The Critical Infrastructure Bill 2026 has passed all stages in both Houses of the Oireachtas this week, moving from the Seanad to be signed into law by the President. About the BillThe legislation is designed to address delays in the development of major pieces of national infrastructure, including (but not limited to) infrastructure necessary for the delivery of transport, energy, water, waste management systems. Once enacted, the legislation will allow Government to designate a specified project or programme as a ‘critical infrastructure project’ or a ‘critical infrastructure programme’. This will mandate all relevant public bodies to prioritise its functions in relation to that project, avoid delays, reduce approval times, cooperate and coordinate with other public bodies, and allocate resources accordingly. The Bill, somewhat controversially, disapplies Section 15 of the Climate Action and Low Carbon Development Act, which requires public bodies to perform their functions in a manner consistent with the Climate Action Plan and other national climate objectives and strategies, insofar as practicable. Opponents of the Bill argue that the law limits the ability of the public to use climate legislation as the basis for judicial review, with proponents asserting that the legislation is needed to deliver critical renewable electricity projects and public transport needed to meet Ireland’s 2030 climate targets.The critical role of infrastructure Infrastructure delivery is key to unlocking economic growth and to delivering Ireland’s economic, environmental and social goals. Ireland needs approximately €250bn in investment to deliver critical infrastructure over the next ten years (the UK is expected to require £1tn over the similar timeframe). But the delivery of infrastructure is not an issue that should be reserved solely for the public sector and Government. The private sector has an enormous role to play. State funding must be augmented by private investment in infrastructure, and attracting this investment requires stronger national and international advocacy from government, businesses, and society to support a positive image of Ireland.Chartered Accountants Ireland and infrastructure Chartered Accountants Ireland advocates for a collective expression of confidence in Ireland’s ability to deliver infrastructure. Our members, as trusted business leaders, bring financial rigor, governance and professional accountability to projects, identifying and quantifying risks, mobilising private sector investment and ‘speaking the language of finance’.  As experts in financial planning, efficiencies, sequencing, and financial modelling, Chartered Accountants have the training to bring credibility and ensure value outcomes in key infrastructure projects. As part of our policy work Chartered Accountants Ireland is developing a formal position on infrastructure, with a particular focus on the need to mobilise private finance to support delivery. In our Pre Budget Submission, we call on the Government to prioritise investment in critical infrastructure particularly in the areas of housing, energy, water, and transport to reduce business costs, improve productivity, and support sustainable growth. This work aligns with the objectives of the Accelerating Infrastructure Taskforce. To inform our approach, we have been engaging with stakeholders across business and wider society to gather insights that will shape a constructive, solutions-focused contribution on behalf of our 40,000 members. We welcome member perspectives. Please email: grant.sweetnam@charteredaccountants.ie or susan.rossney@charteredaccountants.ie to contribute.

We want to remind members of their obligations under Section 623 of the Companies Act 2014. This section notes that a liquidator shall lodge any monies in respect of unclaimed dividends to an account set out by the Minister for Finance.  A person claiming to be entitled to any dividend out of a lodgement made may make an application to the court. After a period of 7 years, the amount remaining unclaimed shall be paid to into the Exchequer.

In Irish news, the Institute held an event with elected members to our launch Pre-Budget 2027 submission and the Irish Government has launched the Irish presidency of the Council of the EU. In UK news, the Institute has responded to the consultation on close company participator reporting and read our latest update on Making Tax Digital (MTD) for Income Tax. In International news, the EU FISC subcommittee on tax matters travels to Paris to discuss the international tax landscape.Irish1. The Institute met with elected members to present and discuss the proposals in our Pre-Budget 2027 submission.2. Ireland’s presidency of the Council of the EU was launched by the Irish Government last week together with a dedicated website for the Irish presidency.UK3. In our response to the close company participator reporting consultation, the Institute outlines to Government that any dual reporting of close company transactions must be avoided.4. You can read about averaging relief and the latest HMRC taxpayer awareness letters in our MTD for Income Tax update.International5. A delegation from the EU FISC subcommittee will travel to Paris this week to discuss international tax challenges including the implementation of the Side-by-Side agreement and the taxation of the digital economy.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 Cross-border developments and trading corner.   

Next week, the FISC Subcommittee will hold a session to share views on 'Cooperation in the fight against VAT fraud in the EU' with the European Chief Prosecutor (EPPO), the European Anti-Fraud Office (OLAF) and the Chair of Eurofisc.  Discussions will focus on strengthening administrative and judicial cooperation, improving exchange of information and access to VAT data, and enhancing the effectiveness of existing fraud detection tools and prevention mechanisms in the EU. 

This week a delegation from the FISC Subcommittee on tax matters will travel to Paris to discuss upcoming international tax challenges, including the implementation of the Side-by-Side agreement and the taxation of the digital economy.  Other matters to be addressed by the delegation during the visit include the taxation of ultra-high-net-worth individuals, energy taxation, VAT fraud, the fight against tax evasion, and tax simplification. 

The Irish Fiscal Advisory Council (IFAC) has published its June 2026 Fiscal Assessment Report outlining that although the economy remains strong overall, high energy costs pose risks to future growth. The report also highlights that while headline figures appear robust, they conceal underlying weakness in public finances, with a continued reliance on corporation tax receipts paid by a small number of multinational taxpayers. The report outlines that the planned pace of net spending growth is faster than the sustainable growth rate of the economy with most corporation tax receipts being spent rather than saved. As Government plans to run modest surpluses in the years ahead, IFAC notes that the Government will need to borrow to finance some of its planned contributions to its savings funds. IFAC recommends that Ireland should have its own domestic fiscal rule, as the Medium-Term Fiscal and Structural Plan is not a good guide for budget decisions. Opportunities to prepare for the future challenges of population ageing and climate change which will place significant pressure on the public finances are being missed. The report outlines four key recommendations for budgetary policy:  Ensure that budgetary policy helps to smooth fluctuations over the economic cycle.  Deliver larger surpluses to better position the Government to address future pressures. Establish a domestic fiscal rule to provide a clearer framework for budgetary decision-making.  Enhance the accuracy and transparency of budgetary forecasting. 

Last week, the Taoiseach, Micheál Martin TD launched the Irish Presidency of the Council of the European Union together with a dedicated website for the Irish Presidency (Éire2026.eu or Ireland2026.eu). The central themes of the Irish Presidency include competitiveness, values and security, with the Taoiseach confirming that Ireland will advance the ‘One Europe, One Market’ roadmap, encompassing priorities such as simplification, fair and open trade, decarbonisation and digital transformation.  The key tax priorities during the Irish Presidency include the following: Prioritise work on the tax simplification agenda and significantly progress and aim to conclude the recast of the Directive on Administrative Cooperation (DAC). Progress work on the expected Tax Simplification Omnibus which seeks to simplify several corporate tax directives, including the two Anti-Tax Avoidance Directives. Progress work of the Code of Conduct Group (Business Taxation), including updating the EU list of non-cooperative jurisdictions for tax purposes in October 2026. Ensure ongoing monitoring of the OECD Global Minimum Tax (Pillar Two rules) and implementation of the Side-by-Side solution at EU level, including timely assessment of any impacts arising. Encourage the swift implementation by Member States of further simplification measures agreed at the OECD. Engage with global partners on international tax matters, including through OECD and UN fora. Progress work on the proposed extension of the Carbon Border Adjustment Mechanism (CBAM) regulation and on the proposal for a Temporary Decarbonisation Fund (TDF). Pursue agreement among Member States on the Tobacco Tax Directive. Progress work amending the EU VAT Framework and progress any proposals made by the Commission during the Presidency. 

The skills and professional judgement we develop as Chartered Accountants allow us to address problems ranging from the most rudimentary to the most advanced. We are very fortunate that the profession is represented so well across society, but there is a particular sense of pride when we can celebrate the election of Chartered Accountants to public office in Dáil Éireann. So, last Wednesday, ahead of the launch of our Pre-Budget 2027 Submission, we invited the current Chartered Accountants who represent the public at Dáil Éireann into Pearse Street to present this year’s submission to them. We were fortunate to be joined on the day by Joe Neville TD and Edward Timmins TD. What followed was a detailed and technical discussion on our proposals, as well as a broader discussion on how Chartered Accountants can support robust decision-making from a financial perspective across government and wider society.  We are grateful that all our elected members took the time to respond to the invitation, albeit some were unable to attend as are the obligations and duties that follow public life. We will follow up with the other elected members separately in the coming months to share our insights and proposals and to further develop how the Institute can best support the wider development of tax policy. In terms of the Institute’s own advocacy efforts, the opportunity to meet with members who live advocacy day-in, day-out through their commitment public life is always an honour and a privilege for us. Ultimately professional services is about supporting economic activity and navigating regulatory challenges on behalf of businesses, individuals and families. So, when we engage with our members who represent the public at Dáil Éireann and government generally, we see this commitment to serving the public interest in its fullest expression.  

Last week, Chartered Accountants Ireland, launched this year’s Pre-Budget 2027 submission, titled “Progressing tax policy – supporting business growth, competitiveness and resilience”. You can read the full submission here. In our submission, we emphasise the importance of a balanced and disciplined policy response that prioritises capital investment, supports work and investment through the tax system, and reduces unnecessary complexity. This approach is reinforced by findings from the Chartered Accountants Ireland and GRID Finance’s SME Business Sentiment Survey, which highlight that businesses’ immediate priorities are managing rising costs and navigating tax complexities. To address rising costs, we recommend that the Government aligns income tax thresholds and credits with inflation to protect real wages and progressively reduce the CGT rate to at least 20 percent to lower the cost of investing and doing business in Ireland. In addition, simplification measures should be prioritised, with a particular focus on reducing unnecessary reporting requirements, particularly by aligning the filing of information under the Enhanced Reporting Requirements with the payroll cycle. Our submission looks at top priorities for Budget 2027 and considers other key areas for reform, some of which are currently under review by the Department of Finance.  The top priorities include:  Protection of real wages to ease cost pressures  Income tax thresholds and credits should be aligned with inflation to support employees’ take-home pay, to help mitigate upward pressure on employer wage costs and avoid fiscal drag. Fiscal drag occurs when inflation or income growth pushes taxpayers into higher tax brackets, increasing their effective tax burden despite unchanged rates. As a result, it acts as a “stealth tax,” raising government revenue while reducing households’ disposable income. Measures to reduce the cost of investing and doing business A clear pathway towards a more competitive capital gains tax (CGT) rate should be established. We believe that adopting a more moderate CGT rate would enhance the neutrality of the tax system, minimise economic distortions, and support more efficient decision-making. We recommend enhancements to the tax treatment of investments in Irish regulated funds by Irish investors and are calling for the deemed disposal rules to be abolished.  We strongly support the introduction of an Investment Account and outline our recommendations in this regard.  Simplification of the tax system, particularly for SMEs Measures that reduce compliance burdens are urgently required, and we recommend areas which require changes, such as removing the real-time reporting requirement for the enhanced reporting of benefits to Revenue, a simplification of the corporation tax returns and the modernisation of VAT compliance (albeit with appropriate safeguards for smaller businesses).  Removal of targeted distortions in the tax system Certain aspects of the Tax Acts discriminate against professional service providers. In addition, the current treatment of employer-funded professional subscriptions is contrary to the economic benefits that naturally accrue to companies who employ professionally qualified staff.  For Budget 2027, we are calling for the removal of the 3 percent USC surcharge on non-employment incomes. This measure was introduced as a temporary measure in Finance Act 2011. We are also calling for the repeal of the benefit-in-charge on company-paid professional subscriptions to support businesses and recognise the contribution of professional services to the wider economy. These measures will support competitiveness and align with international best practice. Prioritisation of investment in critical infrastructure Infrastructure gaps in housing, energy, water, and transport have become significant constraints on productivity and investment. We recommend directing public investment towards these areas to reduce business costs, enhance productivity, and support sustainable growth. Our Pre-Budget Submission also outlines the paramount importance of upholding privacy at the Tax Appeals Commission to preserve a tax appeals system that is transparent and fair. The proposals in the Finance (Tax Appeals and Fiscal Responsibility) Bill 2025 have been a focus of our advocacy efforts in recent months, as reported several times here in the Tax Newsletter.  Finally, as consultation and discussion have progressed across several areas in recent months, the Institute has been actively contributing to the Department of Finance as it continues to consider enhancements to the R&D tax credit; progresses Phase One of its review of Ireland’s taxation regime for interest; and, address barriers to an all-island labour market. We acknowledge the ongoing work within Government on these areas, and the Institute will continue to engage closely as this work advances.

In this week’s cross-border trading corner, we bring you the latest guidance updates and publications. The most recent Trader Support Service bulletin is also available as is the latest Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. The UK and the Gulf States have recently agreed terms for a new free trade deal. The latest joint statement of the UK and EU’s Domestic Advisory Groups, which Chartered Accountants Ireland participates in, has been published. The Government has published guidance on the customs changes which take effect from 1 July 2026 when the EU removes the exemption from customs duty for parcels valued at €150/£135 or below (guidance will be published in due course on movements into Northern Ireland). Guidance has also been published by the EU. And finally, the House of Lords Northern Ireland Scrutiny Committee has opened an inquiry into Article 2 of the Windsor Framework. Miscellaneous guidance updates and publications This week’s miscellaneous guidance updates and publications are as follows:  Apply for temporary approval, VEXP80310 - Examples of various export scenarios and VAT treatments: Examples involving exports to associated companies outside the UK: Supplier delivers the goods directly to a non-UK branch of a UK business, Appendix 2 C21e: Data Element 1/11: Additional Procedure Codes, Appendix 1: DE 1/10: Requested and Previous Procedure Codes of the Customs Declaration Service (CDS), 4-digit to 3-digit procedure to additional procedure code correlation matrix for imports, Appendix 2 C21i: DE 1/11: Additional Procedure Codes, Navigate the CDS Declaration Instructions for Imports, Simplified procedures exclusion list of procedure and additional procedure codes for CDS, Appendix 1 Inventory Imports: DE 1/10: Requested and Previous Procedure Codes, 4-digit to 3-digit procedure to additional procedure code correlation matrix for inventory exports, Appendix 1 Inventory Exports: DE 1/10: Requested and Previous Procedure Codes, 4-digit to 3-digit procedure to additional procedure code correlation matrix for inventory imports, Appendix 2: DE 1/11: Additional Procedure Codes of the Customs Declaration Service (CDS), Customs declaration completion requirements for Great Britain, and Customs CDS Volume 3 Tariff, Step-By-Step Guide. 

In a detailed miscellaneous update which you can read more about below, HMRC’s VAT Assist team is seeking volunteers to help develop their new service.  In addition to the above, readers should also note the following:  The latest HMRC Stakeholder Digest is available, HMRC has published an updated list of its various stakeholder forums, many of which we participate in on behalf of members, The Federation of Small Businesses is calling for the employment allowance to rise at the Autumn Budget and for the trading allowance to be tripled to help young entrepreneurs, Last month HMRC’s new targeted advance assurance scheme for SME’s making their first research and development tax relief claim open for support. Guidance on the process has also been published, HMRC has published the advisory fuel rates which took effect from 1 June 2026 for employees using a company car, The House of Commons Library has published a research briefing on the Budget 2025 announcements on the higher income tax rates for property, savings and dividend income, and Tax Policy Associates has published a chart and article on the 90 taxes in the UK. HMRC VAT Assist team seeks volunteers HMRC’s VAT Assist team is seeking volunteers to help develop their new service. As part of ongoing development work, the project team is looking to test the latest designs with the people who will be using the service when it goes live. This helps HMRC make sure it is building the service in the right way ahead of official launch and provides end users with an opportunity to have their voice heard.   What is VAT Assist? VAT Assist will allow users of 3rd party VAT software to get tailored feedback on their draft VAT return within their software. The feedback will be based on the wealth of data HMRC holds and complex analytics.   Who the project team would like to speak to They’d like to speak to people who are responsible for submitting VAT returns on behalf of a micro or small business. This includes:  Business owners or their employees, and Agents such as accountants, bookkeepers, or tax advisors. They’re especially interested in engaging with people who do not have a lot of experience completing their VAT return or don’t feel very confident about VAT. The project team is looking for around 30-40 volunteers for this round of research. However, more research is planned for later in the year. What does this involve? The project team will be inviting people to take part in online research sessions. The findings from these sessions will be shared with the project team to inform development of the live service. Research will be conducted from mid-June to the end of August. Data protection and anonymity Researchers only collect the data they need to organise and run research sessions. Any personal data they do collect will be saved in a secure SharePoint drive and is only used for research purposes. Any quotes used from research participants in the reports will be anonymised. How to sign up for research Volunteers can sign up to research here. 

HMRC has begun sending a final batch of awareness letters to taxpayers, and we provide an update on averaging relief in the context of Making Tax Digital (MTD) for Income Tax exemptions. Letters to taxpayers HMRC has advised that a final awareness letter is being issued to taxpayers mandated in the over £50,000 income cohort. This final round is being sent to taxpayers who either filed their 2024/25 tax return after 31 January, or amended a previously filed return bringing them into scope of MTD for Income Tax  from April 2026.  Consistent with earlier awareness activity, the letter explains that taxpayers need to use MTD for Income Tax because their total income from self-employment and property was over £50,000 in their 2024/25 return. It also signposts the guidance and information needed to prepare.  The dispatch of this final round of letters has now started, with taxpayers expected to receive them imminently. Taxpayers have been encouraged to share this letter with their agent where appropriate.  Guidance on averaging relief HMRC has recently changed its guidance on claiming averaging relief which means that in 2024/25 such individuals may not automatically be exempt from MTD for Income Tax in 2026/27.  By way of reminder, claims for  averaging relief are made via either the SA103 supplementary page to the Self-Assessment (SA) return for individuals or for partnership income via the SA104 supplementary page.    The making of a claim for averaging relief is one of the circumstances in which an exemption may apply from MTD income tax for 2026/27.    If an individual made a claim for averaging relief via the SA103 in 2024/25, they are automatically exempt from MTD income tax for 2026/27. If this was not the case, and the individual reasonably expects to make a claim for averaging relief in 2025/26 or 2026/27, they must instead apply to HMRC for exemption.   Note that although MTD for Income Tax does not apply to partnerships, a partner will be within scope if their individual total gross qualifying income from sole trades and property businesses exceeded £50,000 in 2024/25.  HMRC’s updated guidance says that if a partner claimed averaging relief using the SA104 in 2024/25, they are not automatically exempt from MTD income tax for 2026/27 and must apply to HMRC for exemption. Previously, this guidance stated that such individual partners would be automatically exempt. A partner must again apply for exemption if they reasonably expect to make a claim for averaging relief in 2025/26 or 2026/27.  Further information is available in the following guidance:    Apply for an exemption from Making Tax Digital for Income Tax, Check reliefs and rules for farmers and market gardeners (Self Assessment helpsheet HS224), and Averaging for creators of literary or artistic works (Self Assessment helpsheet HS234).