Revenue has updated the Tax and Duty Manual which outlines the importance of context and wording when interpreting the words “control” and “interest” as they relate to companies.   The updated manual now includes a summary of the definition of “control” in section 11 TCA 1997 and provides additional detail regarding the definition of “control” in section 432 TCA 1997. Examples of various TCA provisions that apply the definitions of “control” from sections 11 and 432 TCA are also listed. 

Last week the Institute met with HMRC to discuss the 2024 Autumn Budget. We expressed concern and shared our views on the impact of a range of changes including increased employment costs as a result of the National Minimum Wage and employer National Insurance Contribution changes from April 2025. We also highlighted the damaging impact that the 2026 changes to key inheritance tax reliefs (agricultural property relief and business property relief) will have, particularly for Northern Ireland family-owned businesses and farms. The Institute recommended to HMRC that the Government consult more widely on these particular changes and we highligted the need for any anti-forestalling legislation to be fair. These changes should not impact retrospectively on lifetime gifts already made in the seven years prior to 6 April 2026. The changes need to be properly considered before implementation given the impact they will have on both indigenous businesses and investors in the UK. Other issues discussed were the fuel duty dilemma, tax simplification, the taxation of electric vehicles, the practical impact of the in-year capital gains tax rate changes, the extension in this Parliament of Making Tax Digital for income tax to the £20,000 - £30,000 turnover population and regulation of the UK tax agent market.  

At the Autumn Budget 2024, the Chancellor of the Exchequer confirmed that from 1 January 2025, all education, boarding, and vocational training provided for a charge by a private school in the UK will be subject to VAT at the standard rate of 20 per cent. Any fees paid from 29 July 2024 relating to the term starting in January 2025 and onwards will also be subject to VAT under anti-forestalling legislation.  HMRC has also sent a further email on this. The Government also published a response to its recent technical consultation. A Tax Information and Impacts note and the final draft legislation are also available on the same page. For schools that may be affected by these changes, HMRC has published the following additional material: Check when you need to register for VAT: schools can do this using a new interactive tool. Just click the green ‘Check now’ button, In order to use the online VAT registration system, schools will be asked for their Unique Taxpayer Reference (UTR). This can be found on any previous tax returns and other documents from HMRC, and HMRC has also updated guidance to reflect final policy design, including clarifications on nurseries, further education providers, and non-maintained special schools. In the event of any technical queries about registering for, charging, and remitting VAT, HMRC can be contacted by schools, their representative bodies, and tax advisors via the following email address: vatonprivateschoolfees@hmrc.gov.uk.   

In this week’s miscellaneous updates, the latest Agent Update is available as is the current schedule of HMRC Talking Points live and recorded webinars for tax agents which are available for booking. Spaces are limited, so take a look now and save your place. HMRC has published a new tax agent handbook and legislation impacting the abolition of the pension’s lifetime allowance has been laid. To assist alcohol producers in their preparations for the new digital service which is expected to launch in March 2025, HMRC has sent an email with more information and details of upcoming webinars. With less than 100 days to the 2023/24 self-assessment filing deadline, HMRC has sent a general email reminder and a more tailored email to agents. The rate of interest on late payments of tax has been reduced to 7.25 percent from today and claims for relief from certain employment expenses can now be made online. And finally, check HMRC’s online services availability page for details of planned downtime and the online services affected. Latest Agent Update Agent Update: issue 124 is available now. Get the latest guidance and information including: changes to the Agent Dedicated Line, updates to the Trust Registration Service guidance, less than 6 months left to fill in national insurance gaps to 2006, evidence required to claim PAYE (P87) employment expenses, and help protect workers from getting caught out by tax avoidance. New tax agent handbook HMRC has launched a new Tax Agent handbook which aims to provide information to help tax agents and advisers find guidance, use HMRC's services and contact HMRC. This is an outcome from a redesign of existing tax agent guidance. HMRC will continue to develop this further. Feedback on the new handbook and suggestions for it can be made using the short survey at the top of the main landing page. Pension’s lifetime allowance abolition Legislation was included in Finance (No.2) Act 2023 and Finance Act 2024 to abolish the pension’s lifetime allowance. Regulations have now been laid to implement “technical and consequential changes necessary to ensure the correct operation of the pensions tax regime following the abolition of the lifetime allowance”. Employment expenses tax relief process for uniforms, work clothing and tools Last month HMRC announced that claims for tax relief for employment expenses had to be made by post using form P87 and should be accompanied by supporting evidence. HMRC has now confirmed that claims can now be made online for flat rate expenses for uniforms, work clothing and tools.  

As previously advised, Revenue is hosting webinars on 26 and 27 November 2024 to assist taxpayers making submissions to Revenue Technical Services (RTS). The purpose of the webinars is to enhance the quality of submissions made to RTS.   RTS operates across the various Revenue divisions and handles complex technical issues on which practitioners and taxpayers may need clarity. The webinars will include the following topics:  An overview of RTS, When/How to make a submission to RTS, RTS Query acceptance criteria, Communicating with RTS, and A Q&A session. Tickets for these free webinars can be reserved via Eventbrite. 

In this week’s post EU exit corner, we bring you the latest guidance updates and publications relevant in the post EU exit environment. 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. This confirms that on 31 October, the Secretary of State for Northern Ireland gave notification of the start of the democratic consent process on the Windsor Framework (WF). HMRC has also published more information, including a factsheet, on the new processes which commence from 31 March 2025 for moving business-to-business (B2B) parcels from Great Britain to Northern Ireland. WF democratic consent process This was triggered at the end of October and provides an opportunity for the Northern Ireland Assembly to decide whether or not certain European Union (EU) laws will continue to apply in Northern Ireland. Articles 5-10 WF are specifically impacted. The Northern Ireland Assembly EU Affairs team has put together an explainer on this democratic consent mechanism, the vote by the Northern Ireland Assembly on Articles 5-10, which is to take place by the end of 2024. You can access it here in addition to links to other useful resources. Moving B2B parcels from Great Britain to Northern Ireland On 19 September, the Government confirmed that the new arrangements under the WF for parcels and freight movements that were due to come into effect from 30 September 2024 were being delayed and that businesses should be fully prepared for them to commence from 31 March 2025. HMRC has now published a factsheet setting out key information and actions to prepare for the new arrangements and has also sent a more detailed email on the changes. A webinar is being also being hosted on 21 November which is now open for registration. You can also visit GOV.UK to:  find out how to apply for  UK Internal Market Scheme authorisation and the requirements you will need to meet, and read the statutory guidance for businesses sending parcels to Northern Ireland. For support with general trader queries, call HMRC’s Customs and International Trade Helpline number 0300 322 9434 or textphone 0300 200 3719.  Miscellaneous guidance updates and publications Transit newsletters — HMRC updates, Data Element 2/3: Document and Other Reference Codes: Licence Types — Imports and Exports of the Customs Declaration Service (CDS), Duties and import VAT on gifts Known error workarounds for the Customs Declaration Service (CDS) External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service, Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service, Customs Declaration Service error codes, Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS), and Preparing for the new safety and security declaration requirements.

President Michael D. Higgins has signed the Finance Bill 2024, and it has accordingly become law. Finance Act 2024 can be found on the Oireachtas website. 

  Mergers and acquisitions often set out with grand strategies to gain competitive advantage but real success hinges on the ability to create value, writes Byron Smith While financial considerations are crucial, the best outcomes in mergers and acquisitions (M&As) often come from performing value identification due diligence, ensuring optimal resource utilisation post-deal, and leveraging the strengths each party brings to the table. The importance of synergies Successful M&As typically begin with a common goal, such as growth or market consolidation. The key to success lies in identifying and leveraging synergies, optimising operations and enhancing the market position of the combined entity. In Ireland, where the business environment includes both indigenous companies and multinational corporations (MNCs), creating value is essential for maintaining competitive advantage and achieving long-term success. While M&As are more common between indigenous companies and MNCs, we have effectively used value-creation methodologies to enable smaller enterprises to secure an equal "seat at the table" post-deal, despite their lower financial clout. Challenges in achieving synergies Synergies achieved through mergers and acquisitions can be operational, financial or strategic. Ideally, a successful outcome will include all three: Operational synergies involve cost savings, improved efficiencies and enhanced productivity. Financial synergies provide better access to capital, improved cash flow and tax benefits. Strategic synergies expand market reach, enhance product offerings and boost innovation.  In Ireland, leveraging these synergies in sectors like technology, pharmaceuticals and financial services can significantly enhance performance. However, achieving these synergies is challenging. Globally, our firm has found that around 70 percent of M&As fail to meet their anticipated value, underscoring the need for meticulous planning and execution. To fully realise the potential of an M&A, companies in Ireland must navigate regulatory frameworks, market dynamics and cultural fit, and identify inherent weaknesses early in the negotiation cycle. Innovation as a driver of value creation We have seen that synergies are not just about matching capabilities; some of the most successful M&As involve an innovative company with limited capital partnering with a capital-rich company with minimal R&D. Simply put – SMEs have the ideas and the MNCs have the financial resources. Such collaborations provide the necessary resources and capabilities for research and development, leading to new products, services and technologies. This innovation-driven approach helps companies stay ahead of the curve and maintain a competitive edge in the market. Effective governance and risk management Aligning governance and risk management in Irish businesses post-M&A is often challenging. The question of "What is my role now?" is typically a decision for the acquirer. The larger entity's risk and quality processes are often assumed to be superior. If not properly aligned, however, this assumption can lead to value erosion. Larger stakeholders frequently cite agility and innovation as reasons for carve-off and merger, or for acquiring a smaller, efficient and innovative bolt-on entity. Often, the acquired entity can feel disadvantaged by the deal experience. This can be potentially fatal, as key management may become disenchanted and line workers may feel their lifetime's work is being disregarded, often unwisely. It is crucial to evaluate the approaches and capabilities of both parties, use peer benchmarking and develop the best strategy without power plays. This type of analysis is essential for a successful value creation-driven M&A strategy. Peer benchmarking: looking outside to avoid mistakes Frequently, dealmakers overlook lessons from previous market M&A when approaching a deal. Therefore, peer benchmarking is a crucial value-creation tool. By comparing performance metrics with industry peers, companies can identify best practices, set realistic targets and uncover areas for improvement. This benchmarking goes beyond initial due diligence, setting early expectations for the financial, commercial and operational performance of the post-deal entity. It ensures that the newly formed, theoretically less lean, entity remains focused on becoming more efficient and competitive to achieve its value creation goals. Byron Smith is Associate Director of Strategy at KPMG

The VAT in the Digital Age proposal promises a major overhaul of the VAT regime in operation across the EU. Janette Maxwell and Fadi BouKaram delve into the details On 5 November 2024, EU Finance Ministers at the Economic and Financial Affairs Council (ECOFIN) unanimously agreed on the VAT in the Digital Age (ViDA) proposal. Although some formal procedures will need to be completed before the proposal is fully implemented, this agreement is expected to pave the way for significant changes to the VAT system across the European Union. The ViDA initiative comprises a series of significant reforms to the common VAT rules in the EU. Its goal is to enhance VAT compliance, combat tax fraud and modernise VAT regulations to better align with the demands of the digital age. The latest ViDA package has three pillars: E-invoicing and digital reporting Platform economy Single VAT registration E-invoicing and digital reporting For the supplier, electronic invoicing will be established as the standard method for issuing invoices and possessing a valid e-invoice will ultimately be a key requirement for VAT recovery. Invoices should generally comply with the European Standard (EN16931) and its specified syntaxes, but Member States may allow other formats under certain conditions. Electronic invoices for cross-border transactions must be issued no later than 10 days following the chargeable event. The e-invoice must be digitally reported to the relevant tax authorities by the supplier directly after the e-invoice has been issued (or within five days if the customer issues the e-invoice under a “self-billing” arrangement). The customer, however, is required to digitally report information from the e-invoice within five days of receiving it from the supplier. Member States may waive this digital reporting requirement for customers. The requirements above will apply from 1 July 2030. Platform economy From 1 July 2028, a taxable person who uses an electronic platform to facilitate short-term accommodation rentals (max 30 nights) – and/or passenger transport by road – will be regarded as the supplier of those services for VAT purposes and will therefore be liable to account for VAT, unless:  The underlying supplier provides its VAT identification number to the platform operator; or The underlying supplier informs the operator that they will charge the VAT due on that supply. Member States may decide not to designate the platform as a deemed supplier if the underlying supplier qualifies for and chooses the small and medium-sized enterprise (SME) VAT regime. Member States must implement the rules by 1 January 2030 at the latest. Single VAT registration The Single VAT Registration (SVR) pillar aims to minimise the requirement for non-established traders to register for VAT in an EU Member State where they are not established. The One-Stop-Shop (OSS) has been expanded to include additional types of supplies, such as domestic business-to-consumer transactions including the supply of electricity and natural gas, supply and installation contracts, as well as domestic supplies of goods and services. A new OSS module will allow businesses to report the movement of their own goods between EU Member States. Currently, moving goods usually requires VAT reporting and registration in both the country of dispatch and the country of arrival, with some exceptions. From 1 July 2028, businesses can choose to report these movements through the OSS, which means they will not be required to report acquisition VAT in the destination country. Time to prepare The time to prepare for these changes is now. Businesses need to review their IT systems and start thinking ahead as to how these changes will impact their day-to-day operations and related invoicing processes. Janette Maxwell is International Indirect Tax Director at Grant Thornton Ireland Fadi BouKaram is Director of Tax at Grant Thornton

David Codd delves into strategies for effectively integrating AI into the workplace, ensuring both technological advantage and operational safety   Artificial intelligence (AI) systems offer immense potential, but they can also introduce new and significant risks.   When considering integrating AI into the workplace, there will be elements that do not typically feature in other IT investment proposals.   Equally, commercial realities may be obscured by the excitement arising from the eye-catching power of this technology and its potential to cut out so much work.   Due diligence and risk management should be to the fore, especially when considering new AI technologies.   So, what should those in governance and finance teams look out for?   Should we move faster and invest more right now? The cost reductions that AI can enable in many situations are transformative. So, if the business is efficient and can handle change effectively, pushing the pace could stretch that lead.   Many proposals will envisage cautious, phased roll-out because AI represents unknown territory and it is expensive.    The key questions to consider is whether you should take on more risk to achieve a quicker roll-out, and whether there is a chance to grow and take advantage of significant cost savings by doing so.   Will customer service improvements result in increased market share? AI systems can improve service quality speed in the short- to medium-term. However, while your proprietary data is your own, the technology itself is widely available to those who can afford it, meaning it is unlikely to underpin a unique long-term competitive advantage.   Recent business cases claiming increased market share increase arising from the roll-out of an AI solution should be treated with scepticism. They may really be “me too” projects.   Nevertheless, AI investment might still be needed just to keep pace and retain share. How much change does our operating model need and is the cost understood? Most business cases will include the obvious costs arising from a technology-enabled process change. However, other substantial and costly business changes may be necessary – mature data classification and quality control, for example.  Expertise will be needed to carry out tasks, such as message auditing and defining and implementing guardrails on an ongoing basis to prevent bias creeping in through “data drift”.   This expertise can be expensive, and the associated costs should be built into project planning. Do we understand the risks and when will we be ready to mitigate and control them? Responsible AI is not simply a question of steering away from the deployment of high-risk systems as defined by the European Union’s Artificial Intelligence Act.    AI brings privacy, explainability and bias risks which are exacerbated by the plausibility of the output of large language models.   Risk governance is not merely an extension of current practices. Early use cases can present challenges while risk governance is recalibrated.    This can slow projects down and the timing of realising benefits in proposals should take account of this risk. Understanding all the risks Business cases should reflect the fact that AI is different to previous technologies in terms of potential, risk and operational impact.   Those in governance and finance teams can make a valuable contribution by ensuring the full implications are reflected in investment proposals.   David Codd is an Independent Non-executive Director and Transformation Advisor

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, Accountancy Europe has issued the latest in its series of publications summarising the European Sustainability Reporting Standards (ESRS) provisions and sharing views on ESRS aspects that merit further guidance and clarification. Legislation has been signed in Ireland to change the rules regarding the loss of audit exemption in certain circumstances. Read more on these and other developments that may be of interest to members below. Audit and Assurance The IAASB has published the much anticipated ISSA 5000 International Standard on Sustainability Assurance 5000, General Requirements for Sustainability Assurance Engagements.  This standard is a comprehensive, stand-alone standard suitable for any sustainability assurance engagement. It will apply to sustainability information reported across any sustainability topic and prepared under multiple frameworks. The standard is also profession agnostic, supporting its use by professional accountants and non-accountant assurance practitioners. The draft standard was subject to a public consultation in 2023 and Chartered Accountants Ireland's response can be read here. IAASA has recently uploaded the recording of its Audit Committee Briefing 2024 held on 22 October 2024 to its YouTube channel. You can click to view the briefing here. The presenters at the briefing covered the topic of sustainability, including developments in sustainability reporting Q&A, a regulatory update, an audit committee panel session and artificial intelligence for audit committees. The FRC has published the criteria to assess local audit specialist training developed by Recognised Qualifying Bodies (RQBs), training providers and audit firms. Financial Reporting On 1st November, IAASA hosted a conference at Maynooth University entitled ‘Integrating Sustainability Reporting and Assurance into Accounting Education’. Slides from the event are available here. The International Accounting Standards Board (IASB) has launched surveys on the accounting requirements for intangible assets. This includes separate surveys for investors and companies. These will remain open until 30 November 2024. EFRAG has published its draft comment letter on the International Accounting Standards Board’s Exposure Draft on the Equity Method of Accounting. Comments are welcomed by 6 January 2025. In its recent publication entitled “Empowering SMEs through IP: insights and strategies from the ground”, Accountancy Europe discuss the importance of the protection, by SME’s, of their brand and ideas. The Financial Reporting Council has announced the launch of a consultation on Actuarial Standard Technical Memorandum 1 (AS TM1). The 2024 IFRS Foundation Integrated Thinking and Reporting Conference took place on 18 October in Milan. The event convened stakeholders from around the world to discuss the value of integrated reporting. The IFRS have published six takeaways from the event. The International Accounting Standards Board (IASB) has published a consultation aimed at improving the requirements for recognising and measuring provisions on company balance sheets. The consultation proposes changes to IAS 37 and remains open for public comment until 12 March 2025. ESMA, the European Securities and Markets Authority has published the latest edition of its Spotlight on Markets Newsletter. The EFRAG 2024 Conference Advancing Transparency & Competitiveness in Challenging Times is taking place on 10 December 2024 in Brussels and virtually. The FRC has launched its consultation on significant updates to the UK Stewardship Code focusing on supporting economic growth and investment and delivering increased transparency for investors, savers and pensioners in the UK. A webinar will be held by the FRC on 20th November to discuss the proposals. Sustainability Accountancy Europe has issued a series of publications summarising the European Sustainability Reporting Standards (ESRS) provisions and sharing views on ESRS aspects that merit further guidance and clarification. The most recent in this series covers interoperability. The International Sustainability Standards Board (ISSB) are hosting episode five of their webinar series Perspectives on sustainability disclosure on 25 November, which summarises developments and considerations as companies prepare for assurance of sustainability disclosures. A report, which was prepared by the IFRS Foundation and presented to the Financial Stability Board, highlights that over 1,000 companies have referenced the International Sustainability Standards Board in their reports and 30 jurisdictions are making progress towards the introduction of the International Sustainability Standards in their legal frameworks. EFRAG are holding webinars on the European Sustainability Reporting Standards (ESRS) for non-EU groups. These will be held on the 19th and 20th November. EFRAG and CDP, the global independent disclosure system for companies to measure and manage their environmental impacts, have announced that they have achieved extensive commonality between the CDP and ESRS. This follows ongoing collaboration between both organisations on their shared goals. Irish Companies Registration Office Two matters readers should note; the CRO has reminded filers that companies with an ARD of 30 September have a filing deadline of Monday 25 November. Please click to read the CRO reminder on peak filing. Also, the CRO has issued information about its Christmas 2024 Deadlines: applications should be no later than the following dates and all applications will be processed in strict date order.: – Fé Phráinn Online Scheme: 9 December 2024 – Ordinary Online Scheme: 2 December 2024 – Change of Name: 9 December 2024 – Re-registration: 9 December 2024 – Company Name Reservation: 15 December 2024. Economic Crime and anti-money laundering The Failure to Prevent Fraud offence was introduced in section 199 of the Economic Crime and Corporate Transparency Act 2023 (ECCTA). The Act provides that the Secretary of State must issue guidance about procedures before the provisions come into force. This guidance to organisations on the offence of failure to prevent fraud has now been issued (as of 6 November 2024). The guidance states that the offence will come into effect nine months after the publication of this guidance, to allow organisations to develop and implement their fraud prevention procedures. A reminder of what the Failure to Prevent Fraud offence is. The legislation will apply to large organisations where an associate of the organisation commits any of the offences listed in schedule 13 of the ECCTA (for example, cheating the public revenue or false accounting) with the intention of benefitting the organisation and the organisation did not have in place reasonable fraud prevention procedures. The large organisations to which the legislation will apply align with the thresholds in the Companies Act 2006. In short, a large organisation is one satisfying two or more of the following conditions: turnover of more than £36 million; balance sheet total of more than £18 million; or more than 250 employees. Readers should be mindful that there are proposals to uplift the monetary thresholds under company law. Digital, Cyber, Artificial Intelligence (AI), Crypto The European Council this month approved the European Court of Auditors’  Special report 08/2024: EU Artificial intelligence ambition which concluded that stronger governance and increased, more focused investment is essential going forward aiming to strengthen EU’s AI ambitions. Click here for the press release and here for details of the Council’s conclusions on the report. On the domestic front, Ireland’s first National Artificial Intelligence (AI) Strategy, 'AI – Here for Good' which was launched in July 2021 has been given a refresh this month. The refresh takes account of the significant developments in AI technology and regulation since the original strategy was published in 2021. Please click to read the press release about some of the new measures which include establishing an AI regulatory sandbox to foster innovation in AI and updating the 2022 study on AI skills of the Expert Group on Future Skills Needs. Click here to access a copy of the 2024 Refresh. This week Minister of State at the Department of the Environment, Climate and Communications, published the inaugural National Cyber Security Annual Update 2023, which provides a broad overview of the work that was carried out across Government in 2023. He also launched the NCC-IE Cyber Security Improvement Grant for SMEs, a €2 million fund aimed at supporting small and medium enterprises (SMEs) in Ireland as they enhance their cybersecurity. You can read more about the grant here. Please click to read remarks by Central Bank Director of Financial Regulation, Policy and Risk Gerry Cross, at a DORA Industry Briefing in November 2024 in which he outlines where they are now in relation to DORA as well as a bit of DORA background. In November 2024 the Minister for Finance gave effect to EU regulation on Markets in Crypto-Assets by enacting SI 607/2024 which designates the Central Bank of Ireland as the National Competent Authority, outlines the administrative penalties and measures for Regulated and non-Regulated Financial Service Providers and specifies the duration of the transition period for firms that provided crypto services before 30 December 2024. Central Bank of Ireland (CBI) Click here to read the CBI Governor’s blog on the Central Bank’s strategy 2024. CBI is holding its Financial System Conference 2024 “Delivering a well-functioning financial system to support a changing economy” on 18 November 2024. In-person registration is closed but readers just about have time to register online.  See details here. It opens with a fireside chat with Paschal Donohoe TD and Minister for Public Expenditure and Reform and also has sessions on the Future of Financial Services in Ireland and Europe and the Future of Payments. Legislation Dara Calleary TD, Minister of State for Trade Promotion, Digital and Company Regulation, has announced that preparatory work for the commencement of the Screening of Third Country Transactions Act 2023 is nearing completion and it is anticipated that the Act will be commenced in early January 2025. Please click for an Institute news item on the legislation in November 2023 at the time the Act was passed. New Irish Company Law provisions: The President signed the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Bill 2024 into law on 12 November 2024. Provisions which will be of interest to our members were outlined in our news item in March 2024 following publication of the general scheme of the Bill. These include changes in the rules regarding loss of audit exemption, provisions relating to receivers, some new grounds for company strike-off and provisions regarding registered office and electronic filing agents. Following publication of the draft Bill in August 2024 we did a further update on the Bill noting that most but not all of the provisions of the General Scheme had been included in the Bill. Click for the August 2024 updated news item. At the time of writing, publication of the legislation on the Irish Statute Book as passed and details of its commencement into law is awaited and we will provide further updates when information on this is made available. Click here for a statement from the Corporate Enforcement Authority which welcomed the passage of the legislation containing enhancements to existing legislation including for example the extension of the list of competent State bodies with which the CEA can share information. Other The Minister for Public Expenditure, NDP Delivery and Reform, recently published the Prospects 2024-2025 report which highlights 50 projects that make up Project Ireland 2040. This report aims to provide further visibility on Ireland’s priority infrastructure over the coming years, facilitating firms to plan commercial bids for these major infrastructure projects.   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.

  In this week’s Sustainability/ESG bulletin read about COP29, Government approval for negotiations on an UNDP Project Office in Dublin, a shift among Irish businesses towards sustainability, a consultation on the establishment of a Just Transition Commission for Northern Ireland, news from Europe, as well as the usual resources, podcasts, webinars, articles and events. Ireland news COP29 – a finance focus for the global climate summit COP29 – The 2024 global climate summit – is underway this week. Running until 22 November, with world leaders, policy-makers, diplomats and activists converging on Baku, Azerbaijan, the summit will discuss the world’s action on tackling climate change. The most significant event on the global climate calendar, the summit’s focus this year is on climate finance. Negotiations will centre on the setting of a new finance target for tackling climate change, called the New Collective Quantified Goal, or NCQG. This will replace a goal initially agreed in 2009, when developed nations pledged to provide $100 billion annually in climate financing for developing countries. In the words of one commentator, Claire Jones, Partner and Head of Responsible Investment at LCP, “Climate change is one of the most financially material systemic risks that long-term investors face — rather than just impacting the value of one single stock, it has the potential to depress economies and even cause a financial market collapse”. Minister Eamon Ryan, T.D., is leading the Irish the delegation, which will collaborate with EU partners and engage in climate diplomacy through various groups.   Government approves negotiations on the establishment of UNDP Project Office in Dublin Minister Eamon Ryan has received government approval to enter negotiations on the establishment of a United Nations Development Programme (UNDP) Project Office in Dublin. This would be the first formal presence of the UNDP in Ireland, which is tasked with helping countries eliminate poverty and achieve sustainable economic growth and human development. It is considered that locating the office in Dublin has the potential to build upon Ireland’s track record in international financial services, including sustainable finance, which is at the core of sustainable development and an integral part of tackling climate change.   Decarbonisation in third update to White Paper on Enterprise The recently published third update report to the White Paper on Enterprise has identified  a range of updates across 40 key initiatives progressed during 2024 to support enhanced competitiveness and decarbonisation across Ireland’s economy. These include the publication of Powering Prosperity – Ireland’s Offshore Wind Industrial Strategy and the Roadmap for Decarbonisation of Industrial Heat. The update also identifies wider enterprise support measures through a range of ongoing initiatives including the Bioeconomy Action Plan, the Growth and Sustainability Loan Scheme, and continued take up of the Environmental Aid/Green Capital Grant and Green Transition Fund. The White Paper Implementation Plan 2023-2024 was originally published in May 2023.   Expansion of Zero Emission Heavy Duty Vehicles Purchase Grant Scheme Minister for Transport Eamon Ryan, T.D., has announced an expansion to the existing Zero Emission Heavy Duty Vehicle (ZEHDV) Purchase Grant Scheme. The scheme will now include purchase grants for charging infrastructure. The scheme expansion means successful applicants will be able to install their own depot charging points, and also facilitates public charging around logistics hubs, and in urban nodes.   €50 million retrofit scheme for SMEs A new €50 million Business Energy Upgrades Scheme (BEUS) has launched to support small and medium sized businesses (SMEs) carry out energy efficiency upgrades. The scheme offers up to €120,000 for a range of common building upgrade measures as well as support to significantly enhance existing building management systems and for retrofit design activities. The scheme, which will be administered by the Sustainable Energy Authority of Ireland (SEAI), is open to all businesses and small public bodies who are upgrading a building they own or occupy. A decision and grant offer can be generated within minutes of an application being made by an SME, addressing a key barrier for SMEs by allowing business owners to progress investments without delay and reducing the time spent accessing grant support. The scheme is reportedly one of several initiatives that will continue the scale-up of retrofit activity over the coming years.   Ongoing decarbonisation of Irish businesses Enterprise Ireland (EI) has announced this week that it has approved over €55 million in funding to support the decarbonisation of Irish businesses. The funding has benefited more than 400 Irish companies since June 2022, reducing CO2 emissions by an estimated 130,000 tonnes. Ireland’s commitment to reaching net-zero greenhouse gas emissions by 2050, and by 51% reduction by 2030, means that the enterprise sector must reduce on-site industrial emissions by 35% by 2030.   Sustainability efforts intensify among businesses Sustainability efforts have intensified among businesses in Ireland over the past two years, with 81% of respondents reporting a heightened focus on sustainability, a 19% increase from 2022. This is according to the EY State of Sustainability 2024, based on a survey of 200 sustainability decision-makers in Ireland. The report identifies customer demand, investor scrutiny, and regulatory frameworks as having a role in redefining corporate success.   Sustainability reputation improves among Irish firms A report carried out by the Dublin communications and PR agency, The Reputations Agency, has revealed that organisations have improved their reputation in sustainability overall, despite global setbacks; scores in Ireland have reportedly improved since 2023. The report, Ireland RepTrak® Sustainability Index 2024, now in its thirteenth year, tracks the perceptions of 5,500 members of the public on 100 prominent organisations in Ireland. The Index measures 16 sustainability factors which reflect the European Sustainability Reporting Standards (ESRS).   Irish electricity costs identified as threat to business viability Failure to address these costs of electricity in Ireland could threaten business viability, future investment, and decarbonisation efforts, according to a new energy paper published by business group, Ibec. The report, which highlights the impact of high electricity costs on Irish businesses, includes recommendations for an annual subvention to support renewable generation and network investment, as well as a long-term national energy and industrial strategy required to deliver an effective net zero transition.   Going for Growth development programme – female entrepreneurs Places remain available for a limited time only on Going for Growth, the programme for female entrepreneurs in any sector across the country interested in growing their business. The programme, which is supported by Enterprise Ireland and KPMG, aids female business owners as they seek to increase revenue, create employment, and export into new markets.  Recognised by the EU, OECD, and European Institute of Gender Equality as a key initiative in helping to foster greater ambition among female entrepreneurs and to support their growth aspirations, the programme is free to selected participants, with the new six-month cycle, which is due to begin with a one-day Launch Forum on January 14, 2025.    Northern Ireland/UK news Consultation on establishment of Just Transition Commission in Northern Ireland Minister for Agriculture, the Environment and Rural Affairs (DAERA) Andrew Muir, MLA,  has launched a consultation on establishing a Just Transition Commission for Northern Ireland. The commission is designed to ensure the transition to a net zero society is fair and that no-one is left behind or disproportionately affected. Its purpose will be to oversee the implementation of the just transition elements set out in the Climate Change Act, and to provide independent advice to all government departments on how to ensure that proposals, policies strategies and plans required to tackle climate change take account of the just transition principle. The consultation is open for responses for 9 weeks and closes on 13 January 2025. Europe news The European Commission is calling on Ireland to comply with a judgment of the Court of Justice on the adequate collection and treatment of urban waste water, and to fully transpose the Renewable Energy Directive. Ireland has two months to remedy the situation and notify the complete transposition of the Directive to the Commission or the Commission may decide to refer the case to the Court of Justice of the European Union.    The EU Parliament has adopted its demands for COP29, which aims to define a new collective goal for financing climate action. The resolution calls on all countries to agree on a post-2025 new collective goal on climate finance that is socially fair, aligned with the polluter-pays principle, and based on a variety of public, private and innovative sources of finance. MEPs also want the EU should step up its green diplomacy, expand global emissions trading and carbon pricing, and see COP send an “unambiguous signal” as a follow-up to the COP28 commitment to transition away from fossil fuels, including the phase-out of all direct and indirect fossil fuels subsidies and the reallocation of these resources towards climate action as soon as possible.   A briefing published by the European Environment Agency (EEA) has stated that increased use of wind turbines in coastal zones to provide Europe with renewable energy is a crucial element in decarbonizing Europe’s economy and in meeting its climate and energy targets as Europe seeks to increase offshore wind energy production by more than 16 times by 2050. The placement of these turbines should also carefully consider potential impacts on marine ecosystems. Congratulations! Congratulations to the Bank of Ireland and to the CIÉ Group for their success in sustainability categories at the Chartered Accountants Ireland Leinster Society Published Accounts Awards. Bank of Ireland took home the Arachas Sustainability and ESG Reporting Award for Listed entities, while the CIÉ Group won the award for Sustainability and ESG Reporting Award Unlisted entities. The awards, sponsored by Euronext and Arachas, and in partnership with the Business Post, highlight companies across the island of Ireland for excellence in corporate reporting. The awards have evolved over the years to include categories reflecting the changing nature of business and reporting requirements, going beyond just the scope of financial reporting. Technical update (From our Professional Accounting Team) The IAASB has published the much anticipated ISSA 5000 International Standard on Sustainability Assurance 5000, General Requirements for Sustainability Assurance Engagements.  This standard is a comprehensive, stand-alone standard suitable for any sustainability assurance engagements. It will apply to sustainability information reported across any sustainability topic and prepared under multiple frameworks. The standard is also profession agnostic, supporting its use by both professional accountants and non-accountant assurance practitioners. The draft standard was subject to a public consultation in 2023 and Chartered Accountants Ireland's response can be read here.    Event – Chartered Accountants Ireland  - Access to sustainable finance by SMEs Join experts Laura Heuston, John McGeown, Gordon Naughton and Orla O'Gorman for a discussion on the landscape of finance and other support options available for SMEs and entrepreneurs to facilitate businesses taking action. Part of the Sustainable Finance Week Ireland 2024, this seminar will be  in person on Wednesday, 27 November 2024 at 17.00-18.00 in Chartered Accountant House, and be hosted by Sustainability Advocacy Manager, Susan Rossney. Register here or through the Sustainable Finance Week Ireland platform Webinar In the third of our series on EU sustainability reporting, Dee Moran, Chartered Accountants Ireland and Derarca Denis from EY reviewed some of the practical challenges that companies have faced in preparing to comply with the CSRD. Watch back here. Articles Connecting finance and sustainability: accounting for intangibles (ICEAW Insights) Corporates tackling the key themes within sustainability (Irish Examiner) COP29 climate talks grapple with trillion-dollar task (RTÉ) COP29: What do all the words mean? (BBC) Explainer: A guide to COP29 climate jargon (RTÉ) Upcoming Events COP29 Climate Summit Date: Nov 11-22 Location: Azerbaijan Host: CBD, UN   iQuest & Business Post, ESG Autumn Summit Date: Nov 20th Location: Croke Park   Chartered Accountants Ireland (part of Sustainable Finance Ireland Week 2024), Access to sustainable finance by SMEs Part of Sustainable Finance Week Ireland, this seminar will describe the landscape of finance and other support options available for SMEs and entrepreneurs which can facilitate businesses taking action. It aims to debunk the concept of ‘green finance’ for SMEs and paint a clear picture of the steps and the commercially viable – scalable – actions SMEs could take to improve their impact and their ability to source finance for projects. Commercial financial products will be discussed, alongside the grants available from local enterprise offices (LEOs), Enterprise Ireland, the Sustainable Energy Authority of Ireland (SEAI). In person, Chartered Accountant House, Wednesday, 27 November, 17.00-18.00   Dublin Chamber, Internal Sustainability Integration - Building a Sustainable Workplace Culture Are you a professional in an internal facing role such as finance, operations, or HR? Our upcoming workshop at The Sustainability Academy is designed specifically for you. This session will guide you in integrating sustainability practices within your organisation’s internal mechanisms, demonstrating how these practices can improve employee engagement, operational efficiency, and the overall workplace environment. Virtual, 29 November, 09:30-13.00   Belfast Harbour Commissioners, Responsible Innovation Conference This conference will bring together business leaders, technology experts, and academics to discuss the ethical implications of technology. Participants will learn about managing the social and environmental impacts of technology while driving growth and innovation. The event will also include networking opportunities, allowing attendees to exchange ideas and collaborate on responsible business practices. In person, Belfast Harbour Commissioner, 29 November 2024, from 8:15 am   ADViCE, Net Zero Manufacturing: Navigating AI for efficiency This webinar will cover the practical application of AI to improve manufacturing efficiency focusing on optimising energy use and reducing emissions.  Virtual, 26 November 2024, 12:00 - 13:30 Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. Next meeting: November 27, 18:00-19:00 In person, Chartered Accountant House – Drinks & Networking If you would like to attend, please email sustainability@charteredaccountants.ie     You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.