From the Professional Accountancy team…... The Irish Department of Public Expenditure, NDP Delivery and Reform has recently published a webpage containing Artificial Intelligence Resources. It contains information and links on a range of resources and practical tools designed to support the adoption of AI in the Public Service. This includes Guidelines for the Responsible Use of Artificial Intelligence in the Public Service and a tutorial dedicated to the AI Guidelines to assist participants in applying the guidelines in their own workplaces.   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.          

From the Professional Accountancy team…... In May 2025 the European Commission published a Q &A page on AI literacy. Article 4 of the EU AI Act requires providers and deployers of AI systems to ensure a sufficient level of AI literacy for their staff and any other users who are interacting with AI systems. It entered into application on 2 February 2025. Most readers are likely to be AI deployers meaning users of AI. Questions and answers are provided such as what is literacy for Article 4 and what should be the minimum content to consider for an AI literacy programme complying with Article 4.   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.  

On Wednesday 14 May the Ulster Society hosted an update aimed principally at members working in the public sector from Professor Robert Kirk. This 60 minute talk will concentrate largely on the very important changes that will be implemented in the private sector, arising from the publication of IFRS 16 Presentation and Disclosure in Financial Statements – the basics. The standard will have to be implemented into the government’s FReM within the next year or two so this short webinar will provide a brief insight into the possible changes to public sector reporting. A recording of this webinar is available to view, for free and on demand, HERE A copy of Professor Kirk's slides are available to view HERE

In Irish news this week, the Department of Finance has published its first Annual Progress Report and Revenue has published new guidance on the participation exemption for certain foreign dividends. In UK news, the Institute recommends that the introduction of any UK wide e-invoicing policy should commence on voluntary basis and HMRC is no longer providing unique taxpayer references (UTRs) to taxpayers or agents over the phone. In International news, two EU Parliament subcommittees will host a joint public hearing next week on the impact of tax policies on the EU housing crisis. Ireland 1. Read about the Annual Progress Report recently issued by the Department of Finance and the Department of Public Expenditure and Reform. 2. Revenue has issued new guidance on the dividend participation exemption. UK 3. The Institute responded last week to the consultation by the UK Government  on e-invoicing, outlining the recommendation that any e-invoicing policy should commence on voluntary basis. 4. HMRC is no longer providing unique taxpayer references (UTRs) to taxpayers or agents over the phone for security reasons. International 5. Read about the upcoming public hearing on the impact of tax policies on the housing crisis in the EU. 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 post EU exit corner here.  

Readers may be interested in the Massive Open Online Course (MOOC) which the Law Society will be running on Artificial Intelligence. The course will run over a period of 5 weeks from 10 June until 8 July. It is free and is open to everyone and anyone who has a general interest in learning more about AI developments. To find out more about the course and to register you can click here https://mooc2025.lawsociety.ie/    

A co-founder with a passion for using her skills and experience for a positive impact, Sophie Dillon took the leap from Kells to Toronto via Dublin. We caught up with Sophie recently to hear her story. 1. Where did you grow up and where do you live now? I grew up in Kells, Co Meath and studied at University College Dublin. Today, I live in Toronto, Canada. I had always wanted to build an international career, and Toronto offered the kind of dynamic, fast-moving business environment I was looking for. 2. What led you to chartered accountancy? Studying Commerce in UCD, I found I really enjoyed the structure and logic of accounting. I’ve always liked solving problems and the qualification offered a solid foundation with broad career options—whether in practice, industry, or something more entrepreneurial down the line. As a child and teenager, I had a real passion for  showjumping and I think if I hadn't come down this road I would have loved a career in the equestrian industry! 3. Can you tell us a little about how you got to where you are today – both the geographical relocation and career path? I trained with KPMG’s Restructuring department in Dublin, where I worked with businesses navigating financial challenges. From there, I joined KKR, working on their European leveraged credit team, focusing on healthcare investments. I later moved to Canada and held several finance leadership roles, including at an early-stage healthcare startup. Today I’m the co-founder of Orbit Accountants, a firm set up in 2023 to support SMEs across Canada and the US with bookkeeping, payroll, tax and fractional CFO services. I co-founded the company with Malay Matalia who I met in Toronto. We shared a belief that SMEs and growing businesses deserve better access to high quality financial support. Toronto is a global city, and moving here really broadened my perspective, opening up a network I might not otherwise have encountered. 4. What do you value most about your membership of the profession and how do you think those benefits can be used to support the economy and society? The training really sharpens your ability to think critically, assess risk, and communicate clearly—skills that are valuable far beyond finance. As the economy evolves, there’s a real need for professionals who can leverage financial data for strategic insights and support good decision-making. 5. As a member living away from Ireland, can you talk to us about how your membership has been of value to you living overseas? The designation carries weight internationally, and that’s been important for building trust in a new market. It also creates an instant sense of community—particularly with the strong network of Irish professionals here in Toronto. That network has been valuable both professionally and personally. 6. What were the most significant/noticeable differences you encountered doing business and networking away from home and back in Ireland? Networking in Ireland tends to be more informal and relationship-led from the start. In Canada, there’s a bit more structure around it—people are generous with their time, but there’s usually a clear agenda. Both styles have their strengths, and I’ve found that being able to adapt between the two has been a real asset. The common thread in both places is that strong relationships, built over time, always matter. Sophie Dillon is Co-Founder of Orbit Accountants in Toronto.  

Revenue has updated its guidance on the computation of Case I and Case II profits or gains of a company. Section 11.8 of the guidance now includes an example of correction of an error where the error has been identified prior to the filing of the tax return.

Revenue has updated its guidance on filing and paying stamp duty on Instruments to include details on amending a return filed on ROS. The guidance on charging and stamping of instruments has also been updated.   The manual on filing and paying stamp duty has been updated to outline the process to be followed when a filed stamp duty return needs to be amended by someone other than the original filer. References to ‘Using ROS offline’ have been removed as the Return Preparation Facility is now the online facility which can be used to prepare stamp duty returns. The guidance on charging and stamping of instruments has been updated to provide additional guidance on the operation of these provisions.

Revenue has updated its guidance in two of its manuals on the operation and administration of Ireland’s Pillar Two legislation. The guidance materials in question are: Part 04A-01-02 – Global Minimum Level of Taxation for Multinational Enterprise Groups and Large-Scale Domestic Groups in the Union Part 04A-01-01 – Global Minimum Level of Taxation for Multinational Enterprise Groups and Large-Scale Domestic Groups in the Union - Administration Finance Act 2024 provides that certain of the amendments to Part 4A TCA 1997 shall apply in respect of a fiscal year or an accounting period commencing on or after 31 December 2024. The guidance in Part 04A-01-02 has been updated to confirm that Revenue is prepared to accept the application of these provisions to a fiscal year or an accounting period commencing prior to 31 December 2024. The administrative guidance contained in Part 04A-01-01 has been updated to outline how the Undertaxed Profit Rule (UTPR) and the Qualifying Domestic Top-Up Tax (QDTT) group recovery provisions are applied where a securitisation entity is part of a UTPR and a QDTT group.

The Department of Finance and the Department of Public Expenditure and Reform have published the Fiscal Monitor for April 2025 which confirms an exchequer surplus of €2.8 billion to the end of April. This compares to a deficit of €1.2 billion recorded for the same period last year. Tax receipts collected to the end of April were €28.6 billion, which was €3.8 billion ahead of the same period last year. Excluding the once off receipts from the Court of Justice of the European Union (CJEU) judgement in the Apple State Aid case, total receipts amounted to €26.8 billion, an increase of €2.1 billion from the same period in 2024. Income tax receipts for the month of April were €3.5 billion which was €0.2 billion ahead of April 2024 receipts. On a year-to-date basis, receipts to the end of April of €11.7 billion were up by €0.5 billion (4.8 per cent), when compared to April 2024. As noted in the Fiscal Monitor, April is not a significant month for corporation tax receipts; receipts of €0.1 billion were collected in the month. On a cumulative basis, receipts of €4.9 billion were up by €2.2 billion on the same period last year. When the once-off CJEU receipts are excluded, cumulative corporation tax receipts to April 2025 amounted to €3.2 billion, ahead of the same period last year by €0.5 billion. April is a non-VAT due month and receipts in the month of €0.3 billion were down slightly on the same month last year by €38 million. Cumulative receipts of €7.9 billion were ahead by 6 percent on end-April last year.

Revenue has published new guidance on the participation exemption for certain foreign distributions which was introduced by Finance Act 2024. The participation exemption applies where a relevant subsidiary makes a relevant distribution on or after 1 January 2025 to a parent company of the relevant subsidiary. The conditions which the parent company must satisfy to claim the exemption, including the required qualifying participation in a relevant subsidiary, are detailed in the guidance. The qualification requirements for a relevant subsidiary are also outlined. A qualifying distribution must be recognised as income in the hands of the recipient for the purposes of corporation tax and it must be made out of the profits or the assets of the relevant subsidiary. The exemption is supplemental to the existing “tax plus credit” approach. Companies must elect to claim the exemption with all qualifying distributions, in that accounting period, being exempt if an election is made. A claim for the exemption cannot be made on a per dividend/distribution or per subsidiary basis.

The Department of Finance and the Department of Public Expenditure and Reform have jointly published the Annual Progress Report 2025 which incorporates the Department of Finance’s spring forecast. The report is a European legal requirement which assesses progress on the implementation of the Government’s Medium-Term Fiscal and Structural Plan. It replaces the annual Stability Programme Updates and the annual National Reform Programme in the EU budgetary cycle. The report outlines that Modified Domestic Demand (MDD) is projected to expand by 2.5 percent in 2025 and 2.75 percent next year, both of which are downward revisions compared to the autumn forecasts. The projections are prepared on the assumption that transatlantic tariffs will not be introduced and forecast a general government surplus of €8.7 billion. In an alternative scenario, which incorporates the likely economic impacts of the tariffs that are now in place, projected MDD growth is lowered to just over 2 percent this year and 1.75 percent next year. The report notes that while the economy, in aggregate terms, is undoubtedly in a strong position at present, the near-term outlook for the Irish economy is clouded in considerable uncertainty. Uncertainty in terms of trade policy, financial and commodity market developments, geopolitics and macroeconomic policies are noted as the dominant features of Irish and global economies. Navigating the challenging external environment is identified as a key priority by this Government. Commenting on the publication, Minister for Finance, Paschal Donohoe said: “The more contested and fragmented world that is now taking shape represents a serious headwind for the Irish economy which has benefited so much from the rules-based, multilateral trade system. Given the elevated level of uncertainty, it is important to stress that our assessment published today is more akin to a scenario analysis; my officials will, of course, continue to monitor incoming data and developments and update numbers accordingly.”