Roundup 20 September 2024 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, the International Accounting Standards Board has announced the start of a research project to review and improve the requirements for the statement of cash flows and related matters in IFRS Accounting Standards. The Department of Enterprise, Trade and Employment has recently confirmed changes to the procedure for notifying the Minister of proposed collective redundancies, pursuant to section 12 of the Protection of Employment Act 1977. Read more on these and other developments that may be of interest to members below. Financial Reporting The Financial Reporting Council (FRC) has published new September 2024 editions of UK and Irish financial reporting standards. These standards consolidate all recent amendments to the standards, including the amendments arising from the recent periodic review of the standards. The following September 2024 publications are included on the FRC website. Overview of the financial reporting framework FRS 100 Application of Financial Reporting Requirements FRS 101 Reduced Disclosure Framework FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland FRS 103 Insurance Contracts Implementation Guidance to accompany FRS 103 Insurance Contracts FRS 104 Interim Reporting FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime The European Financial Reporting Advisory Group (EFRAG) has issued its August 2024 Update. This report summarises the public technical discussions and decisions taken in the past month as well as open consultations, future events and vacancies. EFRAG has published its feedback statement on its response to the International Accounting Standards Board’s (IASB’s) exposure draft Contracts for Renewable Electricity (proposed amendments to IFRS 9 and IFRS 7). The feedback statement summarises constituent’s feedback, including responses to EFRAG’s draft letter and outreach activity findings. The International Accounting Standards Board (IASB) has announced that it is starting a new research project designed to review and improve the requirements for the statement of cash flows and related matters in IFRS Accounting Standards. The IFRS Interpretations Committee (IFRIC) has released its September 2024 update which summarises the decisions reached in its public meeting on 10 September. During the meeting, IFRIC considered requests received in relation to the following matters; Guarantees issued on obligations of other entities Recognition of revenue relating to tuition fees The IASB has proposed amendments to IAS 28 in its exposure draft Equity Method of Accounting – IAS 28 Investments in Associates and Joint Ventures. The proposed amendments add to and clarify how to apply the equity method by answering application questions that the IASB has received over several years. The consultation period remains open until 20 January 2025. The UK Endorsement Board (UKEB) Survey response deadline on IFRS 18 Presentation and Disclosure in Financial Statements has been extended to 30 September. In its Autumn 2024 Joint Committee Report, the three European Supervisory Authorities (EBA, EIPOA and ESMA) have warned national supervisors of the financial risks stemming from economic and geopolitical uncertainties. Auditing and Assurance The International Auditing and Assurance Standards Board has published a report, Balancing Effectiveness and Timeliness in Audit and Assurance Standard Setting.  This report gives an overview of the IAASB’s progress in addressing key public interest issues and reiterates its strategic direction to continue bolstering confidence in audits and assurance engagements. The Financial Reporting Council welcomes the Government tabling legislation in Parliament on 9 September 2024 to address the significant delays in local authority audits. This follows the Written Ministerial Statement issued on 30 July 2024. Insolvency The Department of Enterprise, Trade and Employment has recently confirmed changes to the procedure for notifying the Minister of proposed collective redundancies, pursuant to section 12 of the Protection of Employment Act 1977, as amended. These changes took effect from 1 July 2024. More information is available on our website. Readers may want to take note of a recent UK High court judgment in connection with the collapse of the retailer British Home Stores (in 2016) and the findings made against individual directors in relation to Wrongful Trading Claims, a Trading Misfeasance Claim and Individual Misfeasance Claims. Two of the directors were each ordered to make a contribution of £6.5m (roughly 15% of the total) to the companies’ assets, on a several liability basis and another director was ordered to make a contribution of £21.5m to the companies’ assets. Please click for an article by UK law firm Burges Salmon which analyses the judgment in detail and the article provides a number of key takeaways for directors of distressed businesses as follows: Navigating duties during times of financial difficulty has never been more complex or potentially risky Directors must ensure that they are up to the task Professional advice is a key protection, but the court will view it in context Board minutes in a distressed situation must be a faithful record of proceedings Directors exercising limited functions may not abdicate decisions for the whole board Directors should not assume that they will be shielded by insurance Please also click for an article by UK law firm Jones Day on the BHS judgment in particular their closing comment that …”. While the BHS facts are relatively extreme, the fact that directors were found liable to such an extent, when in some cases they were earning around £150,000 a year and (at least in one case) had limited involvement at board level, is a warning to all directors of companies facing financial pressure”.  Sustainability EFRAG held its Sustainability Board meeting on Tuesday 17 September 2024. The Hong Kong Institute of Certified Public Accountants (HKICPA) has published two exposure drafts (EDs) for sustainability reporting standards that are fully converged with IFRS S1 and IFRS S2. The comment period for the EDs ends on 27 October 2024. The Institute is holding a webinar on the CSRD on Wednesday 25 September which features Orla Carolan from Future Planet and Mike O’Halloran to understand more about the practical challenges of implementing the CSRD. This includes an overview the steps involved in conducting a double materiality assessment and what to do next around data collection, disclosure and reporting. Please register here to attend. In its recent ESRS Perspectives series, Accountancy Europe look at the European Sustainability Disclosure Standards (ESRS) development process. In this publication they have summarised the ESRS processes and listed the various ESRS support materials from the European Commission and EFRAG. This will provide users and preparers a useful insight into how the standards have been developed. Sanctions and anti-money laundering The UK government recently announced the launch the Office of Trade Sanctions Implementation (OTSI), within the Department for Business and Trade, in October 2024.  Click here also for further information. To equip the office with new civil enforcement powers, on 12 September 2024, the UK government passed the Trade, Aircraft and Shipping Sanctions (Civil Enforcement) Regulations 2024. Click for the explanatory memorandum. OTSI’s enforcement powers come into effect from 10 October 2024. They will apply to all UK persons including businesses wherever they are in the world and any person including businesses in the UK or the UK territorial sea. The regulations introduce new civil enforcement powers, including the power to impose monetary penalties, for breaches of aircraft, shipping and certain trade sanctions. The regulations also give the Secretary of State the option to publish reports where a breach of sanctions regulations has occurred. Click for statutory guidance on the Trade, aircraft and shipping sanctions, civil enforcement. Please click for the latest UK Financial Intelligence Unit SARs in Action magazine, Issue 27. Articles include a look at the UK cross system strategy to tackle professional enablers (individuals or organisations which are providing professional services that enables criminality). The publication also includes some case studies on suspicious activities reports made to UKFIU and an article on “virtual squatting”. The UK National Economic Crime Centre (NECC) recently published its annual report for 2023-2024. It includes some interesting case studies on the takedown of one of the biggest online marketplaces selling stolen credentials to criminals, an investigation into international Cash-Based Money Laundering controller network and case study on the crackdown on romance fraud. Charities news The NI Charity Commission has enhanced the security of Online Services - documents submitted  must not now include special characters in their names. Communities Minister, Gordon Lyons MLA, has appointed Leanne McCullough as a Commissioner to the Board of the Charity Commission for Northern Ireland with effect from 15 August 2024 to 14 August 2029. Central Bank of Ireland news On 18 September 2024 the Central Bank of Ireland (CBI) issued its latest Quarterly Bulletin for Q3 2024. You can read about the latest trends and the outlook for the Irish Economy, an article on economic policy issues in the Irish housing market and an item about climate change in the financial sector. The focus of the climate change article is on describing the new analytical indicators of carbon emissions for financial institutions resident in Ireland. In September 2024, CBI published a page dedicated to frequently asked questions on Markets in Cryptoassets Regulation (MICAR) divided into sections on authorisations, expectations, policy and virtual asset service providers. Government legislation programme Autumn 2024 The Government has published its legislative programme for Autumn 2024. Read the press release here and the contents of the programme here. Since the last publication in April, we have reported on draft legislation and enactments of relevance to members. For example, the Charities (Amendment) Act 2024 which has been enacted and awaits commencement. Also, the Irish Dept. of Finance published the Finance (Provision of Access to Cash Infrastructure) Bill 2024. The Companies (Corporate Governance Enforcement and Regulatory Provisions) Bill has been published and is currently being considered in the Dail. Heads of Bill of the National Cyber Security Bill were published in July 2024. This legislation is to transpose EU Directive 2022/2555 which all EU member states are required to transpose in full by 17 October 2024. Also, heads of bill have been published for the Miscellaneous Provisions (Registration of Limited Partnerships and Business Names) Bill which bill will reform the Limited Partnerships Act 1907 and the Registration of Business Names Act 1963, strengthening Ireland’s regulatory framework and responding to concerns raised in relation to the transparency of Limited Partnerships. Other draft legislation of note in the Autumn legislative programme is the Criminal Justice (Money Laundering and Terrorist Financing) (Amendment) Bill which is heads in preparation, and which is stated to amend the 2010 Act to ensure that Crypto Asset Service Providers are covered by national law in relation to Ireland’s Anti-Money Laundering and Terrorist Financing regime. Also heads in preparation is the Regulation of Artificial Intelligence Bill which will provide for, the designations of Competent Authorities, and penalties, to comply with Ireland’s obligations under Regulation (EU) 2024/1689 laying down harmonised rules on artificial intelligence (Artificial Intelligence Act). Other On 11 September 2024, the Property (Digital Assets etc) Bill was introduced into the UK Parliament. The press release issued on publication of the Property (Digital Assets etc) Bill noted that it will mean that for the first time in British history, digital holdings including cryptocurrency, non-fungible tokens such as digital art, and carbon credits can be considered as personal property under the law. The Bill will also ensure Britain maintains its pole position in the emerging global crypto race by being one of the first countries to recognise these assets in law. Click to read the Bill and the explanatory memorandum. Read details of the UK Law Commission’s work on digital assets here. Companies House in the UK has recently posted a blog on “Authorised Corporate Service Providers [ACSPs]: what you need to know”. Readers may recall that identity verification is a core pillar of the Economic Crime and Corporate Transparency Act 2023 under which Act Companies House will be required to verify the identity of anyone who is submitting information to the public register, including those acting on behalf of a company. The blog gives some information on ACSPs including standards to become an ACSP and registering to become an ACSP.   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 Irish news, the Court of Justice of the European Union has given its final judgment in the Apple State-aid case, we update you on matters discussed at the recent Tax Administration Liaison Committee (TALC) meetings, and Revenue publishes the R&D pre-filing notification forms. In UK news, the Institute wants to hear from companies in Northern Ireland who support a lower rate of corporation tax for the region and read our update on all things legislation.      Ireland The Court of Justice of the European Union has given its final judgment in the Apple State-aid case. Read our summary of matters discussed at recent TALC meetings. Revenue publishes R&D pre-filing notification forms. UK The Institute wants to hear from companies in Northern Ireland who support a lower rate of corporation tax for the region. Read our update on all things legislation. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount. You can also read this week’s EU exit corner here.

In this week’s Sustainability/ESG bulletin read about the upcoming Sustainability Reporting and Assurance diplomas from Chartered Accountants Ireland and a call for accountants to participate in an ENACT workshop. Also covered are new sources of climate funding, developments in renewable energy financing, investment in entrepreneurship programmes aimed at women, the Draghi report, and the usual resources, articles and upcoming events. Ireland news 2024 Climate Action Plan Report shows progress towards targets The Department of the Taoiseach has described the latest progress report on the 2024 Climate Action Plan as showing “continued progress towards Ireland’s climate targets”, with 20 out of 33 new actions completed on time. The statement comes after the recent publication by the EPA of provisional greenhouse gas emissions for Ireland for 2023, showing a reduction of 6.8% (excluding land emissions) compared to 2022, with emission reductions in almost all sectors. Climate funding made available Climate Actions Work, a campaign and fund specifically aimed at climate engagement, has been launched to support and inspire people to take action and talk about the climate actions that can improve their local areas. The campaign will include national radio, print and social media broadcasts to amplify climate actions already happening, with a particular focus on local media linked to local actions. The fund will be administered by Community Foundation Ireland. €27 million in funding under the Community Climate Action Programme has also been provided to local authorities to partner with community groups, supporting initiatives like community gardens, solar energy, EV charging, and community composting. The programme comprises a national Climate Action Fund allocation of €24 million and €3 million provided by the Government’s Shared Island Fund to support cross-border and all-island community climate action initiatives. CSO publishes ‘ecosystem accounts’ for forests and woodlands The Central Statistics Office (CSO) has published Ecosystem Accounts - Forests & Woodlands 2012-2022, as part of the CSO Frontier Series Output. It is the first time the CSO has produced a full set of ecosystem accounts for one of Ireland's ecosystems. International politics are shifting towards frameworks of environmental policies that aim to  achieve sustainable development and increase human well-being in the coming decades. Ecosystem accounting has a role to play in the development and monitoring of such policies by offering a unique approach through the ecosystem perspective. Fourth Renewable Electricity Support Scheme (RESS 4) auction results announced The provisional results of the fourth Renewable Electricity Support Scheme (RESS 4) auction have been announced, provisionally procuring over 2GWh (2,071 GWh), or enough energy to power up to half a million homes. Ireland's target, as set out in the government's Climate Action Plan 2024, is to achieve 80% renewable electricity by 2030. To deliver this a minimum of five RESS auctions are to occur between 2020 and 2025. The RESS provides pathways for renewable developers to plan and develop their projects. Offshore wind projects can participate through dedicated offshore auctions. Separately, the European Investment Bank (EIB) and the Irish Department of Transport have formally announced an advisory cooperation to assess capacity, demand and financing strategies required for the development of ORE (Offshore Renewable Energy) port infrastructure. This infrastructure is crucial for the development, construction, and long-term operation and maintenance of offshore wind projects in Irish waters and economic activity. The new advisory cooperation aims to evaluate the scale and nature of investment needed to upgrade port infrastructure in order to unlock the estimated €30 billion in investment in offshore renewable projects in Irish waters. Irish Sovereign Green Bond (ISGB) Allocation Report 2023 publishes The National Treasury Management Agency (NTMA) has published the Irish Sovereign Green Bond (ISGB) Allocation Report for 2023 and the Impact Report for 2022, both issued by the Government of Ireland. A total of €521 million was allocated to eligible green projects in 2023. Both reports and an excel file of the Impact Report are available here. Report into Ireland’s farming climate action publishes A new report published recently by Ifac - Ireland’s farming, food and agribusiness specialist professional services firm – has found that 90% of Irish food companies are now actively taking climate action, positioning sustainability as a central focus alongside global expansion efforts. Getting your business fit for export, Ifac’s 2024 Food and Agribusiness Report (the seventh in the series) contains insights from industry leaders in over 120 food and agribusinesses. Sustainability at Senior Cycle Minister for Education Norma Foley, TD, has launched the two new Senior Cycle subjects: Leaving Certificate Drama, Film and Theatre Studies; and Climate Action and Sustainable Development. 43 schools will introduce Climate Action and Sustainable Development from the start of the 2025/26 school year. Climate Action and Sustainable Development will develop students’ capacity for informed and meaningful action for a just and sustainable world as they engage with key sustainability challenges including the climate crisis. Students will be empowered to build their understanding of a number of interconnected core concepts and principles related to climate action and sustainable development. Northern Ireland/UK news InterTradeIreland, in partnership with Invest Northern Ireland and Enterprise Ireland, have introduced eight new entrepreneurship programmes designed to empower women and help them collaborate, learn, grow and scale their business. Alongside cross-border clusters and sustainability innovation investment, a key element of the Shared Island Enterprise Scheme is dedicated to fostering women’s entrepreneurship on an all-island basis, of which these programmes are the first stage. Further announcements as part of the wider Shared Island Enterprise Scheme will follow in the coming months. Europe news The Draghi Report on “The future of European competitiveness” was presented to the President of the European Commission on 9 September. The 400-page report by former Italian prime minister and president of the European Central Bank Mario Draghi, grouped its findings around three pillars: innovation, decarbonisation and dependency. Decarbonisation, the report says, should be used as a tool for competitive advantage, with Europe needing to decouple the price of natural gas from renewable energy so as to reduce energy prices and allow the benefits of clean energy to be passed on to consumers. The report also suggested that Europe needs to mobilise at least €700–850 billion in investments a year and that common asset funding and joint debt could be used to finance this upscale in investment.   The European Commission has released a paper discussing how the shift to climate neutrality will affect public finances. The paper, Fiscal Challenges in the Green Transition: A Global Perspective, looks identifies the fiscal implications of the transition to climate neutrality on government budgets, assesses the revenue boost from carbon pricing and the eventual decline as emissions reduce and suggests possible options to broaden the tax base and introduce innovative sources of financing for fiscal sustainability. Sustainability Reporting and Assurance Diplomas starting 26 September With the mandatory corporate Sustainability Reporting and Assurance in the EU starting this year, Chartered Accountants Ireland’s Sustainability Diplomas are back for the Autumn Schedule of our Professional Development courses. Starting on 26 September 2024, the Diplomas are: Diploma in Sustainability Reporting, designed for chartered accountants and others leading the implementation of the new European Sustainability Reporting Standards (ESRS).    Diploma in Auditing and Assuring Sustainability Reporting, tailored for Chartered Accountants and others seeking to conduct sustainability assurance and become licensed as Sustainability Assurance Service Providers (SASPs). Students who previously completed the Certificate in Sustainability Strategy Risk & Reporting receive 20% off the cost of the diplomas and there is Skillnet funding available for all three qualifications. Calling accountants –ENACT  workshop – decarbonisation – SMEs Can you take part in a 90-minute workshop, no preparation required, to give your expertise and experience on SMEs and access to finance? SMEs face barriers and challenges in carrying out energy efficiency upgrades to commercial buildings. One of these barriers is finance. SustainabilityWorks has developed an outline of a financial decision-making tool which could direct SMEs to the grants, low-cost loans and tax reliefs available, as well as providing insights into other financing options such as asset finance, solar power purchase agreements, lighting as a service, solar as a service etc.  SustainabilityWorks is seeking accountants who have worked with SMEs to review the tool to see whether it would overcome some of the complexities around the financing angle. (Commercial buildings are defined as offices, hotels, pubs/restaurants, heated/lit warehouses and leisure facilities.)  Participants will be credited in the final reports to be issued by the SEAI-funded ENACT research project, that will inform national policy with a view to accelerating the retrofit of commercial buildings nationally and making a meaningful contribution to meeting national decarbonisation targets. Contact laura@sustainabilityworks.ie or paddy@sustainabilityworks.ie Articles Ireland’s nature in focus - Valiant efforts give cause for hope (Irish Times)   Sustainability assurance market under spotlight in FRC study (ICAEW)   What will Labour do about green taxes? (CityAM)   Accountants in business: ignore ESG at your peril (ICEAW)   If warnings about Atlantic ocean circulation are correct, Irish people could become climate migrants The Irish Times   “This stuff’s hard. It will take time, but through transparency we can get there.” - Almost half of FTSE 100 companies restate climate scores (The Times)   Podcasts Noeline Blackwell, Irish Human Rights and Equality Commissioner, discusses the key findings of their latest report into the growing problem of human trafficking. Click here for more on what accountants can do in the fight against modern slavery and human trafficking website (RTÉ Radio 1) Watch back Chartered Accountants Worldwide Special Edition In this special episode of the "Difference Makers Discuss Live", Jessica Fries, FCA, shared insights into her career path and role as Executive Chair at A4S. Jessica also discussed the current global sustainability landscape and Chartered Accountants' impact on advancing sustainability.   Upcoming Events EARTH RISING IMMA - Irish Museum of Modern Art IMMA’s flagship festival focused on the Earth crisis, celebrating art and culture as catalysts for environmental change and collective action. This festival includes free exhibitions, workshops, talks, performances, screenings and more. Explore innovative solutions and contribute to a thriving, sustainable future for Ireland. 20 - 22 September 2024, Irish Museum of Modern Art   Ireland’s third SDG (Sustainable Development Goals) Week will take place this year from 20 – 29 September. Last year, almost 200 events were held across Ireland, with 5,000 events taking place across Europe for the wider European Sustainable Development Week (ESDW). The SDGs work towards ambitions such as an end to poverty, access to decent work, sustainable consumption, protection of nature, better health and wellbeing, universal access to education, gender equality, climate action, and peaceful societies.   Chartered Accountants Ireland, Advance your knowledge about the European Sustainability Reporting Standards In the second of our series on EU sustainability reporting, join Mike O’Halloran, Chartered Accountants Ireland and guest to understand more about the requirements of the CSRD, the content and disclosures included in the first set of ESRSs and what undertakings should do to prepare for implementation. Virtual, Chartered Accountant House, 25 September, 10.00 – 11.30 (Free)   EPA, Circular Economy Conference 2024 Online and in-person (Aviva Stadium, Dublin), 25 September   Dublin Chamber, The Sustainability Academy Dublin Chamber is running its Sustainability Academy again this year with workshops offering a unique opportunity to gain a comprehensive and well-rounded understanding of sustainability. This course fee includes a free one-hour, post-workshop one-on-one advisory consultation per company with an expert advisor Virtual, starting 27 September   ESG Summit Europe, ESG Summit Europe 2024 In person, Madrid, October 1-2  ICAEW, Annual Conference 2024 Discover forward-looking insights on the economy, with a particular focus on sustainability, leadership, and technology designed to help you navigate a rapidly evolving external environment, drive business growth and discuss how to build a better, more resilient economic future. In person, Convene, London UK, 4 October, 08:00 - 17:00 BST      Accountancy Europe, Unpacking CSRD transposition across Europe This webinar will take stock and share insights into the Corporate Sustainability Reporting Directive (CSRD) transposition across EU Member States. Join us for this overview with experts. Speakers to be confirmed. Programme coming soon. Virtual, October 8 October 2024 (12:00 - 13:15) Brussels time   Environment Ireland, Environment Conference Environment Ireland® is Ireland’s major environmental policy and management conference. Now in its 20th year, this important event features a range of focused sessions highlighting the pressing issues facing the environment in Ireland and further afield. In person, Croke Park, 17 October   Chartered Accountants Ireland ESG Masterclass: Take your sustainability knowledge to the next level (ROI/NI) Masterclass designed for all professional accountants working in business or practice, wishing to consolidate their knowledge and understanding of the sustainability regulatory, reporting and assurance landscape. 24 October, 08:30 – 12.00, Virtual   IAFA & IAASA  Integrating Sustainability Reporting and Assurance into Accounting Education Conference The conference is a collaboration between IAFA and the Irish Auditing and Accounting Supervisory Authority (IAASA) and aims to build awareness of the implications of sustainability reporting & assurance for accounting education, and to foster meaningful dialogue & collaboration among stakeholders to drive positive change. It will explore: Challenges and opportunities facing accounting education in the context of sustainability reporting and assurance, Corporate Sustainability Reporting Directive (CSRD) and its implications for accounting education, Future skills for sustainability reporting and assurance, Strategies for enhancing accounting education and student skills development. In person, 1 November, Maynooth University 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: Wednesday, 25 September, 14:00-15.30 Zoom 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.

Ethical conduct is not a “nice to have” for accountants, but a crucial professional competence, writes Professor Patricia Barker  Global Ethics Day will be celebrated on 16 October 2024. This initiative, founded by the Carnegie Council for International Affairs, is now in its eleventh year. This year’s theme is “Ethics Empowered”. The Consultative Committee of Accountancy Bodies (CCAB) Ethics Group believes it is important to reflect on the significance of ethics for the accountancy profession and to emphasise three key messages: 1. Empower through education and self-reflection Ethics should be viewed as a professional competence. This requires accountants to undertake regular CPD on ethics, self-reflection activity, and to familiarise themselves with frameworks to guide their ethical decision-making. 2. Be true to ethical values and model ethical behaviour Compliance should not be confused with ethical behaviour. 3. Follow your North Star Accountants should always use the five fundamental ethics principles, as set out by organisations such as Chartered Accountants Ireland, as well as the duty to act in the public interest as their constant navigation tool when facing an ethical dilemma. Ethics vs compliance In every sphere of professional activity, accountants, and the clients they work for, must deal with an ever-increasing tide of regulation. In addition to financial reporting and auditing standards – and alongside legislation governing taxation, anti-money laundering and sanctions – the profession is expected to be familiar with legislation, standards and regulations ranging from those relating to employment, competition and procurement to sustainability, data protection and corporate governance. This is the price to pay for being a trusted advisor. So great is the volume and weight of regulation today, however, that it pervades much of the profession’s decision-making and innovation.  More than just compliance It is important that accountants do not become complacent and that they remember that professional ethics is about much more than mere compliance. Indeed, they may be so preoccupied with gathering evidence of compliance, that they fail to reflect properly on the reality of the rightness and wrongness of actions and the decisions they take.  Dilemmas facing accountants can be regarded, broadly, as either regulatory or judgemental in nature.  Law and regulation provide the framework for ensuring compliance with regulatory issues.  As the body of rules and regulations grows unevenly across different jurisdictions, however, opportunities for regulatory arbitrage increase, potentially distorting markets. More importantly, not all dilemmas can be dealt with directly by a clear regulation. Ethical issues that fall outside clear rules must be judged in the context of the value framework the individual professional believes in.  This framework is provided by the ethical education and self-awareness of the accountant, supported by a Professional Code of Ethics and experiential/reflective learning.  The role of personal values In determining how to deal with any ethical dilemma, the accountant will be strongly influenced by their individual moral perspective. When considering whether a particular action is potentially good or bad, some accountants may prefer to emphasise the ultimate outcome, taking the view that the end will justify the means.  Others may believe that the action itself must be judged, rather than its consequences. Still others may believe that humans are inherently self-centred and competitive, and will make decisions in their own interests, albeit complying with the law.  Ethical behaviour, therefore, requires that each professional accountant undertakes detailed self-reflection to fully understand how their values influence their approach to decision-making and how they are likely to react under pressure. When there is a conflict between our conscience, our ethical reasoning, the requirements of our workplace and our limited ability to influence outcomes, cognitive dissonance is inevitable. Ethical self-reflection and close scrutiny of the guidance provided by the Code of Ethics for Professional Accountants can help the professional accountant forge a trajectory to ethical decision-making when under pressure. Importance of Code of Ethics for professional accountants Professional accountants who are members of one of the bodies comprising the CCAB must adhere to the Code of Ethics for Professional Accountants. This includes the International Independence Standards issued by the International Ethics Standards Board for Accountants (the Code). Perhaps inevitably, to accommodate the increase in regulation and standards, the Code has expanded exponentially in recent years. However, it is important to remember that the application material and more detailed sections of the Code are simply an expansion of the five fundamental ethics principles. Professional accountants should be guided not merely by the terms but also by the spirit of the Code. These principles, together with the overarching professional duty to act in the public interest set out in the Code, are broad enough to deal with most of the challenges accountants face in their daily professional lives – particularly when combined with informed ethical self-reflection. This article was written by Professor Patricia Barker, FCA, Lecturer of Business Ethics at Dublin City University, on behalf of the Consultative Committee of Accountancy Bodies

Budget 2025 needs to tackle rising business costs, tax complexity and housing shortages to enhance Ireland’s global competitiveness and support domestic and foreign enterprises, writes Tom Woods On 1 October, Budget 2025 should prioritise addressing key competitive challenges in the Irish economy, such as attracting, supporting and scaling Irish and foreign businesses, as well as tackling rising employment costs, international talent competition, and affordable housing availability. Tax simplification Ireland is facing a rapidly changing global tax environment, and the outcome of the US elections could significantly impact this environment and Ireland's attractiveness as an investment location. US tax measures designed to lower the US corporate tax rate to one more comparable with OECD peers and to protect the US tax base are scheduled to expire at the end of 2025. Despite this uncertainty, Ireland has a unique chance to present itself as a stable and secure destination for FDI. It is vital the opportunity is taken in Budget 2025 to introduce measures that will strengthen Ireland's competitive edge and attractiveness for inward investment. Ireland needs a broad and flexible participation regime that will support it as an international holding company location. We have called for introducing a participation exemption for foreign dividends to complement the participation exemption in place for capital gains. A branch exemption should also be introduced. Simplification of the tax code needs to be a priority in Budget 2025 to support enterprise and entrepreneurship. According to the KPMG Enterprise Barometer 2024, six in ten domestic businesses and entrepreneurs are concerned about the administrative complexity associated with the Irish tax system, particularly for smaller enterprises and entrepreneurs. Our pre-budget submission calls for the establishment of an Office for Tax Simplification to review the tax code, remove duplication, and simplify the system. By doing so, we can drive reform of overly complex tax rules that are adding to the cost of doing business and compromising competitiveness. This is particularly important now that the 12.5 percent corporation tax rate is less of a competitive advantage. SME investment SMEs employ more than 1.2 million people and are critical to our economic success, so they need access to capital and talent to develop and grow their businesses. Enhancements to the Key Employee Engagement Programme (KEEP) and the Special Assignee Relief Programme (SARP), as well as introducing a super deduction for payroll costs of highly skilled technology workers would help level the playing field for SMEs competing with multinational corporations in a tight labour market. Budget 2025 could also incentivise investment in SMEs by simplifying the Employment Investment Incentive Scheme (EIIS) and enhancing Capital Gains Tax (CGT) Entrepreneur's Relief. It is also critical to reverse the changes made to the CGT Retirement Relief in the last Finance Act. The availability of CGT retirement relief is vital to the development of multi-generational family-owned businesses and farms. These businesses and farms are the bedrock of the Irish economy, employing millions. Last year's changes will operate as a barrier to the transfer of Irish businesses and farms to the next generation. Employment cost reduction Ireland's high cost of employment has become a real concern for domestic businesses and foreign investors. Budget 2025 should introduce measures to reduce the cost of employment. Ireland needs a personal tax regime that attracts and retains skilled individuals. This is important for Irish and foreign-owned companies assessing Ireland as an investment location. The entry point to Ireland's marginal income tax rate is uncompetitive compared to many other jurisdictions, making it difficult to attract talent and highly skilled workers. We recommend raising the point at which the marginal rate applies to €50,000. We also recommend the introduction of an earnings cap of €75,000 on Employee PRSI and €100,000 on Employer PRSI, similar to social security caps in other countries, increasing workers' take-home pay, helping employers manage employment costs and supporting businesses growing and developing talent. Housing crisis The housing crisis is adversely impacting Ireland's attractiveness for investment. According to new data from the Central Statistics Office, 69,000 people emigrated from the Republic of Ireland in the 12 months to April 2024, the highest level of emigration since 2015. There were also significant inflows, but this is a missed opportunity to keep talented people in the Irish labour market. Several budgetary measures could be introduced to increase the housing supply, including incentivising employers to build and provide residential accommodation to employees with a corresponding benefit-in-kind (BIK) exemption for employees earning less than €50,000. Reintroducing a targeted and controlled form of Section 23 relief could also encourage the conversion of properties above retail units to residential use and encourage individuals to finance the development of new residential units for letting. Green technology Our ambitious climate goals will undoubtedly present challenges and opportunities for individuals, communities, and businesses. Tax policy could be used as an effective tool to encourage innovation in green technologies to help us meet these targets. The Government has several challenges to address, but strong exchequer returns should put the Government in a good position to deliver on a budgetary package of €1.8 billion in additional spending and €1.4 billion in tax measures as set out in the Summer Economic Statement.  Tom Woods is head of tax at KPMG in Ireland

Selling a business is a complex process and accountants have a crucial role to play in ensuring their clients achieve the optimal financial outcome. Niall Gaughan explains how As the financial landscape continues to evolve, accountants in Ireland are finding themselves at the forefront in helping to guide clients through the intricate process of selling a business. Beyond the immediate considerations of the sale itself, the post-sale period is critical to ensuring optimal financial outcomes. In this article, we explore the key elements accountants should consider when advising clients on selling a business, focusing on the importance of securing future financial stability, fostering strategic partnerships and succession planning. Anticipating the post-sale landscape Accountants must highlight the importance of proactive planning before a sale. Understanding the details of the financial landscape post-sale allows business owners to make informed choices that can have a significant impact on tax responsibilities, wealth preservation and overall financial health. This can help to ensure that clients are well-equipped to navigate any complexities that may emerge after the deal closure. Securing future financial stability Securing future financial stability post-sale is a critical consideration for both business owners and their advisors. Central to this endeavour is expert tax advice. Accountants play a pivotal role in guiding clients towards understanding the tax implications associated with a business sale. By carefully examining available reliefs, exemptions and allowances, accountants can help maximise after-tax returns, providing a solid foundation for the future. For instance, a comprehensive understanding of various reliefs can lead to substantial tax savings, laying the groundwork for securing the financial future of both the seller and the business. Fostering strategic partnerships When navigating the complexities of a business sale, fostering strategic partnerships is crucial. Accountants must pay careful attention to the strategic structuring of the sale, assessing alternatives such as selling shares or assets with a keen eye on the potential implications for both buyers and sellers. By leveraging their expertise and collaborating closely with other advisors, accountants can help clients select a structure that not only aligns with their financial goals but also fosters long-term strategic partnerships. These partnerships are crucial because they can provide significant tax advantages and facilitate a seamless transition process. Moreover, by aligning the interests of all parties involved, strategic partnerships lay a strong foundation for ongoing collaboration, which is essential for future growth and success. Securing the future beyond the sale Post-sale success is not solely contingent on immediate financial gains. Accountants should advocate for robust succession planning, especially within family businesses, considering factors such as family dynamics, business continuity and long-term financial objectives. By engaging in proactive succession planning, clients can safeguard their wealth, ensuring its sustained growth and the realisation of personal and family goals. This approach not only secures the financial future of the business but also aligns with the long-term vision and values of the family, setting the stage for continued success across generations. A strategic partnership for wealth management In the post-sale phase, a private banker with specialised competencies can support the unique requirements of handling the proceeds from a business sale. The business owner’s accountant can play a key role in selecting a private banker suited to their unique needs. Their competencies should include: Wealth preservation expertise: A private banker who understands wealth preservation strategies can help the client build a lasting legacy. Investment strategy: Competent private bankers should be adept at devising investment strategies aligned with the client's risk tolerance and financial goals, ensuring the continued growth of their wealth. Diversification and risk management: A private banker should be able to assist clients in diversifying their investment portfolio, mitigating risks associated with concentrated assets and optimising long-term returns. Personalised service: The ability to craft personalised financial plans that encompass the client's lifestyle, philanthropic aspirations and intergenerational wealth transfer, is a key competency for a private banker in this context. Clients are now keen to understand more about philanthropic options and sustainability. A good private banker should be able to facilitate access to deep knowledge and subject matter experts in these areas. Clients need a secure financial institution with a strong credit rating that offers immediate returns on their funds post-sale. Confidentiality and direct access to a private banker can help, as they will have access to expertise in financial markets and the ability to educate clients who are often experts in their fields – but not necessarily in financial management. Ensuring post-sale success The role of the accountant supporting a client through a business sale extends beyond the realms of financial statements and tax calculations. By proactively addressing the considerations outlined – expert tax advice, strategic structuring, succession planning and selecting the right private banker – accountants can guide their clients towards post-sale financial triumph. Niall Gaughan is a Director with Barclays Wealth in Dublin

Exciting news! BrightPay is launching a cloud version of its popular payroll software in Ireland, just in time for the 2025 tax year. After seeing how successful the cloud version has been in the UK, they’re excited to offer the same innovation and convenience to its Irish users. Cloud-based solutions are gaining traction in Ireland, mirroring a global shift toward cloud computing. As Irish businesses adopt cloud technologies, payroll management is no exception. Cloud payroll software offers businesses and employees benefits such as better data management, enhanced collaboration, and greater flexibility. What makes BrightPay’s cloud-based software stand out from its existing solution? The cloud version of BrightPay maintains the same layout and interface you’re already familiar with, so existing users will have little to no training to get started. In addition to offering all the features of the desktop version, the cloud software introduces several advantages: Access from anywhere: Log in to BrightPay from any internet-connected device. Just open your browser and get started. Multi-user access: Multiple users can work on the same payroll file at the same time. Real-time changes: Updates to a payroll file are instantly visible to all logged-in users. Automatic updates: The software automatically updates to the latest version, including changes like National Insurance rates or minimum wage adjustments. Automatic data backups: BrightPay continuously saves your payroll data as you work. Secure hosting: Payroll data is stored on a secure, remote server rather than your local machine. Employee Self-Service Portal: Included with all licenses, this portal lets employees view payslips, request leave, and update personal information. Why switch to the cloud version? The new cloud features are designed to improve flexibility and collaboration, allowing your team to work seamlessly from anywhere, anytime. Enhanced security measures ensure your sensitive data is protected, and with automatic updates, you’ll always stay compliant with the latest regulations. Join the waitlist today to be one of the first to experience the new software. This article is sponsored by BrightPay

Comments from Cróna Clohisey, the Institute’s Director of Advocacy and Voice in relation to Ireland’s tax base and our tax system appeared in a recent piece in The Sunday Times. 

Revenue has published the Pre-filing Notification Forms for the R&D Tax Credit. Companies are now required to notify Revenue of its intention to file a claim for the R&D Tax Credit for accounting periods commencing on or after 1 January 2024. The pre-filing notification must be in writing in the form prescribed by Revenue and must be filed at least 90 days before the claim for the credit is made. The forms are available on Revenue’s R&D Tax Credit page and at the links below:  Research and Development pre-filing form 766C  Research and Development pre-filing form 766D 

As readers will know, the Tax Administration Liaison Committee (TALC) is the forum where practitioners can make recommendations to achieve more effective and efficient tax administration. The Institute attends TALC under the auspices of the Consultative Committee of Accountancy Bodies – Ireland (CCAB-I). There are several committees operating under TALC. Below we bring you updates from recent meetings of Main TALC, the TALC Indirect Taxes Sub-committee, and the TALC Direct and Capital Taxes Sub-committee.  Main TALC  The September meeting of Main TALC took place last week at Revenue’s Bishop’s Square offices. The agenda included an update from Revenue Technical Services (RTS), Enhanced Reporting Requirements (ERR), and Pillar Two. At the meeting we also raised the matter of customer service standards, noting certain issues which have been brought to our attention by members in recent months. Revenue acknowledged our concerns and committed to a full discussion at the December meeting of the group. We also noted the ROS downtime on Saturday 7 September.  On RTS, Revenue informed the group that it will be hosting webinars on 26 and 27 November 2024 to assist taxpayers making submissions to the RTS. The purpose of the webinars is to enhance the quality of submissions made to it and input has been sought from Main TALC on specific areas of focus for the webinars. The group noted that the webinars will be of great benefit to taxpayers.  Regarding ERR, Revenue updated the group on returns submitted to date. The latest data shows that returns have been made by 41,797 employers for around 665,000 employees representing in-scope benefits of €975 million. The majority of the payments made relate to travel and subsistence.  Lastly, on Pillar Two, Revenue noted that it is significantly increasing its resources to manage Pillar Two. There has also been a significant body of work throughout the summer to prepare for the commencement of Pillar Two compliance cycles in 2025.  TALC Indirect Taxes Sub-committee  At the recent meeting of the TALC Indirect Taxes Sub-committee, the group discussed various matters including issues arising with RCT and the VAT reverse charge mechanism, the status of the EU VAT in a Digital Age (ViDA) file, the recent VAT Modernisation (VATMod) consultation, and the categorisation of certain psychotherapeutic and counselling services for VAT purposes.  On the status of ViDA, Revenue officials noted that at the ECOFIN meeting in June, a Member State had exercised its veto due to a perceived issue with the “deemed supplier” obligations. A further update will hopefully be available at the next meeting in November.  Regarding the recent VATMod consultation, Revenue informed the group that a findings’ report issued. In total, there were 1,100 responses. The group agreed to arrange a meeting to discuss the findings’ report and Revenue acknowledged the quality and breadth of feedback provided.  TALC Direct and Capital Taxes Sub-committee  At the recent meeting of the TALC Direct and Capital Taxes Sub-committee, the group discussed various matters including RCT and the VAT reverse charge mechanism, the review process for Tax and Duty Manuals (TDMs), the tax treatment of Islamic financial transactions, TAC determination 44TACD2024, and the requirement to provide a breakdown of distributions from an Approved Retirement Fund (ARF), as well as various guidance updates.  The issue regarding RCT and VAT reverse charge relates to a question on the part of an RCT contract which the VAT reverse charge applies to. Revenue noted that the reverse charge only applies to construction services. The matter is also being considered by the TALC Indirect Taxes Sub-committee and officials from Revenue are aware of the discussions in both groups.  On the TDM review process, practitioners noted that issues with wording applied to TDMs while under review. There is a concern that the phrase, “The guidance may not reflect Revenue’s current position” is too broad. In the absence of a specific explanation on what is actually under consideration at a particular time, it casts any technical position into uncertainty until such time as the manual is refreshed or reinstated. Revenue will consider betters options in this regard but also noted the importance of appropriate wording.  In relation to 44TACD2024, practitioners queried whether this would influence Revenue’s approach to dealing with ARFs. Revenue noted that the case was determined on its facts and does not have precedential value. 

Last week, the Court of Justice of the European Union (CJEU) handed down the final judgment in Commission v Ireland (C-465/20 P). The case concerned tax rulings provided to two companies in the Apple Group which approved the methods used by those companies to determine their taxable Irish profits in relation to the trading activity of their respective Irish branches. In 2020, the General Court annulled the Commission’s decision that the tax rulings constituted illegal State-aid.   The Commission appealed the decision and in November 2023, Advocate General Pitruzzella’s opinion recommended that the CJEU should set aside the judgment of the General Court and refer the case back to that court. Rather than referring the case back to the General Court, the CJEU instead gave final judgment in the matter and so the matter is now concluded. In a press release issued last week, it was noted that  the CJEU “considers that the state of the proceedings is such that it may give final judgment in the actions”.  In a statement issued last week, the Minister for Finance, Jack Chambers TD noted that the country’s tax system is built on certainty and predictability. The minister acknowledged that many of the largest multinational companies operating in Ireland have been doing so for many decades and are significant employers. He also observed that the global tax environment has changed dramatically over the last decade and that the Irish Government has been at the forefront of these developments.  In a subsequent press release on the Escrow Fund (in which the contested taxes have been held), the Department of Finance noted that the funds will be released following the issue of tax assessments by the Revenue Commissioners. In relation to the matter of a third country adjustment (i.e., where overseas’ tax authorities deem tax to be arising in their country), the department stated it was not aware of any such claims at this time. 

Does your Northern Ireland based company or client support a lower rate of corporation tax for the region? If so, read on for how you can participate in our campaign to reignite the path to a lower rate of corporation tax for the region.   The Corporation Tax (Northern Ireland) Act 2015 contains the legislation for how a lower rate of corporation tax would work practically in Northern Ireland. However, this is subject to very specific rate-setting arrangements which mean that this rate-setting power may not be exercised unless Treasury regulations have been made. These Treasury regulations are subject to very specific conditions specifically the continued commitment of the NI executive to “take all the actions necessary to demonstrate that its finances are on a sustainable footing for the long term”.  The support of the Institute’s members for a lower rate of corporation tax in Northern Ireland has now waned in recent years with a recent Ulster Society survey showing that approximately two thirds of our members continue to support this initiative.  On foot of this ongoing support combined with the restoration of the Northern Ireland Assembly and a new government in Westminster, Chartered Accountants Ireland is embarking on a new campaign to engage with and equip policy makers with the information and tools necessary to pursue a lower rate of corporation tax for the region as one of a range of economic levers to drive growth and employment.  We are seeking companies in Northern Ireland who support this campaign and who are prepared to tell us why they support a lower rate and what it would mean for them and the region. These quotes will be included in a position paper which is expected to be launched before the end of 2024. Contact tax@charteredaccountants.ie to participate.