President Sinead Donovan was in the US this week, meeting with a variety of members and stakeholders. The insights gleaned on the trip will be put into action in the coming weeks and months, but among the key takeaways is that the US remains a destination of choice for Irish ACAs so our task is to drive greater awareness of the opportunities for members; our response to issues like the attractiveness of the profession, adapting to new sustainability reporting standards and cybersecurity will be shaped through collaboration with our US partners; and finally, our profession will continue to play a key role on both sides of the Atlantic driving and servicing inward FDI  in support of Ireland’s economy. Member engagement There is no doubt that the US remains a destination of choice for Irish ACAs and the President heard directly from these members during several office visits and two member events. The ACA proves to be a door opener for so many of our members when they arrive in the States, as indeed does the Mutual Recognition Agreement for members practicing, so our task now is to drive greater awareness of the opportunities and help new and existing members to access these.  Partner engagement As ever, the challenges for the profession are the same whether in Naas or New York. The attractiveness of the profession and sustainability reporting standards were two topics that, as expected, the President devoted a lot of time to in meetings with among others IAASB, AICPA, Chartered Accountants Worldwide Network USA, Deloitte EY, PwC, KPMG, and Harvard University.  How we as a profession adapt to the new reporting standards and educate our members on them will be shaped through such collaboration, and Chartered Accountants Ireland will be at the heart of that. The same goes for selling the attractiveness of the profession, with a focus on demonstrating the different routes into the profession and demonstrating through our actions our commitment to a healthy work-life balance. Perception is still an issue. In meetings with Boston College, the scale of the profession’s role when it comes to cybersecurity was reinforced. There are approximately 4million open roles in cyber security globally, and accountants are ideally placed to play a central role in tackling the challenge. The Institute held its inaugural seminar for members with Boston College in Dublin last April, and there is so much scope to expand this education to position members to have an impact.  Working for Ireland Inc It was great to meet the IDA and some of the companies (powered by ACAs) supporting inward FDI. Against the backdrop of a new global minimum corporation tax rate from 2024, and stiff competition for investment, our profession will continue to play a key role on both sides of the Atlantic driving and servicing that investment so well for Ireland’s economy. For our part, we will continue to ensure the Institute has a strong voice in demonstrating how the profession can continue to support FDI and be a strong resource for companies.

New research from Edelman Group finds trust in Chartered Accountants rising faster than any other profession amid ongoing economic uncertainty  18 October 2023: The cost-of-living crisis has served to highlight the vital role Chartered Accountants play in helping businesses adapt to new challenges, according to a new study by Edelman Research Group.   78% of respondents said Chartered Accountants have been essential to navigating recent challenges, while 66% of respondents claim they have relied on accountants more than ever before since the cost-of-living crisis began.  Chartered Accountants saw a 7% increase in trust since 2021, rising faster than all other professions included as part of the study, including doctors, nurses, engineers, teachers and lawyers. Nurses, accountants and auditors were the only other professions to see a rise in trust since 2021, with trust in nurses and accountants increasing by 3%. Trust in other financial professions, including bankers and insurance brokers, has declined.  The research findings showed the continuation of a trend over several years of Chartered Accountants playing a central role in supporting the strategic direction of businesses, particularly in times of crisis, with cost-of-living pressures only the latest example of this.  Commenting, Barry Dempsey, Chief Executive of Chartered Accountants Ireland, said:  “This research shows that in times of economic uncertainty, Chartered Accountants continue to step up and help businesses navigate crises. Guidance from Chartered Accountants around the Brexit transition and the COVID-19 pandemic were viewed as essential by respondents, at a rate of 75% and 72% respectively.   “It is promising to see the dedication and integrity of Chartered Accountants reflected in this data, which confirms support across the business sector for the valuable work that our members do. Through economic uncertainties, Chartered Accountants have played a more pivotal role than ever.”  In 2022, Chartered Accountants Ireland successfully advocated for an extension of the Debt Warehousing Scheme for taxpayers for an additional 12 months, allowing greater flexibility for businesses navigating the uncertain circumstances following the pandemic.   Regarding the developing state of Artificial Intelligence, the study says that 8 in 10 respondents feel that the value provided by Chartered Accountants cannot be replicated by AI. As other professions face uncertainty in the face of rapidly developing technology, the role of the Chartered Accountant remains necessary amidst constantly shifting economic conditions.  8 in 10 also say they intend for Chartered Accountants to lead digital transformation within their organisation. This is something Chartered Accountants are already engaged in at major firms.   Barry Dempsey said: “It is also encouraging to see the continued security of accountancy as a profession in the ever-changing landscape of Artificial Intelligence. It is clear from this research that the thoughtful, strategic work of the Chartered Accountant cannot be replicated by a technology. Consensus among the business community on this is warmly welcomed.   “The field of chartered accounting continues to develop into an exciting, creative field open to the next generation, for which technological development is an opportunity, not a threat.”  Notes for Editors:  Edelman Data & Intelligence is a global, multidisciplinary research, analytics and data consultancy company comprised of over 350 research specialists, business scientists, data engineers, behavioural and machine-learning experts, and data strategy consultants based in 15 markets around the world.   

Looking beyond headline corporation tax receipts to the health of the corporate sector is key Budget 2024 is a first step towards meaningful support for entrepreneurs Use of tax policy as a lever to encourage landlords to remain in rental market will work for society and the economy   High time for childcare to be recognised as part of critical infrastructure     10 October 2023 – Reacting to today’s Budget speeches, Chartered Accountants Ireland has highlighted the importance of supporting enterprise across the country. The Institute represents over 32,700 members, two-thirds of whom work in business.   Supporting enterprise   Director of Public Affairs, Dr Brian Keegan commented  “A healthy corporate sector is critical to Ireland’s economic growth. Without it, the state simply doesn’t have the tax receipts to effect change across so many areas of the economy and society.    “It’s positive to see the focus switching away from the headline corporation tax receipts and the enterprise sector being singled out and supported. These businesses create significant local employment and deserve the support announced today of a €250 million fund to help meet the increased cost of doing business in 2024.   “We hope that the scheme is introduced in a timely manner as businesses are already grappling with additional costs of statutory sick pay, impending pension auto-enrolment and a significant uplift in the minimum wage to €12.70.”  Supporting entrepreneurism   The Institute has also noted the uplift in the R&D credit from 25% to 30% as well as an enhanced capital gains tax relief for angel investors. It states that these measures send the signal that Ireland is open for business and wants to support entrepreneurism.  Dr Keegan continued  “The R&D tax credit has been hugely successful in encouraging research and innovation and creating employment. New capital gains tax reliefs for angel investors should result in early funding being made available to businesses when they need it most – at inception. There have been few new initiatives for the corporate sector in the past decade, and it was positive today to see recognition of the sector to Ireland’s economy.”   Tackling housing  The lack of adequate, affordable, reasonably located housing for staff is one of the biggest barriers to expansion reported by Chartered Accountants Ireland members. The Institute said that today’s tax break of €600, rising to €1,000 over three years, announced for small, private landlords if they remain in the rental market will help to boost Ireland’s housing supply. Cróna Clohisey, Tax and Public Policy Lead said  “Small landlords are an essential feature of a fully functioning residential property market, and properties owned by these landlords are more likely to be in regional, less densely populated parts of the country, providing much needed rental stock in areas that are not as attractive to institutional investors.  “Today’s announcement for landlords will help stabilise the rental market and give more certainty to tenants but also importantly make it more attractive for a small private landlord to enter the rental market. Combined with an increased rental tax credit, the measures will go some ways to helping people access housing, and it will work for society and the economy.”  Childcare as a critical infrastructure issue   Today’s announcement of an increase in the national childcare subsidy (NCS) from €1.40 to €2.14 as well as extending the NCS to certain childminders will help with the cost of childcare but will not address significant capacity constraints within the market.   Clohisey continued  “The cost of childcare is unaffordable for many working parents and today’s announcement to increase the NCS from September 2024 is welcome. However, a survey of our membership last month shows that in addition to cost, the biggest challenge working parents face is a lack of available childcare places.      “While a commitment was made today to address supply issues through core funding, we are asking government to recognise that childcare provision is part of the critical infrastructure necessary for a functioning economy. The crisis needs to be addressed with a long-term strategy with children at the forefront, that adequately funds the sector, increases capacity, and supports working parents.”    ENDS      

The Minister for Finance, Michael McGrath TD and the Minister for Public Expenditure and Reform, Paschal Donohoe TD, will announce Budget 2024 on Tuesday 10 October 2023. We will issue our Budget 2024 newsletter tomorrow evening covering all the main points. You can keep up-to-date with the announcements by visiting the Institute's Budget 2024 landing page.  

Technical knowledge and professional competency are key elements to achieving a favourable outcome in any tax dispute. Conor Kennedy outlines his advice on the dos and don’ts of preparing for a hearing Recent decisions by the Tax Appeals Commission (TAC) confirm that the main reason for tax disputes to proceed to hearing can be traced back to a breakdown in communication or a failure to provide the necessary facts, documents or explanations to the Revenue Commissioners.  Excluding the tax repayment type of appeal, whereby a claim must be made within four years, the majority of cases that end up before the TAC deal with issues of evidence.  In 80 percent of the cases resolved in 2022, there was either a failure to provide evidence or the wrong kind of evidence was provided. This resulted in the inability of the Appeal Commissioner to overturn the Revenue assessment leading to a finalisation of the taxes due.  In some instances, Revenue may have lacked confidence in the taxpayer or its agent’s technical knowledge or professional competency.  Once at litigation stage, Revenue will invariably engage a barrister. The appointment of a barrister can provide an independent, objective view of the law and factual background, resulting in the possible resolution of the matter before it gets to court.  The professional or legal fees incurred in taking an appeal to the TAC, or indeed the courts, may far exceed the actual amount of tax in dispute. Furthermore, any costs associated with disputes before the TAC are not recoverable from Revenue.  The importance of making a good initial impression and maintaining professionalism and competency throughout the dispute process cannot be overstated.  Here is my advice for practitioners on how to prepare for hearings to increase the likelihood of a favourable outcome for clients. Perception: honesty, integrity and competency Revenue’s perception of the integrity, honesty and competency of a taxpayer should not be an issue if the taxpayer is known to Revenue and has had previously good relations with the agency.  A good relationship with Revenue overcomes many hurdles in seeking to resolve a tax dispute at an early stage. Any previous indiscretions involving under-declaration of taxes undermine credibility, unless they can be explained as human error as opposed to something more sinister. As already noted, if a tax dispute proceeds to litigation, considerable professional fees could be racked up, experts may have to be called, and historic documents may need to be retrieved.  Another issue is the time lost to preparing the case, for both managers and staff, not to mention the stress of giving evidence to the TAC. While a settlement represents an additional cost, it can sometimes be considered as an exercise in damage limitation. Familiarity with the facts Facts are the foundation stone of any case. In focusing the mind on the story to be told, it is prudent for any custodians of fact to draft a written document recording all the relevant factual information and documents supporting the argument.  The benefit of such a document is that it can address all essential facts requiring proof and reduce the risk of failing to disclose relevant evidence. In presenting a case before Revenue, the TAC or a court, the presentation of facts or the telling of the story in a logical and sequential manner can play a significant part in giving a decision-maker confidence in the practitioner’s ability and competency.  Many barristers presenting cases before courts and tribunals prepare the advice on proofs – the roadmap identifying all the facts to be proven, and the way in which they must be proven with reference to the rules of evidence.  This involves establishing the relevant facts and the approach to be taken, either by direct evidence provided by the person concerned or, indeed, documents not in contention or dispute.  Where these documents are disputed, it will be necessary to provide direct evidence supporting their veracity and integrity. Business expenses The issue of determining entitlement to deduct a business expense comes consistently before the courts and tax tribunals.  To prove that an expense was incurred wholly and exclusively for the purpose of a trade, it must be established that the expense was incurred for a genuine business purpose related to the trade and had no other purpose or benefit.  To prove the direct link between the expense and the operation of the trade, supporting invoices, receipts, contracts and any other relevant documentation will be required.  Personal expenses should be clearly identified and separated from business expenses. The taxpayer should give direct evidence to support the purpose of the expenditure, to authenticate and legitimise the documents and to confirm the rationale for incurring the business expense in question. Proof of occupation Proof of occupation of a principal private residence in seeking relief from capital gains tax on the disposal of the property requires documentary evidence of occupation such as correspondence, bills, photographs, and third-party witnesses, such as neighbours, who can independently verify the occupation of the property during the time under dispute.  Non-residency in the State Similarly, in a claim for non-residency in the State, there is a requirement to demonstrate the location of the individual’s foreign residence, proof the accommodation was available for their use, reasons for the non-residency, utility bills, and bank and credit card statements reflecting consistent transactions in the country of residence supported by oral evidence. Specialised areas of law Share and property valuations, transfer pricing disputes and specialised areas of law, such as aviation and foreign law, usually require expert evidence as Appeal Commissioners or judges tend to have limited if any experience in such matters.  As observed by Noonan J. in Duffy v McGee T/A McGee Insulation and GMS Insulations Limited [2022] IECA 254, expert evidence can play a decisive role in determining the outcome of a hearing. The selection of the appropriate expert is therefore crucial as in many cases, this is the difference between winning and losing an appeal. Hearsay documents Care is also needed in the case of hearsay documents. Hearsay is an out-of-court statement that is offered for the truth of what has been asserted. To overcome this difficulty, any third-party documents provided should be verified by the originator of that document.  In other words, a witness should be available to give evidence that they produced or created the document, thereby standing over its authenticity and legitimacy. On many occasions, there will be facts that undermine the client’s position, and it is best to address these facts head on and thereafter attempt to ameliorate their effect. Doing so enhances credibility, honesty and integrity and reduces the potency of unfavourable evidence. Knowledge of the law Taking time to research the legislation and supporting case law governing the transaction, relief or any other impugned Revenue decision is a prerequisite to ensuring that the best account is presented, thereby giving the client a better opportunity to make a Revenue official, Appeal Commissioner or judge comfortable with ruling in their favour.  The more capable the presentation, the greater the confidence that will be instilled in the decision-maker. As with certain factual anomalies, there could be legislation or case law that undermines a taxpayer’s case. In such a situation, the adverse law should be addressed and ideally distinguished for the purposes of reducing its potency. When presenting cases to the TAC or courts, some practitioners use arguments that possess little legal merit and undermine their good arguments. This can cause a Revenue official, Appeal Commissioner or judge to question the practitioner’s professional competency and technical ability. It can also influence the decision-maker to rule against the taxpayer as the safe option is to rely on a submission or argument whose provenance is more reliable. Burden of proof The general principle of “he who asserts must prove” places the burden of proof on the claimant in the dispute.  The burden of proof determines the viability of a claim based on the factual evidence. The failure to satisfy the burden of proof is the consistent mantra of the TAC because it is the reason for the failure of many taxpayers to have assessments to tax overturned or reduced. Evidence is essential in the validation of a legal argument. It establishes the facts of a case and provides information and documentation that support the assertions made by the parties involved. Without evidence, legal arguments would be based solely on speculation and assumption.  The presentation of compelling evidence convinces the TAC and Revenue of the validity of the arguments put forward. It increases the chances of a favourable outcome rather than the disappointing finding that the burden of proof has not been satisfied.   In advance of a hearing, practitioners should prepare well, identify and be able to present all of the evidence. Well-balanced and logical legal arguments will enhance credibility and competency.   Making a good initial impression and maintaining professionalism and competency throughout the dispute process will greatly increase the chances of a favourable outcome. Conor Kennedy is Head of Tax Strategy and Disputes at EY Law Ireland

As reported last week, Revenue is continuing to issue notices to employers’ ROS inboxes, inviting them to register for webinars on the new Enhanced Reporting Requirements (ERR) for employers. The notice will contain a link to Eventbrite where a free ticket can be booked to attend a webinar on a suitable date and time. These webinars are scheduled to take place over the next 8 weeks. A sample event invitation can be viewed here.  The Institute has emphasised to Revenue the need for detailed and timely guidance for employers to prepare for the new reporting requirements. We will continue to liaise with Revenue and inform members via Tax News.   

There may not be many miles between Cork and Leeds, but there was certainly a big jump from the family dairy farm to FinOps for Donal Bourke. We caught up with Donal recently to hear more about his career journey.     1. Where did you grow up and where do you live now?  I grew up on a dairy farm in Co. Cork about 30 minutes from Cork City. The majority of my family and extended family worked (and still work) in agriculture, but I have bad hayfever, and a sense of adventure took me to UCC to study commerce. 2. What made you choose to become a Chartered Accountant?  When I finished commerce, I still didn’t know what I wanted to do. The majority of my class were doing interviews with the big-4 accounting firms, and it seemed like the path of least resistance. So, I went along and managed to secure a job with KPMG in the transaction services department. You could imagine my surprise to learn that there was a qualification and exam expectations involved in the path I had chosen! However the firm provided great support and time off to ensure I completed my exams and became an ACA. 3. Can you tell us a little about how you got to where you are today – both the geographical relocation and career path. And, what advice would you give your 20-year-old self? Once I completed my qualification I went to Sydney, Australia (as the majority of my intake did at the time which was 2011). From there I’ve moved to Leeds, back to Cork and finally to Leeds again using my qualification to work in a wide array of industries. I've gone from spuds to drugs, when I moved from being Financial Controller for a potato plantation in South Australia to being a Revenue Reporting Analyst responsible for generating rebate invoices from harnessing millions of lines of generic drug sales data. I now find myself back in Leeds (my wife is from here, so "happy wife = happy life!"), where I have undergone another career pivot working in the field of FinOps for NetApp. This involves analysing customers' public cloud environment (outsourced opex IT spend). The third party providers have different commitment options available for purchasing their services and I am responsible to use the best instruments to deliver the highest savings. The advice I would give my 20-year-old self would be to never stop learning and looking for opportunities to evolve in your career. It was only after being made redundant from a previous role in 2019 that I took ownership of my career and what I wanted to do and I wish I’d done it sooner. 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? I value the transferability of the membership most. Whenever I have travelled, it automatically sets the bar for the type of roles I will be approached for. An ACA or FCA qualification means recruiters and employers know who they are getting. I think society can benefit from members having a more rounded experience and world view – personally and professionally. It is the unique experiences and mental connections we make which allow us to tackle problems in our own ways. With the pressing challenges of climate change and the uncertain nature of AI (artificial intelligence), our own rounded perspective is more important than ever. 5. As a member living away from Ireland, can you talk to us about how your membership has been of value to you within the UK, and what do you value about it now that you’re living there (and what would you like to see more of)?  I would love to see a more active district society and chartered community with networking opportunities outside of London. 6. What were the most significant/noticeable differences you encountered doing business and networking away from home and back in Ireland? Doing business, I’ve found no real differences between Ireland and the UK. My previous roles in Ireland were fully remote and I continue to work from home. One of the few good things to come out of Covid in my opinion.  In terms of networking, the biggest difference I’ve found is that I now have four small children, so the opportunities to network are limited but I look forward to building on that aspect once the kids become less of a handful. Pictured with Donal are his daughters, (L-R) Ornaith and Evelyn. Donal Bourke is a Cloud Optimisation Consultant with NetApp.

Welcome to this edition of Technical Roundup. In recent developments, Chartered Accountants Ireland are hosting a webinar Corporate Enforcement Authority – Insolvency on 5 October at 10am. This conversation is with Cathy Shivnan Director of Insolvency Supervision at the Corporate Enforcement Authority (CEA) and gives insights into the CEA’s insolvency agenda; the EU Commission has issued a guidance note for EU operators on implementing enhanced due diligence to shield against Russian sanctions circumvention. Read more on these and other developments that may be of interest to members below. Financial Reporting The UK Endorsement Board (UKEB) has issued a draft comment letter for public consultation in response to the IASB’s Request for Information on its Post-implementation Review (PIR) of IFRS15 Revenue from Contracts with Customers. The International Accounting Standards Board has published Exposure Draft Annual Improvements to IFRS Accounting Standards—Volume 11.  The document is available to download from the Open for comment section and from the individual project pages on the work plan. The European Single Markets Authority (ESMA) has published the annual update of its Reporting Manual on the European Single Electronic Format (ESEF). This includes technical improvements and additional clarifications. The European Financial Reporting Advisory Group (EFRAG) have issued their August update which summarises public technical discussions held and decisions taken during the month. In order for EFRAG to provide input to the initial phases of the IASB’s research project on the Statement of Cash Flows and Related Matters, EFRAG have issued an open call for tenders to assist in identifying uses and issues with the statement of cash flows. The IFRS Foundation has issued its August 2023 monthly news summary. This includes details of recent amendments to IAS 21, details of current consultations and requests for information and other matters of interest. Insolvency Chartered Accountants Ireland are hosting a webinar Corporate Enforcement Authority – Insolvency on 5 October at 10am. This conversation is with Cathy Shivnan, Director of Insolvency Supervision, at the Corporate Enforcement Authority (CEA) and gives insights into the CEA’s insolvency agenda. The session will include some background on Cathy’s career and her journey from Revenue to CEA along with the evolution of the CEA from the ODCE. This webinar is a free event and open to all. Earlier this week, the UK government published its response to the consultation on ‘The Future of Insolvency Regulation’, which ran between 21 December 2021 and 25 March 2022. The consultation sought views on a comprehensive package of reforms to the insolvency practitioner regulatory framework. This response includes a significant package of reforms which addresses the current weaknesses, closes a loophole in the framework, and provides opportunities for further reform. It will strengthen insolvency regulation and increase public confidence in the framework. Sustainability Accountancy Europe, in collaboration with the European Sustainable Business Federation, have issued a paper ‘5-step starting guide to a sustainable transition for SMEs’.  The paper presents 5 first steps an SME can take to begin their sustainable journey. It is vital to initiate the process, even with small steps, and gradually start preparing the business for what lies ahead. EFRAG and the Global Reporting Initiative (GRI) have issued a joint statement confirming that they have achieved a high level of interoperability between their respective standards in relation to impact reporting. EFRAG has published its final comment letters on the ISSB consultation on Agenda Priorities and SASB methodology. Sanctions The UK Financial Conduct Authority recently issued a publication on firms’ response to increased sanctions due to Russia’s invasion of Ukraine. In the publication the FCA set out key findings from its assessments of sanctions systems and controls and includes examples of good practice and areas for improvement. While the publication is in respect of financial services firms, the findings in relation to good practices and areas that need improvement may be of interest in any efforts to making improvements to the approach to identifying and assessing the sanctions risks that firms are exposed to. In September 2023 the EU Commission issued a guidance note for EU operators on implementing enhanced due diligence to shield against Russian sanctions circumvention. It is to help European operators to identify, assess, and understand the possible risks of Russian sanctions circumvention. It includes circumvention red flags related to business partners and customers and .The EU Guidance note is in the same vein as the summary AML Alert  Russia sanctions – Trade sanctions circumvention  which was  produced by the Accountancy AML Supervisors’ Group (AASG) from an extract from the UK Department of Business and Trade notice NTE 2023/08: Russia sanctions – Trade sanctions circumvention published 22 May 2023. Details of this notice were brought to members attention in a news item from Professional Standards Dept. of the Institute of August 23, 2023 where they alluded to awareness of the risk and obligations in relation to sanctioned goods as an important first step for those working in the accountancy profession so that they do not become party to the trade sanctions circumvention. Other News In September 2023 the UK Financial Conduct Authority (FCA ) announced a review of the treatment of domestic Politically Exposed Persons (PEPs) by financial services firms. The review will look at firms’ arrangements for dealing with PEPs based in the UK and will report by the end of June 2024. In the previous month of August 2023 it invited UK PEPs to share their experiences, including any problems they or their family members have encountered with the PEPs regime. The FCA has previously (in 2017 ) published guidance for how financial services firms should treat customers who are politically exposed persons when meeting their anti-money laundering obligations. The Financial Reporting Council (FRC) has welcomed the appointment of Peter Wyman CBE as the Institute of Chartered Accountants in England and Wales (ICAEW) first externally appointed Chair of the Board to modernise and strengthen the ICAEW’s governance and leadership. The Charity Commission for Northern Ireland is writing to over 250 charitable organisations, in preparation for work to begin on phasing out what is known as the “combined list”.  A list of all organisations the Commission is aware of, which may be charities but have not been registered yet, the combined list has been an integral part of the regulator’s work to manage registration of all charities in Northern Ireland. The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published the annual update of its Reporting Manual on the European Single Electronic Format (ESEF). The Pensions Authority has published its 2022 Annual Report and accompanying statement from the Pensions Regulator. The Charities Regulator is holding a free webinar on Wednesday 27 September 2023 at 1pm to assist registered charities in preparing their annual reports. If you want to attend this you may register here. For further technical information and updates please visit the Technical Hub on the Institute website.

As a member of the A4S Accounting Bodies Network (ABN), we have made a great deal of progress in the knowledge and skills needed to implement sustainable finance practices. But as the world changes due to macro sustainability trends such as climate change, biodiversity loss and inequality, more is needed. Our profession needs to adapt in order to be at the forefront of these changes, and as your professional body, we will support you on this journey. As a professional body, it is vital that we help the profession adapt so that it keeps pace with sustainability developments. To celebrate the 15-year anniversary of the ABN, we have shared our views of how we think the profession may transform in the future in this thought piece. This collection of insights focuses on how systems, technology and skills will change the profession in the near future, and what we, as your accounting body, can do to support you to adapt. We look forward to helping shape that future and building a springboard from which new generations of accountants can take us forward even further. You can access this online resource here.  

  In September 2023 the UK Financial Conduct Authority (FCA ) announced a review of the treatment of domestic Politically Exposed Persons (PEPs) by financial services firms. The review will look at firms’ arrangements for dealing with PEPs based in the UK and will report by the end of June 2024. In the previous month of August 2023 it invited UK PEPs to share their experiences, including any problems they or their family members have encountered with the PEPs regime. The FCA has previously (in 2017 ) published guidance for how financial services firms should treat customers who are politically exposed persons when meeting their anti-money laundering obligations.

In Irish news, the Institute has informed the Minister for Finance of members’ concerns with the proposed new enhanced reporting requirements and we give you an update from the recent meeting of the Tax Administration Liaison Committee Collections subcommittee. In UK news, the Autumn Statement will take place on Wednesday 22 November, and the Institute is discussing with HMRC the 31 October 2023 deadline for the end of the VAT margin scheme in respect of certain second-hand cars.  In International news, the OECD publishes the 2023 Secretary General tax report.  Ireland The Institute, under the auspices of the CCAB-I, has written to the Minister for Finance, Michael McGrath T.D., to highlight significant concerns our members have about the proposed introduction of Enhanced Reporting Requirements. Read our update from the September 2023 meeting of TALC Collections subcommittee. UK Last week the Chancellor of the Exchequer announced that the Autumn Statement will take place on Wednesday 22 November. The Institute is discussing with HMRC the 31 October 2023 deadline for the end of the VAT margin scheme in respect of certain second-hand cars. International This year’s Secretary General tax report has been published providing an update on the progress on the OECD’s Two-Pillar Solution. 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 which features updated guidance and publications and the news that the UK has agreed a deal to associate to Horizon Europe.     

On 1 September 2023, the Institute responded to the Financial Reporting Council (FRC) invitation for comments on their proposed changes to the “UK Corporate Governance Code” (‘Code’)*.  The proposed changes arise from a UK government request of the FRC to strengthen the UK Corporate Governance Code in specific areas following the recommendations arising from UK White Paper on “Restoring Trust in Audit and Corporate Governance” (‘White Paper’) published in 2022. Some of the key changes proposed to the Principles and Provisions applying to boards include: Setting out a revised framework of prudent and effective risk management and internal controls to provide a stronger basis for reporting on, and evidencing their effectiveness. Improving the quality of comply-or-explain reporting, taking account of recently published FRC research and reports, e.g. reducing boilerplate wording and requiring reports to demonstrate the outcomes of governance activities. Revising the responsibilities of the board and audit committee for sustainability and ESG reporting, and associated assurance in accordance with a company's audit and assurance policy. Aligning governance and reporting practices with changes to legal and regulatory requirements as set out in the Government's response to the White Paper, including strengthening reporting on malus and clawback arrangements. The Institute response welcomes FRC proposals that: discourage boilerplate reporting and encourage clear and concise disclosure on the reasons for any departure from the Code’s provisions, and how the Board has otherwise adhered to the overall principles of the Code. encourage consideration of and reporting (in accordance with established sustainability reporting standards) all material sustainability and ESG matters, including climate ambitions and transition planning, in defining business purpose, strategy, and values. increase the emphasis on workforce and broader stakeholder engagement, strengthening diversity and inclusion, and improves the effectiveness of remuneration policies and transparency. respond to some of the Chartered Governance Institute recommendations on board performance reviews and emphasis on improving board effectiveness. engage with emerging risks and opportunities such as artificial intelligence, for which the Institute have provided, in our response, some detailed considerations for inclusion in FRC guidance. Some of the key points highlighted in the Institute’s response focused on: The missed opportunity from limiting the update of the Code to reacting to legislative proposals rather than addressing learnings from corporate governance in recent years, including the principles and values (including ethics and healthy culture) that were lacking in respect of high-profile corporate failures. Highlighting the increasing role and responsibilities of Audit Committees, and the risks arising by mandating them as default for additional requirements versus ensuring the ability of the Board, who are ultimately responsible, to delegate roles and responsibilities as it sees fit in accordance with fiduciary duties. The lack of guidance and definitions for key terms used in the principles and provisions which, if provided, would provide for better understanding, and promote greater consistency, in many areas of the Code, including directors declarations on risk management and internal controls, audit and assurance policies, and narrative reporting. The importance of maintaining the principle-based approach to corporate governance that the Code has championed for over thirty years and to avoid deferring to requirements which are prescriptive, a matter of law and are not suited to a comply or explain model. The risk that established and effective practices for stakeholder engagement, reporting on future prospects and delegating oversight of sustainability matters may be lost based on the way some of the proposals are set out. The Chartered Accountants Ireland response to the FRC addressed all 26 questions and is available here. The FRC proposals are available on their website here. Níall Fitzgerald, Head of Ethics and Governance, Chartered Accountants Ireland   * The Code applies to premium listed companies on the London Stock Exchange and companies with a primary listing on the Irish Stock Exchange (and the Irish Corporate Governance Annex). Other organisations can voluntarily adopt the Code, for example, Chartered Accountants Ireland applies principles of the Code where they are relevant and commensurate to the Institute as a membership body.