The Corporate Enforcement Authority (CEA) has published its first annual report covering a period from July 2022 to December 2023. Click here for the CEA press statement .The annual report provides a comprehensive account of the steps taken to establish the CEA's presence amongst its stakeholders, and of the work undertaken to establish the organisation's operational capability. The report includes 17 case studies that illustrate the breadth of the CEA's impact and demonstrate a considered and graduated approach towards the deployment of the CEA’s enforcement powers. Case studies range from use of incorrect registered office address to incorrectly claiming audit and group exemptions and breach of director’s loan provisions. There is also a case study on supervision of the implementation of the terms of a SCARP rescue plan. On SCARP generally the annual report writes that a process advisor must submit their final report, that is, after developing a rescue plan, to the CEA. Unlike auditors’ indictable offence reports, which by their nature identify potential offences, process advisors’ reports are submitted to the CEA for information on the rescue process and plan. If a report indicates potential wrongdoing or other issues, the CEA can investigate as considered necessary or appropriate. The CEA wrote that it received 51 reports in the period and each report is examined.

Following public consultation to obtain stakeholders’ views earlier this year IAASA has published a Feedback Paper and the responses received on its Consultation on the Adoption of a Sustainability Assurance Standard in Ireland.  IAASA intends to adopt the International Standard on Assurance Engagements 3000 Revised (ISAE 3000), Assurance Engagements Other Than Audits or Reviews of Historical Financial Information. Adoption will take place when the European Corporate Sustainability Reporting Directive (CSRD) is transposed into Irish law giving IAASA the statutory power to adopt sustainability assurance standards in Ireland.  The effective date of the standard will be for the assurance of sustainability reporting for years starting on or after 1 January 2024, as required by the CSRD.  The Department of Enterprise, Trade and Employment is currently working on the transposition of the CSRD into Irish law.  It is not intended to insert any additions Irish-specific requirements in IASAE 300 beyond any required to ensure that it applies to sustainability assurance engagements in Ireland and that sustainability assurance providers are subject to appropriate ethical and quality management requirements.    The Feedback Paper is available on this link. The Responses Received are available on this link.

This item has been updated since its original publication on 20 June 2024 following coming into force of 14th EU package of sanctions. Readers will be aware that since June 2022 there has been an EU ban on the provision of accounting services to the Russian government and legal entities and persons established in Russia. The banned services include accounting, auditing, including statutory audit, bookkeeping or tax consulting services. Click for more information on the ban on provision of accounting services on  the Institute’s website. Within the regulation imposing the ban there is an exemption for the provision of services intended for the exclusive use of Russian entities which are subsidiaries of EU companies and companies established in certain other allied jurisdictions (The list of jurisdictions has been updated in the 14th package). However, with the 12th package of sanctions, introduced in December 2023 came a wind down of the exemption permitting the provision of restricted business services to those subsidiaries. This wind down had originally been set for 20 June 2024 after which a licence from EU Member States will be required to continue providing services to Russian affiliates. However, the 14th package of sanctions extended this wind down date to 30 September 2024. The 14th package also introduces an exemption from the ban whereby EU nationals that are residents of Russia (and were so before 24 February 2022) are permitted to provide the prohibited professional services, excluding software, to EU/Western-owned subsidiaries who are their employers. This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.

The attention of Institute firms with UK audit registration is drawn to an open consultation in relation to proposed changes to the UK Audit Regulations. The UK Audit Regulations are issued jointly by Chartered Accountants Ireland (the Institute), the Institute of Chartered Accountants in England and Wales (ICAEW) and the Institute of Chartered Accountants of Scotland (ICAS).  This consultation is being hosted by ICAEW.    The consultation proposes to make changes to the UK Audit Regulations which would require UK audit registered firms to notify their registering body when they are appointed as auditors to certain entities. The consultation is available to read here.  Feedback can be provided, by 6 September, via the online consultation portal or by emailing professionalstandards@charteredaccountants.ie.

In Irish news, Revenue has announced that the ‘service to support compliance’ approach for the Enhanced Reporting Requirements will continue to the end of 2024. Meanwhile, Revenue’s Business Division is to commence a Level 1 compliance project focusing on pension contributions and instances where the VAT registration threshold may have been exceeded, and its Personal Division is to write to PAYE taxpayers with under/overpayments for 2020. In UK news, ahead of the UK general election next month, we take a look at the tax policies of the two main UK parties, and in the Institute’s response to the consultation on the introduction of the UK’s carbon border adjustment mechanism, we ask if HMRC will be able to cope with the administration of another tax. Ireland Revenue has confirmed that the period of ‘service to support compliance’ for the Enhanced Reporting Requirements is extended to the year end. Revenue’s Business Division is to commence a Level 1 compliance project focusing on pension contributions and instances where the VAT registration threshold may have been exceeded. Revenue to write to PAYE workers with over/underpayments for 2020. UK Read about the tax policies of the two main parties in Westminster ahead of next month’s general election. The Institute questions HMRC’s ability to cope with the administration of another tax in its response to the consultation on the introduction of the UK’s carbon border adjustment mechanism.   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.

IAASA undertakes statutory enquiries (‘s933 Enquiries’) and investigations (‘s934 Investigations’) under the companies act 2014 and its own regulations. The preliminary stages are undertaken by the executive. From time to time, IAASA may need to establish committees to carry out full enquiries/investigations, where the matter cannot be settled by mutual agreement before that stage. Membership of these committees, including chairpersons, is selected from a panel of eligible appointees. IAASA is seeking to update this panel, and expressions are particularly welcome from members of Prescribed Accountancy Bodies. Further information is available here. The closing date for receipt of expressions is 12:00 PM on Monday 15 July 2024. IAASA is committed to a policy of equal opportunity, and welcomes expressions from people with disabilities. (This article is sponsored by IAASA)

The North West Society is delighted with  the success of the recent "Time Out for Development" CPD event. 50 members from all over the region, Sligo, Mayo, Donegal, Leitrim and Roscommon came together to prioritise their own learning and development. In spite of the jam packed agenda, a social atmosphere prevailed. The society would like to thank generous event sponsors AIB for helping make this day out happen! Event photos are available to view here.

One of the highlights of the North West Society's event calendar is our trip to ladies day at Sligo Races. This event takes place on Thursday, 8 August. It is an evening meet. The cost is €40 for members and includes entrance tickets, corporate box, private tote and bar, race cards and a light supper! This event sells out quickly every year so click here to book.

Read more on changes to company law to be implemented by the Employment (Collective Redundancies and Miscellaneous Provisions) and Companies (Amendment) Act 2024. 2024 Amendments to Companies Act 2014

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 Bulletin is available, and the Windsor Framework Democratic Scrutiny Committee has published a report on EU regulation 2024/1157 on shipments of waste.  Windsor Framework Democratic Scrutiny Committee  Earlier this month, the Committee published its report on the EU regulation on shipments of waste, specifically Regulation (EU) 2024/1157, a published replacement EU act. The Committee concluded that the EU law “significantly differs, in part, from the content or scope of the EU instrument which it amends or replaces”. It was not able to reach a view on whether the replacement EU act “would have a significant impact specific to everyday life of communities in Northern Ireland in a way that is liable to persist”. You can read more about this in the 10 June 2024 Brexit and Beyond newsletter, published by the Northern Ireland Assembly’s EU Affairs team.  Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:  Authorised Consignee Temporary Storage (ACTS) location codes for Data Element 5/23 of the Customs Declaration Service;  Check if a business holds Authorised Economic Operator status;  Summary of movements of goods into Northern Ireland from Great Britain 2023;  Using a suppliers’ declaration to support a proof of origin;  The Customs (Miscellaneous Amendments) (No. 2) Regulations 2024;  External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service;  Maritime ports and wharves location codes for Data Element 5/23 of the Customs Declaration Service;  Attending an inland border facility;  Internal temporary storage facilities (ITSFs) codes for Data Element 5/23 of the Customs Declaration Service; and  Get help using example declarations for exports from Great Britain to the rest of the world. 

In this week’s miscellaneous updates, HMRC is asking tax agents to stay alert to malicious software which can lead to suspension of agent accounts and has identified that some agents/Professional Bodies are using out of date versions of the SA1 form (Register for Self-Assessment if you are not self-employed) which HMRC no longer maintain. New guidelines for compliance in respect of football agents’ fees and dual representation contracts have been published; as part of this, HMRC is asking interested parties to complete a survey on the new guidelines.   Importance of staying alert to malicious software HMRC has asked us to share the below reminder about staying alert to malicious software, how this can lead to suspension of agent accounts, and what action to take if this happens.  “Agents are frequently targeted by criminals who attempt to trick them into downloading malicious software (or malware) onto their devices. This software can give fraudsters access to Agent tax accounts and, in some cases, the personal details of clients. If malware is not completely removed, even after a password change or even the creation of a completely new account, the criminals still retain access.   If we suspect that an agent has inadvertently acquired malware on one or more of the devices they use for their work, and that this has resulted in client data being compromised, we take immediate action to suspend the account.   If we suspend an agents account due to suspected malware, we write to the agent to advise them on the steps they need to take. This includes securing all affected devices before contacting HMRC’s Online Service Helpdesk to initiate the process of un-suspending their account.   Agents should regularly ensure that any software they use is up-to-date, check their antivirus protection is switched on and is up-to-date, and avoid clicking links or downloading attachments in suspicious or unexpected emails.   Nobody is immune from fraud. Criminals are great pretenders and will take any opportunity to steal information from customers and use this to access our systems. Before sharing personal or financial details, we always urge customers to visit HMRC phishing and scams GOV.UK to check the sender or caller is genuine.   To help fight these crimes, forward suspicious texts claiming to be from HMRC to 60599 and emails to phishing@hmrc.gov.uk. Report tax scam phone calls to us on GOV.UK. You can find more information on cyber security at National Cyber Security Centre: https://www.ncsc.gov.uk/.”  Out of date SA1 forms  HMRC has sent the below message about the use of out of date SA1 forms for registering for self-assessment if you are not self-employed.  “We have been made aware that some professional bodies/agents are displaying or using links containing obsolete versions of the SA1 PDF which HMRC no longer maintain. The information held on these forms is not up to date, such as the telephone number, return address, and Self-Assessment criteria.  Would you/agents kindly review the links you are using and:  Remove any old links from your websites, communications, etc; and  Make sure you/agents only display/use the two options below.  First option: SA1 shortform which can be completed and submitted online at: https://www.gov.uk/guidance/register-for-self-assessment-if-you-are-not-self-employed  Agents can use their Government Gateway user ID and password to access this form.  This form offers a personalised service, and the form can only be seen once all the required questions have been answered.  Second option: SA1 Print and Post: SA1 G-form at LC Forms (tax.service.gov.uk)   This form is filled in online, then printed and posted.”   New guidelines for compliance - football agents’ fees and dual representation contracts  HMRC has published “Help with Football Agents’ Fees and Dual Representation Contracts – GfC6”. These Guidelines for Compliance (“GfC”) are for football agents and football clubs and focus on:  HMRC’s view on dual representation contracts; and  Employer duty and VAT compliance risks for football agents’ fees and dual representation  HMRC is stressing that these guidelines do not change its view of compliance risks in other taxes and that these GfC should be read alongside HMRC’s published guidance. According to HMRC, following these guidelines will help to reduce the risk of making errors, therefore reducing the risk of any penalty charges.  In the “Give feedback on these guidelines” section, HMRC has included a survey which should take less than three minutes to complete. Feedback from this survey will be used to:  establish any areas you may still have trouble understanding;  understand where improvements can be made to the guidelines;  measure experience of using the guidelines; and  improve future GfC publications.  HMRC has asked us to highlight that you can only use the survey to provide feedback anonymously about the guidelines. Do not provide any personal data that might identify you or your clients. The survey is not a route to contact HMRC for specific enquiries. If you have any specific questions or want to provide more detailed feedback, please email ccgguidelinesforcompliance@hmrc.gov.uk.  

That was just one of the concerns raised by the Institute in its submission to “Consultation on the introduction of a UK carbon border adjustment mechanism” (“CBAM”). The Institute’s full response can be read in the Tax Representations section of our website and also highlighted the urgent need for clarification in respect of the ongoing uncertainty as to how the EU CBAM will apply to Northern Ireland under the Windsor Framework, and specifically the application of the EU CBAM to imports from non-EU countries.  The submission also focused on the need for adequate time to prepare for the introduction of the UK’s CBAM which must be preceded by guidance and systems that have been developed in close conjunction with stakeholders.   HMRC’s compliance approach to this new tax should incorporate a soft landing approach with penalties automatically suspended for two years, unless HMRC has evidence of deliberate behaviour. The Institute also highlighted the importance of providing educational support to businesses and customs intermediaries.