According to the OECD, work under BEPS Action 6 “Prevention of tax treaty abuse” continues to make steady progress. The latest peer review report on the implementation of the minimum standard on treaty shopping reveals that most agreements between members of the Inclusive Framework are already compliant with the standard. The BEPS Multilateral Instrument (BEPS MLI) seems to be the preferred tool for most countries implementing the minimum standard. 

Revenue has updated the Tax and Duty Manual regarding Tax Credit Certificates issued on a Week 1/Month 1 basis. The updated manual includes additional reasons for the issue of a Week 1/Month 1 basis Tax Credit Certificate (paragraph 1) and advise on sourcing additional information on the matter (paragraph 4). 

Revenue has updated the Tax and Duty Manual regarding the CAT self-assessment return Form IT38. The updated manual reflects the Finance (No.2) Act 2023 amendment regarding the obligation to file a CAT return where an individual is in receipt of certain interest-free loans. 

The Minister for Justice Helen McEntee TD has published a report on the role of Sheriffs in the State. The Department of Justice and the Office of the Revenue Commissioners established a Joint Review Group to focus on the future role of Sheriffs and to establish whether there is a more efficient and cost-effective system of debt collection.  The report identifies five key areas of focus and sets out 27 recommendations to support the continuation of the office of Sheriff into the future, noting its effectiveness and efficiency. The Review Group also noted that overall debt recovery rates appear to be high by international standards.    Commenting on the findings of the review, Minister McEntee said:  “I am pleased to see the importance of the office of the Sheriff recognised in this report. It is the oldest debt enforcement mechanism in the State and I welcome the recommendations to support and modernise the role to ensure its continued viability.  Key to this modernisation will be the development and implementation of an updated and streamlined joint supervision and oversight strategy between the Department of Justice and the Office of the Revenue Commissioners, and I look forward to that being developed.”  Further information is available in the Department of Justice press release. 

As readers likely know, the deadline for engaging with Revenue in respect of warehoused debt is 1 May 2024. In advance of this deadline, Revenue has issued letters to 30,825 taxpayers with warehoused debt to outline the immediate action required to arrange the repayment of their debt. The letters should issue to the taxpayers’ ROS inbox unless they no longer have an active ROS digital certificate, in which case it should arrive by post this week. Agents will not receive a copy of the letters issued to their clients.  The letter includes a schedule of the warehoused debt and the range of payment options available to the taxpayer. Where a Phased Payment Arrangement (PPA) is required, the application must be submitted on ROS now in advance of 1 May 2024 to allow sufficient time to agree a payment plan suitable to the business circumstances.    A separate letter has issued to taxpayers with warehoused debt of less than €500 as PPAs are not available in these circumstances. 

Nóra Cashe explains the obligations, compliance, and acceptance and rejection procedures for employers outlined in the Work Life Balance and Miscellaneous Provisions Act 2023 Code of Practice The Code of Practice (the Code) for the right to request flexible and remote work has been released. Now that these two rights are in effect, employees can request these entitlements. So, do you know your obligations as an employer, and do you understand how to comply with the new legislation? What are the rights to request remote and flexible work? The right to request flexible working and the right to request remote working are the last two of five statutory parts to come into effect within the Work Life Balance and Miscellaneous Provisions Act 2023. While many of the same guidelines apply to these two entitlements, they are separate. ‘Flexible working’ is defined as the adjustment of an employee’s working hours or working patterns. This includes flexible working schedules, reduced working hours, or even remote working. The right to request flexible working only applies to parents and to those acting in loco parentis or guardians as defined by the Act. Meanwhile, ‘remote working’ is an arrangement between employer and employee in which the work is carried out at a location other than at the employer's place of operation. This is done without any change to the employee's ordinary working hours. What is the Code of Practice? Drafted by the Workplace Relations Commission (WRC), the Code provides practical guidance for businesses and their staff regarding flexible or remote work requests. It is separated into three sections. The first two sections are Flexible Working (FW) and Remote Working (RW), which lay out guidelines for employees and employers to follow when requesting or receiving requests for flexible or remote working arrangements. The last section consists of policies and templates. Here, employers can find templates to use for relevant documentation, such as a Work Life Balance Policy, a Flexible Working Request application, and a Remote Working Request application. Staying compliant The Code defines flexible and remote work and provides the details on who can apply and when. The Code also contains important timelines and procedures for employers and employees to follow when a request is made and the consequences for not doing so. Failure to follow the timelines and procedures and to keep records could result in an award of up to 20 weeks of remuneration and/or a costly fine/summary conviction. Additionally, the Code of Practice includes information on situations such as: the abuse of any new working arrangements; the need to modify new working arrangements; and the need for the employee or employer to terminate the new working arrangements. Acceptance or rejection procedures Employers are not obligated to accept requests for remote or flexible work but it’s important to remember that a response must be delivered to the employee in writing within four weeks of their request. The three responses an employer can give are: Extension: the employer may request up to four more weeks to consider its decision, which it must also do in writing. Refusal: the employer must lay out its reasoning in writing. Acceptance: the employer must produce a written document with the relevant details for the employee to sign. Overall, employers are advised to weigh their employees’ circumstances and rationale for these requests against their own business needs. In addition, the Code provides tangible questions that employers may ask themselves when deciding whether to approve or reject a request. Nóra Cashe is a Litigation Manager at Peninsula

The new EU Directive NIS2 requires meticulous compliance strategies to improve cybersecurity resilience, explains Puneet Kukreja The intense uptake of digital solutions and innovative technologies over the past four years has changed the way we socialise, work, shop, bank, and receive necessary services, such as health. As sectors and services increasingly become interconnected and interdependent, the cybersecurity threat landscape continues to grow in sophistication and focus. Safeguarding critical infrastructures and services is paramount to protecting society and economies from these actors. In response, EU lawmakers have introduced several interconnected EU-wide laws to improve the digital and operational resilience of the sectors and services we rely on most. The second Network and Information Systems Directive (Directive (EU) 2022/2555 (NIS2)) is one of these EU-wide laws. It comes into effect on 18 October 2024 and will have a compliance impact on many public and private sector organisations across 18 sectors, similar to that experienced under the GDPR. The regulatory supervision and enforcement measures under NIS2 bear similarities to the GDPR. However, direct accountability and liability for upper management and possible suspension of CEO duties brings this squarely into the board room. NIS2 is an evolution from its predecessor, NIS-D (Directive (EU) 2016/1148), extending the legislative scope to capture entities in several additional sectors and subsectors, including public bodies and a wider range of digital service providers, as well as covered entities’ information and communications technology (ICT) supply chains. NIS2 sets out the minimum powers of supervision and enforcement that Member State competent authorities must have. Administrative fines can be imposed on essential and important entities for breaches of obligations relating to cybersecurity risk management measures and incident notification. For ‘essential entities’, the maximum fine is at least €10,000,000 or at least 2 percent of the total worldwide annual turnover in the previous financial year, whichever is higher. For ‘important entities,’ these figures are €7,000,000 and 1.4 percent. Irish legislation must be enacted before 18 October 2024 to transpose NIS2. Consistent with its treatment of NIS-D, the transposing legislation will provide that breaches of certain provisions of the same will be a criminal offence. We expect that a person found guilty of any of these offences will be liable on conviction to a fine and/or imprisonment. It is vital that CEOs, CFOs, CIOs, CISOs and board members understand not only the financial, personal, and reputational consequences of non-compliance – which underscores the urgency of pursuing NIS2 compliance now – but also the role that NIS2 will play in safeguarding their organisation’s cybersecurity and operational resilience. Navigating NIS2 There are several steps an organisation can take to navigate the NIS2. 1. Legal analysis Assess whether NIS2 applies to your organisation or whether any of the statutory exemptions will apply. To the extent NIS2 applies, it will be necessary to understand its requirements, including any cross-border implications and the steps necessary to secure ICT supply chains. 2. Strategic planning of compliance navigation Identify cybersecurity risks and set clear targets to assist in allocating resources and creating strong governance for resilience and regulatory adherence. This will also ensure operational integrity and informed decision-making. 3. Technology procurement Align chosen technologies with organisation needs and regulatory requirements. 4. Implementation strategy Develop a robust plan covering technology integration, employee training, and monitoring mechanisms. 5. Technology implementation Explore partnerships with organisations experienced in technology transformation. This will help you enable the full lifecycle of capability from analysis to managed services. 6. Employee training and awareness Champion comprehensive training programmes to instil a culture of cybersecurity within the organisation. 7. Managed services for continuous compliance Explore partnerships with experienced service providers for ongoing monitoring and response capabilities. 8. Budgeting and resource allocation Collaborate on budgeting to align finance planning with strategic cybersecurity objectives. 9. Documentation and reporting Oversee the creation of comprehensive documentation, ensuring transparency and accountability. Your NIS2 journey Organisations will differ in their level of compliance or maturity across the key control areas that are required under NIS2. However, one thing is certain: all in-scope organisations should now consider the implications of NIS2 to ensure they have sufficient time to assess, design, and implement their compliance plans before the legislation comes into effect. Organisations operating in the sectors defined in NIS2 will need to assess whether they fall within its scope, the availability of any exemptions, their categorisation as ‘essential’ or ‘important’, their NIS2 obligations, and the impact of and interplay with other EU cybersecurity and operational resilience laws. NIS2 requires organisations to address cybersecurity risks in their own ICT supply chains. In practice, this will require a risk-based assessment of ICT supplier relationships, enhancing contracts and securing inspection and other rights to ensure supply chain security. Early supplier engagement will be essential. To the extent certain in-scope organisations are established and/or providing their services in more than one EU Member State, they may be subject to implementing laws in more than one jurisdiction or the EU Member State where their cybersecurity risk management decisions are predominately made. The NIS2 jurisdiction rules require careful consideration and may cause certain entities to rethink the geographic positioning of cybersecurity decision-making. To successfully achieve and sustain NIS2 compliance, an organisation must commit to continuous improvement as well as the adoption of proactive measures. Both are key in this evolving digital landscape. Beginning a compliance journey with a legal analysis of the new directive will ensure you start on the right path and your organisation not only avoids substantial financial penalties but also becomes more resilient to evolving cyber threats. Puneet Kukreja is Cyber Security Leader at EY

The EU Accessibility Act sets out to improve accessibility standards. Adela Buliman outlines what organisations need to consider before it comes into effect The European Accessibility Act (EAA) represents a significant step forward in making the European Union more accessible to all people, including people with disabilities. The legislation comes into effect on 28 June 2025. There are many industries in scope, including both the public and private sector. The EAA is extending the reach of the existing Public Sector Accessibility Regulations under the EU Web Accessibility Directive. Under current regulations, any organisation that is at least 50 percent funded by the state has to have a digitally accessible website, mobile app and digital documents, where relevant. The EAA is expanding this. Scope of legislation The EAA is much broader in scope than the public sector regulations. The products covered by the Act include: ATMs Ticket and travel check-in machines Self-service terminals Mobile phones Computers, terminals and operating systems E-reading devices The services covered include: Audio-visual media services Transportation services Banking services Electronic communications services E-books E-commerce The services covered are much broader than it may seem. For instance, when it comes to banking services, it is not just the digital assets that are in scope, but anything a user is required to interact with to use a service. So, a letter that the bank may send you with your card pin must have a digitally accessible alternative. As well as this, when you look at the definition of “e-commerce” under the legislation, it is not just for retail companies, it is any organisation that either sells a product or service on a website or advertises that product or service online. For example, the organisation may be in the insurance sector, but if it advertises its insurance plans online, it would be within the scope of this legislation too. Taking all this into account, there are very few organisations that are not in scope of this legislation. Regulators Surveillance authorities have been assigned to each in-scope industry. The Competition and Consumer Protection Commission (CCPC) is the regulator for each product that is in scope. For services, the following bodies are regulating: Industry Regulator Electronic Communications Commission for Communications Regulation Audiovisual media Coimisiún na Meán Air passenger transport Irish Aviation Authority Bus, rail and waterborne passenger transport National Transport Authority Consumer banking Central Bank of Ireland E-books and dedicated software and e-commerce Competition and Consumer Protection Commission (CPCC) Emergency communications Commission for Communications Regulation   Ramifications for non-compliance It is important to note the consequences of non-compliance with the EAA: A fine (€5,000) or imprisonment of up to six months or both; A fine of up to €60,000 or imprisonment of up to 18 months or both; or Litigation The one that poses the most risk to organisations is litigation. Under the EAA, users will be allowed to litigate against companies that they feel are discriminating against them. Next steps for organisations When it comes to getting ready for the legislation, there are three steps that we recommend: Auditing An audit is a great way to start your journey. An audit will provide you with an issue log of items that need to be fixed to be accessible and compliant. Upskilling Upskilling your own staff is an important second step in preparing for the EAA. When you receive audit results, there will be a large amount of repetition in the types of issues found, highlighting a knowledge gap that you can fill by training staff. Embedding The last step is embedding accessibility into your company culture. It can be up to 30 times more expensive to retroactively make something accessible. Embedding the accessibility into your procurement process, design process, sprints, etc., allows you to keep costs low and create a long-term accessibility plan. Adela Buliman is the Head of Accessibility at Vially and sits on the European Committee for Standardisations, in particular committees relating to the European Accessibility Act and Public Sector Accessibility Regulations

The Economic Crime and Corporate Transparency Act (ECCTA) received Royal Assent on 26 October 2023, and the provisions of the Act are starting to be applied. We have prepared an information booklet entitled The Economic Crime and Corporate Transparency Act 2023 – Changes in Companies House outlining the first set of changes introduced by Companies House on 4 March 2024.  These include: 1. new rules for registered office addresses; 2. a requirement for all companies to supply a registered email address; and 3. new lawful purpose statements The Act gives Companies House, along with the Registrar of Companies for Scotland and the Registrar of Companies for Northern Ireland, the power to play a more significant role in tackling economic crime and supporting economic growth. Over time, its measures will lead to improved transparency and more accurate and trusted information on its registers.  These changes will apply to incorporated entities, limited partnerships and limited liability partnerships. They will also apply to their members and directors. 

In Irish news, we bring you an update from the recent meeting of the main Tax Administration Liaison Committee (TALC) and Revenue has provided an important update regarding R&D claims for 2022 and 2023. In UK news, HMRC has halted the changes and restrictions to various helplines that were announced earlier this week, and today is your last opportunity to provide information to us on VAT margin scheme vehicles brought into Northern Ireland from Great Britain before 1 May 2023 which remain unsold. In International news, the European Commission has commenced a public consultation seeking feedback on the Directive on Tax Dispute Resolution.  Ireland Read our update from the recent meeting of the main Tax Administration Liaison Committee (TALC). Revenue has provided an important update regarding R&D claims for 2022 and 2023. UK The changes and restrictions announced by HMRC earlier this week in respect of various helplines will now not go ahead. Today is your last opportunity to provide information to us on VAT margin scheme vehicles brought into Northern Ireland from Great Britain before 1 May 2023 which remain unsold. International The European Commission has commenced a public consultation seeking feedback on the Directive on Tax Dispute Resolution. 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.

Chartered Accountants Ulster Society says reduced Corporation Tax rate plus renewed FDI interest could kick start local economy The Chairman of Chartered Accountants Ulster Society has said that Northern Ireland’s unique post-Brexit trading position could be Northern Ireland’s key economic advantage in the year ahead. Speaking to 400 guests at the Ulster Society’s Annual Dinner, sponsored by Danske Bank and MCS Group tonight (20 March), Paul Millar said that chartered accountants across Northern Ireland had identified the key opportunities for the economy, with dual market access to the UK and EU rating highly. Another key opportunity identified by Ulster Society members was the potential to attract investment and boost job creation through a reduced Corporation Tax rate. Paul Millar said: “Two-thirds of our members believe that Northern Ireland can benefit from devolved Corporation Tax powers and a lower rate to match that of the Republic of Ireland.  “If we can combine dual UK/EU market access, a competitive Corporation Tax rate, plus take advantage of the renewed interest in investment into Northern Ireland from the USA and elsewhere, it could be a game changer. The talent is here, the success stories are here, and the potential is right here. “With the right approach, an entrepreneurial mindset and everyone pulling in the right direction we have a tremendous opportunity to be a unique business hub. If we can take that opportunity, it means a better standard of living for everyone with better job, public services and better prospects. “We live in straitened times, but we need to find solutions. We need to focus on opportunities because they are there. Strategic initiatives could have a big part to play.” Mr Millar’s speech also highlighted the role of political leadership and the need to build on the confidence generated by the restoration of the Northern Ireland Assembly: “It’s really positive that we now have restored political leadership back at Stormont, ready to face the challenge. We also have a great opportunity to create a resurgence in economic optimism and determination, spurred on by renewed leadership and a clear vision for the future. “Encouraging entrepreneurship is not just about financial gains. It's about empowering individuals, revitalising communities, and shaping a brighter future for generations to come. “Northern Ireland is a great place to live and a great place to do business. There is so much potential and much to be positive about. We need to work together, with the right mindset, to take the opportunity that is in front of us.” Providing entertainment for guests at the Ulster Society Annual Dinner were adventurer, entrepreneur and author Debra Searle MVO MBE, and one of Northern Ireland’s most highly regarded performers Peter Corry MBE. The Chartered Accountants Ulster Society’s Annual Dinner took place at Titanic Belfast and was attended by 400 members and their business guests.  

Background The Department of Children, Equality, Disability, Integration and Youth (the Department) has recently issued a document1 “Guidance Note for Core Funding Reporting Requirements Transitional Arrangements Year 1 and 2” (“the Department Guidance Note”) to entities providing childcare and early education services regarding the transitional arrangements for the application for funding under a new funding model called ‘Together for Better’.  These transitional arrangements will be in place for the next two reporting periods (years ended 31 August 2023 and 31 August 2024). Reporting regime This reporting regime includes a requirement that the childcare service providers (“client”) engage a professional accountant to submit a document called an ‘Income and Expenditure Template. CCAB-I have made the Department aware of the potential cost implications for an accountant providing this service to their client.  The following matters should be noted: The report is to cover expenses incurred on a cash basis for the year ended 31 August. The requirement is for expenditure incurred in the relevant period only, no accruals or prepayments. Income will be pre-populated in the online platform. Where your client has a different year end, time apportionment is not permitted. Important considerations for CCAB-I members CCAB-I has engaged with the Department over a number of months to discuss the nature and extent of work expected and the respective responsibilities of the client and the professional accountant and, in particular, the concerns regarding the request for the professional accountant to submit the report (as set out in the Department Guidance Note) on behalf of a client. There was positive engagement and much, but not all, of the feedback by CCAB-I on the process was reflected and incorporated into the final guidance. However, given the type of engagement, CCAB-I are making members aware of the potential issues and extant guidance which our members may consult. The Department Guidance Note sets out the responsibility for the data included in the report. See section 2 of the Guidance Note: “The Service Provider is responsible for fully complying with all financial transparency requirements in accordance with their Core Funding contractual obligations. The accountant relies on information provided by the Service Provider, who is responsible for disclosing all relevant information.” The Service Provider/client will make an online declaration on the platform provided by the Department that they have authorised a professional accountant2 to make the submission for them.  CCAB-I members are reminded of the relevant Code of Ethics issued by their professional body.  Independence The Department Guidance Note3 defines an accountant as someone who: "(a) has been admitted as, and is, a member of a prescriber accountancy body, (b) is currently practicing in the profession of accountant, (c) is not and never has been a principal officer or employee, or an owner or part owner, of the licensee in respect of whom he or she is preparing an accountant’s report, and (d) is maintaining such minimum level of professional indemnity insurance as is required by the prescribed accountancy body concerned." .Members should be cognisant of any conflicts with other engagements they may undertake for their clients.  When you are the Auditor  Where the accountant is the statutory auditor the Ethical Standard for Auditors (Ireland)4 applies and Section 5.129 prohibits the audit firm providing accounting services where the services would involve the firm undertaking part of the role of management or initiating transactions.  "S 1.24           In the case of a statutory audit, non-audit services shall not be provided that involve playing any part in management decision-taking of an entity relevant to an engagement. The firm shall not accept any engagement which includes the provision of services where it is probable that an objective, reasonable and informed third party would conclude that the firm or a covered person was playing a part in management decision-taking.  5.128          The provision of accounting services by the firm to an entity relevant to an engagement creates threats to the integrity, objectivity and independence of the firm and covered persons, principally self-review and management threats, the significance of which depends on the nature and extent of the accounting services in question and the level of public interest in the entity. 5.129            The firm shall not provide accounting services to an entity relevant to an engagement where: (a) the entity is a listed entity, relevant to an engagement by the firm, or a significant affiliate of such an entity; or (b) for any other entity: those accounting services would involve the firm undertaking part of the role of management, or initiating transactions; or the services are anything other than of a routine or mechanical nature, requiring little or no professional judgment.” When you are not the Auditor We recommend that members read the Department Guidance Note1 and that an appropriate letter of engagement and representation letter are in place where they undertake these engagements.  Members should refer to guidance documents issued by Chartered Accountants Ireland.  TA 06/2023 Grant Claims5 and the International Standard on Related Service ISRS 4400 (Revised) Agreed-Upon Procedures Engagements6 which give guidance on engagement acceptance and continuance and some general advice on agreeing the terms of engagement.  1 https://earlyyearshive.ncs.gov.ie/downloads/download-corefunding/   2 A professional accountant is defined as a member of a Prescribed Accountancy Body that comes within the supervisory remit of IAASA, •              Chartered Accountants Ireland. (CAI) •              Association of Chartered Certified Accountants (ACCA) •              CPA Ireland (CPA) •              Chartered Institute of Management Accountants (CIMA)  3 See Section of Guidance Note for Core Funding Reporting Requirements Transitional Arrangements Year 1 and 2. 4 https://iaasa.ie/wp-content/uploads/docs/media/IAASA/Documents/audit-standards/Ethical-Standard-Consultation/Ethical_Standard_Nov_2020_updated_June_3.pdf 5 https://www.charteredaccountants.ie/chariot/account/ta/TA06_2023.html 6 https://www.iaasb.org/publications/international-standard-related-services-isrs-4400-revised