Revenue has updated the Tax and Duty Manual which provides guidance on determining which instruments can be treated as equivalent to an Additional Tier 1 instrument. Under the CRD IV (Capital Requirements Directive and Capital Requirements Regulation) Tier 1 capital, the primary funding of a bank, is made up of two components, one of which is Additional Tier 1 (‘AT1’) capital. The CRD IV sets out the features that an AT1 capital instrument must possess. Section 845C TCA 1997 provides clarity on the tax treatment of AT1 capital instruments and other substantially similar or ‘equivalent’ instruments. This manual explains the implications of section 845C in relation to certain capital instruments.

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

Large energy users have a crucial role to play in embedding greater resilience in Ireland’s energy system. David Cashman explains why Following recent geopolitical developments and the subsequent supply chain disruption to energy resources here in Ireland, ensuring the security of supply is paramount. With one of the highest ratios of energy import dependency in the EU, Ireland is more exposed than other countries to sudden shocks and disruption. As a result, embedding increased resilience in our energy system is a priority, as set out in the Government’s Energy Security in Ireland to 2030 strategy. Large energy users (LEUs), such as data centres, have a vital role to play in driving this resilience. Electricity demand is projected to grow significantly in the years ahead, and LEUs account for a sizeable portion of this. With an annual usage of over 500,000 kWh, EirGrid estimates that, by 2031, LEUs will account for 28 percent of total energy demand. While the growing number of LEUs represents strong economic activity, it does mean that a small number of these large consumers will be key to ensuring the security of supply. The question then becomes: how can this security be maintained without the cost of increased emissions? The electricity system must continue to be balanced – accounting for increasingly tight capacity margins, as highlighted in the annual Generation Capacity Statement – while LEUs must play their part in delivering on emissions reduction targets. With the number of system alerts forecast to increase – coupled with delays in connecting new generation capacity (due to planning permission, environmental impacts, and supply chain constraints) – LEUs must look to introduce interim measures now that, while ensuring security of supply, do not increase emissions. Legislative and regulatory landscape Climate Action Plan 2024 builds on initiatives mandated in the 2023 plan, including the introduction of incentives to drive low-carbon consumption and increase LEU flexibility in demand. Following Climate Action Plan 2023, the Commission for Regulation of Utilities (CRU) published an initial view of a demand-side strategy – the National Energy Demand Strategy (NEDS) – for consultation. This proposes a range of initiatives and builds on the ambition set out in the Energy Security in Ireland to 2030 strategy which highlights how LEUs “can lead and contribute to this transition by…shifting energy demand away from peak times or at times of system stress and moving demand to times of high renewable generation”. A core tenet of NEDS is a review of LEUs’ connection policy, with the associated consultation closing in late February. This review will inform the development of a new pathway for LEUs to connect to the electricity and gas systems, which will minimise carbon emission increases while accounting for system capacity. This review is very much in line with the Government Statement on the Role of Data Centres in Ireland’s Enterprise Strategy, which sets out how new data centre sites will account for the additional demands placed on energy infrastructure, demonstrating a clear pathway to decarbonised services. Five key measures There are five measures LEUs can adopt now to support Ireland’s decarbonisation plans whilst ensuring security of supply: 1. Decarbonising behind-the-meter generation Implementation of cost-effective alternatives to carbon-intensive backup generation, including: Matching gas with domestic green gas certificates; and Transitioning sites’ backup generators to renewables-based, biodegradable fuels, such as hydrotreated vegetable oil. 2. Investing in behind-the-meter storage Investment in on-site, behind-the-meter storage means LEUs can utilise stored energy at peak times and times of system stress. This ensures high network charges – those associated with electricity imported from the grid – are minimised, while LEUs can ‘sell’ stored energy back to the grid (thus creating an additional revenue stream and return on behind-the-meter storage investment). 3. Unlocking flexibility in load At times of security of supply events, disruption to business-as-usual operations can lead to an increase in emissions. This can be minimised by unlocking flexibility in load: Flexible load: Reducing reliance on the electricity system by using behind-the-meter generation and/or storage to meet electricity demand. Flexible load times: Rescheduling server load processing to a time when system congestion is lower, or renewables are more abundant on the system. Flexible load locations: Relocating server load processing from one data centre to another if there is lower demand – or higher renewables outputs – in the alternative location(s). 4. Adopting Corporate Power Purchase Agreements (CPPAs) Arrangements whereby a company procures renewable electricity directly through a contractual agreement with a renewables-based generator are known as CPPAs. These are an attractive option for LEUs as they mitigate the impacts of energy price volatility whilst also reducing electricity-related emissions. 5. Implementing enhanced emissions and energy usage reporting The new Corporate Sustainability Reporting Directive – coupled with broader ESG scrutiny – places additional demands on companies regarding the disclosure of climate and environmental data. With mandatory requirements set to be introduced, LEUs should now begin to increase transparency and reporting on emissions and energy usage, starting with materiality/gap and ESG maturity assessments. Building future resilience Rising electricity demand and a dependency on energy imports mean there is an urgent need to embed increased resilience in our energy system. LEUs have a crucial role to play in driving this national resilience. This cannot come at the cost of increased emissions, however. Adoption of interim measures that will ensure security of supply without increasing emissions means LEUs are in line with broader legislative and regulatory proposals and are also building future resilience. David Cashman is Director of Power and Utilities at EY

CPPA use has risen sharply in Ireland in the last two years against a backdrop of price volatility and an increasing focus on the role corporates must play in reaching net zero, writes Robert Costello A Corporate Power Purchase Agreement (CPPAs) is a long-term contract under which a corporate (offtaker) agrees to buy some or all of its electricity directly from a renewable energy generator.  There are two main types of CPPAs in Ireland: Financial (virtual) CPPA – this agreement acts as a financial hedge that enables the corporation to support renewable energy projects and secure a stable energy price without physically trading power. Physical CPPA – the corporate receives physical delivery of electricity from the generator, generally through the grid. Benefits of CPPAs The State’s climate action plan aims to reduce emissions by 51 percent by 2030 and deliver 80 percent renewable electricity by 2030. It includes a target of 15 percent of electricity demand to be delivered by CPPAs. CPPAs offer an alternative route to market for generators who were excluded from the Renewable Electricity Support Scheme (RESS), were unsuccessful in RESS or for whom the terms and conditions are not commercially viable. The long-term stable income that comes with a CPPA with a financially strong counterparty gives generators the financial certainty they need to secure debt funding to build new projects.  Meanwhile, corporates benefit due to: Budget certainty, particularly given volatile market prices; Delivering additionality – the renewable energy project would not have been built without the corporate's involvement (via the CPPA); and Guarantees of origin (GOs). Key commercial considerations When negotiating a CPPA, corporates must consider that CPPAs are typically long-term contracts (about 15 years), although some short-term contracts (less than five years) have been agreed in the Irish market in the past year. The offtakers forecast energy needs to determine the size of the asset with which it can contract for some or all of the output. There are four types of contract: pay-as-produced; shaped; baseload; and pay-as-consumed. Pay-as-produced contracts are the least risky for developers (as generation is not fully predictable). Other forms of contract need a significant premium from the offtaker as the generator is taking the volume risk. CPPAs can be fixed-priced, variable or a combination of both. Fixed pricing increases cash flow certainty for both parties, helping with budgeting, project financing and protecting margins. However, it can expose offtakers if there are significant wholesale market price declines, as they are locked in at higher prices. Fostering growth CPPAs present a pathway to achieving Ireland’s ambitious climate action goals. By facilitating direct transactions between corporations and renewable energy generators, CPPAs not only contribute to decarbonisation efforts but also foster economic stability and growth. However, navigating the complexities of CPPAs requires careful consideration of key commercial factors. From contract duration to pricing mechanisms, each element demands strategic planning to mitigate risks and maximise benefits for all stakeholders. In essence, CPPAs represent more than just contractual agreements; they embody a collaborative approach towards a greener, more sustainable future. By harnessing the collective power of corporates and renewable energy generators, Ireland can accelerate its journey to a low-carbon economy while fostering innovation and resilience in the energy sector. Robert Costello is a Partner with PwC

Irish support for EU membership remains strong despite concerns about the direction it is taking and declining trust in political institutions, writes Noelle O Connell Despite a slight decline of four percent from 2023, the overwhelming majority of people in Ireland (84%) and Northern Ireland (76%) believe Ireland should remain a member of the European Union, according to the EU Poll 2024 from European Movement Ireland. While support for EU membership remains strong, however, the 2024 results indicate a notable decline in both jurisdictions on the question of whether or not the EU is moving in the right direction – down from 58 percent in 2023 to 49 percent this year. Voter concerns Ireland’s continuing support for EU membership is welcome at a pivotal time for Europe. This year’s less favourable findings on several key issues are of concern, however, and serve as a timely reminder of the continual need for public engagement, dialogue and communication on EU affairs. It also highlights the need for the EU to listen to voters’ concerns. Areas of low satisfaction with the EU’s performance include its response to issues such as migration, the war in Ukraine and the Israel-Gaza conflict. Forty-six percent of respondents in Ireland and 44 percent in Northern Ireland ranked the EU’s performance on the issue of migration as its weakest. The timing of this survey coincides with the debate on the new EU Migration and Asylum Pact. The EU’s performance on trade and business continues to score well among respondents at 46 percent in Ireland and 55 percent in Northern Ireland. This underlines the positive public perception of the Single Market and its benefit to the economies in the North and south. Political popularity Of concern in this year’s poll is the growing lack of trust in political institutions in Ireland and Northern Ireland, which could reflect a wider global trend of increasing polarisation in public and political discourse. When asked which of the institutions they trusted most, 34 percent chose the Irish Government and 26 percent the EU. A significant majority (40 percent) stated none of the above. In Northern Ireland, trust in the EU came in at 28 percent, while trust in the Irish Government ranked higher than the UK Government at 24 percent compared to just eight percent, with the Northern Ireland Executive being included this year for the first time. Thirty-one percent said they did not trust any of the institutions listed. Expanding the EU This year marks the 20th anniversary of the biggest ever enlargement of the European Union when ten countries became members under the Irish presidency in 2004. We welcome the consistently strong support across the island of Ireland for EU enlargement, with 57 percent in favour of more countries joining the Union. Noelle O Connell is CEO of European Movement Ireland 

Self-compassion is the ability to treat yourself with the same care and kindness as you would a good friend who was going through a difficult and stressful time. 'Unlike self-criticism, which asks if you're good enough, self-compassion asks what's good for you, what do you need?' Kristin Neff Showing compassion to others When we are compassionate to others, we have an intention to be with them through the difficulties they are experiencing and to alleviate their suffering and stress in some way. This can often be very different to the way we treat ourselves through the challenges of life. How often have we provided support for someone we care about and yet end up criticising ourselves endlessly for our various perceived inadequacies or shortcomings. Many of us have been taught to put others first. But neglecting ourselves in order to do this isn't an effective or sustainable long term strategy without considering what we need to keep emotionally well. Maintaining the inner capacity to be there for our family, friends and colleagues is reliant on looking after ourselves well. Self-compassion means you are understanding and kind to yourself when confronted with personal failings and mistakes – after all, whoever said you were supposed to be perfect? Why we need to be compassionate towards ourselves Feeling stressed and being hard on ourselves is very common, especially in a culture which is increasingly performance and target focused. Loneliness and isolation are also increasing in our ever digitally focused world. If you are finding it difficult to manage the many challenges, threats and distractions of our modern world, you are not alone. With current figures of one in four people developing a mental health difficulty in any given year and the rising levels of distress within young people, many people are struggling to align life with their deeper values and needs. A self-critical and unkind stance towards yourself when you are going through testing times will only serve to activate the fight or flight stress response, clouding the minds ability to remain calm. Some people may feel reluctant to develop self-compassion as they might feel the notion is self-indulgent or self-pitying. But developing the ability and strength to face and manage our difficulties, without isolating ourselves from others and becoming absorbed in our own pain is the essence of courageous living. Being able to attend to your own difficulties and challenges wisely will enable you to have the spare emotional capacity to engage with others and life in a more helpful way. According to Kristin Neff there are three key elements to compassion: Self-kindness An ability to relate to ourselves with warmth and kindness. Common humanity The appreciation that we all suffer at times and you are not alone in these feelings. Mindful awareness The ability to view our difficulties in a balanced perspective so that we can keep engaging in life. How to develop emotional resilience There has been much interest in the effects of developing compassion within ourselves from a scientific perspective. Research has shown that people who score high on self-compassion: Cope better with adversities Take more personal initiative and responsibility Are less fearful of making mistakes and being rejected Are more emotionally intelligent, happier and more optimistic Take better care of themselves physically and emotionally The good news is that our compassionate self can be developed and enhanced through training and practice so that we become more attuned to supporting ourselves through the difficulties of life rather than sabotaging ourselves and making situations more unmanageable than they need to be. How to be kinder and more compassionate to yourself Be aware of your internal voice Becoming aware of how we talk to ourselves, the tone of voice we use and language we use gives us the opportunity to move from harshness to supportive tendencies. Noticing the good Being able to notice and celebrate moments of the day and our good qualities is an essential part of managing and balancing difficult times. Each day ask yourself: When have I been at my best today for someone else? What has been my best moment of today? Give yourself encouragement It is more effective to become your own internal ally and support system rather than your own harshest critic. Written by: Kirsty Lilley Kirsty has delivered mindfulness and self-compassion courses to a wide variety of workplaces during her career and is also a trained psychotherapist and coach. She has worked at a strategic level within organisations developing wellbeing policies and been responsible for developing training courses on improving mental health and wellbeing. Kirsty is committed to an integrated and compassionate approach when helping others to fulfil their potential. Article reproduced with the kind permission of CABA, the organisation providing lifelong support to ICAEW members, ACA students and their close family around the world.

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

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

  In this week’s Sustainability/ESG bulletin, read about Chartered Accountants Ireland's membership of the UN Global Compact Network. Also covered are proposals regarding sustainability assurance, news about the Just Transition Commission, the need for ESG and sustainable finance skills in Ireland, the low uptake of green public procurement by Ireland’s government departments, funding available for sustainability, and the usual policy updates from Europe, articles and upcoming events.      IRELAND Institute represented at UN Global Compact Advisory Group Chartered Accountants Ireland is pleased to be a member of the new UN Global Compact (UNGC) Advisory Group. This group was established to support the launch of the UNGC Local Network in Ireland later this year. The advisory group met for the first time this week, with Sustainability Advocacy Manager, Susan Rossney, representing the Institute. The group discussed how the Irish network can support and empower Irish business and other key stakeholders to accelerate sustainability. You can follow the group here. Chartered Accountants Ireland responds to proposals regarding sustainability assurance Chartered Accountants Ireland has responded to the International Ethics Standards Board for Accountants (IESBA) proposals contains recommendations from our members, and highlighting concerns regarding certain prohibitions on relying on external experts for sustainability assurance and reporting purposes, and application of requirements to service providers outside the accounting profession. An Institute response to a separate IESBA consultation on sustainability assurance and reporting is due to be submitted by 10 May 2024. SEAI funding programme open The 2024 SEAI National Energy Research, Development & Demonstration (RD&D) Funding Programme is open for applications, with up to €20 million in funding available for projects which contribute to Ireland's transition to a clean and secure energy future. Research themes in the thematic strand of applications include heat, electricity, energy efficiency in traditional buildings, offshore wind, bioenergy, critical raw materials, behavioural change, energy storage and sustainable energy communities among others. The application deadline is 12 noon on 13 June 2024.  Approval given for establishment of new Just Transition Commission The Government has approved the establishment of a new Just Transition Commission to provide advice on how to ensure a just transition to climate neutrality in Ireland. The Just Transition Commission will, among other things, prepare research and advise on policy planning, implementation, and progress. The Commission will have an independent chair, and a recruitment campaign to appoint members to the new Commission will be launched shortly, with a view to its formal establishment and first meeting in Q3 of this year. The announcement was made shortly after Minister for the Environment, Climate and Communications, Eamon Ryan, announced the 15 projects in the Midlands that will receive grant awards amounting to €18 million from the EU Just Transition Fund (JTF) programme. DECC launches inaugural Research and Innovation (R&I) Strategy The Department of the Environment, Climate and Communications (DECC) has launched its inaugural Research and Innovation (R&I) Strategy, setting out 39 actions across five goals to be delivered in the period to 2030. The Department will also publish a Research Needs Statement in 2024, to ensure the national R&I system is informed of its research priorities. Separately, DECC has published a draft plan identifying proposed areas off the south coast suitable for offshore wind projects. Report identifies need for ESG/Sustainable Finance skills A report published by the Expert Group on Future Skills Needs (EGFSN) on the skills needed for Ireland’s International Financial Services sector has shown that ESG/sustainable finance is among the skills needed if the growth scenarios outlined in the report are to be realised.  The report -  Skills for International Financial Services – was carried out by Indecon Economic Consultants for the EGFSN addressing actions agreed under the Ireland for Finance Action Plans 2021-2023. Commenting on the report, Minister for Enterprise, Trade and Employment, Peter Burke TD, said “Growth prospects for the sector are strong. And to underpin this growth, there will be a need for a range of specific skills, to include sustainable finance practices and the promotion of environmental, social and governance (ESG) standards across all areas of financials services.” EPA report shows low uptake of Green Public Procurement in government department contracts The Environmental Protection Agency (EPA) has published its third report on Green Public Procurement (GPP) activity in government departments. GPP is a process where public authorities seek to source goods, services or works that have a reduced environmental impact throughout their life-cycle. The report details that out of the reported €922 million spend on contracts greater than €25,000 and signed in 2022, just 34 percent of the spend included green criteria. While the report did point to an improvement compared to the previous year (10 percent in 2021 and 34 percent in 2022), it found that overall, the use of green criteria is inconsistent across government departments and at a low level relative to total spend. To address this, the report set out five recommendations, including providing GPP training for relevant staff and implementing systems to monitor and report on GPP.   NORTHERN IRELAND & UK €1 million in funding for 35 cross-border projects under the Shared Island Initiative Funding for 35 new projects, amounting to €1 million, has been awarded through the Department of Foreign Affairs Shared Island Civic Society Fund.  Selected from across the civic society sector, north and south, each of the projects has a strong cross border dimension and will facilitate the development of new links and strengthen existing relationships on issues of common concern for civic society groups on both sides of the border. These projects are in a broad range of sectors and themes, including in the areas of climate and the environment, community development, heritage, social enterprise, charitable and voluntary work, and sports. £20 million energy support fund for businesses in Northern Ireland An Energy Efficiency Capital Grant (EECG) has been launched in Northern Ireland with the aim of supporting local businesses purchase and install energy efficient equipment to reduce energy consumption and carbon emissions. The five-year programme, worth £20 million overall, will offer businesses grants of up to £150,000 for investments in areas such as lighting, heating and cooling equipment, motors and drives, compressed air systems, and onsite renewable energy generation. Full details are available here. Separately, Northern Ireland’s Economy Minister Conor Murphy has announced that he intends to bring forward a proposal to ban onshore oil and gas exploration and production in the region. Commenting, Minister Murphy stated: “As climate change is one of the defining challenges of our time, one of the key objectives of my Economic Vision is to reduce carbon emissions. To meet our net zero targets, a priority will be to move away from petroleum to renewables.  I intend to ban all forms of onshore petroleum exploration and production – including fracking. This will not only help us transition from fossil fuels to renewables but also towards a greener economy and more sustainable way of life.”. There are currently no active petroleum licences in Northern Ireland with the last active one relinquished in 2020. Scaling the Edge Net Zero programme An 8-week programme is available that will enable businesses within Northern Ireland to validate and accelerate their net zero products or services. The programme aims to give businesses a competitive position in global markets and increase productivity. The deadline for applications is Wednesday 22 May 2024 and further information is available at Scaling the Edge Net Zero programme. EUROPE The European Parliament has approved the Net-Zero Industry Act, which aims to bolster EU production in technologies needed for decarbonisation. The Act, already informally agreed upon with the Council, sets a target for Europe to produce 40 percent of its annual deployment needs in net-zero technologies by 2030, based on National Energy and Climate Plans (NECPs). It further aims to capture 15 percent of the global market value for these technologies by introducing faster permitting procedures and ‘net-zero industry valleys’, speeding up the permitting process by delegating parts of the evidence collection for environmental assessments to member states. Separately, MEPs have consented to the EU withdrawing from the Energy Charter Treaty, following a recommendation from the Industry, Research, Energy, and International Trade committees. Parliament’s consent is required so that the Council can now adopt the decision by qualified majority. The Energy Charter Treaty (ECT), established in 1994 to govern trade and investment in the energy sector, has become controversial. The European Parliament has also voiced the need for the EU to exit in a resolution adopted in 2022. The European Commission has adopted an Implementing Regulation updating the templates for Member States to report their climate action data.  The data collected through these reporting templates helps the Commission determine whether Member States and the EU are on track towards their climate targets, and feeds into the annual EU Climate Action Progress Report. The European Commission also announced it is awarding nearly €720 million to seven renewable hydrogen projects in Europe, selected through the first competitive bidding process under the European Hydrogen Bank. The funds for this auction come from the revenues of the EU Emissions Trading System. The winning bidders will produce renewable hydrogen in Europe and will receive a subsidy to bridge the price difference between their production costs and the market price for hydrogen, which is currently driven by non-renewable producers.  GLOBAL The International Federation of Accountants (IFAC) has unveiled proposed changes to the International Education Standards (IESs) that embed sustainability—from analysis to reporting to assurance—across aspiring professional accountants’ training. Key proposals include emphasizing working with experts and in multi-disciplinary teams; introducing key sustainability reporting concepts, such as systems thinking, value chains and scenario analysis; referencing relevant sustainability reporting and assurance standards; and creating a new assurance competence area and learning outcomes. To help its stakeholders and the accountancy profession understand the proposed changes related to sustainability, IFAC will hold global webinars on May 21. Visit the IFAC website for additional details and to register.   UN Global Compact Networks and companies met in Brussels with Members of the European Parliament and representatives of the European Commission to discuss how they can support companies under new sustainability regulations, such as the Corporate Sustainability Reporting Directive. With more than 9,000 participants in the EU, the UN Global Compact “can play a significant role advancing the EU corporate sustainability agenda,” said Ole Lund Hansen, Chief of Global Operations. Read more here.   Technical Roundup (From our colleagues in Professional Accounting) The Department of Enterprise, Trade and Employment (DETE) is consulting on one of the member state options of the CSRD to introduce Independent Assurance Services Providers (IASPs). The deadline for responding to the consultation is 19 July 2024. Ahead of the anti-greenwashing rule coming into force on 31 May, the Financial Conduct Authority (FCA) is supporting industry with guidance to help them meet the standard.  It is also consulting on extending to portfolio managers the requirements on how sustainable investments are labelled and explained. The International Sustainability Standards Board (ISSB) has announced that it will commence projects to research disclosure about risks and opportunities associated with biodiversity and human capital. The ISSB has issued its April 2024 Update and Podcast. The inaugural IFRS Sustainability Disclosure Taxonomy was published on 30 April. The Taxonomy reflects IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information, IFRS S2 Climate-related Disclosures and their accompanying guidance. The IFRS Foundation and EFRAG have jointly published guidance material which illustrates the level of alignment achieved between the ISSB’s Standards (IFRS S1 and S2) and the European Sustainability Reporting Standards. Articles Accountancy Europe welcomes CSDDD approval despite weakened provisions  (Accountancy Europe) Emissions from electricity usage down 21 percent last year (The Journal) The UK’s gender pay gap will take decades to close at the current rate The Financial Times The volcano where CO2 emissions are being turned to stone (European Commission) Upcoming Events  Chartered Accountants Ireland North West Society 2024 - Time Out for Development CPD Day Hear about Doing Good Business – Sustainability with Shelia Killian and other topics at this face-to-face CPD day away from the screen and the constant demands of the office! Following the success of this conference last year, tth North West Society Committee has listened to the suggestions of members and has prepared this jam packed CPD event to include topics that have been suggested locally. In person, 16 May, Sligo Park Hotel, Pearse Road, Cornageeha, Sligo, 9.00 – 17.00   European Commission Supporting companies in applying the European Sustainability Reporting Standards (ESRS)” In-person and virtual: 16 May , 09:00 - 13:00 CET Half-day event to showcase ongoing initiatives and discuss ideas for further mechanisms to support companies that apply the new European Sustainability Reporting Standards. ICAEW, Preparing your business for the green workforce, (time to be confirmed) This webinar will provide an overview of the latest trends on green skills in the UK economy and the key steps businesses are to take to develop an inclusive green talent pipeline. The speakers will feature case studies of UK businesses that have implemented green skills development initiatives and key recommendations. 21 May, Virtual   Department of Enterprise, Trade & Employment, Responsible Business initiatives: Rising expectations The need for businesses to operate responsibly is increasingly reflected in mandatory measures creating obligations for enterprises. This event will describe the Responsible Business landscape, and the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct, proposed EU regulation on prohibiting products made with forced labour from the Union market, and the proposed EU Directive on Corporate Sustainability Due Diligence Virtual, 22 May, 2.30pm National Sustainability Summit 2024 In person (RDS, Dublin), May 28-29 Chartered Accountants Ireland, Everyday Acts of Inclusion A collaboration between the Institute’s Balance LGBTQ+ Network Group, the Ethnicity Network Group and the Age/Disability working group, this event will highlight the benefits of diversity and inclusion and will explore the importance of focussing on intersectionality. Staff, students and members are all welcome to attend this free event. In person, 30 May, 6pm, CA House Pearse Street, Dublin 2   1Business World, 2024 Global Natural Capital Conference Virtual, June 3-4, 2024 Accountancy Europe, CSRD readiness: building trust through sustainability assurance In-person event, by invitation only, Brussels, 14 June 2024 (10:00 - 14:30) Chartered Accountants Ireland, Western Society AGM with 1 hour CPD, 'Before & after ESG and SDGs' This presentation by Sheila Killian will cover the foundational pillars of sustainability, clarifying some of the alphabet soup of the latest trends, and tracking what the core underlying elements are that will be relevant in the future. This presentation will be immediately followed by the Western Society AGM. In person: Wednesday, 12 June | 6.00pm | Connacht Hotel.   Chartered Accountants Ireland, The Small/Medium Practice Sustainability Workshop A workshop for small to medium accounting practices (SMPs) on how to get ahead of the sustainability curve. This interactive half-day session will focus on positive actions you can take to understand the ‘trickle-down’ effect of the Corporate Sustainability Reporting Directive ('CSRD’), green public procurement, access to sustainable finance, and how to make your practice more sustainable to save costs and respond to staff and client demands. In person, Chartered Accountant House, 25 June, 9.30- 12.30; €90 member/€112.50 non-member; 3 hours CPD points. Email sustainability@charteredaccountants.ie to register your interest. EPA Circular Economy Conference 2024 Online and inperson (Aviva Stadium, Dublin), 25 September,   Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. Next meeting: Wednesday, 29 May, 14:00-15.30 Teams If you would like to attend, please email sustainability@charteredaccountants.ie   You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.  

In Irish news, April Exchequer figures show solid tax revenues and Revenue provides an update on the Debt Warehousing Scheme. In UK news, HMRC has published updated guidance on tax relief for travel expenses and the new UK carrier scheme for the movement of consumer goods from Great Britain to Northern Ireland from 30 September has been launched. In International news, the joint OECD-UN initiative, Tax Inspectors Without Borders, has published its annual report.  Ireland  1.   Revenue has provided an update regarding payment arrangements agreed to address warehoused debt. 2.   April Exchequer results show solid tax revenues.  UK 3.   In this week’s miscellaneous updates, read about the updated guidance published by HMRC on tax relief for travel expenses. 4.   This week’s EU exit corner features the launch of the new UK carrier scheme which will provide authorisation to move post and parcels to consumers in Northern Ireland from Great Britain from 30 September 2024.  International 5.   The joint OECD-UN initiative, Tax Inspectors Without Borders, has published its annual report.  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. You can also read this week’s EU exit corner here. 

in this week’s miscellaneous updates, HMRC has clarified the rules for tax relief on travel expenses in the context of hybrid and flexible working and the Government is holding events over the next few weeks to discuss changes to the tax rules for those who are UK tax resident but not UK domiciled. HMRC’s latest schedule of live and recorded webinars for tax agents is available for booking. and the Labour party has published details of its plans to close the tax gap. HMRC has advised that there is likely to be delays in the provision of information to calculate overlap relief for the transitional tax year for basis period reform 2023/24 and finally, the latest News and Information Bulletin from HMRC is available.  Tax relief on travel expenses  HMRC recently updated its guidance on ordinary commuting and private travel in order to provide clarity on the rules for hybrid and flexible working. The guidance has had a new section added at 3.39.   Essentially the updated guidance confirms that there is no change in treatment – where an employee works from home on a flexible or hybrid basis, this will not be treated as a base office. The employee will still have a base office meaning that journeys from home to that location are still ordinary commuting and do not qualify for tax relief.  Events to discuss changes to non-domiciled taxation  In the Spring Budget on Wednesday 6 March, the Chancellor announced that from 6 April 2025, the remittance basis for UK tax resident but non-UK domiciled individuals will be replaced by a new tax regime. The concept of domicile as a connecting factor in the tax system will be replaced by a system based on tax residence.  Over the course of the next few weeks, the UK Government is holding a series of in person and online events for stakeholders to provide comments on the proposed changes. Anyone wishing to attend an event should register their interest - details of the events are available on GOV.UK.  Labour Party’s tax plans to close the tax gap  The Labour Party recently published its plan to close the tax gap in the event that it becomes the next government. The plans set out how the party would:-  boost HMRC’s compliance activities to tackle non-compliance;   invest in technology transformation to improve the taxpayer’s experience and reduce the tax gap; and   make legal changes to restore a genuine deterrent to tax evasion.   Disappointingly, the plans do not refer to increasing HMRC’s customer service resources.  Labour has also appointed an expert panel to advise it on how to improve compliance and modernise HMRC. The panel includes Sir Edward Troup, former HMRC Permanent Secretary and former Treasury special adviser on tax and Bill Dodwell, former tax director of the Office for Tax Simplification.  Delays in obtaining overlap details from HMRC  The tax year 2023/24 is a transition year as part of basis period reform. As a result, unused overlap relief brought forward must be used in 2023/24. From 2024/25, all unincorporated businesses will be assessable on the tax year basis.  Chartered Accountants Ireland previously recommended that HMRC develop a service to enable taxpayers to calculate their unused overlap relief where that information was not available to them. This service commenced from September 2023 with requests being able to be made for information from HMRC via an online service. Not surprisingly, HMRC has recently seen a spike in demand for this service and has now issued a warning in the most recent agent update that requests are likely to take longer to fulfil. 

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service and Cabinet Officer Borders bulletins are also available. Ahead of the next phase of the Windsor Framework which commences from 30 September 2024 for the movement of consumer parcels from Great Britain (“GB”) to Northern Ireland (“NI”), HMRC has published guidance on the new UK carrier scheme which will be used to provide authorisation to move such parcels. The UK’s Domestic Advisory Group has published various updates, including a request for new members. And finally, HMRC has sent a reminder email about the benefits of joining the UK Internal Market Scheme which provides authorisation to allow trusted traders to declare eligible goods 'not at risk' when moving them from GB to NI.  The UK carrier scheme   HMRC has published guidance on how to apply for the UK carrier scheme which will be used to provide authorisation to move consumer parcels from Great Britain to Northern Ireland when the next phase of the Windsor Framework takes effect from 30 September 2024. Carriers will first need to check if they can apply for the scheme which will also require an EORI number starting GB or XI.  Proof of a permanently established Northern Ireland business address will also be needed. If a business is not established in Northern Ireland, the address of the indirect customs representative in Northern Ireland will instead be required. Proof of business address in Great Britain will also be needed.  Applications for authorisation are now open. More information is available in the guidance as follows:-  Apply for the UK Carrier Scheme;  Sending parcels to and from Northern Ireland; and  Check if you can apply for the UK Carrier Scheme.  UK Domestic Advisory Group (“DAG”) update  The UK DAG’s Priorities report has been published and is accompanied by the following statement from its Executive Council which sets out the report’s key messages:-  “Key messages   The UK Trade and Cooperation Agreement (“TCA”) DAG representing businesses, trade unions and civil societies, has published its first report.   The report highlights short-term TCA implementation issues, priorities for the forthcoming review of the TCA and opportunities to develop the agreement further.   The UK DAG is calling on the EU Commission and UK Government to heighten their engagement and regulatory cooperation on a range of issues including the energy and climate change obligations set out in the TCA, Level Playing Field commitments, trade and customs facilitation, and business and labour mobility matters, including on using e-gates and pragmatic implementation of the EU’s Entry Exit Scheme.”  The UK Government is inviting expressions of interest by 19 June 2024 to join the UK DAG. Chartered Accountants Ireland is currently a DAG member. New applicants and existing members will be considered against the same eligibility criteria. Applicants in this campaign will be notified after the current expression of interest exercise has closed.   Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:-  Customs, VAT and excise UK transition legislation from 1 January 2021;  Reference Document for The Customs Tariff (Establishment) (EU Exit) Regulations 2020;  Reference Document for The Customs (Origin of Chargeable Goods) (EU Exit) Regulations 2020;  Reference documents for The Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020;  Reference document for authorised use: eligible goods and authorised uses;  Reference Documents for The Customs (Tariff Quotas) (EU Exit) Regulations 2020;  Border Force customs offices list;  Declare your goods to authorised use and completing authorised use; and  Moving processed or repaired goods into free circulation or re-exporting them.