Thank you to all the members who brought a touch of glamour to Sligo Races on Thursday 10 August at Sligo Racecourse. Society Chair Marion Prendergast and members enjoyed the exciting day of races. Photos from the day can be viewed here.

What's going on in the North West region this summer? Find out about the Societies trip to Sligo Races and the new Chair Marion Prendergast and her committee along with other news here!

Members of Chartered Accountants Ireland travelled from all over the North West region to meet in Sligo on Thursday 23 April. This the Societies first full day conference in a post pandemic world was sponsored by Bright Software and hosted by local members who remarked on how delighted they were to be facilitating face to face meetings, in what is a welcome return to the confidence of a pre-pandemic era. The strong attendance of the event was no surprise with a total of 9 high quality speakers taking to the stage on the day. Local and national presenters spoke on a diverse range of topics all of which were presented with a unique North West focus. The innovative pairing of Fulbright Scholar Dr. Caroline McGroary and Mr. Donal McNamee, Managing Director, Archway Products, Co. Leitrim covered extensively the topic of Cyber Security in an eye -opening manner. Award winning business owner, Chartered Accountants Ireland member and local Sligo entrepreneur Larissa Feeney of Accountantonline.ie motivated and enthused delegates with her insights on running a business remotely. Caroline Murphy, Director of Collins McNicholas covered remote working and emerging trends for recruitment and retention. Retirement and Succession planning was another important topic on the day with Mayo member Maura Ginty, Gintax covering succession and retirement planning. Jim Conolly, Head of Retirement, AIB offered an educational take on the opportunities PRSA’s provide for Accountants and their clients. Technical Accounting topics were covered too. Tara Murray of Vialto Partners updated the group on the changing tax regime, while Insolvency Partners Diarmuid Lynam and Michael Kennedy covered SCARP and the new Corporate Enforcement Act. Some photos of the event can be viewed here.  

How do employers attract and retain Gen Z? Full-blown member David Boyd explains The oldest members of Gen Z are now 26, only a few years out of university, an experience shaped by an abrupt shift to online learning, disrupted exams and prohibited socialising. Then the introduction of remote work put individuals’ priorities into perspective. So what does this mean for Gen Z in the workforce? Great Place to Work identified that Gen Z are the largest generation, 32 percent of the global population. By the year 2030, the number of Gen Z employees is anticipated to triple. While they are educated, skilled, socially conscious and resilient, their full potential is as yet unknown. Having grown up with evolving technology, they are more adaptable to change and accepting of efficiencies at work. Additionally, Gen Z want to work for an organisation that sees them as an individual, not a number. As this generation loves learning and puts diversity and inclusion first, a company’s culture can be their first non-negotiable factor in applying for a job. Forget the generalisation that all of Gen Z are “quiet quitters” because what they really want is transparency, action on diversity, and social and environmental responsibility from an organisation that will support their career development. Generation X and Millennial employers should be mindful of Gen Z’s use of anonymous review websites and social media platforms to assess organisational culture. Therefore, organisations should consider if their digital platforms feature people from diverse backgrounds and show support for LGBTQ+ communities, and their online presence is authentic, showcasing their values. Gen Z are said to be the most selective generation, who will change jobs and employers for better opportunities and value alignment. They pay close attention to the types of interview questions asked, particularly if the interviewer is empathetic towards their happiness in the role and good cultural fit. Some people hold the misconception that what Gen Z want at work is a Google-style lounge area and activities but what they really want is holistic benefits, particularly flexibility. Gen Z have experienced working remotely and so are keen to optimise their time outside work to meet their commitments and achieve ambitions. They are unwilling to compromise their vision to fit into a culture that does not fulfil their expectation to live outside working hours. Of course, flexibility includes more than just flexible working hours; it means internal mobility through acquiring a new skill or role. It is unlikely that Gen Z will settle in one role for the duration of their career without the opportunity for growth and development. A study by LinkedIn found that 40 percent of Gen Z are willing to accept a pay cut for a role that offers better career development. A further 70 percent had experienced a career awakening, initiated by the pandemic. Symptoms included boredom, a craving for more work-life-balance and the desire for a job aligned with their passions. Organisations that strive to attract and retain Gen Z should commit to making a strong initial connection with employees, utilise technology for efficiencies, take action on social and environmental global issues, and provide support for employees’ personal and career development. David Boyd is a Graduate Consultant at Grant Thornton in Northern Ireland

Jeff Landers recently relocated to Dubai, with a career journey that has used his qualification in ways he didn't consider. 1. Where did you grow up and where do you live now? I was born in Dublin, and lived in Leopardstown on the south side of the city for my whole life. I did a brief spell in Vancouver, Canada, then went back to Dublin before making the decision to move to Dubai in January 2023 with my partner. 2. What made you choose to become a Chartered Accountant? To be honest, I fell into it based on college and my friend group. I was always good with numbers and business in school, so I ended up doing a degree in Mathematics and Economics in UCD.  After that, I felt the natural next step was to get a professional qualification. Most of my college and school friends went into accounting or law, so at that stage I felt accounting would be a good career where I could put my numeric skills to use.  Chartered Accountants Ireland has always been considered the strongest accounting qualification globally, so when I was offered the chance to join a training firm, (EisnerAmper Ireland), and complete the exams, there was no doubt in my mind that it was the right decision. The chance to get straight into work and start earning instead of pursuing a Masters degree really appealed to me, so when I got offered a firm close to home I jumped at the opportunity. 3. Can you tell us a little about how you got to where you are today – both the geographical location and your career path? At the outset, I wasn't totally sure of the area I wanted to be in. Once I finished my training contract, I realised that working in audit wasn’t for me. I moved on to a great company called JW Accountants to try a different branch. Over the following two years, I got experience specialising in corporate finance, examinership and insolvency. I loved the company and the people but still wasn't sure if I was on the right road. After lots of thinking, I made the decision to move on again. It had been a great few years all round, but it felt right. Dubai had always appealed to me and I was fairly certain I'd like to try it, but Covid forced me to postpone. Not wanting to be idle and just wait, and wanting to keep an income, I decided to start my own business selling cookies online...the natural step for a qualified Chartered Accountant! In ways, Covid steered the direction of the business. I went from selling directly to customers to scaling up to sell to coffee shops around Dublin. The end of the pandemic meant I was back at a crossroads though; I realised that I could scale up to yet another level, investing in a more formal premises and staff, or go back to my previous plan to go to Dubai. It was an incredibly hard decision, but six months in and I can say I don't regret it one bit (and I have stopped eating cookies everyday!) I feel that my Chartered Accountant qualification and training helped with my business skills and decision making so it did enhance that part of my career. On arrival in Dubai, I was still not convinced that straight-up accountancy was the right role for me. I got the opportunity to work in Alchemy Search as a finance recruiter and couldn't say "no". Like running the cookies business, it allowed me to continue to use my accounting experience in a different field. My experience working in various accounting roles and specialisms helps me understand the needs of the candidate as well as the client. It was a huge step for me, and it was a challenging transition, but having settled in and had excellent support from everyone in the team I know I’ve made the right decision. In summary, I took the classic route – audit, insolvency, self-employed baker, recruiter!  4. 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? The profession has given me such a great basis for everything I have done in my career. It gave me the skills and confidence to start my own business – knowing how to register the business with the CRO, file tax returns, maintain my accounts. It helped me get a job in finance recruiting when I relocated to Dubai. What you learn while completing the qualification is transferrable to many parts of life, not just your career. In terms of the economy and society, accountants have a responsibility to support businesses to make better decisions and ultimately help them succeed. It is a privilege to be part of the membership and we need to respect that and give back to society whenever we can. 5. As a member living overseas, can you talk to us about how your membership has been of value to you globally, and what do you value about it now that you're living overseas? I have met some incredible people in Dubai who are also members, and it has a real sense of community, especially abroad. Everyone I have met goes out of their way to make a connection, something I am actively trying to do when I hear of new members moving to Dubai. Whether you stay working directly as an accountant or branch off into a new career like me, the community of Chartered Accountants at home and abroad are always there to help when needed. I have already attended a member event in Dubai, something I recommend for all members living here as it is a great way to network with similar people. I originally came out here with the view of staying for two years (like most…) but having settled now and experienced life out here I think it will be very hard to leave anytime soon. 6. And finally, if you weren't an accountant, what do you think you would be/would have been? I have always loved all types of sport. The dream was always to be a professional in some capacity, however my football skills never matched my desire! I would say now if I had to take a different route, I would have enjoyed sports journalism or media. Considering I have left practicing accounting directly, I think I have definitely ended up in the right profession after taking the scenic route! Jeff Landers is a Consultant with Alchemy Search. Alchemy Search is a dedicated, regional specialist in financial recruitment, focused on accounting, tax, corporate finance and treasury appointments.  

Due to industrial action between 10 May and 2 June, callers to the Employer Helpline and the Construction Industry Scheme Helpline, which will be open from 9am to 5pm, may experience longer wait times than usual. Readers are reminded that until 2 June, calls to the Agent Dedicated Line are restricted to queries on self-assessment penalties and PAYE coding notices.

Michael Shovelin is a lecturer, Council member and immediate past chair of the North West Society. He is also an avid reader, so who better to ask for book recommendations!   With Christmas fast approaching you might be looking for a gift for a colleague, client or friend. Here is a list of some of the better books on business matters from the past year. Or you might want to treat yourself. This is the ideal time of year to kick back with a good book! Here aresix recommendations from this year. Enjoy! Chums: How a Tiny Caste of Oxford Tories Took Over Britain – Simon Kuper Born in medieval houses, educated in medieval schools and universities, it comes as no surprise that Gove, Rees-Mogg, Johnson, Truss et al should forge careers in a medieval parliament. All products of the now notorious Politics, Philosophy and Economics (PPE) degree at Oxford, they struggled to conjure up a cause that would create legacies akin to Churchill and Thatcher. With no great causes left (inequality, poverty and crumbling infrastructure not being glamourous enough) they summoned the ghost of Thatcher. They hit on Brexit. Simon Kuper delivers an incisive account on what makes these guys, and it is almost all guys, tick. A must-read for the Brexit-watcher in your house. Two Hundred Years of Muddling Through: The Surprising Story of the British Economy – Duncan Weldon With the new season of Brexit well underway, we have some new characters: dishy Rishi; the prim vicar Jeremy Hunt; and a cameo from the Bree Larson of British politics, Liz Truss. In some 250 pages, you get the equivalent of the Oxford degree in PPE delivered in a clear, concise and engaging manner. This is much more than a political economy primer. The book traces the evolution of Britain’s politics and economy since the Industrial Revolution. It charts the booms and busts and the relentless decline of Great Britain after the war. The post-war years and the transformation of the economy (and politics) during the Thatcher years are particularly well discussed. The Man Who Broke Capitalism – David Gelles ‘Neutron’ Jack Welch hated the nickname. Neutron bombs killed thousands of people while leaving physical infrastructure intact. This engrossing book traces Welch’s journey to the top job at GE and the two decades of meteoric growth in earnings and market capitalisation. From $15bn to $660bn market capitalisation. This was an extraordinary story for a company that had been in existence for almost a century, before he took the reins. The methods are all detailed here. A relentless focus on cost-cutting, offshoring, outsourcing, mega deals, mass firings, earnings manipulation and creative accounting. Hundreds of thousands of jobs destroyed, communities gutted, a toxic culture of ‘rank and yank’ and the hollowing out of once-great American icons. What is most compelling is the creation of a clone army of mini-Jacks who learnt at the knees of the great guru and wreaked havoc across the world. When McKinsey Comes to Town – Walt Bogdanich & Michael Forsythe This is an epic tale of hubris, arrogance, deceit and destruction. Once again, we meet the so-called ‘smartest guys in the room’ with all the answers for everything from regulating healthcare, implementing Trump’s immigration policies, defence contracting to advising foreign governments. They trumpet their mission, values, purpose and ethics. The reality is much different. This is a shocking indictment of yet another so-called ‘professional services firm’. While the concept of conflicts of interest should be easily understood, particularly to those with degrees from the finest Ivy League universities, it is clear that McKinsey operates on both sides of a deal. The Chinese walls are thinner than a Celtic tiger era apartment. Their role in advising big pharma as to how better to market opioids is just one of a litany of standout scandals. And the fees charged are eye watering. Butler to the World: How Britain Became the Servant of Tycoons, Tax Dodgers, Kleptocrats and Criminals – Oliver Bullough Following on from his best-selling Moneyland, Bullough delves deep into the murky and shady world of those who enable, collaborate, lobby and ease the entry of some of the world’s least savoury characters into polite society. Whatever remained of Britain’s shabby and threadbare post-colonial reputation is completely shredded here. Everything’s for sale in the scramble to legitimise the images of some of the most malevolent crooks in the world today. While the usual culprits from the world of law, accounting, estate agents and wealth advisers are here, Bullough identifies many others who are complicit. From art gallery owners to principal’s of select private schools, ‘all the devils are here’. Power Failure: The Rise and Fall of General Electric – William D Cohan Cohan’s epic Money & Power: How Goldman Sachs Came to Rule the World is still the definitive template for how to write a company biography. This will surely replace it. This 816-page epic reads like a fast-paced thriller. For all of the 20th century, no other company was so emblematic of American corporate success as GE, (okay, possibly Ford or IBM). Founded by Thomas Edison, GE expanded its operations modestly from the late nineteenth century. However, the arrival of Jack Welch as CEO in 1980 turbocharged the company’s growth and expansion like one of its famed jet engines. It’s all here, the hubris, arrogance and toxic culture that grew out of Welch’s tenure. The cracks had started appearing well before Immelt’s reign. Its demise is a tragic tale. Michael Shovelin is a Lecturer in Atlantic Technological University and Council member.

Technology is shaping the future of financial services and creating exciting opportunities for innovative professionals at the heart of the fintech revolution As Chief Executive of Swoop Funding, Andrea Reynolds occupies a unique position at the nexus of fast-changing trends in financial services, emerging technologies, and the evolving role of the financial professional. The Chartered Accountant established Swoop in 2017 with Ciarán Burke, the company’s co-founder, to develop software that could help accountants identify the best funding options for SMEs. “The platform has been used now by 75,000 businesses to access funding, ranging from equity and grants to loans and tax credits. That’s given us an interesting overview of how much technology is changing the world of finance,” said Reynolds. Headquartered in Dublin, Swoop was founded in the UK where Reynolds had been working as a management consultant with KPMG in London before deciding to go into business with Burke. “At the time, everyone was moving to cloud accounting and open banking was coming down the line with the EU’s Revised Payment Services Directive (PSD2). We were seeing these new fintech lenders emerging, offering alternative funding to businesses and consumers,” she said. “In accountancy, you are trained to solve a problem by breaking it down into smaller elements, and that’s basically what I did with Swoop. I built a platform that could bring all of these funding options together in one place and do the heavy lifting for accountants advising SMEs.” Five years on, Swoop is on course for expansion in North America and other markets, having recently raised €6.3 million in Series A funding. “Finance is increasingly data-driven and borderless and that creates opportunities for fintechs like us, but different markets also have different strengths and weaknesses,” said Reynolds, pointing to her experience launching her own start-up in Ireland and the UK. “The idea for Swoop originally came from my experience navigating the funding system for SMEs in the UK, which is a lot more fragmented than the Irish system,” she said.  “The flipside is that the UK has been much more open to alternative finance, as have other European countries. That’s meant a lot more activity in non-bank lending, whether that’s crowdfunding, or loan finance from the likes of Wayflyer, Clearco or Youlend.” By comparison, Ireland is in ‘catch-up mode’, but it is catching up fast, said Reynolds. “Wayflyer is a huge fintech success story and there are other alternative lenders in the Irish market, like Linked Finance, Flender, and Accelerated Payments.  “Ireland already has a very strong fintech base in regulatory technology, anti-money laundering, ID verification, and Know Your Customer (KYC) technology. Where we still have to build up momentum is in the area of open banking.”  Automating auditing For David Heath, FCA, it was his early experience training as an auditor that sparked the idea for Circit, the fintech venture he co-founded in Dublin in 2015. “I trained with Grant Thornton, and it was a really great experience because the firm was so ambitious and the clients so varied, but as an entrepreneur, your starting point is always ‘what is the problem and how can we solve it?’  “For me, it was a case of thinking back to those early years in my career and digging into the processes that were the most challenging,” said Heath. “Auditors typically have a good relationship with their clients but getting the information they need from third party evidence providers is a big pain point.  “You have to verify the information your client gives you with an independent source—usually a bank, law firm or broker—and that process can take anywhere from three to six weeks.” Heath saw an opportunity to solve this problem with the advent of PSD2, using the EU’s open banking regulation to create a digital verification platform for auditors.  A cloud-based open banking platform, Circit connects auditors to their clients’ banks, solicitors, and brokers, allowing them to verify information within seconds.  Circit is approved by the Central Bank of Ireland as an Account Information Service Provider (AISP) under PSD2. It works with more than 300 accounting firms in Ireland and overseas and recently closed a €6.5 million funding round. “The funding will help us to increase our footprint and build out our open banking and regulated products, leveraging the license we have from the Central Bank of Ireland,” said Heath. “The problem we’re addressing may be niche, but it has global application.” Global ambition This global ambition is a common trait among Ireland’s most promising fintechs, according to Matt Ryan, a director in the Financial Services Consulting Group at Deloitte Ireland. “The ones to watch—the ones that do well quickly—tend to be thinking globally from day one. They have the talent and the funding, but they also know that Ireland is a very small market, so they are thinking in cross-border terms from the get-go,” said Ryan. Ryan points to Transfermate and Wayflyer as two such Irish fintech ventures whose global vision is paying dividends. A business payments infrastructure company founded in 2010, Transfermate closed a $70 million funding round in May, valuing the Kilkenny fintech at $1 billion. Wayflyer secured $300 million in debt financing in the same month following a $150 million Series B funding round, closed in February, which earned the Dublin start-up a $1.6 billion valuation and coveted ‘unicorn’ status. The pandemic effect The speed with which Wayflyer’s revenue-based financing and e-commerce platform succeeded globally reflects a wider trend in fintech. “The pandemic really accelerated the development of the sector as businesses and consumers suddenly moved online en masse,” said Ryan.  “Fintech was already a fast-growing market, but COVID-19 has made digital and contactless payments the norm and that has catapulted financial technology into a new era of growth.” While fintech awareness among consumers tends to centre on high-profile digital banks like Revolut and N26, the fintech sector globally, and in Ireland, is far more diverse.  “People usually think of full stack providers like Stripe and Revolut when they think of fintech, but that’s really not the whole story,” said Ryan. “Equally relevant are the technology companies selling services and solutions to financial institutions. “There are some very successful Irish companies in this space, such as TansferMate and Fenergo, which specialises in KYC technology for banks.” Fintech in Northern Ireland The established financial services sector is equally important to the fintech ecosystem in Northern Ireland, according to Alex Lee, Executive Chair of Fintech Northern Ireland (Invest NI). Figures published last year by Fintech NI found that there were 74 fintech companies in the region and 7,000 people employed in fintech jobs. “The financial services sector here has a good track record of attracting foreign direct investment (FDI), particularly over the last 15 to 20 years,” said Lee. “Large institutions like Citi, Allstate, CME, TP ICAP and Liberty Mutual have all established a meaningful presence here.” Together, these US multinationals form ‘the foundation’ on which Northern Ireland’s fintech sector has continued to build, Lee said.  “Attracting big international players has helped to grow out our fintech expertise and talent pool, because most of these companies have global technology development centres running out of Northern Ireland, and that has contributed to the rise of some really successful homegrown fintechs,” he said. FinTrU is one such success story. Founded in 2013, FinTrU develops regulatory technology for investment banks, ranging from legal, risk and compliance, to Know Your Customer (KYC). The Belfast-headquartered company employs 1,000 people and, in July, announced plans to create a further 300 jobs at a European Delivery Centre in Letterkenny, Co. Donegal. Another scaling success story in Northern Ireland is FD Technologies (formerly First Derivatives).  Founded in 1996, the Newry-headquartered data firm employs 3,000 people at 13 offices in Ireland and globally and recently announced plans to create 500 jobs at a new technology hub in Dublin. Northern Ireland is also continuing to attract FDI. In June, the Bank of London announced plans to establish a Centre of Excellence in Belfast, creating 230 jobs by 2026.  “We are making strides now and my hope is for a homegrown fintech ‘unicorn’ to come out of Northern Ireland. We’re not quite there yet, but I would like to see this ‘poster child’ for the sector emerge soon,” said Lee. Decline of the unicorn Such is the pace of growth in the fintech sector globally, however, that even the much sought-after ‘unicorn’ moniker is losing its lustre.  “In developed markets at least, I think there is a view that ‘unicorn’ status has lost some of its cachet,” said Ian Nelson, FCA, Head of Financial Services and Regulatory at KPMG Ireland, and a member of the board of the Fintech and Payments Association of Ireland. Even Stripe—perhaps the best-known ‘unicorn’ with Irish origins—has outgrown the label.  Established in Silicon Valley in 2010 by Limerick brothers Patrick and John Collison, the online payments giant’s $95 billion market capitalisation has soared beyond the $1 billion unicorn requisite. “Stripe is really now a ‘centicorn’, if you like, and there are numerous other fintechs in the same sphere, and ‘decacorns’ valued at $10 billion coming up behind them,” said Nelson. “At $1 billion, becoming a ‘unicorn’ has less meaning for fintech start-ups in developed markets, but it will continue to be an important building block for start-ups in emerging markets and less mature fintech hubs.” Among the other trends Nelson is keeping an eye on is the role technology will play in supporting environmental, social, and governance (ESG) capabilities in business. “Since COP26, we have seen a lot of attention directed towards fintechs with ESG capabilities,” he said.  “This really reflects the growing prioritisation of ESG in financial reporting and financial services generally. ESG is going to be a really important play in fintech. “We can expect to see more fintech companies focused on climate change, decarbonisation and the circular economy, and more jurisdictions setting up incubators specifically focused on ESG solutions.” Digital innovation in financial services Already a leader in payments globally, Ireland is now shaping the business environment for digital finance, writes Seán Fleming TD, Minister of State at the Department of Finance As Minister of State with responsibility for financial services, I lead the whole-of-government strategy for developing international financial services in Ireland, titled Ireland for Finance. I very much welcome this timely report on fintech.  In recent years, new entrants and long-standing financial institutions have looked to capture the opportunities presented by digital technologies.  Ireland is well-placed to benefit from the application of new technologies in the financial services industry. We have both a well-developed financial centre and a renowned technology sector.  This makes Ireland a centre of excellence for start-ups and big-name companies that want to establish operations in the European Union.  Ireland has shown leadership in shaping the business environment for digital finance. Important to this is Ireland’s education system, which has produced some of the finest innovators in the world. These graduates are leading the development of cutting-edge technologies.  The Government has an ambitious agenda for education. Two out of 15 Cabinet Ministers are dedicated to education and skills. Consecutive Governments have invested substantially in education, making it a cornerstone of Ireland’s economic strategy.   This economic strategy has created a strong mix of multinationals that have chosen Ireland as a place to do business. We have been very successful in supporting high-potential start-ups, with over 200 Irish fintech firms at various stages of development. Ireland is a leader in payments, and a number of firms have substantial development operations here. The digital finance ecosystem has expanded in recent years to include institutional financial services providers that have chosen Ireland to help them develop their fintech capability. The importance of fintech is reflected in the Ireland for Finance strategy. I identified Fintech and Digital Finance as one of the five themes in Action Plan 2022.  The Department of Finance’s Fintech Steering Group leads the cross-government approach with other departments and state agencies, and with representatives of the financial services and information technologies industries, and third-level researchers. Financial Services Ireland, the Ibec sector representing financial services companies, recently identified the future talent pipeline as being critically important. Particular areas they identify are fintech, digital finance and the environmental, social and governance agenda. I will shortly be publishing the updated Ireland for Finance strategy and fintech will be a key theme, and it will be at the centre of our work in the coming years.

As we embark on shaping the next phase of work, there is a mix of concern and excitement about getting the transition right. Kevin Empey explores what leaders can do with this once-in-a-generation opportunity to mould the future of work here and now. After overseeing the most dramatic shift to work in modern history over the last two years, leaders are now centre stage again with the expectation to guide and lead organisations through an even more complex and tricky phase of work design. As many have remarked in recent months, it was one thing to get people out of the office against the backdrop of a pandemic and a standard set of rules and guidelines for everyone; it is quite another to get people back to a new model of work that is complicated by choice and continuous comparison with what everyone else is doing. Three work phases Most organisations moving to a hybrid or more blended model (remembering that there are thousands of jobs where remote working is not an option) typically agree that we are looking at progressing through at least three phases: Experimental: a tentative, almost experimental type experience that is currently underway for many, influenced by the changing realities of COVID-19. Transitionary: a more deliberate, test and learn and strategic phase, with a transition to different ‘target’ working models that are more sustainable and hopefully free of the constraints and concerns around COVID-19. Most agree that we are also not likely to get this transition perfectly right the first time. Bedding-down: the realities, lived experience and outcomes from the transition to new target models are truly revealed, understood, and implemented over the next couple of years. On the back of these three phases, leaders need to consider two things: The operational and logistical challenge of getting people safely through these phases; and The strategic challenge of creating a new work model, associated people processes, and a leadership approach and culture that is ultimately successful and purpose-built for the organisation and its future. Strategic agility The exact sequencing of these three phases and two workstreams will differ from organisation to organisation. However, there is one foundational quality that will maximise the success of this change-management experience and prepare the organisation and workforce for further inevitable disruption into the future. That quality is strategic agility. Strategic agility is a complex, ambiguous, vulnerable leadership challenge for everyone: organisational leaders, managers, human resources, and employees. But the transition to the next phase of work is also an invaluable case study of agility in action – a case study that we can learn from, experiment with, and embed into our ways of working. The longer-term prize for leaders and employees Over the next 6 to 12 months, the potential prize for organisations is not just a safe and successful transition to a new, post-COVID-19 work model. It is also about using the learning and experience of this transition (along with the lived experience of leaders and employees over the last 22 months) to help organisations develop and embed more agile ways of working, leading and thinking for the future. Being deliberate about developing these skills over the coming months will give us the ability to deal with any change, uncertainly and disruption. Importantly, it means our leaders and our workforces will be able to flourish and thrive in the longer-term future of work and not just respond and cope from one disruption to the next. Conscious development of the sustained and deliberate capability of agility at an organisational, team and individual level will be the long-lasting legacy of COVID-19. And this prize can be won through our combined work over the next year as we go through the experience of co-creating new, successful working models and working lives. Kevin Empey is the Founder and Managing Director of WorkMatters. He is also the author of Thrive in the Future of Work, published in 2021.

With international tax reform progressing at unprecedented speed, Susan Kilty explains why Irish businesses must continue to participate actively in the discussion. With all the global uncertainty that Ireland is facing due to COVID-19 and Brexit, there is a risk that the OECD global tax reforms – the other major threat to Irish business and the economy – will be pushed further down the corporate agenda. But to do so would be very risky. Ireland must engage with this process now, at both the political and corporate level. The world of international tax is in a state of extreme flux as governments grapple with changes in the way multinationals do business. It is worth reiterating that Ireland has attracted healthy levels of foreign direct investment (FDI) over the past 30 years, and the multinational community has contributed significantly to our economic success. According to the OECD, Ireland received more foreign direct investment in the first half of this year than any other country. Along with Ireland’s near-iconic 12.5% tax rate, a crucial element in our continuing ability to attract international investment is the stability and transparency of the corporate tax regime here. Investors from abroad who establish activities in Ireland tend to be quite sensitive to changes in the taxation system. They like certainty and stability in a tax code, which is why Ireland presents such an attractive proposition. Ireland cannot afford to lose FDI as a result of turbulence in the global tax landscape at this time. As corporation tax accounts for almost 18% of Ireland’s total tax take, any change to the regime threatens to seriously undermine the attractiveness of our FDI model and negatively impact our revenue-raising ability. The crux of the matter is that we, and many other countries, apply 20th century tax systems to 21st century e-commerce business models. Businesses have an increasingly digital presence, and many no longer trade out of brick and mortar locations. This is not limited to so-called technology companies, but can be seen across industries and in businesses of all sizes. Businesses sell freely across borders without ever needing to set up operations abroad. This new digital way of trading is not always captured in our analogue tax rules, and the rules must be realigned with the reality of modern e-commerce. However, to tax a multinational business, you need a multinational set of rules. This is where the OECD comes in, but the uncertain shape that the new rules might take brings more uncertainty for businesses at a time when it is least needed. Many clients cite the changing international tax environment as one of the top threats to potential revenue growth. And although countries now face enormous bills for COVID-19, one sure thing is that BEPS, OECD and tax reform will not go away. International corporate tax reform is happening, and it will impact many businesses and our economy. Companies need to stay on top of these changes and prioritise the issues that will affect them. OECD proposals The OECD proposals offer a two-pillar solution: one pillar to re-allocate taxing rights and ensure that profits are recorded where sales take place, and a second pillar to ensure that a minimum tax rate is paid. At the time of writing, a public consultation is open for stakeholders to share their views with the OECD on the proposals that were recently summarised by way of two “blueprint” documents, one for each pillar. Pillar One seeks to give market jurisdictions increased taxing rights (and, therefore, increased taxable income and revenues). It aims to attribute a portion of the profits of certain multinational groups to the jurisdictions in which their customers are based. It does this by introducing a new formulaic allocation mechanism for profits while ensuring that limited risk distributors take a fair share of profits. Several questions remain as to how the Pillar One proposals, which constitute a significant change from the current rules, will be applied. Pillar Two, on the other hand, seeks to impose a floor for minimum tax rates across the globe. This proposal is very complicated. It is much more than a case of setting a minimum rate of tax. It is made up partially of a system that requires shareholders of companies that pay low or no tax to “tax back” the profits to ensure that they are subject to a minimum rate. At the same time, rules will apply to ensure that payments made to related parties in low-tax-paying or no-tax-paying countries are subject to a withholding tax. Finally, it can alter the application of double tax treaty relief for companies in low-tax-paying or no-tax-paying countries. Agreeing on the application and implementation of this pillar will be incredibly difficult from a global consensus point of view. Several supposed “safety nets” in Pillar Two are also likely to be of limited application. For example, assuming that the minimum tax rate is set at 12.5%, this does not mean that businesses subject to tax in Ireland will escape further tax. Similarly, assuming that the US GILTI (global intangible low-taxed income) rules are grandfathered in the OECD’s proposal, this does not mean that the US GILTI tax applies as a tax-in-kind tax for Pillar Two purposes. Pillar Two poses a significant threat to Ireland, as it reduces the competitiveness of our 12.5% rate to attract FDI and, coupled with the Pillar One profit re-allocations, could reduce our corporate tax take. The OECD estimates that once one or both of the pillars are introduced, companies will pay more tax overall at a global level, but where this tax falls is up for negotiation – and this is why early engagement by all stakeholders is critical. While the new proposals will undoubtedly have an impact, it is not certain that Ireland’s corporation tax receipts will fall off a cliff. Ireland has already gained significantly in terms of investment from the first phase of OECD tax reform, and this has helped to drive a significant increase in corporate tax revenue. But the risks must nevertheless be addressed. There is, of course, the risk that the redistribution of tax under the rules directly under Pillar One and indirectly via Pillar Two will impact our corporate tax take. But even if the rules have no impact on a company’s tax bill, they could still impose a considerable burden from an administrative perspective, and the complexity of the rules cannot be overestimated. At a time when businesses are grappling with other tax changes, led by the EU and domestic policy changes, this would be a substantial additional burden on the business community. The OECD is progressing the rules at unprecedented speed in terms of international tax reform. The momentum behind the process comes from a political desire for a fair tax system that works for modern business. However, does this rapidity risk the international political process marching ahead of the technical tax work? This is where Ireland, both government and corporate, needs to play a vital role. While the consultation period on both pillars is open, the focus for stakeholders should be on consulting with the OECD on the technical elements of its plan. Considering the OECD’s stated objective to have a political consensus by mid-2021, this could be one of the last opportunities for stakeholders to have a say in writing the rules. The interplay between the OECD and the US Treasury cannot be ignored when considering the OECD’s ability to get the proposals over the line. The US Treasury decided to step away from the consultation process with the OECD for a period in mid-2020. This, of course, raised questions around whether the OECD proposals could generate a solution that countries would be willing to implement. Added to this, the OECD has always positioned Pillar One and Pillar Two as an overall package of measures and has stressed that one pillar would not be able to move forward without the other. The “nothing is decided until everything is decided” basis of moving forward is a risky move, but the OECD recently rowed back on this stance. If the OECD fails to reach a political consensus by 2021, we could very well see the EU act ‘en bloc’ to introduce a tax on companies with “digital” activities. This could result in differing rules within, and outside of, the EU. It would also increase global trade tensions, all of which would not be good for our competitiveness. As a small open economy, Ireland will always be susceptible to any barriers to global trade. A multilateral deal brokered by the OECD therefore remains the best option – the last thing we want to see is the EU accelerating its own tax reform or, worse still, countries taking unilateral action. For the Irish Government, providing certainty where possible about the future direction of tax is critical. Where we have a lead is in how we provide that stability and guidance where we can. The upcoming Corporate Tax Roadmap from the Department of Finance will be an opportunity to give assurances in these uncertain times. Next steps for business The public consultation will be critical for businesses to have their say in shaping the rules. Ireland Inc. must continue to engage constructively with the OECD to try to shape the outcome so that we maintain a corporate tax system that is fit for purpose, is at the forefront of global standards, and works for businesses located here. Doing so would ensure that we articulate the position of small open economies like our own. Each impacted business must take the opportunity to comment on the proposals, as this may be the last chance to have a say. Indeed, what comes out of the consultation period may be the architecture of the rules for the future. We know that difficult decisions must be made at home and abroad in terms of the new tax landscape, and made with additional pressures we could not have foreseen 12 months ago. Although it may seem that much is out of our control, Irish businesses must continue to participate actively in the discussions and ensure that their concerns are heard. The game may be in the final quarter, but the ball is in our hands. Susan Kilty is a Partner at PwC Ireland and leads the firm’s tax practice. Point of view: Fergal O'Brien Since the start of the BEPS process in 2013, Irish business has recognised the importance of the work to our business model and the country’s future prosperity. At its core, BEPS has seen a further alignment of business substance and tax structures at a global level. This has resulted in an often under-appreciated surge in business investment, quality job creation and, ultimately, higher tax revenue for the Irish State. With its strong history as a successful location for foreign direct investment, and substance in world-class manufacturing and international services, Ireland was well-placed to benefit from the new global order. The boom in business investment, which last year reached over €3 billion every week, and increase in the corporate tax yield from €4 billion in 2013 to €11 billion in 2019, are evidence of the further embedding of business substance in the Irish economy. The current round of BEPS negotiations will have further significant implications for the Irish economy, and particularly for the rapidly growing digital economy. Ibec is working directly with the OECD to ensure that any further changes to corporation tax recognise the central role of business substance and locations of real value creation. Fergal O’Brien is Director of Policy and Public Affairs at Ibec.  Point of view: Norah Collender The OECD’s proposals to address the challenges of the digitalised economy will have a disproportionate negative impact on small, open exporter economies like Ireland. Earlier consultation papers issued by the OECD on taxing the digitalised economy suggested that smaller economies could benefit from international tax reform emanating from the OECD. However, the OECD now openly admits that bigger countries stand to benefit from its proposals more than smaller countries, and the carrot has turned into the stick in terms of what will happen if smaller countries do not support the OECD. Ireland is acutely aware of the dangers ahead if countries take unilateral action to achieve their vision of international tax reform. But that does not mean that countries like Ireland should be rushed into accepting international tax rules that fundamentally hamstring Irish taxing rights. Genuine consensus must be reached to ensure that international tax reform is sustainable in the long-term. Likewise, the new tax rules must be manageable from the multinational’s perspective and from the perspective of the tax authority tasked with administrating the rules. A rushed outcome to the important work of the OECD will make for tax laws that participating countries, tax authorities, and the all-important taxpayer may not be able to withstand in the long-term. Norah Collender is Professional Tax Leader at Chartered Accountants Ireland. Point of view: Seamus Coffey How Pillar One and Pillar Two of the OECD BEPS Project will ultimately impact Ireland is uncertain. One sure thing, however, is that there will be changes to tax payments. This will be a combination of a change in the location of where taxes are paid and perhaps also an increase in tax payments in some instances. But there will likely be both winners and losers. From an Irish perspective, there might have been some comfort in that the loser could have been the residual claimant – the country at the end of the chain that gets to claim taxing rights on the profits left after other countries have made their claim. As US companies are the largest source of Irish corporation tax revenue, it might have been felt that most of the losses would fall on the US. However, significant amounts of intellectual property have been on-shored here. Ireland, therefore, has become a residual claimant for the taxing rights to some of the profits of these companies. At present, Ireland is not collecting significant taxes from these profits as capital allowances are claimed. If BEPS results in a significant reallocation of these profits, we might never collect much tax on them. Seamus Coffey is a lecturer in the Department of Economics in University College Cork and former Chair of the Irish Fiscal Advisory Council.