The Irish government has urged food business operators and agri-food exporters to continue their preparations to meet new UK import control requirements, which will apply on a phased basis from 1 January 2022.  Most immediately, new pre-notification requirements in respect of exports to GB of products of animal origin, such as meat, dairy, fish and composite products, will come into effect on 1 January 2022.   Speaking at the 25th meeting of the Consultative Committee of Stakeholders on Brexit, Minister for Agriculture, Food and the Marine, Charlie McConalogue said:  “It is really important that exporters of products of animal origin to Great Britain are aware that, from 1 January, pre-notification of these exports by the UK importer, or an agent acting on their behalf, will be required via the UK’s Import of Products, Animals, Food and Feed System, or IPAFFS. This applies both to products exported directly to Great Britain and to products exported to the EU via the landbridge. It is vital, therefore, that exporters familiarise themselves with the requirements, examine their supply chains, identify who will make the required pre-notification, and ensure that the requirements can be met ahead of the 1 January deadline.”  Read more information on gov.ie.  UK: Full customs controls from 1 January 2022    The UK government has published a webpage to remind traders that from 1 January 2022 full customs declarations will apply for goods moving between Great Britain (GB) and the EU.  HMRC has also issued a similar reminder by email, which we have previously shared with readers.   Read more 

Chartered Accountants Ireland, under the auspices of the CCAB-I, made representations to Revenue on the difficulties facing companies, due to COVID-19 disruption, in meeting the 23 December iXBRL deadline. Revenue confirmed that companies and their accountants can seek to make arrangements to ensure that a late filing surcharge and restriction on loss and group relief is not imposed where a company is genuinely unable to file iXBRL financial statements due to extenuating circumstances. A Revenue representative confirmed: Further to Item 6 on iXBRL Filings from TALC Collections on 25 November, we have issued an internal update to Revenue colleagues to say that some companies may be unable to submit their iXBRL financial statements for the year ended 31 December 2020 before the 23 December 2021 deadline due to difficulties completing audits and signing off on financial statements during the ongoing Covid-19 pandemic. As such, we’ve advised that they may see an increase in requests for waivers of Corporation Tax surcharges where the iXBRL submission is filed late and/or requests for tax clearance in the absence of the iXBRL submission. We then reminded colleagues that they may waive the Corporation Tax surcharge or issue tax clearance on a case-by-case basis when a company is genuinely unable to file the iXBRL financial statements due to extenuating circumstances, for example where key personnel are absent due to Covid. Affected companies should contact their operational branch via MyEnquiries where they wish to request a waiver of the Corporation Tax surcharge and/or request tax clearance. It was also confirmed that Revenue staff will consider withdrawing loss relief/group relief restrictions, which apply on the late filing of iXBRL financial statements, on a case-by-case basis. Requests to have surcharges waived and restrictions on loss relief/group relief withdrawn on a case-by-case basis should be submitted through MyEnquiries; select the “Corporation Tax” and “iXBRL” dropdown categories. Revenue confirmed that these queries will be prioritised. In line with Part 3.1.4 of the iXBRL Tax and Duty Manual, it was confirmed that filers can submit draft iXBRL financial statements, without permission from Revenue, where the only issue pending is director(s) sign off of the financial statements. The TDM confirms that in these circumstances, there is no need to resubmit the iXBRL financial statements, when they are signed-off later [unless the draft statements are different to the final ones submitted]. Where there are other issues giving rise to the draft financial statements, filers are required to contact the Revenue through MyEnquiries; select the “Corporation Tax” and “iXBRL” dropdown categories. Filers must outline the reason(s) for the draft financial statements and request permission to submit draft financial statements in that situation. If this is agreed, then the final signed-off set of financial statements must also be submitted in iXBRL format.

2021 has seen organisations undergo digital transformations and a continued push for sustainable practices. Paul Browne examines the triggers driving major transformation programmes in Irish organisations and outlines some trends we can expect in 2022. Fuelled by digital transformation and a heightened focus on cybersecurity and data protection, 2021 has seen a significant increase in activity across the Irish business landscape. Disruptive trends are driving structural changes in the way organisations operate. Over the course of the year, we have seen a range of triggers driving major transformation programmes in the Irish market, such as a major focus on sustainability, millennials accelerating the adoption of tech-enabled products and services, and the reskilling of employees to make organisations more agile. As we close out 2021, we see several key trends emerging for 2022. Sustainability as a transformation driver Sustainability has evolved into a key priority for the technology profession. In recent months, we have seen sustainability emerge as the new driver of transformation, similar to digital, driven by the need to meet emerging challenges along with rising importance and visibility across society. The sustainability landscape is complex with multitudes of standards and metrics, and the ecosystem is ever-evolving. Software as a Service (SaaS) solutions in particular will evolve to include sustainability reporting and ratings. For example, power consumption or percentage of renewables used. Investors and capital markets now weigh environmental sustainability more heavily as part of ESG (environmental, social and governance) analysis of investment opportunities. Organisations must show how they are contributing positively to society and not just meeting financial performance metrics. KPIs will explicitly reference energy consumption, carbon output and climate ethical work practices. We expect that the phrase “verifiable claims” will be critical for executives in 2022 as they seek to deliver the transparency demanded by stakeholders. Initial conversations post-COP26 have highlighted the role for blockchain and its ability to provide immutable evidence across an end-to-end supply chain. A renewed focus on business resilience Organisations continue to struggle to protect themselves fully against the multitude of emerging cyber threats. Many of the world’s biggest and most technologically advanced organisations have suffered cyber events. The reliance on third parties in the supply chain has been a particular challenge. Proactive and predictive supply chain management with technology at its core has emerged. Organisations can no longer assume that users, systems, or services within the security perimeter can be trusted. Technology companies must embrace digital trust to develop consumer confidence and competitive advantage. They need to embed privacy and risk management into their products and offerings and ensure that integrity, transparency, and accountability are designed into their systems. Organisations are taking a proactive approach and continuously monitoring all system levels to react to threats effectively. They are planning and preparing for a breach, with many organisations now using cloud-hosted services to assist in reacting to a breach. It forms a vital part of their security defence within a comprehensive structure involving people, processes, and technology. Cloud-supplied security offerings provide a cost-effective solution with a lower cost of entry. The ‘pay per user’ and ‘pay as you go’ cloud model offers full enterprise-level security to organisations that were previously priced out of the market. These offerings will continue to evolve, with artificial intelligence built into technology platforms rather than being provided as an add-on. For example, AIOps (artificial intelligence for IT operations) will be embedded into IT Operations to help reduce, simplify, optimise and automate a wide range of tasks and processes needed to deliver effective IT incident identification, management, and resolution. Paul Browne is Director of Azure Cloud Engineering at EY.

The CRO today announced an extension to the Annual Return Deadline for companies with a year end of 31 December 2020. The deadline of 25 November 2021 has been extended to Thursday 9 December 2021. Chartered Accountants Ireland was aware that some of our membership was experiencing difficulties meeting the original deadline due to challenges presented by COVID-19, including staff contracting the virus or being identified as a close contact, and had accordingly made representations to the CRO for an extension on a case-by-case basis. The CRO informed us that this was not possible and only a universal extension could be granted which would be available to all companies. This extension will allow members who require it, the opportunity to file within the extended deadline period and not risk the loss of their audit exemption.

Many trustees are planning to ensure that their occupational pension schemes will fully comply with IORP II regulations by the end of 2022. Munro O’Dywer explains how companies, as sponsors, should use the remainder of 2021 to strategically assess their existing pension value proposition and determine if they should consider a different approach. Pensions represent a significant component of the employee benefit value proposition. However, employees often do not see the actual value in their pension arrangements due to their inherent long-term nature. Those companies who can convey the value of their pension structures to their employees, both in the short- and longer-term, will drive increased loyalty. But what does value mean in the context of the pension scheme for the employee? This should not simply be viewed as the level of employer contributions being made. Adequate contributions are only a small part of the overall retirement planning jigsaw. Other aspects that should come into consideration include: scheme participation; investment options; investment performance; charges; member outcomes at retirement; member support to make optimal decisions; and the use of technology. The changing needs of employees Delivering a pension scheme that meets the needs of all five generations that exist in today’s workplace is by no means easy. Each generation has its own set of preferences. In addition, many will have different pension makeups (e.g. defined benefit only; a mix of defined benefit and defined contribution; and defined contribution only). Defined contribution pension schemes are becoming the norm. There is a greater focus on the adequacy of retirement savings and broader financial wellness. Employees can also have multiple pension sources, potentially across different countries. This creates added personal portability and taxation challenges. Furthermore, how employees expect to be supported on their retirement savings journey varies. There are different preferences around communication channels and the level of support (self-guided, group, or one-to-one). Achieving the right mix of pension components – structure, contributions, employee support and communications etc. – to maximise their effectiveness for all employees is more critical than ever. The market evolution In the same way generational needs and preferences differ, the pension providers, their propositions and the regulatory and taxation environment in which they operate continue to evolve. Operational changes, technology enhancements, investment thinking, and member engagement innovations are only some of the areas providers continue to adapt to, each of which has a knock-on impact on costs. For companies, it is essential to benchmark existing structures relative to the broader market. This will likely become a feature of the new regulatory regime, as outlined in the draft Code of Practice. The impact of the new regulatory regime The past ways of governing and managing trust-based pension schemes are expected to change under IORP II regulations. There will be a greater focus on risk management, value for members, and the ongoing monitoring of outsourced arrangements. As well as the culture and the ability of the trustees to look after member interests, risk, time and cost will increase when it comes to operating a single trust-based pension scheme. Many pension schemes can spend a disproportionate amount of time on regulatory compliance. This can come at the expense of those aspects that are likely to be valued higher by employees. This imbalance has the potential to be heightened by the new regulations. Areas include the adequacy of contributions, achieving strong investment returns, and making the right decisions at the right times before, at, and after retirement. What employers should consider before 2022 Companies have until the end of 2022 to be compliant with the new regulations. 2022 will be a year of pension changes. Companies need to ensure that their changes in 2022 are well considered in the context of the broader pension value proposition and look to enhance, rather than diminish, it. An effective way for companies to use the remainder of 2021 is as follows: Document your existing pension value proposition for employees (benefits/costs) Companies should document all benefits that employees receive from the pension scheme (e.g. employer contribution, tax relief, strong governance, investment options, help and support etc.) and the associated costs. Understand your employee needs and how these will evolve The next stage is to consider your employees and their particular needs. This will help companies understand if the employees’ views on what is valuable to them about their pension scheme are consistent with the benefits/costs documented and, if not, where the gaps lie. Consider the impact of the new regulatory regime IORP II regulations will mean more time and cost spent on regulatory compliance. This could affect the employee pension value proposition, where the elements most valued are neglected due to regulatory pressures. Consider how the existing proposition can be adapted or modified Companies should explore alternative pension structures (e.g. consolidation of pension schemes or master trusts), which will help mitigate the regulatory impact but where the employee pension value proposition remains intact or is indeed enhanced. Munro O’Dwyer is Pension Partner at PwC.

In light of current COVID-19 developments, Revenue has decided to extend the ROS Pay and File deadline to Friday 19 November at 5.00 pm. The ROS Pay and File deadline for taxpayers who file their 2020 Form 11 return and make payments for preliminary tax for 2021 and the balance of tax due for 2020 through ROS was to be today, Wednesday, 17 November 2021. However, Revenue has contacted the Institute to confirm that the deadline is extended to Friday 19 November, at 5.00 pm in light of current COVID-19 developments. Accountants who find themselves under extreme deadline pressure due to COVID-19 can contact Revenue through MyEnquiries to seek to arrange the filing of returns after the deadline. As previously published in Tax News, agents should notify Revenue via MyEnquiries (Select “Collector General’s” and More Specifically “General Query”) outlining the exceptional difficulties they are experiencing and include the list of clients affected and their PPSNs on a Microsoft excel document. Revenue will reply to the notification and accept the request for the non-application of late filing surcharges or decline the request. Surcharges will not be suspended where the tax agent/taxpayer has a record of filing tax returns late. Where there are difficulties in obtaining information to complete returns, Revenue has confirmed that returns should be filed on a “best estimates” basis and for the return to be finalised under the self-correction mechanism when the information becomes available. See Revenue eBrief No.211/21 for further details.

FRC report sets out what it expects from audit firms to deliver high quality audit A new report from the UK Financial Reporting Council (FRC) has set out the key elements required by audit firms to ensure they are delivering high quality audit.   The FRC’s report, What Makes a Good Audit?, highlights the six key attributes that contribute to the running of high-quality audit practices such as the culture, governance and leadership of the firms, alongside their investment in well qualified people, training and processes. The full report is on the FRC website: What makes a good audit?  

In this week’s EU exit corner, we bring you a reminder from HMRC on ensuring “rest of world to Northern Ireland declarations” are now submitted on the Customs Declaration Service (“CDS”) and not CHIEF, in addition to the latest guidance updates. See also our most recent EU exit bulletin which features every Friday in Chartered Accountants News. A  new post, “Duty Deferment Accounts (DDA) for delayed declarations imported into Great Britain (GB) by Intermediaries/Agents” has also been published on the HMRC working with tax agents blog. And HMRC has also sent an important reminder on postponed accounting for import VAT. Rest of world to Northern Ireland declarations must now be made via the CDS  HMRC has issued an important reminder about the change to using the Customs Declaration Service for Rest of World to Northern Ireland imports from 31 October 2021. The message from HMRC is as follows:- “We have heard the concerns some of you have raised on behalf of your members about readiness for this change, and the challenges of using the TSS for imports to NI where they are not ready to use CDS. Whilst we understand the concerns about the potential for disruption to trade, we have worked closely with declarants to ensure they are ready. In addition, the TSS has proactively reached out to declarants to assist them in adopting their service. The CDS team and TSS team are ready to support declarants with the new processes, and your members should use the relevant helplines if they need support with declarations. Please let us know if your members are experiencing issues that cannot be resolved through these channels and we will do what we can to offer additional help and support.”  “Postponed VAT Accounting. The benefits and where can you find out more From 1‌‌ ‌January‌‌ ‌2022 you can continue to use Postponed VAT Accounting (PVA) on all customs declarations that require you to account for import VAT, including supplementary declarations, except when HMRC have told you otherwise. PVA has already provided significant cash flow benefits for thousands of our customers, and we expect that most businesses will choose to use it. This is because PVA allows UK VAT-registered importers to account for and recover import VAT on their VAT return, rather than paying the import VAT when the goods are imported. You can head to GOV.UK to find out more. You can use PVA for goods you’re importing from the EU or other countries. And PVA is not a temporary process, so you will be able to continue to use it following the end of staged customs controls. There isn’t an application process, but you do need to confirm in your customs declaration that you are using PVA, and you’ll need to make sure that the person making your VAT declarations is also prepared. If you use the Customs Handling of Import and Export Freight (CHIEF) system On your declaration, enter: • your EORI number starting with 'GB' which includes your VAT registration number into box 8 (Header Consignee), or, if applicable, your VAT registration number in box 44h (Registered Consignee) • 'G' (Postponed accounting for VAT approved) as the method of payment in Box 47e. If you use the Customs Declaration Service (CDS) On your declaration, enter: • your VAT registration number at header level in data element 3/40. Please note that VAT will be recorded against your EORI and will be at declaration level only. If you use someone else to do your declarations for you, it’s your responsibility to tell them if you want to use PVA If someone else is doing your customs declarations for you such as a freight forwarder, customs agent, broker or fast parcel operator you need to tell them that you want to use PVA to account for import VAT on the imported goods. They can then complete the customs declaration correctly on your behalf, and you should keep a written record of what is agreed. New support and services HMRC has launched two new digital upload services to provide a quicker and more simplified process when you send your documents to us When you access the services, you’ll benefit from: • a more straightforward way to send your documents • improved security when sending your documents to HMRC • efficient two-way communication if we have any questions for you. National Clearance Hub digital upload service for customs checks and clearance of goods The new service provides a quicker and more simplified process when you send documents to the National Clearance Hub (NCH) for a customs check, and to clear your goods when you move them into, out of, or through the UK. You can use the service on GOV‌‌.UK to upload: • your documents for route‌‌ ‌1‌‌, route‌‌ ‌‌‌2, route 3 and route 6 checks • your completed C1601, C1602 and C1603 forms. To find out more and to upload your documents visit GOV.UK. National Duty Repayment Centre digital upload service for the repayment of import duty and import VAT applications This new service will replace the current process of sending your completed C285 and supporting documents by post or email to the National Duty Repayment Centre (NDRC). You can use the service on GOV‌‌.UK to upload: • The documents you’ll need to support your claims. You can find out more and upload your documents at GOV.UK. The Export Support Service The Export Support Service is a new helpline for UK businesses to get answers to practical questions about exporting to Europe. The service is a 'one-stop shop' and brings together UK government information, making it easier for exporters to access advice and support. If you’re a UK business selling goods or services to Europe, you can contact the UK government export support team by phone or online. You can ask any question for your business, including questions about: • exporting to new markets • paperwork you need to sell your goods abroad • rules for a specific country where you want to sell services. You can access the Export Support Service on GOV.UK. Further help and support Download the trader checklist, read our updated guides or visit our customer forums. Sign up for the Trader Support Service if you’re moving goods between GB and Northern Ireland. You can access online training modules and webinars for support with the Northern Ireland Protocol.” Miscellaneous updated guidance The following documents/guidance relevant to EU exit have been updated/published recently:- Customs, VAT and Excise UK transition legislation from 1 January 2021; Search the register of customs agents and fast parcel operators; Help and support for UK transition; Organisations that trade with the EU – webinars calendar; Working, performing and touring in Europe – guidance for the performing arts, theatre, opera, dance, circus and other live performance genre; Working and touring in Europe – guidance for the fashion sector; Working and touring in Europe – guidance for visual arts, the art market and museums; Working, performing and touring in Europe – guidance for musical artists and accompanying staff; Notices made under the Taxation (Cross-border Trade) Act 2018; Notices made under the Customs (Special Procedures and Outward Processing) (EU Exit) Regulations 2018; Notices made under the Customs (Import Duty) (EU Exit) Regulations 2018; and Notices made under the Customs (Export) (EU Exit) Regulations 2019.

The IASB is proposing changes that may be of interest to finance leaders. Emer Keaveney takes a deep dive into who will benefit from them. To date, the International Accounting Standards Board (IASB) has focused on the requirements for publicly traded entities rather than group companies or standalone statutory financial statements. My interest was piqued by two recent publications from the IASB, which suggest a change in this focus. Widening scope to include group restructuring In November 2020, the IASB issued a discussion paper proposing how to account for business combinations under common control (BCUCC). A BCUCC is one in which all the combining entities are ultimately controlled by the same party, before and after the combination. This type of transaction is sometimes called a group reorganisation or a restructuring. Who will this affect? In today’s dynamic business environment, group reorganisations are very common across all sectors, from large public entities to small and medium-sized enterprises. They can be structured as transfers of shares or transfers of trade/business. There are a number of reasons for a group to restructure. It could be to facilitate the sale of a part of the business, for succession planning, for banking or tax purposes, or to simplify the legal structure. There is currently no International Financial Reporting Standards (IFRS) that address how to account for BCUCCs. In fact, common control transactions are specifically excluded from the scope of IFRS 3 Business Combinations. This has caused a great deal of diversity in practice, making it difficult for users of financial statements to understand the effects of these transactions. It certainly drives the need for more clarity. Currently, there are two allowable methods of accounting by the entity receiving the transfer of shares or trade/business: the ‘acquisition method’ and the ‘book value’ method. There is no consensus on which method is appropriate in which situation. This discussion paper aims to reduce this diversity in practice. IASB’s view is that there is no single method that can be applied to all scenarios. The discussion paper proposes detailed prescriptive rules, reducing the scope for policy choices and bringing clarity to which method should be applied in each scenario. A new take on reduced disclosures In July 2021, the IASB issued the exposure draft that proposes to allow eligible entities to elect to apply reduced disclosure requirements while still applying the recognition, measurement, and presentation requirements in IFRS. The board’s aim here is to reduce the cost of preparing IFRS financial statements for subsidiaries that are not publicly accountable while maintaining the usefulness of the information provided. The election is optional and can be revoked at any time. So, which entities will benefit from the proposals? This will be any entity which, at the end of the reporting period: is a subsidiary as defined in IFRS 10 Consolidated Financial Statements; does not have public accountability. That is, “its debt or equity instruments are traded in a public market or it is in the process of issuing such instruments for trading in a public market” or it “holds assets in a fiduciary capacity for a broad group of outsiders as one of its primary businesses”; and has a parent that prepares consolidated financial statements available for public use that comply with IFRS. If you work with entities meeting these above criteria, I encourage you to provide feedback to the IASB through comment letters until 31 January 2022. The intent of this proposal is similar to the existing FRS 101 reduced disclosure framework applied by many group companies in the UK and Ireland. FRS 101 differs significantly in the details from the proposals in IASB’s exposure draft, and it is currently unclear how the two will interact in practice. Globally, a number of national standard-setters have implemented different national IFRS-based reduced disclosure regimes. However, IASB’s exposure draft has the potential to enable a radical streamlining of the preparation of statutory financial statements for organisations operating across multiple jurisdictions – for example, in a shared service centre environment. Emer Keaveny is an Associate Partner in Financial Accounting Advisory Services at EY.

Chartered Accountants Ireland contacted Revenue yesterday, following feedback from members that Revenue’s online services were unavailable causing delays with the filing of tax returns. Following the resumption of the service, Revenue confirmed that the focus of their technical team is to fully understand what caused the issue. A Revenue representative detailed: At this point we can definitively say that the issue was not related to the capacity of Revenue’s systems to handle extremely high volumes of transactions. The issue was instead related to network connectivity and, alongside our external technology support services providers, we are still investigating  the exact root cause and/or series of events that led to the problems. Chartered Accountants Ireland have sought assurances from Revenue that it is not foreseen that the issues will occur again. We will keep members informed of the response through Tax News.  

While people from around the world gather in Glasgow to attend COP26, what is the state of Ireland’s CO2 emissions and how can we strengthen our commitment? Kim McClenaghan explains. The Environmental Protection Agency (EPA) provides the estimates of greenhouse gas emissions in Ireland. Its latest data shows that overall greenhouse gas emissions in Ireland decreased by 3.6% in 2020, and energy industry emissions decreased by 7.9%. The decrease was primarily driven by economic restrictions imposed in response to the pandemic, reduced peat use in power generation and an increase in renewable generation. Despite the decrease in emissions, the EPA warns that Ireland is still not on the pathway required to meet future targets and a climate neutral economy. To achieve permanent emission cuts in line with the Paris Agreement, it will be vital that this decrease is not an isolated occurrence, but rather part of a long-term trend as economic activity fully resumes. In the past year, Ireland’s long-term climate ambition has been restated, and the Climate Action and Low Carbon Development (Amendment) Bill 2021 has been passed into law by the Oireachtas. The Bill sets out the ‘national climate objective’ to achieve a climate-neutral economy no later than 2050. This target is consistent with the Paris Agreement and other international obligations. Carbon budgets To realise this ambition, the Climate Change Advisory Council has been tasked with proposing economy-wide carbon budgets, which will then be applied across relevant sectors by the Minister for the Environment and approved by the Government. The first carbon budget will see emissions reduced by 4.8% on average between 2021 and 2025. The second budget, running from 2026 to 2030, will see emissions reduced by 8.3% on average. The first two carbon budgets will provide for a 51% reduction in greenhouse gas (GHG) emissions by 2030 relative to 2018 levels, resulting in a cut of almost 35 million tonnes of CO2. The scale and pace of the economic and societal change and investment needed to achieve these targets are significant, but they will be necessary to reduce our emissions consistently and achieve the 1.5°C goal set by the Paris Agreement. Raising ambition The overarching aim of the climate summit in Glasgow – COP26 – is to mobilise stronger and more ambitious climate action from governments to keep the 1.5°C Paris Agreement goal within reach. This will require a significant strengthening of climate commitments from all countries, and especially from the G20 as without concerted action from this group, the chances of limiting warming to 2°C, let alone 1.5°C, will all but disappear. Converting climate pledges into action Governments have a pivotal role to play in creating the enabling environment for the transition to net-zero through policy and regulatory reform and investment. National targets need to be underpinned by policies that will deliver change at the pace and scale required. These policies will vary by nation, depending on the socio-political and economic context, but need to set the regulatory environment that businesses and individuals operate within, and encourage capital to be deployed to the right places. This requires clear overarching strategy and ambition, long-dated policy mechanisms, and the removal of fiscal or other disincentives. Private sector execution We have seen an unprecedented number of net-zero commitments by the private sector in the last 18 months. Over 3,000 businesses are now part of the Race To Zero Campaign, joining 733 cities, 31 regions, 173 of the biggest investors, and 622 higher education institutions. Alongside 120 countries, they form the largest ever alliance committed to achieving net-zero emissions by 2050 at the latest, collectively making up nearly 25% of global CO2 emissions and over 50% of GDP. Over half of the sectors that make up the global economy are now committing to halve their emissions within the next decade and achieve near-term emissions reduction targets. In each of these sectors, at least 20% of the major companies by revenue are aligning around sector-specific 2030 goals in line with delivering net-zero emissions by 2050. Time for all businesses to commit, plan and act Making the transition to a more environmentally and socially responsible world is now an urgent business imperative. We have less than two business cycles left to deliver the necessary changes. Working alongside governments, and providing the mandate and impetus for them to go further and faster, is vital if we are to keep warming to 1.5°C and avoid catastrophic climate change. By taking firm and decisive action now to halve global emissions by 2030 and reach net-zero emissions by no later than 2050, we have a chance to succeed. Kim McClenaghan is a Partner in Consulting and Head of the Energy, Utilities & Sustainability Advisory team at PwC.

On Wednesday 3 November, the Leinster Society, led by Chair Jilly Harvey, hosted the virtual 44th Published Accounts Awards, with MC Gráinne Seioge. Congratulations to all the winners. Category  Winner  Large Not-for-Profit      CRC Small/Medium Not-for-Profit   Barretstown Large Quoted Company  CRH Small/Medium Quoted Company  Dalata Hotel Group Large Company listed on a Foreign Market  DCC Euronext Growth Award Origin Enterprises Statutory Unquoted Large Entity (IFRS)  ESB Statutory Unquoted Large Entity (non-IFRS)  daa CSR & Sustainability (Listed)  Kerry Group CSR & Sustainability (Non listed)  ESB Best Branding, Communication and Marketing   Concern Best Digital Reporting  Dalata Hotel Group Diversity & Inclusion: General  Central Bank of Ireland Diversity & Inclusion: Not-for-Profit  Trocaire Highly Commended Award  Jigsaw

"We are pleased to see what has been achieved in the economic crime arena, but more must be done to build and maintain the UK's resilience to this damaging and widespread crime." The Consultative Committee of Accountancy Bodies (CCAB) publishes its manifesto today outlining what more must be done to build and maintain the UK's resilience against economic crime.  The Manifesto calls for four clear areas for change including SARs (Suspicious Activity Reporting) reform and intelligence sharing, ongoing funding of the UK’s Economic Crime Plan, more action to eliminate modern day slavery from supply chains and the need for public education on fraud risk and personal finance. Angela Foyle, Chair of the CCAB Economic Crime Panel says: ‘Our first economic crime manifesto was launched 5 years ago, and since then progress has been made in key areas, including proposed reforms to Companies House to introduce identity verification for company directors, and a raft of initiatives from the UK's Economic Crime Plan.  However, we remain mindful of the challenges, especially as Covid-19 and Brexit present complex scenarios that can be exploited. ‘Economic crime is damaging and widespread, and we believe that our manifesto presents actions which the UK, Scottish and Welsh governments need to address. These are sensible reforms and actions to ensure the progress already achieved in the UK's Economic Crime Plan with the aim of maintaining the UK's resilience against economic criminal activity.’ Also commenting on the manifesto, Paul Henry, chair of CCAB and director of property consultancy Osborne King adds: ‘The leaking of the Pandora Papers is a timely reminder of the need to strengthen our AML defences. SARs reporting is clearly one important tool in the fight against money laundering but further reform is needed to make intelligence sharing more effective including a two-way intelligence sharing mechanism to enable law enforcement to share new and emerging intelligence with professional body supervisors.’ As we say in the manifesto, intelligence sharing between the accountancy profession and law enforcement is essential.’ CCAB’s Economic Crime Panel will send the manifesto to policymakers and government officials to highlight these areas of concern and to reinforce the vital role of the professional qualified accountancy profession in mitigating these economic crimes. To find out more, download the CCAB Economic Crime Manifesto here CCAB Economic Crime Manifesto

New members join 30,000 Chartered Accountants on island of Ireland and around the world  1 in 2 accountants on the island of Ireland is now Chartered  27 October 2021 - Almost 1,000 new Chartered Accountants from across the island of Ireland have been conferred in virtual ceremonies by Chartered Accountants Ireland this week. The Institute, the largest professional accountancy body on the island of Ireland, now has approximately 5,000 members in Northern Ireland, and 20,000 in the Republic, with the balance of its 30,000 members located around the world. Its market share on the island of Ireland stands at 50.7 per cent according to statistics published earlier this year. The newly admitted members are among the first students to have sat their Final Admitting Exams (FAEs) entirely online, and this week’s conferring ceremonies mark the culmination of over three years of postgraduate education and training. They bring to over 1,500 the number of new members admitted to the Institute from all 32 counties in 2021. Commenting, Chief Executive of Chartered Accountants Ireland, Barry Dempsey said:  “I am delighted to congratulate our new members as they celebrate this milestone and I wish them well as they embark on their careers. Chartered accountants play a key role as frontline advisors supporting businesses and the economy throughout the island, never more so than in the last 18 months.  “Just last month the CCAB-I noted that Ireland needs greater ‘bench-strength’ to meet demand from employers for accountants, so that the profession can continue to fulfil this role. To see the strength in numbers joining the profession is an encouraging step towards future-proofing economic growth on both parts of the island of Ireland.    “One in every two new accounting students on the island of Ireland is choosing the Chartered qualification, and we are particularly pleased to see such strong uptake in the flexible route, which enables students to stay in their current job, study in a way that suits them and generate the relevant work experience now or further down the line. We introduced the flexible route in 2009 and today it accounts for 16 per cent of students coming through.”    New members are based in the following counties:  County Number   Antrim  93  Armagh  7  Carlow  3  Cavan  8  Clare  8  Cork  99  Derry  13  Donegal  11  Down  28  Dublin  366  Fermanagh  7  Galway  44  Kerry  14  Kildare  11  Kilkenny  17  Laois  4  Limerick  34  Longford  2  Louth  5  Mayo  6  Meath  19  Monaghan  7  Offaly  6  Roscommon  7  Sligo  7  Tipperary  16  Tyrone  9  Waterford  21  Wexford  11  Wicklow  14  Outside of island of Ireland  13 ENDS For more information: Jill Farrelly PR & Communications Manager Chartered Accountants Ireland  

Today’s Autumn Budget tinkered at the edges of the UK tax regime with announcements on the annual investment allowance limit, the new residential property developers tax, R&D tax relief, creative sector reliefs and various duties. Northern Ireland specific matters are also featured in today’s announcements. We also understand that the Government will bring forward a further set of tax administration and maintenance announcements later in the autumn. This follows a similar set of announcements on 23 March 2021 after the Spring Budget. There were no changes to capital gains tax (“CGT”) rates despite the Office of Tax Simplification’s (“OTS”) November 2020 report nor did any changes on inheritance tax materialise as potentially expected following another OTS review. Green taxes also did not feature on the day and there were no tax increases in other areas. However readers are reminded of the changes to national insurance and dividend tax rates announced last month which will take effect from April 2022. Annual investment allowance limit At the Spring Budget the Chancellor confirmed that the annual investment allowance limit for expenditure on plant and machinery and integral features would remain at £1 million until 31 December 2021 after which it would fall to £200,000.  Today’s Autumn Budget announced that there will be no reduction from 1 January 2022 and that the limit will remain at £1 million until 31 March 2023. It should be noted that the AIA is available to both companies and unincorporated businesses however the super-deduction and 50% first year allowance announced at the Spring Budget which are available until 31 March 2023 are only available to companies. Residential property developer tax More information was provided on the new residential property developers tax (“RPDT”) announced in February 2021 for which draft legislation was published last month. The tax will be charged at 4 percent on profits exceeding an annual allowance of £25 million. The RPDT applies to profits arising in accounting periods ending on or after 1 April 2022. R&D tax relief Following consultation and as recommended by this Institute, the categories of qualifying expenditure for R&D tax relief purposes are to be expanded to include data and cloud costs. The budget documents also confirm that reforms will be implemented “to more effectively capture the benefits of R&D funded by the reliefs through refocusing support towards innovation in the UK, and to target abuse and improve compliance.” The Chancellor’s speech referred to this as focusing R&D tax reliefs on domestic activity taking place in the UK. These changes will be legislated for in Finance Bill 2022/23 and will take effect from April 2023. Further details of these changes and next steps will be set out as part of the Government’s further tax administration and maintenance announcements later in the autumn. Creative sector reliefs  A number of changes were announced to the various creative sector tax reliefs. The museums, galleries and exhibitions tax relief (“MGETR”) which had a sunset clause of 31 March 2022 is now extended a further two years and will now end on 31 March 2024. From 27 October 2021, the headline rates of relief for theatre tax relief (“TTR”), orchestra tax relief (“OTR”) and MGETR will temporarily increase from 20 percent (for non-touring productions) and 25 percent (for touring productions) to 45 percent and 50 percent, respectively. From 1 April 2023, the rates will be reduced to 30 percent and 35 percent and will return to 20 percent and 25 percent on 1 April 2024. For MGETR, the relief will expire on 1 April 2024 and no expenditure from this date will be eligible for relief. Also from 27 October 2021, OTR rates will temporarily increase from 25 percent to 50 percent, reducing to 35 percent from 1 April 2023 and returning to 25 percent on 1 April 2024. And from 1 April 2022, “changes will be made to better target MGETR, TTR and OTR and ensure that they continue to be safeguarded from abuse.” Cross-border group relief Now that the UK has left the EU, Finance Bill 2021/22 will abolish cross-border group relief and other related loss reliefs from 27 October 2021. These reliefs were introduced as a result of the CJEU case Marks and Spencer v Halsey which is heralded as being responsible for the introduction of cross-border group relief in various countries across the EU including the UK which introduced its provisions in Finance Act 2006. CGT UK residential property disposals The time limit for making a CGT return and the associated CGT payment on a disposal of UK land and property is now extended from 30 days to 60 days. This takes into consideration feedback from stakeholders, including this Institute, in respect of problems experienced with the 30 day reporting and payment system. This means that taxpayers with a completion date on or after 27 October 2021 now have 60 days to report and pay any tax due on the disposal The reporting and payment date remains at 30 days for transactions completed up to 27 October 2021. Additionally, changes have been made to the legislation to help clarify the mixed use property rules. This is to ensure that where a gain arises to UK residents in relation to a mixed use property, that only the portion of the gain that is the residential property gain is to be reported and paid in line with these deadlines.  More detail on the tax measures in today’s Budget will feature in Monday’s edition of Chartered Accountants Tax News. Further information on today’s announcements is also available on the HM Treasury and HMRC websites.  

Trustees of relevant trusts are reminded that the date to register details of the beneficial ownership of their trust on the Central Register of Beneficial Ownership of Trusts (CRBOT) is 23rd October 2021 for trusts that were established on or before 23rd April 2021. Please see the attached  eBrief No. 195/21  from the Revenue Commissioners regarding support for registering details.

Revenue is deregistering a number of employers registered for the Employment Wage Subsidy Scheme (EWSS) who have not claimed the EWSS for pay dates after 30 June 2021.  Following a review of employers registered for the EWSS, Revenue identified that a significant portion of employers have not claimed the EWSS in respect of pay dates after 30 June.  Employers who no longer qualify for the EWSS are required under section 28B(5)(b) of the Emergency Measures in the Public Interest (Covid-19) Act 2020 to deregister for the scheme.  Revenue is issuing a notice to each employer and their agent to advise of their deregistration through ROS. These notifications are expected to arrive on Friday (22 October) or Tuesday (26 October).  Revenue has advised Chartered Accountants Ireland that where an employer's circumstances change, such that they are eligible for the EWSS again, they can reregister for the scheme through ‘My Services’ on ROS, and comply with the Eligibility Review Form (ERF) procedures to facilitate timely payment of subsidies claimed for pay dates after the reregistration.

Minister for Finance Paschal Donohoe announced the expansion of the tax debt warehousing scheme in yesterday’s Budget. The Collector General’s Division has provided Chartered Accountants Ireland with the following update: I refer to your representations at TALC regarding the section 997A Taxes Consolidation Act 1997 (TCA) issues impacting certain directors / employees who have a “material interest” in the company that pay their emoluments, and who are not entitled to a credit for the tax deducted from their remuneration  under the PAYE system but not remitted to Revenue, as a consequence of their employer company availing of debt warehousing for PAYE (Employer) liabilities.  In yesterday’s Budget publication, the Department of Finance has outlined the intention to allow self-assessed income taxpayers with employment income who have a material interest in their employer company to warehouse income tax liabilities relating to their Schedule E income in these circumstances. Please note this is subject to the enactment of the Finance Bill. In this regard, where a director / employee has a “material interest” in the company that pays their emoluments, and section 997A TCA means the director / employee is not entitled to a credit for the tax deducted due to the company warehousing its PAYE (Employer) liabilities, and the director/employee does not satisfy the 25% reduction of income threshold to avail of income tax debt warehousing, the director / employee may avail of debt warehousing  only for their Schedule E (PAYE) liability which has been warehoused by the employer company. The non Schedule E liability must be paid when filing the income tax return. Revenue has updated the Statement of Net Liabilities screen to include a new tick box declaration (as outlined below). When completing the Statement of Net Liabilities screen, a director / employee who satisfies the above requirements and wishes to warehouse their Schedule E liability only, may tick the relevant declaration to avail of debt warehousing for their Schedule E liability. Although my income has not reduced by 25% when compared to 2019, I wish to warehouse my Schedule E (PAYE) liability in respect of the tax deducted from director emoluments as set out in this return on the basis that I am restricted by Section 997A TCA 1997  from claiming credit for tax deducted from those emoluments as a result of my employer company warehousing their PAYE (Employer) liabilities. We would be grateful if you could bring this to the attention of your members so that they can inform their clients who are impacted by this issue. END OF MESSAGE As highlighted in the CCAB-I’s Pre-Budget Submission, and Chartered Accountants Ireland’s The Next Financial Year, the interaction of anti-tax avoidance provisions under section 997A TCA 1997 and the tax debt warehousing scheme gives rise to financial difficulties for taxpayers classed as proprietary directors and employees with a material interest in their employer company because this cohort of taxpayer are not entitled to a credit for PAYE tax in the calculation of their income tax liability for 2020 and preliminary tax liability for 2021 where their employer is participating in the tax debt warehousing scheme. Chartered Accountants Ireland, under the auspices of the CCAB-I, has made representations to Revenue for a pragmatic solution to this issue.  The Institute has asked Revenue for clarification on a number of issues related to the expanded debt warehousing scheme and further information will be published in Chartered Accountants Ireland’s  Tax News when it becomes available.