confidence to invest, to scale, and to create employment. The Institute is calling on the Government to support SMEs in accessing finance, optimising governance structures, and investing in developing their workforces. Proposed measures include: Widening the eligibility criteria for the broad range of grants available to include more ‘traditional’ industries and service sector. Ensuring more consistent availability of grants and supports nationwide. Our members tell us that services provided in one part of the country may not be available to similar businesses elsewhere; much depends on the approach and funding at a local level. With the advent of remote working, a common approach to supporting all small businesses, regardless of where they are located in Ireland is needed. Promoting healthy competition in the business lending market, by enhancing the role that community-based lenders and alternative lenders can play in addition to the pillar banks. At today’s AGM, members of Chartered Accountants voted to approve the resolution amending the bye-laws to facilitate the amalgamation of CPA Ireland into Chartered Accountants Ireland, as was mandated by the members in February of this year. Chartered Accountants Ireland and CPA Ireland will continue working together to progress the amalgamation of the two Institutes.    ENDS

A critical marker of Ireland’s future economic success will be supporting our SME sector by reducing the cost and complexity of doing business. This is according to the Consultative Committee of Accountancy Bodies- Ireland (CCAB-I), the umbrella group which represents some 40,000 professional accountants, as it published its Pre-Budget 2025 submission today. The paper entitled ‘Supporting and Sustaining our SME sector’ highlights the constraints experienced by SMEs as a result of increasing labour costs and also states that a lack of supply of housing and childcare places, in addition to high personal tax rates, are making it increasingly difficult for people to live and work affordably in Ireland.     The submission identifies four key areas for budgetary focus:   Support SMEs by exempting minimum wage workers from employers’ PRSI and simplifying tax legislation  Increase the number of childcare places available and offer working parents a €1,000 tax credit to return to the workforce Introduce a 30% intermediate rate of income tax to retain and attract workers and help people live affordably  Continue to stimulate and support the completion of new houses.  Commenting, Director of Public Affairs, Cróna Clohisey said  “The lead into Budget 2025 comes at a time of increased financial pressure for businesses operating in Ireland as well as clear deficits in infrastructure. Small businesses, which includes many family businesses, are being constrained by rising costs and, for many, labour costs now make up a considerable proportion of business expenditure. That is why we are asking the government to exempt minimum wage workers from Employers’ PRSI, this would save businesses labour costs of between 8.8 and 11.05%.”  The CCAB-I also believes that Ireland’s tax code has become increasingly complex in recent years and is calling for simplification of the tax rules to support businesses, enable them to grow and also ensure that Ireland remains competitive on an international stage.     Ms Clohisey continues  “For SMEs, the message we are receiving is that simplifying the tax code both legislatively and administratively, must be a priority. 70% of people working in the business economy in Ireland are employed by SMEs. The Government must move tax policy in a direction which supports the indigenous Irish economy by encouraging innovation and supporting entrepreneurs and reducing the cost and complexity of doing business.”  Childcare  In terms of childcare, the submission includes measures to improve the supply of childcare places for pre-school children. To address the impact of working parents leaving the workforce following the birth of their children on the labour supply, the CCAB-I is calling for the introduction of a €1,000 tax credit for working parents to encourage them to return to the workforce.  Ms Clohisey continues  “We know from research among our members that some working parents are unable to participate fully in the economy due to difficulties in obtaining and affording a place in a childcare setting. As a result, almost half of those surveyed have reduced their working hours to meet childcare responsibilities. We are asking that the government plans for adequate capacity in the sector by analysing local needs and ensuring adequate funding for the sector. For parents, the cost of childcare or lack of availability should not act as a disincentive to return to work. We are proposing as a starting point a €1,000 annual tax credit for working parents who return to or remain in the workforce until the child reaches primary school going age." Reforming the income tax system Ireland’s 40% tax rate is high in comparison to other competitor countries and the CCAB-I believes that introducing a third rate of income tax of 30% would make the system more equitable. It would also enhance Ireland’s attractiveness as a place to work, particularly among younger workers.   Ms Clohisey continues “Workers in Ireland pay income tax at a rate of 40% once they earn €42,000. This entry point is below the average wage and is significantly lower than most countries across the UK and Europe where incidentally having more than two tax rates is extremely common.   “Speaking on behalf of a mobile profession where most are in the early stages of their careers and are planning their futures, introducing an intermediate 30% rate would make the system more attractive and more equitable, lessening the tax burden on workers and putting more money in their pockets. The government needs to take immediate action to address the inequities that clearly exist within the system.”  Housing  In terms of housing, the submission also proposes: Extending the Help-to-Buy Scheme by two years to 31 December 2027 Abolish vacant homes tax Increase the rent-a-room relief from €14,000 to €20,000 and removing the cliff-edge Abolishing the non-resident landlord withholding tax system. ENDS  Issued by Chartered Accountants Ireland on behalf of the Consultative Committee of Accountancy Bodies – Ireland (CCAB-I). Read the submission in full here.  

Students from Coláiste an Chraoibhín, Fermoy and Edmund Rice College Carrigaline awarded at ceremony in Dublin  Over 8,000 students have enrolled in Boot Camp in 5 years across 26 counties, gaining real-world introduction to business and financial decision-making   Transition year student Katie Rice has been awarded first place at the Chartered Accountants Ireland Boot Camp Challenge 2024. Katie is a student at Coláiste an Chraoibhín, Fermoy and entered the competition as a solo student of the accounting programme for senior cycle students. Cork dominated the awards with second place going to a team entry from Edmund Rice College, Carrigaline.  The Boot Camp challenge is a business simulation exercise, and it is the culmination of the Boot Camp programme, an online accounting programme for senior cycle students. In the challenge, entrants take on the role of CEO of their own fictitious company which is faced with a major crisis scenario. They are tasked with applying problem solving and critical thinking skills to develop a solution to overcome the challenge.   Commenting, Boot Camp creator Brian Feighan said “The real learning in the challenge comes not from working out a specific answer but from the decision-making journey. It challenges you to research and evaluate information, to assess risks and benefits and to think critically about the evidence. You need to be creative in how you solve problems and to exercise sound judgement and commercial awareness. Katie produced an excellent submission in which she thoroughly researched the market, objectively assessed the evidence, and demonstrated a real appreciation of the risks involved. This was a very thorough and independent piece of work.” Commenting, Katie Rice said  “When I heard my entry was shortlisted, I was so excited and ultimately surprised! I didn't expect it at all, so it was a great honour to win. Thank you to Chartered Accountants Ireland for providing such a fun and engaging competition. I learned so much from the experience about business which I would never have learned previously like doing market research and assessing situations and making the correct decisions.” President of Chartered Accountants Ireland Sinead Donovan said  “I want to congratulate all entrants to this year’s challenge. A big focus of my year as President has been introducing 2nd and 3rd level students to the variety and opportunity of accountancy as a career. The Boot Camp Challenge perfectly captures that variety, and importantly the need to be able to look at life not just by the numbers, but through a much wider lens. The profession needs the talent and enthusiasm of our winners and participants here today, together with the educators who are so important in helping us promote the basis of the profession.” Boot Camp can be taken by full class groups or solo students, either independently or with teacher guidance. It can be taken as an introduction to accounting in TY or as revision in 5th and 6th year. Several large employers who take work experience students in their firms have also used Boot Camp as an introduction to their work.  Now in its fifth year, over 8,000 students have enrolled in Boot Camp in all 26 counties. Through the programme, students are introduced to the fundamentals of accounting and finance and to the world of business and financial decision-making processes. They cover strategy, risk, critical thinking, decision-making and hear real life insights from senior business leaders, accountants, and finance professionals through podcast interviews. On completion of Boot Camp, students have an excellent understanding of debits and credits and should be able to prepare a basic set of financial statements.  Boot Camp is currently open for enrolment. https://chartered-bootcamp.teachable.com or email Veronica Byrne. ENDS    

Originally from Drogheda, Co. Louth, Edel Faulkner has now been living in Bermuda for almost seven years and has learned a lot in that time. We caught up with Edel to hear more about her journey. Where did you grow up and where do you live now? I’m originally from Drogheda, Co Louth, and I spent a brief spell living in Dublin while I trained with Deloitte, before moving to Bermuda in October 2017 when I finished my training contract. I’ve been in Bermuda coming up on seven years now, longer than I spent living in Dublin which seems crazy!   What made you choose to become a Chartered Accountant? It probably goes right back to school where the business subjects, particularly accounting and economics were always my strongest, and the ones that I really enjoyed, so I would naturally spend more time studying those. From there I went on to study Accounting and Finance in DCU. I really enjoyed my time at university and the course is really set up to give you a strong foundation to embark onto professional exams in whatever area you choose.  Can you tell us a little about how you got to where you are today – both the geographical relocation and career path? I knew I wanted to get some experience living and working abroad once I qualified, and with the global presence of Deloitte it made sense to look at options within that network. I felt sticking with Deloitte would provide some familiarity as I got used to everything else in a new place. As luck would have it, a partner I was working with at the time had just come back from a couple of years in Bermuda and she encouraged me to apply. The rest, as they say, is history!  I’m currently an Audit Director here, where I focus mainly on SEC registered insurance and reinsurance companies. My main goal with moving was to gain exposure to both US GAAP and SEC registrants, so Bermuda has certainly provided me with that. It helped that I had worked on the financial services team in Dublin too, so I had a good foundation coming in.  I think the main attraction of an island lifestyle was the work/life balance that it provides – it’s a small place so there are no long commutes, and the weather means you can do outdoor activities year-round. My husband also loves that Bermuda has more golf courses per square mile than any other country in the world! Looking back, I couldn’t be happier I took a leap and made the move – I would encourage anyone that’s considering opportunities overseas to take the chance and give it a go.   What do you value most about your membership of the profession and how do you think those benefits can be used to support the economy and society? It’s an internationally recognised qualification, so a move abroad couldn’t have been easier. Bermuda comes under CPA Canada, so I was able to get CPA credentials through the mutual recognition agreement in place between the professional bodies.  As a member living away from Ireland, can you talk to us about how your membership has been of value to you living overseas? It provides an additional network that you can tap into whenever you need support from a professional perspective. It also provides a great sense of community. We have recently started up the Bermuda Chapter of overseas Chartered Accountants Ireland members with support from the Institute, and it has been great to see so many Irish accountants turn out for our events – whether it is people who are brand new to the island and looking to make some friends, right up to those who are now retired in Bermuda. We are a very social and welcoming bunch – the chat usually takes us right up to closing time!   What were the most significant/noticeable differences you encountered doing business and networking away from home and back in Ireland? There is a huge ex-pat presence in Bermuda, which makes for a melting pot of different cultures. I think professionally, this has taught me to recognise the differences in communication styles and tailor my interactions accordingly. Certain cultures are extremely direct in communications/feedback, while others are more laid back and appreciate the small talk, and in Bermuda you see it all!  And finally, an extra question! What do you think you might have been if you weren’t a Chartered Accountant?  I like to think that I could have been a member of Riverdance in another life – but in this one, I can barely manage a 1,2,3 unfortunately so I’ll be sticking to the day job! Edel Faulkner is a Director at Deloitte Caribbean and Bermuda

Sustainability credentials are big business in 2024, but not all are genuine. Dee Moran looks at ongoing EU efforts to curb greenwashing through regulation Over the last number of years, investors, consumers and regulators have put companies under increasing pressure to be ‘green’.  Being green is big business. Consumers will pay a premium for sustainable products and investors are increasingly looking to invest in companies that are perceived as sustainable. Banks also want to lend to businesses showing green credentials.   This desire to be ‘green’ has, unfortunately, led to some entities not being wholly truthful about, or exaggerating, their green credentials. So-called ‘greenwashing’ has become so widespread that many stakeholders – including investors, regulators, consumers and company directors – are calling for action to curb it.  The latest PwC Investor Survey, published in January 2024, included responses from 345 investors and analysts in 30 countries – including 38 who invested in, or covered, companies in Ireland.   Ninety-seven percent of this 38-strong cohort believe that corporate reporting on sustainability performance contains unsupported claims. Globally, the corresponding figure stands at 94 percent.  The characteristics of greenwashing So, what is greenwashing? There is no global definition of ‘greenwashing’ but, in essence, it involves misleading consumers by giving a false impression of a product’s environmental impact or benefits.  It can be unintentional. One example is the use of vague and unspecific language, such as describing a product as ‘eco-friendly’ due to its use of recycled packaging while not conducting any actual research into the sustainability, or otherwise, of the raw materials used in that product.  Or, it can be intentional greenwashing, such as the Volkswagen scandal, whereby the German car manufacturer was found to have intentionally rigged its emissions testing to deliver greener results.  When this came to light in 2015, Volkswagen’s share price fell by 20 percent, wiping more than €13 billion off its capitalisation.  Greenwashing has become so prevalent that Planet Tracker, the UK-based sustainable finance think tank, has identified six distinct types: greencrowding; greenhushing; greenlabelling; greenlighting; greenrinsing; and greenshifting. Greencrowding is where an entity adopts a group initiative, such as forming an alliance, and then progresses at the pace of the slowest participant. While collaboration with other entities in a similar industry to create goals for sustainability initiatives can be beneficial, joint statements need to be clear about what will be achieved. Otherwise, tracking progress can become challenging. Greenhushing is where entities deliberately underplay, under-report or hide their environmental, social and governance (ESG) or green credentials to evade scrutiny because, for example, their sustainability practice might not be as impressive as claimed. Greenlabelling is where entities call a product or service ‘green’ or ‘sustainable’ but there is no evidence to support the assertion. Greenlighting is where an entity focuses its marketing on a particularly green feature of its operations or products, diverting attention from other damaging environmental practices. Greenrinsing is where entities modify their ESG targets before they are achieved, thereby avoiding being held accountable for, or actually achieving, their goals. Greenshifting is when entities imply that the consumer is at fault and shift the blame on to them. The potential effects of greenwashing The effects of greenwashing vary from fairly harmless to potentially very serious.  The more consumers hear about greenwashing, the less likely they are to believe any green claims made by companies and organisations as is evidenced in the PwC Investor Survey, outlined above.  Consumers purchase sustainable goods and services to play their part in protecting the environment, but greenwashing disrupts this, and consumers become cynical.  Furthermore, entities engaging in greenwashing tactics potentially harm not just themselves, but all other entities engaging with sustainable practices and particularly those companies with genuine green products or operations. Once trust is lost, it is hard to regain.   EU actions to mitigate greenwashing Regulation to prevent greenwashing has, until recently, been limited. Much of the enforcement has been performed by advertising regulators who have moved to ban misleading greenwashing ads, for example.  In the UK, Unilever placed an advertisement claiming that Persil laundry detergent was ‘kinder to our planet’ but didn’t explain how and, consequently, it was banned by the Advertising Standards Authority on the basis that the claim was unsubstantiated.  The Advertising Standards Authority of Ireland (ASAI) received 28 complaints about a sponsored article in which a celebrity referred to the use of the Land Rover Defender as “planting the seeds of a more sustainable life”.  This was held to be in breach of the ASAI Code on the basis that “evidence demonstrating that the vehicle justified being associated with sustainability claims, albeit qualified, has not been submitted.”   Where the article asserted that “mild hybrid tech cuts down on the amount of fuel,” the ASAI found that this was likely to mislead consumers due to the omission of a comparison with any other mode of transport. The ASAI then concluded that the claim should not be used again in its current format. The European Union (EU) is very focused on reducing greenwashing and lending transparency to corporate behaviour. Some of the regulations that have been – or are in the process of being – approved are outlined below. Sustainable Finance Disclosure Regulation The EU’s Sustainable Finance Disclosure Regulation (SFDR), introduced in 2021, requires financial market participants and financial advisors to evaluate and disclose sustainability-related data and policies at entity, service and product level.   The aim is to provide standardisation of the language used and to categorise investment products by how sustainable they are. Disclosure requirements are applied to each category.    Under the SFDR, all funds are classified into one of three categories: Article 6 Funds need not incorporate any sustainability information into the investment process (for example, oil producers). Article 8 Funds should promote environmental characteristics and have good governance practices.   Article 9 Funds should make a positive impact on society or the environment through sustainable investment and have a non-financial objective at the core of their offering.  In its February 2024 Regulatory and Supervisory Outlook Report, the Central Bank of Ireland (CBI) referred to “a new phenomenon of understating how green a product is, known as ‘green bleaching’”.  Green bleaching can occur where a fund management company does not want to risk non-compliance with the more onerous requirements of Article 9.  Therefore, it categorises a fund under a category with less onerous requirements, which results in inaccurate disclosures.   The CBI report also highlighted one of the priority initiatives in addressing climate change and net-zero transition as “scrutinising and mitigating the risk of greenwashing in the promotion and sale of financial products to investors”. The EU Taxonomy Regulation The EU Taxonomy Regulation is a classification system establishing a list of environmentally sustainable economic activities; essentially, a common language for everyone.  It establishes six environmental objectives: Climate change mitigation; Climate change adaptation; Sustainable use and protection of water and marine resources; Transition to a circular economy; Pollution prevention and control; and Protection and restoration of biodiversity and ecosystems.  In order to be considered aligned with the taxonomy, an entity must adhere to at least one of the environmental objectives and the related technical criteria, do no significant harm to the other objectives and meet minimum safeguards regarding human and labour rights. Disclosure obligations will apply from 1 January 2024 with respect to the 2023 financial year. In theory, this should create security for investors and help companies become more climate friendly. It should also prevent market fragmentation – something that has caused issues in the past. Corporate Sustainability Reporting Directive In terms of reporting, the Corporate Sustainability Reporting Directive (CSRD) – which commenced on 1 January 2024 for certain companies – is focused on improving transparency, particularly with the disclosures required to be made under the directive.  While it has not been stated that the CSRD will specifically prevent greenwashing, it will make greenwashing more difficult, given the significant requirements of the directive. These include the following: The framework underpinning the CSRD is the European Sustainability Reporting Standards (ESRS), which is a set of 12 standards covering ESG metrics. Entities will have to report on their ESG metrics, as will their competitors, making information more comparable and therefore more transparent and less prone to exaggeration, omission or suppression. The requirement to complete a double materiality assessment whereby a company must consider its impact, not only from a financial perspective, but also from the perspective of its impact on people and the environment. • There are a significant number of additional requirements over and above those required under the Non-Financial Reporting Directive or the voluntary frameworks, both quantitative and qualitative, which will leave less room for ambiguity and the individual interpretation of sustainability information. Mandatory independent assurance of company ESG information will be required under the CSRD. Initially, this will be limited assurance, but it is expected that reasonable assurance will be required by 2028. Therefore, companies will need to ensure that they have in place appropriate processes and controls – similar to financial reporting – so that they are in a position to comply with the new regulatory obligations. The requirement for external assurance should, above all, bring with it the trust investors have been looking for. As a single framework, the CSRD will bring increased comparability to ESG reporting, greatly assisted by the mandatory electronic XBRL tagging of the report. Investors will now be able to compare information provided by companies and make investment decisions based on this information, which will be more granular in nature, thereby offering a higher level of detail.  Draft Green Claims Directive The Green Claims Directive is the latest piece of regulation introduced by the EU to tackle greenwashing and is an important step in increasing transparency and trust in relation to environmental claims.  The European Commission first proposed this directive in March 2023 following the publication of a joint report by the European Parliament’s environment and internal market committees.  The report followed a European study in 2020, which found that more than 53 percent of environmental claims in the EU were misleading, vague or unfounded. The proposals for the Green Claims Directive include: Setting out detailed rules on substantiating and communicating explicit environmental claims; Ensuring that companies carry out an assessment to substantiate environmental claims on a host of requirements – if the claim concerns the whole product or a part of it, for example, reporting greenhouse gases offsets in a transparent way and looking at all significant environmental aspects and impacts; Potential penalties, such as a temporary exclusion from public procurement tenders or fines of at least four percent of annual turnover. The directive is due to come into force on a gradual basis, depending on company size, from 1 January 2026. Proactive approach All of these developments are very positive and demonstrate the EU’s proactive approach to regulating against greenwashing. The European Parliament’s rapporteur for the Environment Committee, Cyrus Engerer, has said, “it is time to put an end to greenwashing. Our agreement on this (Green Claims) text ends the proliferation of deceitful green claims which have tricked consumers for far too long.”   Regulation will work only if there is enforcement, however. Individual countries need to ensure that they have the processes in place to punish those who do not adhere to the regulations. Dee Moran is Professional Accountancy Lead with Chartered Accountants Ireland

Following the success of our 2023 CPD day, we are delighted to announce it's back for 2024! Join members from across the region in taking a day out, away from the distractions of the office to prioritise your own learning. Again this year we have a full agenda, with topics including: • Business insurance – Closing the insurance gaps with Siobhan McSharry, McSharry Foley Insurance • Doing Good Business: Sustainability with Shelia Killian • Financial Reporting update with Kevin McSharry of Circle Advisory • Branding for SMEs with Gerard Tannam of Islandbridge • Cross Border Tax with Rose Tierney, Tierney Tax • Cyber security & Artificial Intelligence with Ciaran O'Connor of Trojan IT • Pension Auto Enrolment with Stephen Lowry, Chartered Accountants Ireland This is an event not to be missed, but don't take our word for it! Here are just some of the comments last year's attendees had about the day: "Best event I attended since I qualified in 1990" "All in person is wonderful to really create some rapport with people and to really understand the content, especially as a graduate" "Would like this to be an annual event" Book Now  

Accounting for the Future |  Regional outreach 22 February 2024     The North West Society's regional outreach day on the 22 February was a huge successes. We would like to thank the Atlantic Technological University team and our colleagues in Chartered Accountants Ireland for making this day such a great day!  200 second level students came to participate in the Chartered Accountants Ireland Mini Be The Boss Challenge. Congratulations to Amy Fleming from the Mercy College Sligo for winning the challenge! 30 third level students met with President Sinead Donovan and North West Chair Marion Prendergast 46 members joined us for the Presidents dinner that evening at the ATU 150 members and guests attended the "Accounting for the Future" panel discussion with Joe Gannon, Sinead Donovan and Shane Devins. If you missed this session, a recording is available to view, click this link

The achievements of the vibrant network of over 700 Chartered Accountants in the US continue to represent the best of the profession and provide a crucial conduit for inbound investment to our shores US members represent best of the profession  For decades, Ireland’s Chartered Accountants have beaten a well-worn path across the Atlantic, writes Sinead Donovan, President of Chartered Accountants Ireland. Facilitated by a Mutual Recognition Agreement with the American Institute of Certified Public Accountants (AICPA), our members have had the opportunity to build their careers in roles across industry and practice. Many make the move in the early years of their career, looking to explore the world and gain post-qualification experience in a new market. As you will see in this special report, many remain there through their careers, becoming embedded in the local economy, their achievements in senior positions representing the best of the Chartered qualification. These more established representatives of our profession become highly effective advocates across the United States, and indeed for the island of Ireland, as they become influential ambassadors for inbound investment to our shores. This flow of investment is well-established and mutually beneficial for our economies, and I am proud of the critical role our members play in driving and servicing this. As a membership organisation, one of the most critical things we can do is support members in this work. In what I like to call the “family” of accountants, I have come to realise that no matter how far from home members are located, there is that strong desire for community and a sense of belonging with their fellow members overseas and with the Institute at home. On the ground in the US, there is also a strong network of overseas chapters, run so effectively by local volunteer members, many of whom I had the pleasure of meeting last year when I visited. The other crucial way we support members is through the power of our professional network. Over the years, we have built strong and enduring relationships with AICPA, the National Association of State Boards of Accountancy and Chartered Accountants Worldwide, among many others. This collective voice is invaluable in continuing to help our profession to grow and further develop meaningful economic and societal impact.  Colm Mackin, Act+Acre As co-founder and Chief Executive of Act+Acre, the New York headquartered haircare business he runs with his wife and business partner Helen Reavey, Colm Mackin has just launched the brand in 235 US outlets of Sephora, the cosmetics retail giant. It is a major milestone for Mackin, a Chartered Accountant from Co. Down, and Reavey, a top hairstylist from Armagh, who launched the brand together in 2019. They partnered with scientists at Stanford University to develop a range of patented cold-processed haircare products designed to resolve scalp-related issues ranging from product build-up to thinning hair. Since then, Mackin and Reavey have employed a successful e-commerce strategy that has seen Act+Acre grow from strength to strength, netting the venture US$12 million in private investment. “That first spark of an idea came from Helen’s experience working at Paris Fashion Week with all these models who were going from show to show,” Mackin explains.  “They had nothing to remove scalp build-up and their hair wasn’t performing. We saw this gap in the market for a range of products that could address these issues and promote scalp health as the basis for healthy hair.” At the time, Mackin had transferred from PwC in Dublin to work on the international tax team at the firm’s New York office. His decision to leave a secure role in practice for the unfamiliar world of entrepreneurship was bolstered by his pure belief in the Act+Acre concept. “What I had been doing in practice gave me a really good grounding for what we’ve gone on to achieve with Act+Acre, but there are different chapters to the story,” he says. “We spent six months researching our products and the cold-processed process behind them. Then, you must get the product/market fit right, build your team and raise the money you need. “I think that’s where I’ve really seen the benefits of my qualification coming through. America is a place where you have access to investors you wouldn’t necessarily find in smaller markets and being Irish helps because we’re naturally good storytellers and we are naturally passionate.  “That helps to get the conversation started, but being a Chartered Accountant also means I have a very good understanding of profit and loss on a balance sheet. I can speak with confidence to investors; it’s just innate. I can answer their questions. You’re speaking to them on their level and that helps hugely when you’re out there raising money to build your own business.” US market appeal Mackin is one of over 700 members of Chartered Accountants Ireland currently living and working in the US.  More than one-in-three are in the 24-44 age bracket, demonstrating the market’s ongoing appeal to, and demand for, talented Chartered Accountants from Ireland building their careers.  While concentrated in cities such as New York, Boston, Chicago, San Francisco and LA, their footprint can be found right across the country, from Washington State to Florida and from Texas to Michigan.  Eighty-two percent of Institute members in the US work in business. The second largest cohort (10%) work in practice.   Una Troy, SS&C Technologies One of the 82 percent of Institute members in the US working in business is Una Troy. Troy is a Managing Director with SS&C Technologies, a provider of services and software to the financial services and healthcare industries with some 20,000 clients and offices around the world. Based in New Jersey, Troy qualified as a Chartered Accountant in Dublin and had already worked in high-level positions in the funds industry in the UK and Australia by the time she found herself en route to the US in 2005. “I was working with BISYS Fund Services in Dublin in 2005 when the company started hiring people to support its growing hedge fund business in the US and I decided to make the move across to New Jersey,” she says. Almost immediately, Troy found her qualification as a Chartered Accountant beneficial to her career progression in the States. “At the time, BISYS had acquired the hedge fund administration arm of an accountancy practice and I was able to help that business integrate into BISYS,” she says. “My accountancy background gave the local leadership team confidence in me and the group I was leading and, when BISYS was sold to Citi, I became Global Head of Operations for Citi’s hedge fund business.” Troy was subsequently appointed Managing Director, SS&C GlobeOp, following SS&C Technologies’ acquisition of Citi’s Alternative Investor Services Business. “I have found the US very welcoming as a place to live and work. There are a lot of commonalities culturally between Ireland and the US; both share a very strong work ethic. There are great career opportunities here and your efforts are rewarded.” Troy’s advice to Chartered Accountants who have relocated to the US more recently is to make full use of the professional network facilitated on-the-ground by Chartered Accountants Ireland. “You’ll start to form a network of colleagues within your work role, but it’s also important to broaden your contacts outside that,” she says. “Attend events hosted by Chartered Accountants Ireland and other organisations relevant to your work. Once you start to attend these events, you automatically start to broaden your network.” The Chartered Accountancy qualification is relatively well-recognised in the US and associated with high professional standards, Troy says, but certain roles may require applicants to hold a Certified Public Accountant (CPA) designation.  “For many Irish Chartered Accountants, the qualification itself will suffice but where a CPA designation is required, an accelerated path has been facilitated by the American Institute of Certified Public Accountants (AICPA) and the National Association of the State Boards of Accountancy (NASBA) through a Mutual Recognition Agreement (MRA) with Chartered Accountants Ireland,” she says. About the MRA Chartered Accountants Ireland first signed its MRA with the AICPA and NASBA in 2004 and the agreement has since been renewed several times.  “Irish Chartered Accountants can access the US designation and gain practice rights in the US,” explains Ian Browne, Director of Education, Chartered Accountants Ireland. “This is of particular relevance to those who wish to work in practice in the US and is increasingly required by US firms.” To successfully complete the process, Chartered Accountants are required to pass the International Qualification Exam (IQEX) operated by NASBA. This can be done in Ireland before moving to the US. “Additionally, as the US CPA qualification includes audit rights, you should ideally have obtained the Irish Audit Qualification before you leave should you plan to work in audit,” Browne says. Ken L. Bishop, President and CEO of NASBA, says the MRA gives Irish Chartered Accountants a relatively easy route to securing the necessary certification to work in the US. “Irish Chartered Accountants are typically highly valued by the US profession and many have taken advantage of the MRA,” Bishop says. “I believe that the MRA and the flexibility and mobility of practice privileges that can be accomplished is hugely important. We live in an increasingly global economy, and the business and economic nexus between the US and Ireland continues to increase.” Alan T. Ennis, former Revlon CEO For Alan T. Ennis, who has lived and worked in the US since 1999, his qualification as a Chartered Accountant provided the crucial foundation on which he has been able to build a high-flying career in business. Ennis studied commerce at University College Dublin and qualified in 1991 with Arthur Andersen, where he continued to work as a manager for a few years before moving to the UK to join Ingersoll Rand in Manchester. It wasn’t until he negotiated a transfer to the US multinational’s New Jersey office in 1999, however, that his career really began to take off. “I moved through various different financial roles from internal audit to financial planning and investor relations there,” he says. In 2004, as he was considering a potential move to North Dakota to take up a position as CFO of Ingersoll Rand’s Bobcat division, Ennis was headhunted for a very different role. “I was offered the position of head of internal audit at Revlon. I was in my early thirties and my choice was between Bobcat in Fargo, North Dakota, and this other role with a very different and much smaller company that would put me in New York.  “Revlon had a lot of debt at the time. It was a high-risk move, but I thought, ‘you know what, I’m going to go for it’.” It was a risk that would pay off for Ennis who quickly climbed the ladder at Revlon. “Being a Chartered Accountant put me in a very good place to understand the financial operations of any corporation and that really stood me in good stead at Revlon,” he says.  “I could understand financial statements, I understood the importance of profitability and cash and how investments work.  “What happened next was really a combination of readiness and serendipity. Within two-and-half years, I had gone from Head of Internal Audit to Corporate Controller to President of International and then Chief Financial Officer.” As CFO, Ennis again found his training as a Chartered Accountant invaluable. “The Board of Directors could see that I knew how the business worked; how it operated.” After two-and-a-half years as Revlon’s CFO, Ennis was appointed to the top role of Chief Executive of Revlon for five years. “I had a great run and a superb team of people behind me and when I left that role in 2014, I got a great package and I wasn’t under pressure anymore really to prove myself. I had choices,” he says. In the years since, Ennis has “dabbled in private equity and joined a couple of boards, both profit and not-for-profit.”  “In everything I’ve done here in the US, my qualification continues to be the most valuable jewel in my chest of knowledge,” he says. “My advice to Chartered Accountants moving from Ireland to the States now is to make sure you start to connect with other Chartered Accountants over here straight away – and there are lots of us in New York, Boston, San Francisco and other places. That’s a valuable network. “The other piece of advice I would have is that it’s okay to put yourself out there – in fact, it’s a good idea. Americans tend to be confident in how they present themselves professionally. They are proud of what they have done and they’re confident in their success and in abilities.  “They’re not afraid to talk about it. Irish people, myself included at times, tend to downplay our achievements and abilities. In the US, people won’t necessarily understand that so it’s not a bad idea to learn to advocate for yourself, your skills and talents.” Significant contribution to New York business community Irish Chartered Accountants make a significant contribution to the New York business community, writes Helena Nolan, Consul General of Ireland in New York. Its active members are a testament to the wide reach of Irish and Irish American accounting professionals in the broader New York business and finance sectors. It was a pleasure to host Chartered Accountants Ireland again for another networking event at the Consulate in New York during St. Patrick’s week in 2023 and an honour to have Irish Minister for Education, Norma Foley TD, present to address the gathering of members and partner organisations. Networking events like these are important for showcasing members’ contribution, for raising awareness of the increasing opportunities available now for businesses in Ireland and to help underpin the vibrant professional relationships between professional organisations and individuals in the United States and Ireland. The Consulate team is always pleased to support and reinforce these strategic linkages between our two countries and our two economies, where we see an increasingly mutual relationship, in terms of trade and investment, and great potential for the future. Chartered Accountants play important role in winning FDI for Ireland    Ireland’s investment relationship with the US is strong and enduring with about half of all IDA Ireland clients headquartered in the US, writes Brian Conroy, Executive Vice President and Director, North America, IDA Ireland. These US companies employ more than 180,000 people in Ireland across a range of sectors such as technology, life sciences, financial services and engineering. US investments in Ireland are by no means gained effortlessly. With over 30,000 members, Chartered Accountants Ireland plays a very important role in the winning of FDI for Ireland. The Institute’s members work in senior positions in practice and industry both in Ireland and in the US and provide the financial leadership and talent crucial to Ireland’s success. A key reason our country is an attractive place for US companies to do business is because people here in government, industry and academia work hard to make it that way. The activities of US multinational companies supported by IDA Ireland make a crucial contribution to our FDI success. US members: key decision-makers driving NI inward investment Alongside our wider diaspora network, professional membership bodies like Chartered Accountants Ireland play a significant role in bringing people together, writes Andrea Haughian, Executive Vice President and Head of Americas with Invest Northern Ireland.  Organisations like Chartered Accountants Ireland afford agencies such as Invest Northern Ireland the opportunity to engage with members across the US, many of whom are, or can facilitate access to, key decision-makers responsible for investment decisions. We deeply value the relationships facilitated by Chartered Accountants Ireland. For more than 20 years, Invest Northern Ireland has supported US companies to successfully establish centres of excellence in Northern Ireland.  Northern Ireland’s global reputation as a trusted business partner with a thriving entrepreneurial ecosystem, talented workforce and deep expertise in research and innovation, has long been a magnet for significant foreign direct investment from the US. Companies such as Seagate, Citi, Aflac, and Microsoft have joined more than 230 US-owned businesses operating across the region and employing over 30,000 people in sectors as diverse as technology, advanced manufacturing and engineering, life and health sciences and financial and professional services.  Demonstrating the importance of the relationship between the US and Northern Ireland, US President Joe Biden has appointed Joe Kennedy III as the US Special Envoy to Northern Ireland for Economic Affairs with a focus on advancing economic development and investment opportunities. 

Start the New Year with a practical resolution! Join the North West Society for Excel and Power BI Tip's and Tricks, Thursday lunch times this January. Click to book.

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.

We are delighted to announce that McSharry Foley Insurance brokers are the sponsors of our Christmas lunch this year. Siobhan McSharry and her team at McSharry Foley are no strangers to the North West Society, and have joined forces with us many times through the years. Supporting local business and local businesspeople is a key pillar of their business values. Serving the Northwest and located in Sligo for over 40 years, McSharry Foley provides an experienced, professional and personal local Insurance Broker service. Accessing the Irish & London Markets they specialise in liability / property / fleet / professional indemnity insurance for all commercial sectors, including manufacturing / engineering / building / hospitality / retail & office / heritage / social & community. They work with clients, supporting them with underwriting advice, market rates and competitive cover on the phone or in person. They also trade as whoops.ie providing car / van / home insurance nationally over the phone or online.  Please join the North West Society committee in welcoming Siobhan and her team at McSharry Foley insurance brokers & whoops.ie to our Christmas lunch.  The lunch is now sold out, for waitlist enquiries, click here to enquire.

  Chartered Accountants Ireland is partnering with Climate Finance Week Ireland to deliver a webinar on the Corporate Sustainability Reporting Directive (CSRD) and its implications for SMEs in value chains. With effect from financial year beginning on or after 1 January 2024, companies in Ireland will begin reporting under the CSRD (and as a result, the European Sustainability Reporting Standards ‘ESRS’). Drawing on our speaker’s expert knowledge, the webinar will first describe the CSRD and the ESRS.  This will be followed by a panel discussion, on how the financial services sector is transforming its own environment, social and governance profile, and the impact this will have on customers along the value chain. Building on the concept “you’re in scope because they’re in scope”, the speakers will discuss ways for SMEs to prepare for the potential impact of the Corporate Sustainability Reporting Directive. Speakers: Dee Moran - Professional Accountancy Lead, Chartered Accountants Ireland David Connolly - Senior Manager, EY Climate Change and Sustainability Services Donna Wilson - Head of ESG Transformation, AIB (Host) Susan Rossney – Sustainability Officer, Chartered Accountants Ireland Sign up here: https://www.climatefinanceweek.ie/agenda/thursday-23rd-november/

Brexit has been with us for quite some time, yet challenges remain for businesses trading with the UK. Janette Maxwell outlines the practical considerations for Irish importers and exporters Recent CSO figures show imports from Britain to Ireland fell by 14 percent to €1.8 billion in August 2023 compared to August 2022, and exports from Ireland to Britain fell by 15 percent to €1.3 billion in August 2023 compared to August 2022. With imports and exports in decline, it’s hard not to look to Brexit and the challenges it has brought as the culprit. Here are some practicalities to consider when trading with Britain. Irish-based businesses unwilling to act as importers of record Where an Irish-based business sources goods from outside the EU, it may not be willing to take on the responsibilities associated with the importation. To secure these sales, the foreign supplier seeks an Irish VAT registration and an EU Economic Operators Registration and Identification (EORI) number to act as the importer of record on the basis the sales are subject to the incoterm, delivered duty paid. The foreign supplier is then responsible for the importation of the goods into Ireland and pays the import VAT and any customs duty arising from the importation. The subsequent sale of the goods by the foreign supplier is subject to Irish VAT, which is returned on the foreign supplier’s Irish VAT return, with the import VAT being claimed as input VAT. Subject to authorisation from the Irish Revenue, it may be possible for the foreign supplier to use postponed VAT accounting for the imports. Postponed VAT accounting for imports An Irish VAT-registered business may apply to the Irish Revenue for authorisation to use postponed accounting for imports. Where this is granted, an importer does not pay import VAT on the clearing of the goods through customs. Instead, the import VAT is included as output VAT in the Irish VAT return, with the importer claiming input VAT in the same return subject to the deductibility provisions. There is a requirement to include the customs value of the goods in the PA1 field of the VAT return and in the appropriate fields of the annual return of trading details, i.e. PA2 and PA3 or PA4. EORI numbers A business acting as the declarant when importing or exporting goods from the EU must have an  EORI number, enabling the EU Customs administrations to deal with customs-related procedures. An Irish-established business can obtain its EORI by applying to the Irish Revenue. However, a non-EU established business should request its EORI from the EU member state in which it first lodges a customs declaration or applies for a customs decision. Contracts that would result in a UK VAT registration obligation Should the Irish business sell goods on delivered duty paid (DDP) terms to a customer in Britain, the Irish business would have to deal with the importation of goods into Britain. Where DDP terms apply, the Irish business must appoint a UK-established agent and obtain a British EORI number. The Irish company would also have to register for UK VAT to pay over the UK import VAT arising and to charge UK VAT on the domestic supply of the goods to the customers in Britain. Postponing the UK import VAT Import VAT is typically payable at the point of importation into Britain. UK import VAT is liable on goods at the same rate which would apply to the goods had the supply occurred in the UK – i.e. 20 percent.   Like Ireland, the UK government introduced a measure allowing importers to operate a postponed method of accounting for the UK VAT. This means that the payment of import VAT can be delayed until the next VAT return following the date of importation. The Irish business would self-account for import UK VAT and – subject to the standard VAT recovery rules in the UK and its VAT recovery entitlement – would be entitled to claim a corresponding VAT deduction, potentially providing a cash-neutral position for the Irish business. It is important to remember that customs duty may also arise, which is non-recoverable and represents an absolute cost for the business. What’s ahead At the contract negotiation stage, it is vital that the Irish business understands the impact of the commercial terms to which they are agreeing and, if possible, negotiates more favourable terms which may avoid a UK VAT registration and the associated registration and compliance responsibilities. It is also essential to keep up to date with VAT legislative developments in the UK and seek UK VAT advice as required, in addition to Irish VAT advice. Janette Maxwell is a Director of Tax with Grant Thornton Ireland

District Societies arrange lunch or evening events for members to celebrate the season. Here is a roundup of the events for Christmas 2023, including how to book. London Society dinner University Women's Club, Mayfair Took place on Thursday 30 November 2023 Charity supported: The Irish Elderly Advice Network Thank you to all who attended Western Society lunch – bookings now closed The Dean, Galway Friday 1 December 2023 Charity supported: Hope Space Sponsor: Money Butler Ulster Society lunch – bookings now closed Europa Hotel Friday 8 December 2023 12:00pm Entertainment: Andrew Ryan Charities supported: Salvation Army; St Vincent de Paul; NOW Group Sponsor: Ulster Bank Sold out. Waiting list  Mid West Society dinner Savoy Hotel, Limerick Took place on Thursday 30 November 2023 Thank you to all who attended Cork Society Christmas lunch Maryborough Hotel Friday 8 December 2023 12:15pm Guest speaker: Jacqui Hurley Supporting Edel House Individual | Table of 10 North West Society Christmas lunch Glasshouse Hotel, Sligo Friday 8 December 2023 12:30pm Speaker: Deirdre McGettrick  Individual | Table of 10 Leinster Society Wexford Christmas dinner Kelly's Hotel, Rosslare Took place on Thursday 23 November 2023 Thank you to all who attended Kilkenny Christmas dinner Zuni Restaurant Took place on Thursday 30 November 2023 Thank you to all who attended Dublin Christmas lunch Clayton Hotel, Burlington Road Friday 8 December 2023 12:00pm Guest: Mario Rosenstock Supporting: Jack and Jill's Children's Foundation Sponsor: CPL Email to book  

Successful digital transformation requires strong leadership. Dave Vincent outlines his tips for successfully embedding innovation in business Growing up in Belfast in the seventies and eighties, I was convinced that by 2020, we’d all be travelling around on flying cars or hoverboards and have a host of robot servants looking after us. Fast forward to the nineties, and I can vividly remember sitting in my university computer lab wrestling with the logic and code required to help teach a hungry virtual monkey how to get their hands on a hidden bunch of bananas. In 2023, while software applications and systems are significantly more developed than in the nineties, the reality doesn’t quite match the vision of the eighties (the hoverboard being the biggest disappointment). I couldn’t have dreamed of many of the developments that have instead taken place, however. Since the term ‘artificial intelligence’ (AI) was first coined almost 70 years ago, we’ve seen wave after wave of technology-enabled innovation, from the rise of personal computing to the internet, mobile devices, augmented and virtual reality, the cloud, the metaverse, self-driving vehicles and now, generative AI. Each shift has captured the imagination, created new opportunities and raised further questions and challenges for business leaders. We are surrounded by technology, and every day, we can see that technology evolves and changes as it impacts how we live and do business. How can technology help? Some of the most frequent questions I hear from clients considering digital transformation are: “Where do I start?” “How do I create the most impact?” “What does success look like?” Rather than starting by asking or thinking about what a particular tool or technology can do, I prefer to reverse engineer the questions and ask: “What are you trying to do in your business or what problem would you like to solve, and how can a digital mindset or technology help?” As these new technologies continue to influence all areas of our business operations, customers and employees, companies need a new type of (digital) leader who can understand, interpret and navigate this digital transformation era. The digital leader Implementing new technology is challenging. The organisation seeking to embed the latest technology — and its staff — must unlearn old concepts and embrace the new systems. For digital leaders, this means adopting alternative leadership styles. In the past, leadership was about giving orders and making decisions. Digital leaders know that successful digital transformation is not just about adopting technology; it’s about transforming business and operating models, driving growth, enhancing competitive advantage and increasing business agility. Today’s leaders must be able to evaluate progress, priorities and business models continually and be prepared to change direction quickly. Digital leaders need to understand not only how systems and technology work but also how that technology will be received and used by staff, as well as how it will impact how employees work and the type of work they do. Digital leaders need to be able to effectively manage employees through shifts and changes to ensure that digital technology is used to deliver the best business outcomes. To make informed and pragmatic decisions about technology, digital leaders must be able to evaluate the impact technology can deliver for their organisations, use data to inform policy and decision-making, and proactively assess and manage risks related to data security. To drive digital innovation, leaders must be agile and flexible, creating a culture where innovation, collaboration and continuous learning can flourish and empower their teams to make data-driven decisions. To ensure focus and alignment, leaders must share a well-defined and compelling strategic vision, calling out what success looks like and showing the roadmap that will get there. It is also important to remember that leadership in the digital age is not just the responsibility of the nominated digital leaders and senior leadership teams, however. Every employee can be a digital leader. The future is digitally enabled Organisations can drive digital innovation and growth from the ground up by empowering staff at all levels to take ownership of, and show leadership in, their work.  The future of work is undoubtedly digitally enabled, and business leaders who are prepared to embrace this change and lead their teams effectively will be the ones to succeed. The digital age allows leaders to create more meaningful and purpose-driven work for their employees and promote innovation and growth for their organisations. Organisations can position themselves for continued success by investing in digital leadership development.  And maybe somebody will finally work out how to create the hoverboard of my dreams. Dave Vincent is a Director of Digital Transformation at Grant Thornton Northern Ireland

Check out the North West Societies budget 24 summary here