The Department of Finance has published the minutes of the recent Business Tax Stakeholder Forum. The Forum is limited in scope to discussing direct business taxation. It is consultative in nature with the focus on knowledge and information sharing, including reflecting on tax developments at the EU and international level as well as domestic corporation tax legislation. As previously reported, the Institute, under the auspices of the CCAB-I, was represented at the inaugural meeting of the Business Tax Stakeholder Forum. The meeting provided an opportunity for the Institute to engage with the Department of Finance in a constructive and meaningful way. While the forum is not a decision-making body, it is intended to complement the wider engagement process between the Department and its business tax stakeholders.

Revenue has updated its Tax and Duty Manual for State Aid Transparency Requirements: Publication of information regarding State aid granted to individual taxpayers. The manual has been updated to include the following additional schemes that are subject to State aid transparency requirements: Relief for Investment in Digital Games (section 481A of the Taxes Consolidation Act 1997), Accelerated Allowances for Capital Expenditure on Slurry Storage (section 658A of the Taxes Consolidation Act 1997), and Temporary Business Energy Support Scheme (TBESS) (sections 100 to 102 of Finance Act 2022).

The Minister for Finance, Michael McGrath, has welcomed the upgrade of Ireland’s long-term sovereign credit rating by Moody’s to Aa3 from A1 with a stable outlook. The revised rating returns Ireland to Moody’s AA category for the first time since 2010. The upgrade puts Ireland’s rating on a par with core Eurozone countries including France (Aa2), Belgium (Aa3) and Austria (Aa1). Other issuers in the Aa3 category include the United Kingdom and Hong Kong. The Minister for Finance Michael McGrath said: “The announcement by Moody’s of an upgrade to Ireland’s sovereign credit rating is a very positive development, reflecting the ongoing strength of the Irish economy and the public finances. It underlines the importance of Ireland’s prudent fiscal policies and the adoption of a robust fiscal framework. Moody’s expectation that the economy will continue to grow at a solid pace in the near to medium term, albeit slowing from the exceptional rates of growth in 2021 and 2022, is particularly welcome. As a country, we are making progress across a number of fronts, building up our National Reserve Fund, reducing our overall National Debt, and investing in capital infrastructure to underpin our long term well-being and prosperity. In their report, Moody’s note Ireland’s corporation tax receipts are dependent on a relatively small number of firms and I am taking action to address this. I will shortly bring forward proposals to put the National Reserve Fund on a sound long term footing using the windfall corporation tax receipts we have been experiencing.”

The Minister for Finance, Michael McGrath TD, and the Minister for Public Expenditure, National Development Plan Delivery and Reform, Paschal Donohoe TD published the Government’s Stability Programme Update for 2023. This document sets out macroeconomic and fiscal forecasts for the periods 2023-2030 and 2023-2026 respectively. Emerging data suggest that the outlook for the global economy in 2023 may not be as pessimistic as forecast last Autumn. However, the global outlook remains fragile, with heightened uncertainty a key feature in the global environment. It is now expected that headline inflation will average 4.9 per cent this year on the back of an easing in energy prices, however non-energy inflation will remain elevated. The labour market has remained remarkably resilient with record numbers in employment and the unemployment rate standing at 4.3 per cent in March. Commenting on the figures, Minister McGrath said: “Despite multi-decade high inflation rates and heightened global uncertainty, the Irish economy has proven remarkably resilient, most notably in the labour market where the unemployment rate is at a near-record low. At the same time the mobilisation of government supports helped mitigate, to some extent, the impacts of inflationary pressures on households and businesses over the winter months. With energy prices in retreat, it now appears as though inflation, absent any further energy price shock, is on a downward trajectory, though it will remain elevated throughout this year. Headline inflation is expected to average 4.9 per cent this year, before returning to 2½ per cent in 2024.” On the public finances, Minister McGrath said: “Regarding fiscal developments, we are projecting a surplus of €10 billion for this year, the equivalent of 3.5 per cent of national income. This is based on the assumption of tax revenue amounting to almost €89 billion, a growth rate of almost 7 per cent. While this is, of course, very much welcome, the headline surplus this year is heavily dependent on volatile ‘windfall’ corporate tax receipts. Excluding the impact of these receipts, estimated at almost €12 billion this year, an underlying deficit of €1.8 billion is projected for this year. This is a better metric for assessing the resilience of our public finances. From a fiscal perspective, serious challenges lie ahead: an ageing population; risks to the sustainability of corporate tax receipts; de-carbonisation and digitalisation; as well as the fallout for economic activity from rising geopolitical tensions. For example, by the end of this decade, it is estimated that additional age-related expenditure of between €7 and €8 billion per annum, relative to the level of outlays at the beginning of the decade, will be required simply to deliver existing levels of public service. Moreover, we are facing into these challenges from a position of high public debt, with the cost of borrowing increasing. That is why I will shortly be presenting proposals for a longer term focused national reserve fund. Work on such a fund is already at an advanced stage. We are hopefully emerging from the worst of the cost-of-living crisis, though immediate risks remain. However, I am confident that the Irish economy remains resilient especially in light of our robust labour market. The Government will continue to protect those most adversely impacted by cost of living pressures, while managing the public finances in a way that equips the State to address the fiscal challenges in the years ahead.” Further information is available here.

The National Crime Agency in the UK has recently issued its April 2023 edition (Issue 19) of SARs IN ACTION. It contains items such as a summary of the 2022 SARs Annual Report (which can be accessed in full here), which features statistics covering the years 2020-21 and 2021-22, an article on modern slavery and human trafficking, and looks at SARs related to cryptocurrency and  trust or company service providers. It also has some information on the new SARs portal and on two new podcast episodes on Evolving Payments and Banking Firms and the UK Fraud Communications Toolkit.

Welcome to this week’s Technical Roundup.   In developments this week, the Financial Reporting Council has issued a new web page providing conversation starters to help promote better engagement between investors and audit committees; the European Securities and Markets Authority has published the third edition of its Data Quality Report under the European Markets Infrastructure Regulation (EMIR) and the Securitised Financing Transactions Regulation (SFTR) reporting regimes. Read more on these and other developments that may be of interest to members below.  Financial Reporting The FRS 102 & FRS 105 Periodic Review Consultation (FRED 82) closes on 30 April. Individuals and organisations wishing to contribute to the future direction of Irish and UK accounting standards can submit a response to this. Details of the questions raised by the FRC and how to respond are contained in the “Invitation to comment” section of FRED 82. A summary of the changes proposed in FRED 82 can be found in our recent event with the FRC. The IASB have issued their Supplementary Update April 2023.  This Update highlights preliminary decisions of the International Accounting Standards Board (IASB). Projects affected by these decisions can be found on the work plan. The UK Endorsement Board (UKEB) has published the 2023 IFRS Standards on behalf of the UK Government. Audit and Assurance  IAASA has published its annual Profile of the Profession for 2022. This contains statistical data provided by the six Prescribed Accountancy Bodies (‘PABs’) within IAASA’s supervisory remit. The Profile of the Profession presents an overview of the PABs’ members and students and includes statistics about the PABs’ regulatory and monitoring activities. The FRC has issued a new web page providing conversation starters to help promote better engagement between investors and audit committees. The goal of this is to facilitate better understanding of companies and their approach to financial reporting and internal control. Sustainability The International Sustainability Standards Board (ISSB) will shortly be seeking feedback on its future priorities for the next two years. In May 2023, the ISSB plans to publish a request for information about its agenda priorities with a comment period of 120 days. Anti money laundering, terrorist financing The National Crime Agency in the UK has recently issued its April 2023 edition (Issue 19) of SARs IN ACTION. It contains items such as a summary of the 2022 SARs Annual Report (which can be accessed in full here), which features statistics covering the years 2020-21 and 2021-22, an article on modern slavery and human trafficking, and looks at SARs related to cryptocurrency and  trust or company service providers. It also has some information on the new SARs portal and on two new podcast episodes on Evolving Payments and Banking Firms and the UK Fraud Communications Toolkit. Other Areas of Interest   Accountancy Europe’s latest online blog ‘Beyond the books: soft skills as important for accountants as technical knowledge’ by Jens Poll, AE Deputy President, discusses how, if the profession wants to be a part of the transition and accompany clients through it, we must adapt and be open to change. Soft skills and openness help build long-lasting client relationships based on mutual communication. With time and trust, our advice becomes more diverse and personal. The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published the third edition of its Data Quality Report under the European Markets Infrastructure Regulation (EMIR) and the Securitised Financing Transactions Regulation (SFTR) reporting regimes.  The report highlights the increased use of transaction data by EU financial regulatory authorities in their day-to-day supervision and identifies significant quality improvements following a new approach to data monitoring. The Dept. of Enterprise Trade & Employment has published its April 2023 Enterprise newsletter. It includes details on a couple of consultations, one on the EU proposal for a directive on liability for defective products and a consultation on guidelines for the export of cyber-surveillance items. It also includes the latest round of the Online Retail Scheme where retailers can access up to €25,000 in grant funding to strengthen their ecommerce capabilities. Details of application requirements including provision of statutory accounts can be found in the link in the newsletter and submissions should be made by 3rd May 2023 at 12.00pm (noon). The Companies Registration Office has delayed the implementation of the CRO PPSN project which was due to go live on April 23rd. The CRO have indicted that it is a short delay and we will keep you updated. In the meantime, members are advised to continue to prepare for the new requirements. We are pleased to have recently launched new webpages providing information and resources to members in the area of protected disclosures legislation. The pages are located on the Institute’s technical hub. Click here for the protected disclosures landing page. The pages cover both the Republic of Ireland and the UK and deal with areas such as updates to Irish legislation since the commencement of the Protected Disclosures (Amendment) Act 2022 earlier this year. For example, an expanded definition of worker, wrongdoing and penalisation. The pages also deal with reporting requirements including the new internal reporting channel and procedures required under the 2022 Act. The pages also collate some of the many resources available on the topic. We hope members will find the new resource useful. For further technical information and updates please visit the Technical Hub on the Institute website.         

Welcome to this week’s Technical Roundup.   In developments this week, the World Council of Credit Unions has recently released its 2023 International Advocacy Sustainable Finance Report, ‘What Credit Unions should know about Sustainable Finance’ which highlights important issues, trends, and recommendations to promote sustainability in the global financial sector; the European Financial Reporting Advisory Group (EFRAG) has published its March 2023 update which summarises public technical discussions held and decisions taken during the month. Read more on these and other developments that may be of interest to members below.  Audit and Assurance  The International Ethics Standards Board for Accountants (IESBA) has released final revisions to the International Code of Ethics for Professional Accountants (including International Independence Standards) to further increase the Code’s robustness and expand its relevance in a world being fundamentally reshaped by rapid technological advancements and accelerating digitalization. Financial Reporting The European Financial Reporting Advisory Group (EFRAG) has published its March 2023 update. This summarises public technical discussions held and decisions taken during the month including the publication of its final comment letter in response to the IASB’s Exposure Draft 2023/1 International Tax Reform – Pillar Two Model Rules (Proposed Amendments to IAS 12). EFRAG has completed its due process regarding the Amendments to IAS 1 Presentation of Financial Statements and has submitted its Endorsement Advice Letter to the European Commission. The amendments to IAS 1, which EFRAG has endorsed, include; Classification of Liabilities as Current or Non-current (January 2020); Classification of Liabilities as Current or Non-current - Deferral of Effective Date (July 2020); and Presentation of Financial Statements: Non-current Liabilities with Covenants (October 2022). Accountancy Europe has issued its response to the IAASB’s consultation on its proposed strategy and work plan for 2024-2027. The IFRS Foundation has published its 2022 Annual Report. The International Sustainability Standards Board (ISSB) has issued its supplementary April 2023 update which highlights preliminary decisions of the ISSB in the month. The IFRS Interpretations Committee (IFRIC) has issued its Q1 2023 podcast. The topics discussed include Definition of a Lease—Substitution Rights (IFRS 16 Leases) and a question relating to Premiums Receivable from an Intermediary (IFRS 17 Insurance Contracts and IFRS 9 Financial Instruments). The International Accounting Standards Board (IASB) has decided to finalise amendments to IAS 12 Income Taxes following the Pillar Two model rules published by the OECD. The amendments will provide temporary relief for companies from having to account for deferred taxes arising from the implementation of the Pillar Two model rules and will introduce targeted disclosures for affected companies. Separately, the FRC has released FRED 83 which proposes a similar exception to be included in FRS 102. Other Areas of Interest   With effect from 23 April 2023, company directors will be required to provide their PPS numbers in order to file certain documents with the Companies Registration Office. One purpose of this important step is to reduce the incidence of companies being incorporated based on false director details. Failure to comply, without just cause, will be a criminal offence. Given the reasons underlying this requirement, the CEA will, as appropriate, take prosecutions where non-compliance comes to our attention. In order to assist company directors in understanding their new obligations, the CEA has prepared an Information Note. The UK Department for Business and Trade have conducted a review to consider how the whistleblowing framework currently operates, including Public Interest Disclosure Act 1998 (PIDA) and subsequent legislative and non-legislative interventions.  It is expected that the research will be concluded by Autumn 2023. The World Council of Credit Unions has recently released its 2023 International Advocacy Sustainable Finance Report, ‘What Credit Unions should know about Sustainable Finance’ which highlights important issues, trends and recommendations to promote sustainability in the global financial sector. The report acknowledges the efforts by regulatory and standard-setting bodies in addressing climate-related financial risks and promoting sustainable finance, emphasizing the importance of proportionality language in regulatory frameworks and considering the unique benefits of the cooperative model of credit unions. The Irish Dept of the Environment Climate and Communications has opened registration for its next sustainable development goals national stakeholder forum in the Aviva Stadium on April 25th. This is a hybrid event. The meeting will focus on Ireland’s 2023 Voluntary National Review (VNR) which is a progress report reviewing a country’s progress towards achieving the Sustainable Development Goals. Go to this page for registration and an agenda will  be posted shortly. Minister of State for Trade Promotion, Digital and Company Regulation, Dara Calleary TD, will later this month launch a public consultation on proposals to enhance the Companies Act 2014.  The Department of Enterprise, Trade and Employment will seek views on a proposed Companies (Corporate Governance, Enforcement and Regulatory Provisions) Bill which will focus primarily on four areas of company law - corporate governance, enforcement, administration and insolvency. The Minister for Finance Michael McGrath today has published the terms of reference for the Department of Finance to conduct a review of Ireland’s funds sector and produce a report ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets.’ This body of work will seek to ensure that Ireland maintains its leading position in asset management and funds servicing and that we continue to see support for our national and regional economies. For further technical information and updates please visit the Technical Hub on the Institute website.     

Clever branding can mean the difference between success and failure for small businesses competing in a crowded market, writes Gerard Tannam Branding is a tool available to every business. Every type of business can compete for their best customers with a strong brand that influences choice.  Because a smaller business can play to the singular strengths of its brand relationships with customers to distinguish it from others, it can level the playing field with its own competitive advantage. A strong brand is good for business. It provides an advantage over competitors by distinguishing a business from them in a way that matters to customers and influences their choices.  Despite its importance, however, this simple business tool, which is available to every business, is often misunderstood, underestimated, and underused, particularly by smaller companies. ‘Brand’ can be defined in many ways: as a mark of origin or quality, as image or reputation, as a proposition or promise, and even as a badge of community or a shared belief system.   None of these definitions is entirely satisfactory, however. While each definition says something true about what a brand is or can be, none captures the part a brand plays in choice. A definition of brand As well as being a tool that businesses use to influence choice, brand is also the tool that customers use to make their choices and reassure themselves that they are correct.  When customers are spoilt for choice or do not have the time or inclination to analyse every buying decision, they often rely on brand to help them choose. And so, the brand tool is used in two different though complementary ways:  a business uses brand to help it become the natural choice of its customers;  its customers use brand to help them make the right choice of product or service.  A brand is a tool that influences choice by reflecting the relationship between buyer and seller and the value they exchange. Marks of quality or identity, such as names, symbols or logos, are means of representing the brand relationship and its value, rather than being the brand. Wedding rings, for example, symbolise a relationship (marriage) between two people – they are not the relationship itself.  The brand bridge To understand brand and how it works, consider the relationship between buyer and seller as a ‘bridge’. Just as a bridge is designed to enable people to cross over safely, quickly, and easily from one side to the other, a brand bridge enables people to exchange value safely, quickly, and easily. The two-way traffic on the bridge of give-and-take between buyer and seller suggests a partnership of equals, both of whom want something the other has and must agree on the value to be exchanged through the transaction. Brand bridges are more handshake than arm wrestle, a basis for good and sustainable business. A definition of branding Defining brand as a tool for business leads to a definition of ‘branding’ as the influencing of choice by building a relationship between buyer and seller based on the value they exchange. A brand relationship establishes a connection between a business and its customers around the value each understands the other is offering.  Branding involves putting the brand relationship to work to build and maintain the commercial relationship with existing customers and turn potential buyers into new customers. Why branding matters to small businesses Success in business comes down to an ability to influence choice. A superior product or service only takes a business so far.  Many hardworking businesses have brought an exceptional offering to market and failed. To be successful, a business must influence enough of the right kind of customer to choose what it brings to market. Brand relationship plays a critical role in the choices customers make. Even in a busy marketplace, where customers are spoilt for choice, a strongly branded business can lead its market and command a premium for its product or service.  Every business has a brand, strong or weak. The brand’s strength or weakness results from actions taken by the business in building the relationship with its customers.  A strong brand is especially important for small businesses, which are unlikely to have the spending power or marketing resources available to larger competitors.  The smaller business can play to the strengths of its brand relationship with its customers to distinguish it from other businesses in the marketplace, and so level the playing field.  Five steps to defining a brand 1. Define the value to be exchanged The value to be realised through the brand relationship is not set by one side or the other but must be agreed. For any relationship to work both parties must continue to see and realise its value.  However, while the brand relationship is defined by the value sought by the buyer and offered by the seller, this must at least match the seller’s asking price for the exchange to work.  The asking price, which the business requires for the exchange to be profitable, is a useful starting point for defining value.  This is typically based on the costs of the resources the business must invest in the relationship, plus its margin or premium.  Then the business considers how the customer is likely to rate the benefits on offer, if this accumulated value matches or tops the asking price, and whether they are likely to  pay it.  2. Identify and target the ‘best customer’ For the brand relationship to work, it is vital that the business carefully chooses the type of customer with whom it and its value proposition are best matched.  When business development lacks focus, a business will attract a wide variety of prospective customers, some well matched with it, but many not.  A business that deals with too broad a mix of customers will struggle to profitably realise the value in many of its individual transactions.  A well-matched or ‘best customer’, on the other hand, will add predictable and significant value to the exchange and deliver the premium that the business needs. Your best customer:  needs what you have to offer, considers it essential;  wants what you are offering, finds it highly desirable; values what you offer, prioritises it above all others; engages fully with all of the elements of your offering, not just its purchase; can pay for it (an ability not confined to affordability). 3. Identify and fix the customer’s ‘key problem’ People buy from other people to fix what they experience as a problem and to enjoy the benefits that result. Potential customers are more likely to be ‘best customers’ when they consider that the product or service offered by a business fixes their key problem. There are two aspects or sides to a customers’ key problems: the practical and the social.  The practical is what the product or service does and the direct, functional benefits it provides, while the social is how the customer relates to others and the world through their choice of that product or service and can be understood in terms of how it makes them feel.   For example, someone is thirsty and buys bottled water. Any bottled water will do. Another customer is thirsty but is concerned that many bottled water products use irreplaceable natural resources.  They choose a brand of water that is carbon-neutral with recycled packaging. The business with the sustainable brand has found its best customer; the customer has used brand value to meet all their needs and fix their problem. 4. Identify and fix both aspects of the key problem More customers are choosing products and services that fix the practical and social aspects of their problems, so it is important that a business identifies both aspects and determines the role that it will play in fixing them. This role must go deeper than the complementary role of seller to the customer’s buyer, and deeper too than the functional role played by the business in fixing the practical problem. When the product or service offered by a business is largely the same as that offered by its competitors, it is the role that the business plays in resolving the social aspect of its customer’s key problem that adds real value, and greater profitability, to the transaction. For example, a business owner seeks an accountant to prepare monthly accounts to support their management of the business. Any suitably qualified accountant can answer this practical aspect of the business owner’s problem.  However, the owner struggles to make sense of how accounts relate to their business and can feel overwhelmed and helpless.  They will choose an accountant that fixes this personal (social) part of the problem, guiding and advising the owner to help them to understand the numbers and the performance of their business. 5. Provide information required for the buying decision When customers are considering which product or service to choose, they will search for some or all of 10 types of information about how a business solves their key problem: Attraction – ‘What is it about this offer that appeals to me?’ Engagement – ‘What tells me that it is right for me?’ Demonstration – ‘How does this offer work?’ Sample – ‘How can I try it for myself?’ Testimonial – ‘Who else has benefitted from this offer?’ Proposition – ‘How do I take up this offer?’ Delivery – ‘How is this offer provided to me?’ Support – ‘How will you help me make the most of it?’ Recovery – ‘What will you do to help me if something goes wrong?’ Feedback – ‘How will I let you know what I think of your offer?’ Final word When the success of a business depends on the effectiveness of its brand in influencing choice, building brand relationships should not be left to chance.  Branding is a tool available to every business. Every type of business can compete for their best customers with a strong brand that influences choice.  Because a smaller business can play to the singular strengths of its brand relationships with customers to distinguish it from others, it can level the playing field with its own competitive advantage.   Gerard Tannam is founder of Islandbridge, a brand planning and strategic development company

Revenue has announced it is extending the ROS return filing and payment date for certain self-assessed income taxpayers and taxpayers liable to capital acquisitions tax (“CAT”). The due date for the filing of the 2022 Form 11 and the payment of taxes is Wednesday, 15 November 2023. The due date is also extended to Wednesday, 15 November for CAT returns and payments for beneficiaries receiving gifts/inheritances with valuation dates ending in the year to 31 August 2023. The extension is available to taxpayers who pay and file through ROS only. Where either one of these actions is completed other than through ROS, the deadline for submission and payment is Tuesday, 31 October 2023.

On Wednesday 5 April the Institute, under the auspices of the CCAB-I, responded to the public consultation on Ireland’s personal tax system. In our response we noted that any revision of the personal tax system must take a holistic view of the overall tax mix given Ireland’s personal tax system, though progressive, relies heavily on high-income earners and international workers for a significant portion of its income tax revenues. In our summary, we noted the following: Taxpayers in Ireland face early entry into marginal rate taxation at a threshold which is currently below the average industrial wage. The intermediate income tax rate of 30 percent which has been raised in recent months should continue to be considered as part of Ireland’s future tax policy. Government should also consider indexation of income tax rates and bands as part of its future tax policy. The 3 percent rate of USC on self-employed incomes over €100,000 is inequitable and should be abolished. Tax policy must adapt to the modern working arrangements, including hybrid and remote working arrangements. SARP should be legislated for on a permanent basis given that it is overall positive from a cost-benefit perspective. The Rent Tax Credit should be made a permanent element of the income tax code and a similar credit should be introduced for mortgage holders to ensure parity of treatment. The Rent-a-Room threshold should be increased and the “cliff-edge” be removed from the relief. The personal tax system should be adapted to address the inequity of corporate landlords receiving more favourable tax treatment for the same source income. The government should avoid increasing the administrative burden of the PAYE tax system as onerous administrative requirements are a deterrent to entrepreneurism. USC and PRSI should be merged to reduce the overall complexity of the income tax system. Presently, three separate bases for returning tax/contributions on the same or similar income is not ideal from a tax policy perspective. Simplicity and efficiency are pillars of good tax policy.

Last week, Minister for Finance Michael McGrath and Minister for Public Expenditure and Reform Paschal Donohoe announced that tax revenues to the end of March were €19.7 billion, €2.5 billion (almost 15 percent) ahead of last year. The Exchequer deficit of €2.1 billion compares with a surplus of €0.2 billion in the same period last year, with the difference driven by the transfer of €4 billion to the National Reserve Fund in February 2023. Notably, corporation tax receipts increased by €1.3 billion to €3.2 billion. The increase in corporation tax has been explained as a timing issue with payments made in March which would otherwise be expected in August. At €7.4 billion, income tax receipts remained solid, up 8 percent and reflecting continued resilience in the labour market. VAT receipts increased by 16 percent to €6.8 billion. However, allowing for a technical adjustment, the underlying growth rate of VAT receipts was 12.5 percent in the first quarter. Commenting on the figures, Minister McGrath noted: “Today’s figures confirm strong momentum in our economy during the first quarter of the year. The strength of income tax shows that the labour market remains resilient, while VAT receipts suggest consumer spending remains reasonably solid. Once again, corporate tax receipts have surprised on the upside, though my officials estimate that around half of the corporate tax take is unlikely to be permanent. It is, of course, essential that windfall corporation tax receipts are not used to fund permanent expenditure. This is why I transferred €4 billion to the National Reserve Fund in February – there is now €6 billion in the Fund. I will also seek government approval in the coming weeks for a longer-term fund to meet the costs of an ageing population and other pressures that we know will arise in the future. Finally, the Government will publish the Stability Programme Update on 18th April, setting out my Department’s updated economic and fiscal assessment.” Read the full report at www.gov.ie.

The Minister for Finance, Michael McGrath, has published the terms of reference for the Department of Finance to conduct a review of Ireland’s funds sector. Ireland is a global centre of excellence for asset management and funds servicing with the latest figures showing regulated and unregulated funds in Ireland having approximately €4.6 trillion in assets under management. Nationally, the funds sector employs some 17,000 people across 180 companies. The multi-disciplinary Review Team will be led by the Department of Finance, with support from state bodies, including Revenue and the Central Bank of Ireland. It is to produce a report titled ‘Funds Sector 2030: A Framework for Open, Resilient & Developing Markets.’ and will conclude its work in summer 2024. The team will look at a range of issues, which include examining the regimes for Section 110 entities, Real Estate Investment Trusts (REITs) and Irish Real Estate Funds (IREFs). It will also examine international contexts, effects on employment and the economy and the wider taxation regime for funds, life assurance policies and other related investment products. Commenting on today’s publication Minister McGrath said: “The establishment of a Review Team to develop a ‘Funds Sector 2030’ report is a proactive step and will cover a wide range of issues from competitiveness to taxation to financial stability. Ireland is a global centre of excellence for the asset management and funds servicing and over many years this has been a driver of economic and employment growth. I am confident that a new framework will support long-term growth in this area and maintain a sustainable and resilient funds sector here. This review also fulfils recommendations from the Commission on Taxation and Welfare and will ensure that our domestic funds framework is up-to-date and takes account of the significant developments in the funds sector in recent years.” Further information is available here.