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Institute reacts to publication of Chancellor’s ‘mini-budget’ 23 September 2022 – Maintaining the 19 percent corporate tax rate and leveraging the tax system to deliver much needed supports will be a vital lifeline for companies in Northern Ireland in the face of inflation and increased energy costs according to Chartered Accountants Ireland. The Institute, which represents over 5,200 members working in businesses and practices across Northern Ireland made these remarks as the Government announced its ‘mini-budget’ in Westminster this morning.   As we saw during the COVID-19 pandemic, the government this morning outlined plans to deliver supports through the tax system with the aim of protecting jobs and supporting businesses in the months ahead. Commenting, Chair of the Ulster Society of Chartered Accountants, Emma Murray said, “Measures announced today to support businesses will come as a relief for businesses in Northern Ireland that are struggling with the impact of inflation in the cost-of-living crisis. Many of the tax changes announced will be permanent, providing businesses with certainty and stability.”   Corporation tax unchanged As announced by Chancellor Kwasi Kwarteng today, the already legislated for increase in the corporate tax rate from 19 percent to 25 percent which was due to happen across the UK in April 2023, will not now proceed. Chartered Accountants Ireland noted however the still significant disparity between the corporate tax rate in Northern Ireland and that of the Republic of Ireland.    Murray continued “Maintaining the corporate tax rate at 19 percent reduces the risk that some companies will relocate or establish new business operations outside of Northern Ireland. The rate is still much higher than the 12.5 percent rate in operation on the other side of the border”.   “A competitive rate of corporation tax, combined with the benefits of having access to both the UK and the EU’s single market for goods, puts Northern Ireland in a strong position to attract FDI, particularly in the manufacturing and distribution sectors, drive investment and expansion by local companies, and create more high-value jobs.”  Northern Irish Protocol Bill Uniquely within the UK, a key economic factor for Northern Ireland is the Northern Irish Protocol. The Institute had hoped that the Chancellor would have used the opportunity in today’s announcements to provide much-needed clarity on the new Cabinet’s approach to the Protocol which affects so many businesses in Northern Ireland.  Murray concluded "Since 2021, the Protocol on Ireland / Northern Ireland has allowed businesses in the region to continue to sell and buy unhindered from the EU. There was no clarity today on the new Cabinet’s approach to the Protocol. As the Northern Ireland Protocol Bill continues its passage through the House of Lords, businesses cannot be certain that current trading arrangements will continue. In a time of crisis like this, certainty is crucial.”  Other supports for businesses and individuals announced in today’s package of measures include; The 45 percent higher rate of income tax is to be abolished with one single high income tax rate of 40 percent. A reduction in the basic rate of income tax to 19 percent in April 2023.  An increase in the stamp duty threshold on a property’s value such that no stamp duty will be liable on the first £250,000.  The Stamp duty threshold for first time buyers will be increased from £300,000 to £425,000. The value of the property on which first-time buyers can claim relief is also to increase from £500,000 to £625,000. A reversal of the April 2022 increase of 1.25 percent to National Insurance rates for employers, employees and the self-employed from 6 November and of the increase in the rates of income tax on dividends from 6 April 2023. ENDS  

IAASA has published its fourth video in a series designed to provide information on the Quality Management Standards in Ireland. This video provides an overview of International Standard on Quality Management 2 – Engagement Quality Reviews. The final video in the series, which will be published on IAASA's YouTube channel over the coming weeks, will provide greater detail on ISA 220. Find the explainer video at the following link here

The FRC Lab (Lab) has today published a report that identifies lessons learnt from the first year of mandatory structured digital reporting under the TD ESEF regulation.  The Lab’s review found many companies have risen to the challenge of producing an annual financial report in the new digital format. However, there is still much to be done as data quality and usability remain below the level expected for companies in a leading capital market.   The report sets out some actions to improve companies’ processes, the usability and design of the reports and XBRL tagging. A link to the full report is available here.

In this week’s EU exit bulletin, we bring you the latest guidance updates and publications and remind you that CHIEF closes for import declarations from the end of this month. We also update you on recent developments in relation to the Northern Ireland Protocol Bill. Northern Ireland Protocol Bill update Thursday 15 September 2022 was the deadline for the UK to respond to the various infringement proceedings launched by the European Commission in respect of the Protocol on Ireland / Northern Ireland. The four infringement proceedings launched in August concern customs enforcement, and excise and VAT rules. These were in addition to the three infringement proceedings which began on 15 June 2022. We understand that the UK responded to the European Commission ahead of the deadline but no detail has been provided as yet as to the contents of the UK’s responses. The European Commission is considering next steps. Closure of CHIEF for import declarations The Customs Handling Import and Export Freight (“CHIEF”) system will close for import declarations from the end of September 2022. If your business or clients make import declarations, you must move to the Customs Declaration Service now, otherwise you won’t be able to import goods to the UK from 1 October 2022. Follow the two steps below to be ready for the change: Use the trader checklist (or declarant checklist if you make declarations yourselves without an agent) to move across to the Customs Declaration Service; and Watch HMRC’s YouTube videos which explain how to subscribe to the Customs Declaration Service, use the service, and carry out an import declaration. It can take several weeks to be fully set up, so businesses need to act now. Miscellaneous updated guidance etc. The latest guidance updates, and publications relevant to EU exit are as follows:- UK Domestic Advisory Group membership and Civil Society Forum participation under the UK-EU Trade and Cooperation Agreement: expressions of interest – Chartered Accountants Ireland is already a member of this group; Making a full import declaration; Making an import supplementary declaration; Making a simplified frontier declaration; List of ports using the Goods Vehicle Movement Service; Get UK customs clearance when importing goods into the UK: step by step; Apply to use simplified procedures for import or export (C&E48); Amend or cancel simplified import declarations; Advisory fuel rates; Attending an inland border facility; Declaring reusable packaging for Great Britain imports and exports; Finding commodity codes for imports into or exports out of the UK; Claim personal allowances and tax refunds if you're not resident in the UK; Check simplified procedure value rates for fresh fruit and vegetables; Amend or cancel a Customs Declaration Service import declaration; Report goods arriving at a UK port on a commercial vessel; Top-up your duty deferment account using the Customs Declaration Service; Paying into your Customs Declaration Service cash account; and Check if a business holds Authorised Economic Operator status.  

Welcome to this week’s Technical Roundup In developments this week, the FRC has published its thematic review of deferred assets and IOSCO welcomes the work of the international audit and assurance standard setters – the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA) – on assurance of sustainability-related corporate reporting. Read more on these and other developments that may be of interest to members below. Financial Reporting FRC review of companies' deferred tax asset disclosures The Financial Reporting Council (FRC) has published its thematic review of deferred tax assets. The review considers the basis of recognition of, and disclosure in relation to, deferred tax assets in the light of the effect of the Covid-19 pandemic on companies’ profitability. It follows the FRC's previous tax thematic review, issued in October 2016. The IFRS Interpretations Committee (IFRIC) has issued its September 2022 update. This summarises the decisions reached by the committee in its public meetings. The European Financial Reporting Advisory Group (EFRAG), in coordination with the IASB will conduct roundtable discussions with preparers focused on a selection of tentative decisions made by the IASB. These will take place on 24 October and 2 November. Participants who wish to attend can register on the EFRAG website. Auditing and Assurance IAASB and IESBA welcome IOSCO statement of support for developing standards relating to assurance of sustainability-related information The International Auditing and Assurance Standards Board (IAASB) and International Ethics Standards Board for Accountants (IESBA) welcome the announcement from the International Organization of Securities Commissions (IOSCO) of its support and encouragement for the IAASB’s and IESBA’s work on developing standards relating to assurance of sustainability-related information. The IAASB and IESBA acknowledge that stakeholders are increasingly seeking assurance of sustainability-related information and that it is important to respond to market demands with robust standards applicable to all sustainability assurance providers. The IAASB and IESBA will continue to closely collaborate with IOSCO and other regulatory and standard-setting bodies to inform the development of robust standards that foster independent, high-quality engagements and globally consistent practices. Insolvency Readers may find of interest the recent judgment of Butler J in the Irish High Court in the case of Bayview Hotel (Waterville) Limited (the “Company “) and the Companies Act 2014. The judgment considered winding up on the grounds contained in the Companies Act ,2014 and gave some consideration to the exercise of discretion by the court. You can click here for an Institute  news item and a link to the judgment. Anti-Money Laundering and Sanctions The European Commissioner spoke recently at a European court of auditors seminar on  the new EU AML-CTF supervision model: expectations vs feasibility'  She outlined an overview of the proposal – with a particular focus on the new EU AML Authority. There will be a two-tier system, one tier of European direct supervision, and another tier of national supervision with more coordination at a European level. She said there will be Joint Supervisory Teams involving national supervisors, similar to how the Single Supervisory Mechanism supervises banks. You can read the full speech by following the link above. The Egmont Group (EG) , a body of 166 Financial Intelligence Units, has issued its 2022-2027 Egmont Group Strategic Plan entitled  “Turning Aspirations into Outcomes”. EG will focus on four thematic areas of action with strategic goals to fulfil its aspirations over the next five years: to enhance the framework for effective information exchange between FIUs, to strengthen cooperation with international partner organizations, to develop and promote knowledge of new or emerging AML/CFT methods and trends, best practices, and EG requirements and to enhance EG support for members and candidate FIUs. Please click here to access a very interesting webinar held recently on recent developments in UK sanctions .The speakers were  Michael O’Kane ,senior partner at Peters & Peters LLP Maya Lester QC and Giles Thompson Director of OFSI. Other Autumn legislative programme 2022 Government Chief Whip Jack Chambers recently published the autumn legislative programme for the forthcoming autumn Oireachtas session. Click here for the press release and you can follow the links to the programme .Since our last report in May on the summer legislative programme, heads have been approved on the Work-life Balance bill, the Assisted Decision Making Capacity (Amendment) Bill and Central Bank (Individual Accountability Framework) Bill are making their way through the Oireachtas while pre legislative scrutiny has taken place on the Right to Request Remote Work Bill. Heads are in preparation of a Credit Union (Amendment) Bill to give effect to the outcome of the review of policy framework of credit unions. Pre legislative scrutiny is ongoing on the Charities (Amendment) Bill which was also on the summer legislative programme. There is no change in status on the Cybersecurity Bill and the Cybercrime bills. Work is still underway on both bills. In the summer programme, work was underway on a Companies (Miscellaneous Provisions) Bill to provide for miscellaneous amendments to the Companies Act 2014. This seems to have given way to a Companies (Administrative, Governance & Insolvency Amendment) Bill on which work is underway and which is stated to give effect to outstanding Programme for Government commitments on rights of workers as creditors; trading entities splitting operations; and transactional avoidance. One final bill which may be of interest is Protection of Employees (Employers’ Insolvency) (Amendment) Bill on which heads are in preparation and which is stated to be to comprehensively review and update the legislation governing the protection of employees during their employer’s insolvency. Women in Finance Charter officially launched in April 2022 and is part of the government’s Ireland for Finance Strategy. The Charter is an industry-led, government-supported measure to encourage gender diversity in the financial services industry in Ireland. The Minister of State in the Department of Finance recently appointed Financial Services Ireland director Patricia Callan as chairperson of the steering group. Interested readers can find out more in the press release here and more about the initiative and how to participate on the Better Balance website.   For further technical information and updates please visit the Technical Hub on the Institute website. 

It’s time for treasurers to take environmental, social and governance activities every bit as seriously as other business risks and opportunities. Brian Delahunty explains why. Key performance indicators (KPIs) are designed to drive an organisation towards its goals and strive to ‘do better’ each year, which in many ways is also the aim of environmental, social and governance (ESG) initiatives. While treasurers are used to setting and achieving KPIs, ranging from forecast accuracy to retrospective hedge effectiveness, ESG-specific KPIs (often called ‘sustainability performance targets’ or SPTs) are a new concept for many treasury professionals. In fact, according to the TMI and Barclays’ European Corporate Treasury Survey 2021, a mere 25 percent of European treasury functions currently have SPTs in place, and only 33 percent of the 225 respondents were planning to include ESG measures in their treasury objectives. Driving ESG KPIs Over the past 12 months, ESG has become a true boardroom imperative. Looking back to 2020, ESG was a theme lingering on the fringes of the board’s attention – but the COVID-19 pandemic catalysed an intense focus on communities and social challenges, as well as global supply chains and supplier relationships and values. As such, ESG is now front and centre for boards, and this trend is set to accelerate as we head into 2023. With this renewed focus on ESG and the treasury’s growing role as a strategic advisor to the board, treasury teams can no longer leave matters to the sustainability department and must lend support themselves. There are many ways in which they can achieve this support. In the early days of ESG, green bonds and loans were the only options open to treasurers, making ESG appropriate for only a handful of treasuries. Today, however, they have access to a growing set of ESG solutions at their fingertips, such as green trade and working capital solutions like green loans, supply chain finance, and green bill of exchange and promissory note discounting, as well as ESG-compliant investments. In addition, traditional green bonds and green revolving credit facilities remain popular and, of course, treasuries can exert influence through talent selection and choice of business partner. Setting the right targets Sustainability works best when there is a specific ESG policy for the treasury team, built in conjunction with the rest of the organisation. This enables treasury to play its part and be on the same page as the c-suite. Having a standardised approach across geographies and treasury centres is also critical. When developing ESG KPIs and targets, treasuries may wish to consider the: percentage of financing that is ESG-linked; percentage of short-term investments held in ESG-compliant vehicles; carbon footprint of the treasury team; percentage of paperless workflows (and meetings); percentage of women on the treasury team; and percentage of ethnic minorities on the treasury team. Treasurers must collaborate with internal and external partners to set the right goals that adhere to industry best practices and guidelines while also using rigorous and measurable targets to mitigate the risk of ‘greenwashing.’ Disclosures and sustainability reporting While non-financial reporting might appear outside the treasurer’s traditional remit, they can play a vital role in communicating sustainability-related information to stakeholders and the market. Learning about initiatives happening in the market can give treasurers an edge. Important frameworks, standards, and directives to be aware of include: The European Commission’s (EC) Non-Financial Reporting Directive; The EU Taxonomy and Sustainable Finance Disclosure Regulation; The Global Reporting Initiative (GRI); and The prototype climate-related financial disclosure standard from the CDP, Climate Disclosure Standards Board, GRI, International Integrated Reporting Framework and Sustainability Accounting Standards Board. With progress still to be made among standard-setters and regulators, it is worth having early conversations with corporate banking partners, vendors, and third-party sustainability experts about treasury’s proactive participation in sustainability reporting. Next steps It may seem as though treasury has a long to-do list regarding ESG. While there are areas that will require attention from treasury leaders, many of the solutions are relatively simple to implement, and the potential benefits are not to be scoffed at. Arguably, the most significant ESG risk is failing to understand how critical sustainability is to the future of business – and failing to build it into the heart of the treasury function. Companies may find themselves disadvantaged as buyers or suppliers if they no longer satisfy their counterparties’ ESG requirements. Likewise, support from banking partners, vendors, and consumers may fall away if ESG criteria are not met. It’s time for businesses, and treasurers, to start taking ESG as seriously as they do other business risks and opportunities. The potential downsides of not doing so can seriously impact people, profits, and the planet. Brian Delahunty is the Head of Corporate Banking in Ireland at Barclays

Minister for Public Expenditure and Reform, Michael McGrath T.D. was the guest speaker at the Leinster Society business lunch event in Dublin yesterday –the first business lunch of Chairperson Ann-Marie Costello’s term. The Minister spoke of his journey to qualification as a Chartered Accountant, pride in his membership, and how it continues to help him to this day, describing how he still scans everything he reads for numbers first. In his speech, the Minister discussed how the backdrop to Budget 2023 is complex and challenging: that we have yet to see the full impact of Brexit; the new scenario of war in Europe and the associated humanitarian crisis across the continent; the impact of rising inflation around the globe, and rising energy costs and energy supply concerns.  The Minister stressed the need for prudent management of public finances while creating a cost-of-living budget to address the needs of families and businesses. The economy has benefitted from previous targeted policy decisions and with proper financial management has the resilience to withstand the current challenges. He touched on the tax system and the need to move away from a system of “static” tax bands, and acknowledged the advice and advocacy provided by the Institute’s Advocacy and Voice team led by Dr Brian Keegan in the government’s work on COVID-19 supports, corporation tax and other tax reforms.  The Minister broadly described the plan for Budget 2023: "In the round we will have a really strong package – a set of one off measures which will amount to several billion euro, which will kick in within weeks of Budget day to support households and also to support businesses," he said. "And then we will have quite a strong package for 2023 where we focus on some of the longer-term challenges that we face as a country as well." In closing, the Minister acknowledged the huge challenges businesses will face with the continuing rise in energy prices, and the work these businesses are doing to stay viable in the face of such unpredictable and growing costs. He committed to the government’s support of these businesses and households to the best of their ability through Budget 2023. The Leinster Society thanks all the members who joined them for the event at Dublin's Fitzwilliam Hotel.

Standing out among your competitors can be tough, especially in the digital age. Mary Cloonan outlines how visible expertise can help professional services firms gain a competitive edge The world is becoming increasingly digital by the day, meaning a shift in the way firms and organisations are viewed by clients and competitors. In this fast-changing landscape, one of the most important steps a professional services firm can take is to build visible expertise. Knowledge and expertise—once something that was only gained through years of experience in a field—is now just a few clicks away, and with this comes the challenge for businesses to maintain their edge. To stay relevant in professional services, businesses need to focus on building visible expertise. But, what is visible expertise, and how can it be acquired in today’s digital world? Visible expertise explained Visible expertise is the combination of thought leadership and relationship marketing. It’s about being known as an expert in your field and having the relationships to back this up. Thought leadership is about sharing your knowledge and ideas to educate and inspire others. It’s about demonstrating that you are an authority on a particular topic and have something valuable to say. Relationship marketing is all about building solid and long-lasting relationships with your current and potential clients and creating a connection that goes beyond simply providing a product or service to become a connection that lasts. Combined, thought leadership and relationship marketing make up visible expertise. And when it comes to professional services, visible expertise is critical. Visual expertise and accountancy There are four reasons why visible expertise is so vital for accountants: Visible expertise is a way to differentiate yourself from your competition. Businesses are constantly vying for market share, and being known as an expert in your field sets you apart. When you share your ideas and knowledge, you demonstrate your expertise and confidence, making you more trustworthy in the eyes of your clients. Prioritising market development efforts and budgets in a specific segment of your profession allows you to maximise returns from minimum investment. Finally, it’s a way to stay ahead of the curve. By sharing your ideas and thoughts on a given topic, you are positioning yourself as an authority – someone who is up-to-date on the latest trends and changes, allowing you to stay one step ahead of competitors and become the go-to firm when clients need an expert. Building visual expertise Building visible expertise is critical in a competitive market. Here are five steps you can take in your professional services marketing journey. Claim a sector or industry segment Narrowing your focus to a specific segment is the first step in claiming visible expertise. You need to identify the area you want to be known for and then start sharing your ideas and thoughts on that topic. Building knowledge in a specific area takes time and effort, but to truly ace it, you must put in the work. Read industry publications, attend relevant conferences, network, and learn. Most importantly – write about it. Sharing your ideas online is one of the best ways to build visible expertise. Understand target audience segmentation Now that you’ve claimed your sector or industry segment, you need to understand your audience. Understanding their specific needs and how your solutions can help them overcome the challenges they face is essential. Ask yourself who needs your expertise, what their pain points are, and how you can provide the solution to their problem. Sharpen your expertise As an expert in your field, you are responsible for sharpening your skills. Educating yourself on the latest changes and trends in your industry, such as reporting standards or tax rules, is crucial. Demonstrate your growing knowledge through LinkedIn posts, trade magazine or newspaper articles, interviews or conference speeches. Build your profile You need to have a plan for how you are going to share your expertise and ideas and what platforms you are going to use to do it. Discover the platforms that will work best for you and your business. If you’re unsure where to start, look at where your target audience spends their time online and consider using those platforms to share your content. Execute the strategy Creating visible expertise takes time and effort, especially in the beginning. However, if you are consistent with your content and remain focused on your target audience, you will start to see results. It’s crucial to track your progress along the way. Keep an eye on your website traffic and social media engagement to see how people respond to your content. This will give you a good indication of what’s working and what isn’t, and you can adjust your strategy accordingly. Mary Cloonan is the Founder of Marketing Clever

Budget 2023 will be delivered against a challenging backdrop, so what steps can the Government take to maintain and enhance Ireland’s FDI appeal? Kevin McLoughin explains The surge in Ireland’s tax revenues came when they were most needed, giving the Government valuable fiscal room to help people and businesses deal with the cost-of-living crisis. The record €9 billion in revenue from corporation taxes does, however, raise some concerns about its sustainability in the future and the concentration risk involved, as a significant proportion of the revenue comes from a limited number of taxpayers. While Budget 2023 will undoubtedly focus on the cost of living and energy, it is critically important that Ireland’s highly competitive position as a location for foreign direct investment (FDI) is kept firmly front of mind. In a competitive global landscape, Ministers should seek ways to enhance Ireland’s attractiveness to FDI, so that we might retain and grow investment from multinational enterprises. Ireland’s competitive edge Ireland’s competitiveness as a place to do business will become even more critical as economies move into anticipated recessions here and in key export markets such as the UK, regardless of the impact of Brexit. While Irish organisations might have diversified their export markets in recent years, those changes will not protect them from a global recession where margins are likely to be squeezed to the limit. This highlights the critical need to ensure that Ireland offers a cost-competitive, highly innovative and supportive environment in which businesses can continue to compete successfully in international markets. What will the Government’s role be in relieving some of the supply chain pressures businesses face? There is certainly very little direct action Ministers can take on Budget Day. Still, the Government should continue its indirect support for businesses through its network of embassies, Enterprise Ireland, and other government bodies, all of which are working to open new trade routes to facilitate a broader range of procurement options. The supports and incentives offered by the Government to indigenous Irish entrepreneurs will be of key importance to Ireland’s future economic success. These individuals are the bedrock on which the next generation of globally successful Irish companies will be built. Spotlight to remain on R&D scheme From a budgetary perspective, we already have an attractive research and development (R&D) tax credit regime and a Knowledge Development Box designed to encourage research, development, and innovation. In this context, non-tax measures, such as the young talent pool possessing the technical skillset and experience, are becoming increasingly persuasive. That said, Ministers need to be conscious of the impact of the personal tax burden on an individual’s working location. In particular, there should be no changes in the Budget that might make the current Special Assignee Relief Programme scheme less attractive. International mobility remains critical to supporting investment decisions by international businesses, and the level of personal taxation can be a significant driver of the cost of such mobility. Finally, with agreement on sectoral carbon budgets reached in July, there has been speculation that Budget 2023 will include new reliefs and incentives for green investments aimed at accelerating Ireland’s net zero journey. In this area, however, there have not yet been any radical moves on the tax front to either penalise or incentivise activities or investments. We expect the existing policy position to be maintained in this Budget and that the Government will resist pressure to reduce the carbon tax regime against increasing energy costs. Kevin McLoughlin is Head of Tax at EY Ireland

Minister Michael McGrath delivers pre-Budget commentary in Dublin    Talent the “engine of growth”, so employees must be front of mind in Budget 2023 22 September 2022 – Budget 2023 must meet the twin challenges of addressing both business and social imperatives next week. This was the message delivered to Minister for Public Expenditure & Reform Michael McGrath T.D. as he addressed a gathering of Chartered Accountants Ireland Leinster Society in Dublin today.  With five days to go until Budget 2023 is unveiled, members of Ireland’s largest professional accountancy body stressed the need to use the Budget as a tool to improve the wider business operating environment, specific business needs and, crucially, the lot of individual taxpayers. This holistic approach is critical to support individuals and ensure that Ireland is an attractive place to live and work.    The Society reiterated that with a variety of financial and administrative burdens on the horizon, from legislative developments on auto-enrolment, the right to request remote working, and statutory sick pay, government interventions need to happen in a considered and balanced way that doesn’t add extra pressures on business.   Commenting, Chair of Chartered Accountants Ireland Leinster Society Ann-Marie Costello said  “In its pre-Budget submission and commentary over the summer the Institute stressed that addressing business needs in isolation won’t help our economy to weather this turbulence and remain competitive. Talent is the engine of economic growth, so in tandem with targeted measures to assist business, this Budget needs to address infrastructural and personal finance issues so that people can survive and succeed in Ireland.” From Institute engagement with members, it is clear that in addition to the unprecedented challenges of inflation and rising energy costs, among the biggest challenges facing businesses are people-related, both attracting them and managing them. Over 60% of members cite competition for talented people as a significant challenge. Costello continued          “Ireland’s investment policy has traditionally been focused on taxation from the employer’s perspective, however in 2022, this focus needs to be widened. In recent weeks, a survey by this Society pointed to continued strong earnings prospects for Chartered Accountants working across Leinster, including for newly qualified members, however in spite of this, accounting has been listed on the Department of Enterprise, Trade and Employment’s Critical Skills Occupations List since 2016. This is all the more reason that employee needs must be placed at the very core of a successful business environment.” Chartered Accountants Ireland’s Pre-Budget submission, under the auspices of the Consultative Committee of Accountancy Bodies Ireland (CCAB-I) contains measures to address some of the most pressing societal issues facing Ireland. It proposes that consideration be given to reforming personal tax allowances so that allowances are ‘frontloaded’ at the outset of a person’s career. The submission suggests that such reform is in line with government policy on FDI and should form part of Ireland’s overall policy to attract and retain talent. In addition to reforming personal tax allowances, the CCAB-I supports the proposal to introduce a third rate of income tax to make the tax system more equitable provided that the entry levels to each band of tax are appropriate. Of equal importance is ensuring that Ireland has a functioning housing market to house its population and attract and retain talent to our shores. In its Pre-Budget submission, Chartered Accountants Ireland noted that the residential property market is in crisis, with not enough houses to buy or rent in the private sector and not enough houses being built by the State for those who need social housing. It proposed the extension of the 25% tax rate enjoyed by corporate landlords to individuals, so that the tax system could be effectively harnessed to encourage landlords to stay in the market and new entrants to meet the supply shortage. ENDS About Chartered Accountants Ireland Leinster Society   Chartered Accountants Ireland Leinster Society is a district society of Chartered Accountants Ireland, representing over 14,950 Chartered Accountants throughout Leinster. Chartered Accountants Ireland is Ireland’s leading professional accountancy body, representing over 31,000 members around the world and educating 7,000 students. The Institute aims to create opportunities for members and students, and ethical, sustainable prosperity for society. An all-island body, Chartered Accountants Ireland was established by Royal Charter in 1888 and now has members in more than 90 countries. It is a founding member of Chartered Accountants Worldwide, the international network of over one million chartered accountants. It also plays key roles in the Global Accounting Alliance, Accountancy Europe and the International Federation of Accountants. Chartered Accountants Ireland members provide leadership in business, the public sector and professional practice, bringing experience, expertise, and strict standards to their work for, and with, businesses in every sector. Chartered Accountants Ireland engages with governments, policy makers and regulators on key issues affecting the profession and the wider economy.        

In Irish news, Revenue will be issuing Level 1 Compliance Intervention letters to all taxpayers eligible for the Debt Warehousing Scheme and the Report of the Commission on Taxation and Welfare has been published. In UK news, read about recent engagement with HMRC on Making Tax Digital and key points from the Institute’s response to the consultation on repayment agents focus on the root cause of repayment agents and makes recommendations to reduce their impact in future. Today’s mini fiscal event in the UK will feature in Monday’s Chartered Accountants Tax News - see below for how to sign up. In International news, Germany, France, Italy, Spain, and the Netherlands pledge to introduce a minimum 15 per cent effective corporate tax rate. Ireland 1.     Revenue will be issuing Level 1 Revenue Compliance Intervention letters to all taxpayers who were eligible for the Debt Warehousing Scheme. Read more about the upcoming communications here. 2.     The Report of the Commission on Taxation and Welfare has been published.   UK 3.     Read about recent engagement with HMRC on Making Tax Digital.   4.     Key points from the Institute’s response to the consultation on repayment agents focus on the root cause of repayment agents and makes recommendations to reduce their impact in future. International 5.     Germany, France, Italy, Spain, and the Netherlands pledge to implement a minimum 15 per cent effective corporate tax rate by 2023.     Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount.      

  In this week’s sustainability/ESG bulletin read how climate is a policy objective in the Report of the Commission on Taxation and Welfare, a public consultation on the review of the security of Ireland’s energy supply, Ireland’s first annual UN Sustainable Development Goals (SDG) Week, the UK Government's business energy plan, and new EU rules to limit global deforestation, as well as articles, podcasts and upcoming events. Climate and the Report of the Commission on Taxation and Welfare Climate is one of four over-arching policy objectives that should be central to the development of taxation and welfare policy in the years to come. This is the position of the Commission on Taxation and Welfare in its report – Foundations for the Future – released last week. Read more here. Consultation on the review of the security of energy supply for Ireland’s electricity and natural gas systems The Irish Government has published a consultation document for a review of the security of energy supply for Ireland’s electricity and natural gas systems. This consultation seeks views on policy measures that could be implemented to support Ireland’s security of supply framework. The review is focused on the period to 2030, but in the context of ensuring a sustainable transition up to 2050. The public consultation document is accompanied by a technical analysis carried out by Cambridge Economic Policy Associates Ltd. (CEPA), and the closing date is Friday, 28 October 2022. Ireland’s first annual Sustainable Development Goals (SDG) Week Ireland’s first annual Sustainable Development Goals (SDG) Week takes place from 20 to 26 September. Accountants who need a refresher on the SDGs can find out more about them, and their relevance to accounting, in this article in the Chartered Accountants Ireland Sustainability Hub. UK’s Government business energy plan revealed The UK Government has this week published its plans to help cut energy bills for businesses. Businesses are set to automatically receive a reduction in energy costs from 1 October 2022. Through the new Energy Bill Relief Scheme, the government will provide a discount on wholesale gas and electricity prices for all non-domestic customers. This includes all UK businesses, the voluntary sector, including charities, and the public sector, including schools and hospitals. The Scheme will run for six months from 1 October 2022 to 31 March 2023. Support (in the form of a p/kWh discount) will automatically be applied to bills, so customers will not need to take action. A review into the operation of the scheme will be published in three months’ time to inform decisions on future support after March 2023. A parallel scheme, based on the same criteria and offering comparable support, but “recognising the different market fundamentals”, will be established in Northern Ireland. The UK Government has reportedly stated that comparable wholesale rates will be “set shortly” for Northern Ireland. £70 million grant funding available under Industrial Energy Transformation Fund The Department for Business, Energy & Industrial Strategy (BEIS) has launched the Industrial Energy Transformation Fund (IETF) Phase 2: Autumn 2022. This makes available grant funding for feasibility and engineering studies, energy efficiency, deep decarbonisation projects, and non-road mobile machinery. The Autumn 2022 competition will open to applications on Monday, 10 October 2022 and BEIS plans to run events and clinics to inform businesses about the scope of the competitions, eligibility criteria, and the application process. €1.4 billion for Ireland's economic and social development and green transition in 2021-2027 Ireland will benefit from €1.4 billion in Cohesion Policy funding between 2021 and 2027 to support the sustainable development of its economy, it was announced this week. The details and strategy for these investments are set out in the Partnership Agreement between Ireland and the Commission that was formally launched this week. New rules to limit global deforestation  The European Parliament has adopted a position on a draft EU regulation banning the import of commodities driving deforestation. An area larger than the EU was lost to deforestation from 1990 to 2020, with EU consumption representing around 10 percent of losses. The new law would make it obligatory for companies to verify that goods sold in the EU have not been produced on deforested or degraded land anywhere in the world, and have been produced in accordance with human rights provisions in international law and respect the rights of indigenous people.  Financial institutions will also be compelled to check that they are not financing companies driving deforestation. Negotiations with the Council of the EU (which adopted its position in June) are expected to start in the coming weeks.   Podcasts (24 mins): Mairead McGuinness, Commissioner for Financial Services, Financial Stability and Capital Markets Union, discusses energy policy (RTÉ Radio 1) (38 mins): In the first episode of ‘Zero’, a Bloomberg podcast that hears from key people in the fight against climate change, Baroness Bryony Worthington talks about how to 'crisis-proof' climate action.  Articles UK businesses given six-month emergency energy price cap (The Guardian)  All you need to know about putting solar panels on your roof (RTÉ) How excess heat from one data centre will warm Dublin offices within weeks (Irish Independent) Upcoming events Biodiversity Essentials programme, (Link) (funded), 28 Sept 9.30-11.00 | 19 Oct 2.30-5.00 European Business & Nature Summit (Link), 18-19 Oct The Business Case for Social and Circular (Link) 18 October, 12.00-1.00:  free, interactive webinar, experts Claire Downey, Chris MM Gordon and Kate van der Merwe discussing the social and circular economies, and how these alternative economic models are sources of innovation for mainstream business. Sustainable Finance Ireland, Ireland Climate Finance Week, 17-21 Oct Ecosystems Knowledge Network, Natural Capital Finance & Investment Conference, 19 Oct (London) 20 Oct (Edinburgh)  Accountancy Europe, Sustainability Tax Systems, 25 Oct 9-11 GMT (10-12 CEST) You can find information, guidance and supports to help members understand sustainability and meet the challenges it presents in our online Sustainability Centre.