Brian Purcell examines the potential impact of future political alliances on Ireland's tax landscape, exploring party policies on wealth and income taxes Besides the actual results, the general election had two significant outcomes: the centre held, and a vote for the far right did not materialise. But for how long will the centre hold in Ireland? From a tax perspective, it is interesting to review the manifestos of each of the main political parties. Although they all agree on preserving the 12.5 percent corporation tax rate, they diverge on how those with wealth and higher incomes should be taxed. Fianna Fáil and Fine Gael promise tax cuts for all, subject to continued tax receipts buoyancy, while left-leaning parties advocate wealth taxes and an increase in income tax for high earners. Such taxes are highly unlikely to be introduced by a new coalition government of Fianna Fáil and Fine Gael. However, any future alliance between Sinn Féin, the Social Democrats and the Labour Party would be a real alternative government, with some commentators speculating that such an alliance could secure 40 percent of the vote at a future general election. So, their proposals should be taken seriously. If you read the Sinn Féin, Social Democrats and Labour Party manifestos, you will see that they have much in common regarding taxing those with higher incomes and wealth. Each proposes a wealth tax. Labour is proposing a Spanish-type wealth tax which levies an annual tax on individuals whose non-exempt assets exceed €2 million at progressive rates up to 3.5 percent. The Social Democrats propose an annual wealth tax of 0.5 percent on assets over €1 million and one percent on assets over €2 million, again with certain assets excluded. Sinn Féin also proposes a wealth tax, but before doing so, they recommend a taxation commission to examine how best to implement it effectively. As well as a wealth tax, Labour proposes an increase in tax rates for wealth transactions (not defined). Sinn Féin proposes a three percent solidarity tax for incomes over €140,000 and reducing tax subsidies on what they describe as gold plate pension schemes. The Social Democrats would introduce an exit tax for individuals who leave Ireland for tax purposes. Each party proposes restricting tax credits for those earning over €100,000. We only have to look at the most recent Commission on Taxation and Welfare Report to see the types of taxes that could be introduced to expand the tax base. Reporting in 2022, the Commission made several recommendations: The abolition of the capital gains tax exemption on gains from selling a family home. Capital gains tax payable on transfers of assets on death. The parent/child gift/inheritance tax threshold (currently €400,000) significantly reduced. Limits on the quantum of assets which qualify for business relief from gift/inheritance tax. Restrict the remittances basis for non-domiciled individuals to three years. Increase the self-employed PRSI rate from 4 percent to 11.05 percent. Interestingly, however, they did not recommend the introduction of a wealth tax. Although the outgoing Government rejected most of their recommendations, I am not sure a future left Government would. It should also be remembered that most of our European neighbours are now seeking a greater tax yield from higher earners and those with wealth. Indeed, research on the Irish tax system suggests that the tax base must be widened for additional tax revenue, which will be required because of the uncertainty on the corporation tax yield and our ageing population. Higher earners and those with assets could be a soft touch. Brian Purcell is Partner and Co-Founder Purcell McQuillan Tax Partners.

  In this week’s Sustainability/ESG bulletin read about the final agreement at the global climate conference COP29, socially responsible public procurement, decarbonisation of commercial buildings, the Government response to business flooding, and an All-Ireland Climate Action Pilot Programme for SMEs. Also covered are consultations on the UK ETS, moves to streamline overlapping EU sustainability regulations, reports into CSDDD implementation, and the risk and return of impact investing funds, and more.     Ireland news   Institute responds to IASB exposure draft on climate-related risks in the financial statements" Chartered Accountants Ireland’s Professional Accounting Team has issued its response to the International Accounting Standards Board’s (IASB) Exposure Draft “Climate-related risks and Other Uncertainties in the Financial Statements”. The Exposure Draft, which proposes eight examples illustrating how entities may apply the requirements in IFRS Accounting Standards to report the effects of climate-related and other uncertainties in its financial statements, was issued by the IASB in July 2024. COP29 – the Baku Finance Goal Chartered Accountants Ireland covered the global climate summit ‘COP29’, which concluded in the early hours of Sunday morning, 24 November in Baku, Azerbaijan. The gavel descended on the fourth longest COP on record agreement on ‘The Baku Finance Goal’, a new finance target for tackling climate change. Read our COP29 coverage.    Socially Responsible Public Procurement The Department of Rural and Community Development has published research identifying future trends of social enterprise development, inclusive and ethical supply chains, and an overall shift towards socially-conscious business models. The publication, Buy social' and Socially Responsible Public Procurement Research Paper, benchmarked 10 countries across the UK, Europe and North America and delved into the concept of ‘Socially Responsible Public Procurement’ (SRPP), which aims to achieve positive social outcomes in public procurement contracts. Decarbonisation of Commercial Buildings Roadmap - update The Climate Action and Energy Policy Unit of the Department of Enterprise, Trade and Employment has published an update on its work on decarbonising the commercial built environment. In a presentation to the Retail Forum Green Transition Working Group, the Unit provided a status update to the Decarbonisation of Commercial Buildings Roadmap, which is in final draft form and awaiting sign off by the incoming Government, after which it be published. New Climate Action Roadmap published by DHLGH The Department of Housing, Local Government & Heritage has published a Climate Action Roadmap detailing how it aims to meet its 2030 carbon and energy efficiency targets and implement the requirements of the Climate Action Mandate 2024. Corporate and Business Support, and the Local Government Audit Service are among the 10 divisions through which the Department will carry out its work to meet the requirements of the mandate.  Government response to flooding for businesses The Minister for Enterprise, Trade and Employment, Peter Burke, T.D., has confirmed that his department will seek government approval to reopen the Emergency Humanitarian Flooding Scheme. The scheme has previously been opened to provide support for businesses who had been unable to secure flood insurance and were impacted by flood water as a result of severe weather events. All-Ireland Climate Action Pilot Programme for SMEs launched Business in the Community Ireland (BITCI) has launched its insights report on an All Ireland Climate Action Pilot Programme for Small and Medium sized Enterprises (SMEs). BICTI developed the pilot programme in response to a strategic review of SMEs in Ireland in late 2023 to explore how BITCI could support the decarbonisation transition of SMEs. The research shows how SMEs are already being impacted by climate change, that engaging suppliers meaningfully is crucial in successfully decarbonising supply chains, and that expanding national engagement and exploring international collaborations will also be key in developing future programmes.   Northern Ireland/UK news The consultation on adraft environmental principles policy statement (EPPS), issued by the Department of Agriculture, Environment and Rural Affairs (DAERA), is closing shortly on Monday, 9 December. The statement sets out how five internationally recognised environmental principles should be interpreted and proportionately applied to policy making. When fully in force, all Northern Ireland government departments and United Kingdom government ministers making policy for NI will have a statutory duty to have due regard to the statement. The consultation close on Monday, 9 December. The UK Environment Agency has launched a consultation on the updated charges proposed for United Kingdom Emissions Trading Scheme (UK ETS) customers, as well as customers of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), and charges for the UK’s Kyoto Protocol national registry (the national registry). The consultation also sets out charge proposals for areas of UK ETS expansion. The consultation will close on Friday 24 January 2025, and further details can be found on the Environment Agency website.   The Offshore Wind Growth Partnership (OWGP) is supporting businesses looking to enter or grow within the offshore wind supply chain through the Wind Expert Support Toolkit (WEST). Applications will close at 5pm on Friday 24 January 2025 and details of the WEST programme and how to apply are here.   Europe news The European Commission has reportedly announced plans to streamline overlapping sustainability regulations into a single, cohesive framework, or ‘omnibus regulation’. The aim is to reduce the regulatory burden on companies while maintaining the EU’s leadership in sustainability. Certain sustainability legislation, including the  Corporate Sustainability Reporting Directive, the EU taxonomy and the Corporate Sustainability Due Diligence Directive may be amended into a single omnibus regulation. The EU executive is still to make a final decision on the issue.   World News The World Benchmarking Alliance has published a briefing titled How to ensure inclusive and impactful CSDDD implementation, with recommendations for governments, civil society and businesses on how to “engage constructively” with CSDDD implementation. Recommendation for business include preparing proactively for compliance and engaging transparently with government and stakeholders; recommendations for investors include integrating CSDDD compliance into investment criteria and stewardship and demanding transparent reporting from investee companies.   The fifth and ostensibly final round of talks on securing a legally binding and universal plastic treaty failed to deliver consensus this week Busan, South Korea. Commenting at the outset for the talks, Intergovernmental Negotiating Committee chair Luis Vayas Valdivieso, said: “Without significant intervention, the amount of plastic entering the environment annually by 2040 is expected to nearly double compared to 2022.”The OECD calculates that the introduction of strict policies targeting the full plastics lifecycle would result in a global GDP contraction of 0.5 per cent in 2040 but that the costs of inaction are likely to be far higher   A report into impact investing has found that impact funds tend to be less exposed to market risk than traditional venture capital and private equity funds. The report, The Risk and Return of Impact Investing Funds, published by Journal of Financial Economics, reportedly used a data set of 94 private markets impact funds covering cash flows from 1999 to 2021 to address a lack of publicly available impact fund cash flow data.   Spain’s government has reportedly approved a new “paid climate leave” entitlement of up to four days to allow workers take time off if unable to travel to their place of work in the event of official warnings of extreme weather conditions. The measure was agreed a month after floods in Valencia — estimated to cost the country 0.2 per cent of GDP this quarter — killed more than 200 people.    A report on the economic cost of extreme weather commissioned by the International Chamber of Commerce has found that climate-related extreme weather events have cost the global economy more than $2 trillion over the past decade. A 2023 report by S&P Global, Quantifying the financial costs of climate change physical risks for companies, had previously shown that the financial impacts of climate change on major companies nearly doubled from the 2050s to the 2090s, and that by the 2050s, the costs of the physical hazards of climate change could equal an average of 3.3% (up to 28%) a year of the value of major companies’ real assets. Commenting on the 2024 reporting findings, ICC secretary-general John Denton described ‘a real and tangible cost to delaying the action needed to stem climate change’ and that ‘from a business perspective, the urgency of coordinated and collective action to accelerate emissions reductions and build resilience to changing weather patterns cannot be overstated’.   Technical update Our Professional Accounting team have a published their Technical Roundup, with updates on the EU Taxonomy,  KPMG’s Survey of Sustainability Reporting, a recent EFRAG webinar on ESRS for Non-EU Groups, updates from IFRS and ISSB and a link to the Accountancy Europe November 2024 Sustainability Update.   Did you know? Entries are now open for the Business & Finance ESG Awards which celebrating businesses and individuals actively striving to address and progress ESG issues in their organisation. Articles Businesses need to improve reporting sustainability matters, ACCA says (AccountancyToday) Strengthening ESG strategies ahead of 2025 reporting deadlines (Accountancy Ireland – Briefly)   Upcoming Events   MEANZ Business Webinar: Net Zero and Decarbonising your business Mid and East Antrim Borough Council is inviting businesses to the latest webinar in the MEANZ Business Net Zero Insights Series. You will hear about what Net Zero 'MEANZ' for businesses and get practical tips from expert speakers on how you can decarbonise to reduce overheads, save costs and get competitive advantage. Speakers at the event will be James Dunlop, Senior Manager, Carbon Trust, and Mark McEvoy, Sales Director, Camden Group. Virtual, Thursday 5 December, 11.00 – 12.00            You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.  

Earlier this year the FRC published an update to its Ethical Standard for auditors, effective from 15 December 2024. The updated ethical standard simplifies the existing ethical standard and provided additional clarity in a limited number of areas. the new standard takes into account recent revisions made to the international IESBA Code of Ethics. there is a new targeted restriction on fees from entities related by a single controlling party. Following feedback to their consultation, the FRC have amended the proposals to ensure that the requirements in the standard are better targeted and proportionate. For example, additional requirements in respect of ethical breach reporting by audit firms to the regulator have been removed. With regard to tax services provided to the controlling shareholders of unlisted companies the FRC is enhancing the independence risk assessment around these services rather than specifically prohibiting them. Alongside the revised Ethical Standard, the FRC has also released guidance for auditors on the application of the Objective, Reasonable and Informed Third Party test, which forms a key part of many requirements in the Ethical Standard. Read the updated Ethical Standard. Read the feedback statement and impact statement. CAI responded to the FRC consultation and you can read our response here.  

Welcome to the latest edition of Technical Roundup which is published on the first and third Friday of every month. In developments since the last edition, Chartered Accountants Ireland has issued its response to the International Accounting Standards Board’s (IASB) Exposure Draft ‘Climate-related risks and Other Uncertainties in the Financial Statements’.  The Pensions Authority has published a dedicated website page for information on the Digital Operational Resilience Act (DORA). Read more on these and other developments that may be of interest to members below. Audit and Assurance IAASA has published Inspection Insight Series 5: International Standard on Quality Management Ireland 1 (ISQM 1). This paper sets out the key requirements for audit firms relating to ISQM1, IAASA’s findings from their quality assurance reviews and areas of good practice noted by IAASA.  The Financial Reporting Council (FRC) has published its annual report on the quality of major local audits, which also sets out how it will continue to support the local audit system to recover from delays in the publication of audited accounts. The FRC has published its annual Audit Market and Competition Update for 2024. The report shows that in the UK the Big Four audit firms continue to dominate the market earning 98% of FTSE 350 audit fees and 90% of all PIE audit fees. However, challenger audit firms’ share of FT350 audit engagements grew to 13% in 2023. The FRC is evolving its approach to audit market competition, addressing stakeholder concerns such as differences in quality between the largest and smaller audit firms. You can access the report on this link. Earlier this year the FRC published an update to its Ethical Standard for auditors, effective from 15 December 2024. The updated ethical standard simplifies the existing ethical standard and provided additional clarity in a limited number of areas. the new standard takes into account recent revisions made to the international IESBA Code of Ethics. there is a new targeted restriction on fees from entities related by a single controlling party Read more and access the revised standard here. Financial Reporting Chartered Accountants Ireland has issued its response to the International Accounting Standards Board’s (IASB) Exposure Draft “Climate-related risks and Other Uncertainties in the Financial Statements”. The Exposure Draft, which proposes eight examples illustrating how entities may apply the requirements in IFRS Accounting Standards to report the effects of climate-related and other uncertainties in its financial statements, was issued by the IASB in July 2024. The UK Endorsement Board has also published its Final Comment Letter and Feedback Statement in response to the same Exposure Draft. EFRAG, the European Financial Reporting Advisory Group has published its October 2024 update which summarises public technical discussions and decisions taken during the month. The Financial Reporting Council (FRC) has updated their suite of factsheets addressing FRS 102. For more information on this please see our news item here. The FRC has published its Annual Review of Corporate Governance Reporting. EFRAG has published its Final Comment Letter on the IASB's Exposure Draft Translation to a Hyperinflationary Presentation Currency - Proposed amendments to IAS 21. EFRAG has published its Final Comment Letter on the IASB's Exposure Draft Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures. The UK Endorsement Board has also published its response to this Exposure Draft. EFRAG’s discussion paper “The Statement of Cashflows objectives, usages and issues” has been published, with the objective of listing the perceived issues with cash flow statements presented in accordance with IAS 7. Comments are requested by EFRAG by 15 May 2025. The International Accounting Standards Board has published its November 2024 update and podcast. Insolvency The CCAB-I Insolvency Committee has recently published Technical Alert 03/2024 Succession Planning for Insolvency Practitioners. Insolvency appointments are taken in a personal capacity by an Insolvency Practitioner, who has an obligation to ensure that cases are properly managed at all times, and to have appropriate contingency arrangements in place to cover a change in the Insolvency Practitioner’s circumstances. This Technical Alert maps out a succession plan for an Insolvency Practitioner and covers some of the high-level considerations and discussion points to be considered by Insolvency Practitioners. Sustainability The European Commission has published a set of frequently asked questions (FAQs) to support stakeholders in the implementation of the EU taxonomy, a classification system for sustainable economic activities. The FAQs provide technical clarifications regarding various elements of the EU taxonomy. Examples of matters included are the application of general taxonomy requirements and technical screening criteria for specific activities included in the Taxonomy Climate and Environmental Delegated Acts and they also address the generic ‘do no significant harm’ (DNSH) criteria that ensure that economic activities contributing to one of the environmental objectives set out in the Taxonomy Regulation do not cause significant harm to any of the other environmental objectives. The 2024 edition of KPMG’s Survey of Sustainability Reporting, which surveyed 5,800 large companies across 58 countries showed that GRI usage has risen to 71%. The survey also identified an increasing prevalence of companies obtaining independent assurance on their sustainability reporting as well as an increase in the number of companies carrying out double materiality assessments, both of which are practices that will soon become mandatory for certain companies in the European Union. A recording of EFRAG’s recent webinar “ESRS for Non-EU Groups” is available to view via the EFRAG website. The IFRS Foundation has published some educational material entitled “Sustainability-related risks and opportunities and the disclosure of material information”. The publication is focussed on helping companies understand how the concept of sustainability-related risks and opportunities is described in IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information, including how these can arise from a company’s dependencies and impacts. The International Sustainability Standards Board (ISSB) has published its November 2024 update and podcast. As many jurisdictions worldwide make decisions locally regarding whether (or how) they adopt ISSB reporting standards, the IFRS Foundation continues to compile a list of the ongoing and completed Jurisdictional sustainability consultations. This is a useful reference point for anyone trying to establish the reporting requirements of various countries worldwide. The IFRS Foundation has published a recording of its fifth Perspectives on sustainability disclosure webinar which is titled 'The state of assurance for sustainability disclosures'. Accountancy Europe has published its November 2024 Sustainability Update. Digital, Cyber, Artificial Intelligence (AI), Crypto The Pensions Authority has published a dedicated website page for information on the Digital Operational Resilience Act (DORA). Central Bank of Ireland (CBI) Governor of the Central Bank of Ireland Gabriel Makhlouf was invited to speak at a Financial Services Ireland event on 20 November to talk about The Role of Financial Services in the Irish Economy. Legislation You can read our recent news item on the signing and part commencement of the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act, 2024. We have selected those provisions which we think will be of most interest to our members and have identified what has been commenced on 3 December 2024 and what awaits commencement in 2025. Click to go to the CEA website where you can read about the key changes introduced by this Act which concern the Corporate Enforcement Authority . Other Please click to read the latest from the Corporate Enforcement Authority December newsletter and click here if you want to subscribe to the CEA newsletter. The Financial Reporting Council (FRC) has published its Annual Review of Corporate Governance Reporting 2024, providing important insights as companies prepare to implement the revised UK Corporate Governance Code from January 2025. The Pensions Authority has published information on the Annual Compliance Statement (ACS) for 2024 that is provided for under the Pensions Act.  The form to be used for the ACS is available under Related File(s) on their website with a deadline for completion of 31 January 2025. Accountancy Europe has issued its December 2024 SME update.     This information is provided as resources and information only and nothing in the information purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the information. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of the information we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained herein.

from the Institute’s Professional Accounting team on the signing and part commencement of the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act, 2024 (2024 Act ) Introduction The 2024 Act was signed into law on 12 November 2024. It makes changes to the Companies Act, 2014 (CA 2014). On behalf of its members, the Institute responded in 2023 to a Department of Enterprise, Trade and Employment (DETE ) consultation on proposals to enhance the Companies Act 2014 which informed much of the provisions of the 2024 Act. Below we set out some of the new provisions which may be of interest to our members. Readers might note that there are other new provisions in the 2024 Act which are not outlined here. The Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024 (Commencement) Order 2024 (SI 639/2024) commenced certain of the provisions from 3 December 2024. A DETE December 2024 press release clarifies that the provisions not commencing on 3 December 2024 are those that require technical updates to be made to the Companies Registration Office (CRO)’s  computer systems to facilitate the changes proposed. These provisions relate to CRO prescribed forms and the removal of the automatic loss of audit exemption for small companies on a first occasion of failure to file an annual return.  DETE intends to commence these provisions in 2025. Audit exemption (not yet commenced) Once commenced, one of the most significant changes for our members is to the rules regarding loss of audit exemption. This provision will replace the automatic loss of the audit exemption for a first late filing with the CRO with a graduated regime where a company may file late once in a five-year period without the loss of audit exemption. The Institute is particularly delighted to see this provision as it is an area on which we have made numerous representations to the CRO and the DETE on behalf of members over the last number of years. Readers should note that the change does not extend to small group situations, and while there are some exemptions it is still generally the case that if one member of a small group fails to file its annual return on time, none of the small group companies is entitled to the audit exemption for the following two financial years. Registered office agent /electronic filing agent (not yet commenced) There will be changes in relation to a company’s registered office agent and electronic filing agents. These include the application to the Registrar of Companies (“Registrar “) in the prescribed form for approval to act as an electronic filing agent (EFA) and a registered office agent. Prior to the 2024 Act, application was made to the Registrar using an administrative form. Trust and Company Service Providers (TCSPs) will only be approved as a registered office agent or an EFA where they have a TCSP authorisation under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010. Approval to act as an EFA or registered office agent will be withdrawn where a company ceases to hold a TCSP authorisation.  Evidence of situation of registered office (commenced) The 2024 Act includes a new section to provide that the Registrar may require evidence to verify a company’s registered office address when a company is applying to register its constitution or submitting a change of registered office address. Where the Registrar has made such a request, the Registrar will not register the documents unless such evidence is provided. Receivers (not all provisions commenced) The 2024 Act makes some changes in relation to receivers. Extension of the existing power of the court to fix remuneration of a receiver has been commenced. Matters to be considered for receivers under these new provisions include time spent, complexity of the case, exceptional responsibility on receiver, effectiveness of receiver, value, and nature of the property. This mirrors existing provisions for remuneration for liquidators in the CA 2014. Provisions have also been commenced concerning entitlement to remuneration of receivers by way of a relevant percentage, by reference to time spent or otherwise by reference to any method or thing. These new provisions are in line with existing provisions in the CA 2014 concerning entitlement of liquidators to remuneration.  Further information will be required on Form E8 which is filed upon the receiver’s appointment. The further information includes details of nature of assets, date and nature of appointment, information regarding future trading where practicable, and other prescribed information (not yet commenced). Members, creditors, and prescribed persons can request information regarding receivers’ terms and fees, and requests must be dealt with within 7 days. (not yet commenced). Also, the time limits for filing the receiver’s abstract (Form E9) upon cessation of acting as receiver and notice of cessation of receiver (Form E11) will now be 7 days. (not yet commenced). SCARP (not all provisions commenced) The technical changes to SCARP legislation have largely been commenced from 3 Dec. The ones which have not yet been commenced mainly relate to provisions for notices in ” prescribed form “. The SCARP provision has been commenced whereby the court can ask the process advisor (PA) for a written report stating the reasons for not doing so where the PA did not make use of the services of the staff and facilities of the company to which they were appointed where the court is considering any matter relating to the PA’s costs, expenses, and remuneration. Strike off and restoration (commenced) Provisions for 3 new grounds for strike off have been commenced (sections 58-64) (failure to notify of a change in registered office, no current company secretary recorded and failure to deliver beneficial ownership information). Readers may be interested to note that these three new grounds will not give rise to disqualification of the directors and the new provisions include the steps to be taken to avert continuation of the strike off under the three new grounds. IAASA (commenced) Provisions have been commenced giving IAASA power to issue an interim direction imposing restrictions on a statutory auditor that a possible relevant contravention has been committed and that it is appropriate in the public interest to do so. IAASA will invite and consider submissions received from the restricted person and will within 21 days either confirm vary or revoke the interim notice. The restrictions remain in place until the investigation is complete. An interim notice will be reviewed every 6 months or a shorter period and automatically expires after 18 months unless a further interim notice is issued. Corporate Enforcement Authority (CEA) - Enhanced powers (commenced) The following provisions have been commenced: - -Under the 2014 Act, auditors must notify the CEA when they form the opinion that certain offences have been committed. New provisions oblige the auditors, if requested by the CEA, to furnish the CEA with copies of documents and to certify them as true copies or extracts; -Provisions allowing for the CEA to share otherwise confidential information with additional statutory bodies such as the Data Protection Commission and the Charities Regulatory Authority; -Provisions whereby it is a category 2 offence for a person to obstruct or interfere with an officer of the CEA . For a category 2 offence , on summary conviction, punishment is a class A fine which is a fine not exceeding €5,000 or imprisonment for a term not exceeding 12 months or both, or on conviction on indictment, to a fine not exceeding €50,000 or imprisonment for a term not exceeding 5 years or both; -Greater information gathering powers (including access to certain court orders and mandatory notification requirement in certain instances). Electronic meetings (commenced) Electronic participation in general meetings has been put on a permanent statutory footing and there are now provisions for notices, quorum and proceedings and virtual voting at such meetings. Readers may recall that in December 2023 these provisions which were introduced during the pandemic were temporarily extended to 31 December 2024. Note that the new provisions do not apply to creditors meetings or meetings to consider schemes of arrangements. This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages

In Irish news, we remind you of the approaching capital gains tax (CGT) payment deadline on Sunday 15 December and provide an update from the recent Tax Administration Liaison Committee (TALC) Collections meeting. In UK news, the deadline for agents to provide details of their agent codes is today Friday 6 December and in this week’s miscellaneous updates the latest Agent Update and the most recent News and Information Bulletin from HMRC contain important guidance on submitting self-assessment returns for 2023/24 where taxpayers are impacted by overlap relief and the transition year of basis period reform. In International news, the Commission has closed State aid investigations into the Fiat, Amazon and Starbucks tax rulings.  Ireland Readers are reminded that Sunday 15 December 2024 is the payment deadline for capital gains tax (CGT) liabilities arising in the period 1 January to 30 November 2024. We provide an update from the recent Tax Administration Liaison Committee (TALC) Collections meeting. UK The deadline for agents to provide details of their agent codes to HMRC is today, Friday 6 December. This week’s miscellaneous updates contains important guidance on submitting self-assessment returns for 2023/24 where taxpayers are impacted by overlap relief and the transition year of basis period reform. International The Commission has closed State aid investigations into the Fiat, Amazon and Starbucks tax rulings. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount. You can also read this week’s post EU exit corner.

In this article, the Thrive Wellbeing Hub looks at an epidemic that Ireland is facing and that is high levels of loneliness.  Many of us feel lonely from time to time. However, everyone’s experience of loneliness is different and personal. It is widely believed those who experience loneliness are those who may live alone or don’t have many friends or family around. Conversely, you can have lots of social connections, support and contact but still feel like you are alone. Loneliness can be compounded by stigma, but it is an epidemic and levels are prevalent, especially here in Ireland. A survey carried out by the European Commission’s Joint Research Centre (JRC) reported Ireland has the highest levels of loneliness in Europe with over 20% of respondents reporting feeling lonely. Another research report by Irish Life found that more than one in three adults in Ireland would describe themselves as lonely or isolated. Other studies and research have linked loneliness and isolation with serious health and wellbeing impacts. It has been suggested isolation; Increases the risk for all causes of premature death – rivalling smoking, obesity and inactivity. Increases the risk of dementia by 50%. Increases the risk of heart disease and stroke by 29% and 32% respectively.  Associated with higher rates of depression anxiety and suicide. Quality over Quantity Loneliness is a state of distress where there is a gap in desire for social connection and actual experiences of it. Humans are inherently social creatures that benefit greatly from quality relationships that make us feel safe, valued and feed our sense of purpose. Depending on your personality, the amount of social interaction needed varies from person to person. Loneliness is linked to the quality of relationships as opposed to the number of relationships. A lack of authenticity in our relationships can feed feelings of loneliness and even those in relationships, those with large friend groups or those surrounded by people daily can experience deep loneliness. Certain times or life events can also affect our levels of loneliness and isolation. For example, feeling lonely around Christmas or Valentine’s Day, or missing someone after a bereavement. A common measure for loneliness is the UCLA loneliness scale which asks individuals how often they feel the following; Feel they lack companionship Feel left out Feel in tune with the people around them Feel outgoing and friendly Feel that there are people they can turn to Dealing with it While an easy fix may seem elusive, there are lots of ways to deal with loneliness and isolation. A major hindrance in treating loneliness is many may feel reluctant to even acknowledge it or how it affects them. Feel the feelings It is important to know loneliness is a totally normal characteristic of life and it doesn’t mean there is something wrong with you. Everyone goes through lonely periods and feelings of isolation often come and go. Accept that you feel lonely presently and that is okay, and that there will be times when you won’t feel this way. It’s also important to remember you’re not the only person to feel this way. Sometimes, there is a comfort in knowing you’re not alone in your loneliness. Talk it out It is a difficult situation to open up about but there is no shame in feeling lonely. Finding someone to speak and open up to can really help in so many ways. It could be that you need or would prefer to talk to a professional – there are plenty of support services out there including the mental health support from Thrive which includes counselling and coaching. Company of 1 There is a huge difference between being alone and being lonely. Improving your relationship with yourself can help tremendously in combating feelings of loneliness. Use alone time to get in touch with yourself and to feel more comfortable with just yourself for company. Spending time alone can be liberating and can be a great way to wind down. You have the power to be your own best friend and liking your own company is a step towards better confidence. Distract Keeping yourself busy is a great way to improve your feelings of loneliness. Starting a hobby or delving into your interests can help you to feel less alone and a way to pass the time. It also allows room for connection if in a group setting and volunteering can help strengthen your sense of purpose and meaning. Always wanted to learn a new language? This could be the perfect time to commit. The Thrive Wellbeing Hub has many supports in place to help you tackle difficult feelings whether it loneliness or other emotional distress. Take a look at the supports we provide. You can contact the thrive wellbeing team by email at: thrive@charteredaccountants.ie or by phone: (+353) 86 0243294

UK  Recent communications with Insolvency Practitioners (IPs) authorised to take insolvency appointments in the UK have been advised of Council’s decision to revoke its status as a Recognised Professional Body (RPB) in the UK. This means that Chartered Accountants Ireland will not be authorising insolvency practitioners in the UK from 1st January 2025. The Professional Standards department has been communicating with these IPs to assist in the application process and to ensure a smooth transfer to an alternative RPB.   Ireland   In addition to UK insolvency regulation, Council has also decided to cease the proactive monitoring of members providing insolvency services in Ireland. Members will no longer be required to hold an Insolvency Practising Certificate (IPC) to take insolvency appointments in Ireland. To reflect the above policy change regarding IPCs, appropriate amendments have been made to the Institute’s Public Practice Regulations. Insolvency services will be included within the general definition of ‘accountancy services’ (therefore requiring the holding of a general ‘Practising Certificate’). This means that the Institute may review insolvency-related work of individual members at its discretion. These changes remain consistent with the provisions of section 633 of the Companies Act, 2014 which requires liquidators to hold a current practising certificate issued by a Prescribed Accountancy Body or specified other bodies. It is also consistent with the approach to insolvency regulation applied by other Prescribed Accountancy Bodies.

The Institute has issued its response to the International Accounting Standards Board’s (IASB) Exposure Draft “Climate-related risks and Other Uncertainties in the Financial Statements”. The Exposure Draft, which proposes eight examples illustrating how entities may apply the requirements in IFRS Accounting Standards to report the effects of climate-related and other uncertainties in its financial statements, was issued by the IASB in July 2024. While highlighting its support of the overall objectives of the IASB, as well as the usefulness of illustrative examples in helping entities report on areas of uncertainty, the Institute’s Financial Reporting Technical Committee noted some concerns in relation to the way in which some of the examples are drafted. In addition to this, the Institute called for more guidance and analysis relating to determining the level of adjustment required to terminal value and discount rates in relation to medium to long term impacts of climate risk. The Institute’s response can be read in full here. 

Typically, the festive season is a joyous occasion and a time for celebration, but it can equally be an extremely busy and demanding time that often puts extra pressure on us whether socially, financially or emotionally.  For some, it is a time where they acutely feel the loss of loved ones and feelings of loneliness. The festive period can affect your mental health in many ways and can bring up feelings of being overwhelmed, anxious, stressed. Our Thrive wellbeing team has compiled a list of tips to help you look after your mental health this Christmas. Realistic expectations It is easy to get carried away with the expectations of a perfect Christmas and everything that goes with it. However, this can cause disappointment and impact our self-esteem if it doesn’t turn out how we hoped. Be realistic about what you can expect from the festive season and avoid unhealthy comparisons with others. Create your own Christmas agenda for how you want to spend your time, focusing on a couple of things that are most important to you. Take a break The Christmas period can be the one time of year where we can truly take a break from the demands of day-to-day life. It is essential for our mental wellbeing to have some time-out to help prevent stress and feelings of being overwhelmed. Take this time to rest and restore your energy especially if you are feeling particularly drained. Make sure you set time aside to be by yourself if you need it and engage in activities that help you relax and unwind. Christmas is a time of compassion and giving, so why not indulge in some self-compassion and treat yourself. Reflect As the year draws to a close, you can quickly fall into the trap of thinking about everything you didn’t achieve and all those forgotten resolutions and goals. Try not to be too hard on yourself as you begin to reflect on the year that has passed. Accept the year for what it was and acknowledge the (big and small) things you have achieved and where you are now.   Say no Leading up to and during Christmas you can find yourself inundated with social engagements, invites, and being surrounded by people. If you are feeling uncomfortable or unsettled with the incoming invitations, the key is to give yourself permission to say no. You may want to limit your social interactions and while it is important to maintain some social connection it is imperative that you set clear boundaries with yourself on how much interaction you want to have. Balance your sense of social obligation against your need for self-care and time by yourself.   Healthy habits The temptation to overindulge is ever present at Christmas - the few extra tipples, lounging on the couch watching Christmas movies or over-doing it on the mince pies and rich food. Overindulging can cause your motivation levels to diminish and make you feel sluggish and not ‘yourself’. Alcohol may make you feel relaxed at first, but it is a depressant which can cause low mood and irritability. Strive to maintain some balance across the festive period if you can. Maintaining a relatively healthy diet and getting some exercise will give your mental health a much-needed boost. Get outdoors, wonder at the Christmas lights and decorations in your area or head out on a nature walk, it will do you a world of good. It can be quite difficult to maintain your usual routine over the holidays too. The best way to retain some semblance of routine and structure is keeping a healthy sleep pattern. Sleep is an essential component to not only positive mental health but also our physical health. Talk to someone The expectations of the festive season can take its toll and the pressure to have a good time can be overwhelming. How we feel can become all-consuming. If you are struggling it is important to talk to someone about how you are feeling. Your family and friends are your best support system, reach out to someone you feel comfortable disclosing your feelings to. If Christmas is a hard time for you, it's important to remember that you are not alone. Help is here if you need it. The Institute’s wellbeing hub, Thrive, provides an array of mental health supports to members and students. Whether you need a listening ear, wellbeing advice or professional counselling, we are here for you. You can contact the team by email at: thrive@charteredaccountants.ie or by phone: (+353) 86 0243294 Merry Christmas!

The Financial Reporting Council (FRC) has updated their suite of factsheets addressing FRS 102. These factsheets provide additional guidance to assist with the application of FRS 102 and include three new factsheets. Of particular interest to preparers and other stakeholders will be the new factsheets published which address the new accounting requirements for revenue recognition and lease accounting (effective for periods commencing on or after 1 January 2026). In addition to the new factsheets, five factsheets have been updated and two factsheets (which related specifically to the 2017 Triennial Review) have been withdrawn. Following the additions, updates and withdrawals, there are now eight staff factsheets in issue which are available on the FRC website; Factsheet 3 – Statement of cash flows Factsheet 4 – Financial instruments Factsheet 5 – Property: Fair value measurement Factsheet 6 – Business combinations Factsheet 7 – Transition to FRS 102 Factsheet 8 - Climate-related matters Factsheet 9 – Initial application of the Periodic Review 2024 amendments Factsheet 10 – Revenue from Contracts with Customers Factsheet 11 – Lease accounting for lessees

The European Commission has closed three in-depth State aid investigations into transfer pricing tax rulings granted by Luxembourg to Fiat and Amazon, and by the Netherlands to Starbucks. Following judgments by the EU Courts, the Commission found that the tax rulings did not grant the companies selective advantages.