Last week, the Institute’s Director of Advocacy and Voice, Cróna Clohisey wrote to the Minister for Finance with a proposal to reduce the lower rate of Employers’ PRSI (ER PRSI) for the purposes of assisting businesses manage the cost of introducing pensions’ auto-enrolment. To counteract the cost of auto-enrolment for employers, the letter notes that consideration should be given to reducing the lower rate of Employers’ PRSI (based on the rate that will apply from 1 October 2024) by 1.5%; from 8.9% to 7.4%. This change would impact the group of workers on minimum wage, many of whom depending on individual age and earnings will be required to enrol.

The Tax Strategy Group (TSG) last week published its annual papers in advance of Budget 2025. The TSG is chaired by the Department of Finance and comprises senior officials and advisers from several governmental departments and offices. The TSG is not a decision-making body, rather its purpose is to outline the tax policy considerations for the Government and the options available to it in forming this year’s Budget. In this year’s papers, the TSG notes that the key challenges for Ireland’s economy are ongoing capacity constraints, the aging population, digitalisation, de-carbonisation and de-globalisation. The TSG also highlights the country’s reliance on multinational companies and the vulnerability that this presents for our corporation tax base. The full list of papers released by the TSG are as follows: Income Tax (TSG 24/01) includes a summary of tax yields, information on the distribution and burden of income tax and USC and policy considerations for reform. Other items discussed include tax relief for sporting bodies and philanthropy, the incapacitated child tax credit, income tax property-related measures and pensions. Pay Related Social Insurance (TSG 24/02) examines issues including social transfers, Irish labour market trends, social protection budgets and costings. Corporation Tax (TSG 24/03) examines a range of topics such as corporation tax trends, implementation progress of the OECD BEPS Project (including Pillar One and Pillar Two), EU tax developments, an update on Apple State Aid case and a discussion on various business support measures, including the Research and Development Tax Credit. Enterprise Supports (TSG 24/04) discusses various business tax reliefs, including Reliefs for Investment in Corporate Trades (EII/SCI/SURE) and Innovative Enterprises (Angel Investor), Revised Entrepreneur Relief, Retirement Relief, Share-based Remuneration and accelerated capital allowances. It refers to the report of the TALC Sub-Committee on Simplification and Modernisation of Business Reliefs for SMEs, noting that the Department of Finance will consider some matters of policy that were identified by stakeholders. The Department will also consider administrative proposals that may require legislative amendment. Agri-Taxation Measures (TSG 24/05) looks at the agri-taxation measures available under each tax head. Capital and Savings Taxes and Stamp Duty (TSG 24/06) covers capital gains tax, capital acquisitions tax, DIRT, life assurance exit tax, stamp duty, the Tax Appeals Commission and residential zoned land tax and examines rates, yields and exemptions associated with these taxes. It also provides an update on the Department’s ongoing project to improve the reporting of Tax Expenditures. Value Added Tax (TSG 24/07) reviews VAT rates and structures, provides options for change and looks at VAT developments at EU and domestic level.

While there is a balance between employee privacy and workplace safety, effective monitoring can boost productivity and protect against harmful work practices, says Moira Grassick Workplace monitoring, while controversial, is a legitimate and legal method that you can implement to protect your staff and business. Permitted methods of surveillance include maintaining CCTV systems, monitoring internet browsing history, inspecting email traffic, listening in on telephone calls, or conducting employee bag searches. If implemented correctly, effective systems to monitor employee activity can help safeguard against harmful work practices and encourage higher levels of productivity within an organisation. You should, however, be mindful that any such monitoring activity be proportional to the employment risks requiring surveillance, and it’s crucial to notify your employees of the surveillance and its purpose. Should you monitor your employees? Employers who suspect their employees may need surveillance can choose to keep an eye on their behaviour through employee emails, internet browser history, and access locations. This way, employers are better positioned to evaluate if employees are acting inappropriately. Make sure your electronic monitoring is clearly defined and communicated with a well-explained purpose and is targeted. It’s crucial for employers to approach such initiatives openly and fairly and to not be overbearing. The more employees feel their privacy is violated, the more dissatisfied they become with their role. What can you do when monitoring employees? You want to ensure that your employee isn’t violating their contract or engaging in illicit activity. So, how can you check while still respecting your employee’s privacy? When engaging in employee surveillance, organisations should focus on clarity and communication. Ultimately, employees should be informed of any monitoring activity and its planned use. However, the Workplace Relations Commission (WRC) stated that there are certain instances, albeit narrow, when covert surveillance may be justified where the behaviour of the employee, if proven, may be an offence. This is following a case where the WRC considered whether the use of data recorded on covert surveillance equipment can be relied on as evidence to dismiss an employee. The court relied on a precedent approved by the Data Protection Commissioner which stated that “the use of recording mechanisms to obtain data without an individual’s knowledge is generally unlawful. Such covert surveillance is normally only permitted on a case-by-case basis where the data is gathered for the purposes of preventing, detecting or investigating offences, or apprehending or prosecuting offenders”. The use of a private investigator by an employer has also been deemed to be lawful in circumstances where it’s not central to the case against an employee. Employers enjoy discretion to contract the services of a private investigator to monitor an employee who is suspected of fraud or workplace misconduct. Each case will be reviewed on its facts but the discretional use of a private investigator will not invalidate a dismissal if the surveillance is required in the context of fraud or gross misconduct. The evidence gathered by the private investigator cannot be the sole basis for the employer’s decision to dismiss. Avoid overreliance on surveillance Excessive reliance on surveillance data can result in the setting of unfair targets and take away autonomy, which will have additional negative implications on employee morale. Employees may even respond by trying to subvert surveillance systems, creating further employment issues rather than preventing them. While employers are legally authorised to monitor employees through various methods, it’s important to implement these systems in an open, fair and lawful manner. It’s also recommended that organisations consider if surveillance is actually necessary, and take appropriate steps to establish that any monitoring methods are proportionate to the risks involved. Moira Grassick is Chief Operating Officer at Peninsula 

As organisations around the world continue to recover, the CrowdStrike software glitch serves as a wake-up call to keep businesses secure against unforeseen IT failures, says Puneet Kukreja It is estimated that 8.5 million Windows devices across 674,620 direct customers in 1,200 unique industries were affected due to a flaw in a routine update issued for a piece of cyber software. It was not a cyberattack or breach. However, the outage has triggered warnings from cybersecurity experts about a surge in hacking attempts exploiting the IT disruption. The disruption on 19 July 2024 pales in comparison to the WannaCry virus in 2017 that infected around 230,000 computers across 150 countries before a kill switch was identified. The widespread impact of the global IT outage was quite alarming for those directly affected. People were not able to withdraw money from bank accounts, supermarkets were forced to close, airline fleets were grounded, and congestion built up at major ports across the world. Global IT outage exposes critical fault lines The outage brings organisations like major software vendors and IT infrastructure providers into the realm of critical infrastructure, underscoring their importance to our daily lives as well as their broad socio-economic significance. It also brings into focus the question of trust. Just as people turn on the tap in their homes to get clean water that they don’t need to test before consuming, they turn on their computers with the same level of trust not expecting to get a “blue screen of death” because of a routine update from a trusted provider. There is a significant element of concentration risk at play. A vast majority of the world’s IT systems run on a handful of providers. Should any of them experience an outage, the results could be catastrophic, extending far beyond mere inconvenience. Such an event could compromise public health and safety, and even put lives at risk. Minimising risk One way to reduce concentration risk is to diversify. However, the interconnectedness of the technology provider ecosystem means that this may not be very practical. The question of trust will arise for many of the organisations affected by the recent outage. At least some of them may be considering switching providers. This is not necessarily a wise course of action though. It would risk further disruption with no guarantee that the new solution would be as effective. The fact remains that the likely cause of the outage was human error, and this does happen from time to time, even in the very best organisations. This puts the focus back on the affected organisations. Every organisation must take responsibility for its ability to function and provide services to its customers, even in the most trying of circumstances. It matters little to your customers if an IT outage was caused by a cyberattack or a flawed software update – all they care about is that they are not disrupted. This increases the importance of IT resilience and robust business continuity plans (BCPs). IT resilience has now become a fundamental aspect of business operations, enabling organisations to quickly recover and maintain continuity in the face of unforeseen disruptions such as that caused by the global outage. By embedding IT resilience into their core strategies, businesses can ensure that they remain operational and competitive, and continue to serve their customers even amidst the growing complexities and vulnerabilities of the digital landscape. Building better resilience The introduction of regulatory frameworks such as the NIS2 Directive and Digital Operational Resilience Act (DORA) makes IT resilience and BCPs even more important. Article 18 in the NIS2 Directive mandates that essential and important entities implement risk management measures, including advanced threat detection and continuous monitoring. Article 20 requires regular testing and updating of these measures to ensure effectiveness. DORA, on the other hand, emphasises operational resilience in the financial sector, with Article 11 focusing on the need for thorough digital operational resilience testing, and Article 15 mandating comprehensive incident response and recovery plans. Organisations must foster a culture of resilience through regular employee training across critical systems, ensuring quick recovery from disruptions. By adhering to NIS2 and DORA, businesses can enhance their resilience, ensuring they remain operational and competitive amidst evolving digital threats and not just those related to cybersecurity. In this respect, businesses should know their: BCPs well and test them regularly; resilience gaps and identify corresponding workarounds; third- and fourth-party technology ecosystems; recovery strategies and establish a clear tiering system; and limits around “stretch capability” partners through consistent testing. Armed with these five “knows”, organisations will be able to recover quickly and continue to operate even during times of extreme disruption. Puneet Kukreja is Cyber Security Leader at EY UK & Ireland

Under the Joint Insolvency Committee’s (JIC’s) strategic work plan, Insolvency Guidance Papers (IGPs) are subject to periodic review to ensure they remain relevant to changing legislation and market conditions.  In 2024 all the IGPs are being reviewed and this notice is to advise you of the changes that have been approved by the JIC to date. Withdrawal of IGPs “Bankruptcy – The Family Home” and “Retention of Title” Following such a review, the JIC is withdrawing the Insolvency Guidance Papers entitled “Bankruptcy – The Family Home” and “Retention of Title” with effect from 1 August 2024.  These Guidance Papers were introduced in October 2005 and November 2014 respectively, but the JIC feels that the appropriate approach to both topics is now so widely accepted that separate guidance papers are no longer required. Revised IGP “Succession Planning” A revised IGP related to succession planning has been issued today by each of the Recognised Professional Bodies (RPBs) following approval by the JIC and the RPBs.  Summary of Changes – "Succession Planning” IGP The “Succession Planning” IGP has remained in place since 2005 during which time the insolvency market and profession have significantly changed.  The principal revisions to the IGP emphasise the importance of contingency planning and documentation to ensure the continuity of case management in the event that an insolvency practitioner is unable to act for one or more reasons and in different contexts including retirement, incapacity, death, loss of licence and the sale of a practice.  The revised IGP covers a variety of scenarios including sole practitioners, firms generally and firms where there are no other insolvency practitioners.   The IGP includes new sections on putting succession agreements or arrangements in place and guidance for alternates and potential alternates.  The style and language used has also been modernised to make it clearer and easier to apply. Implementation – “Succession Planning” IGP The revised IGP is published on 25 July 2024 and comes into effect on 1 August 2024.  

As anticipation for an early general election continues to grow, the Institute’s public policy team has made submissions to all of the main political parties setting out the key policy priorities we would like to see featured in any future Programme for Government. Supporting small businesses While the Government has acknowledged the financial pressures SMEs are under, many businesses remain constrained by rising labour costs. In a recent survey of our members, 90 percent of respondents identified labour costs as being the single biggest operating cost facing their business today with over 90 percent saying that these have increased over the past year. With this in mind, we are calling for the next Government to: 1. Reduce Employers’ PRSI on minimum wage workers by 1.5 percent to mitigate the cost of auto-enrolment for employers Currently employers’ PRSI is paid at a rate of 8.8 percent (8.9 percent from October 2024) and a reduction by 1.5 percent would cost the Exchequer an estimated €63 million in a full year. This proposal would compensate employers who will have to introduce pensions auto-enrolment during 2025 at an initial cost of 1.5 percent. The cohort most impacted by the new pensions scheme will be the estimated 164,000 minimum wage workers. 2. Think small first when it comes to introducing new legislation and regulations SMEs have also had to deal with the introduction of an unprecedented number of new legislative requirements over the past 2 years, adding to their cost and administrative burden.  One example is the introduction of enhanced reporting for employers meaning that employers have to report in real-time details of tax-free travel and subsistence and other benefits paid to employees.  Government needs to be cognisant of these challenges when implementing new regulations and have regard to the timing and suitability of same. It is important that small companies do not face any unnecessary or disproportionate regulatory obstacles to start up, establish and grow.  This can be achieved by: Strictly applying the ‘enhanced SME test’ across all government departments when introducing new legislation that will ultimately affect the bottom lines of SMEs. Staggering the roll out of new workplace legislation in a timely manner so as not to overburden employers with additional new costs all at the same time. Facilitating consultation and dialogue with SMEs and other impacted stakeholder groups before introducing new legislation or policy that affects small businesses. Reducing the frequency of reporting the payment of travel and subsistence and other benefits to a monthly or annual basis. 3. Simplify the tax regime for SMEs to encourage enterprise and innovation It is acknowledged that businesses face a complex challenge in accessing tax reliefs and schemes and the Government has shown a desire for all businesses, especially SMEs, to know what they are entitled to claim and can access all appropriate schemes and reliefs.   However, there are several areas where improvements must be made including: (i) Making share-remuneration more attractive by: Maintaining the Employers’ PRSI exemption, which offsets some of the cost of establishing share schemes. Deferring all tax charges for the employee until a sale or liquidity event occurs and allowing CGT treatment on a redemption of employee-owned shares. Enhancing the Key Employee Engagement Programme (KEEP) scheme by relaxing some of the onerous conditions for establishment which drives set-up costs. (ii) Encouraging SMEs to claim the R&D tax credit Larger organisations represent a larger proportion of the amount of R&D tax credit claims in a year. Smaller organisations are disincentivised from claiming an otherwise-available R&D tax credit on the basis of a lack of certainty, fundamental tax risk, and burdensome scrutiny of claims. This can be achieved by: Offering an enhanced rate for small and micro companies of 50 percent. Simplifying the documentation and qualification requirements for SMEs. Introducing a Revenue pre-clearance system for first time claimants. Improving Revenue guidance targeted at SMEs and including a list of common pitfalls encountered by claimants. (iii) Reduce Capital Gains Tax from 33 percent to 25 percent Investment is critical in enabling start-ups to thrive and SMEs to grow and expand.  A lower rate of CGT has been shown to encourage innovation and risk taking. It encourages the sale and purchase of assets, which drives investment activity. This would improve returns for entrepreneurs and in turn the Exchequer.  Improving childcare capacity and affordability for working parents Childcare provision is part of the critical infrastructure necessary for a functioning economy. Access to affordable and good-quality childcare can play a key role in driving more sustainable and inclusive economic growth. In a survey of our members published earlier this year, 97 percent of respondents surveyed said that they had considered adjusting their working patterns as a result of not being able to find a childcare place while almost half of respondents signalled that they have had to reduce their working hours as a result of this. From a cost perspective, one third of members currently pay up to €1,000 a month per child on childcare with one third paying between €1,000 and €2,000 per child per month. This is not a sustainable situation. To address these issues, we are calling on the next Government to: 1. Commit to a whole-of-government strategy which recognises childcare as part of the critical infrastructure necessary for the functioning of the economy. This strategy should: Focus on encouraging the availability of flexible or part-time childcare places to reflect current work patterns. Targeted funding could be directed at facilities to offer more flexible offerings. Ensure adequate capacity in the sector by officially analysing and documenting childcare needs in local areas on a regular basis.  Expand the work of the Access and Inclusion Model (AIM) programme which caters for children with a disability by creating a more inclusive environment in pre-schools through universal and targeted supports. 2. Ensure funding of the existing system reflects the true cost of service provision and encourages growth in the sector. This can be achieved by: Regularly reviewing Core Funding to ensure that the model is suitable for the sector and enables providers to be sustainable, profitable and retain an ability to invest in their own services. Supporting an integrated system of full time and after-school care with both types of care adequately funded. Reflecting the additional cost burden placed on providers by the administrative requirements of Core Funding, the administration of the National Childcare Subsidies as well as the enhanced regulation experienced by childcare providers (and SMEs generally) by the introduction of new labour laws including pensions auto-enrolment, which is expected in 2025.   3. Enhance awareness of support subsidies available to parents under the National Childcare Scheme. This can be achieved by: Ensuring that maternity hospital and Public Health Nurses to provide information on the supports available to new parents in the early years. Requiring childcare providers to highlight available supports to parents as part of the application process to register their child with the childcare facility. Translating the NCS portal into other languages as language barriers have been reported as being a barrier to claiming the subsidy. As part of our pre-election campaign to promote the above advocacy agenda, in recent weeks representatives from the Institute have met with Minister for Enterprise, Trade and Employment Peter Burke and Minister for Finance Jack Chambers. In addition, we have engaged with senior officials at the Department of Children, Equality, Disability, Integration and Youth and have arranged forthcoming meetings with spokespeople from all of the main opposition parties. As we approach the next general election, the Institute’s public policy team will continue to advocate for our members interests across the political spectrum. Should you have any questions on our campaign or wish to bring a specific issue to our attention, please contact the public policy team at publicpolicy@charteredaccountants.ie  

We all experience periods in life that contribute to increased stress levels and anxiousness. Be it exams, a work deadline looming, moments of uncertainty, crisis, or big life events.  However, it is how we cope through life’s ups and downs that is important. Maintaining good wellbeing is a crucial aspect of living that can help us endure and cope with periods of stress instead of floundering or struggling to cope effectively. And breathe… In moments of stress or anxiety our breathing patterns change.  You might notice your breath is shallow, out of sync or you might find yourself holding in your breath at times. This creates a vicious cycle as out of control breathing is caused by stress but also causes stress, prolonging the symptoms and making them worse.  Whereas deep, controlled breathing has the opposite effect. A slow and steady inhalation and exhalation signals the parasympathetic nervous system to calm the body down. As our breathing is an automatic, unconscious, habitual function of the body, we might not even notice how we are breathing. Therefore, it is important to tune into your breath.  There are countless breathing techniques which helps relax the body and mind, but the general aim is to shift from quick, shallow upper torso breathing to a slow, deep abdominal breath.  Take a minute to focus on your breathing and its pattern. Then place your hand on your stomach and strive to feel the abdomen expand and contract as you breathe in and out. Pay attention to how you feel after engaging in this breathing technique, you are sure to feel calmer.  Food for thought  We all know the tendency to comfort eat when feeling stressed or emotional and it can be tempting to seek out sugary, high calorie, high fat foods for instant gratification or out of sheer convenience. This response however only works in the very short term and again can aggravate our stress levels.  Stress and anxiousness can create digestive and gut issues. Simple things like drinking more water to stay hydrated, reducing your caffeine intake and eating three balanced meals each day can help. Stress can leave your energy reserves depleted and low on essential vitamins and minerals.  Consume plenty of wholesome food that is rich in good nutrients.  Foods high in Vitamin C are understood to reduce anxiety levels while green leafy vegetables and nuts are high in magnesium which can regulate our stress hormones.  Rest and digest  For our brain to function optimally it needs rest and this responsibility falls to the parasympathetic nervous system, also known as the rest and digest system. The parasympathetic nervous system slows our stress response by releasing hormones that relax the mind and body and is where digestion, detoxifying and healing occur.  To activate the rest and digest system, there is no other option but to relax. For some that is mediation, practising yoga or indulging in some self-care.  Self-care has become a popular notion in recent years, but it is not all bubble baths and face masks. Forms of self-care can be spending time in nature, exercising, reading, journaling, colouring, tidying your surrounds or spending time with loved ones. Simply put, self-care practises are tools to help ease our response to stress and enhance our body and mind’s ability to rest, reflect and replenish.  It is important to also take regular breaks throughout the day, a brief pause in momentum allows the brain space to think and process information and brings clarity that helps you feel in control and ultimately reduce stress.  Get some ZZZs The power of sleep to regulate our stress levels should not be underestimated. Stress and anxiety can lead to sleeping problems and a lack of sleep can affect your general wellbeing – again another vicious cycle we can find ourselves in.  When we are not getting enough sleep, it is more difficult to regulate our mood, emotions, and reactions, can affect our concentration, memory and even lead to poor decision making. It’s not always possible to get as much sleep as we would like, generally we should be aiming for at least 5 hours of sleep a night but ideally, we should aim for 7-8 hours. To feel well rested, it is important we develop habits and routines that aid our ability to drift off.  Create a healthy sleep routine by going to bed and getting up at the same time every day, avoid lie ins and naps that can then disrupt our natural sleep cycle.  Start your own personal wind down by creating a night-time routine that you then begin to associate with sleep. It can be as simple as brushing your teeth and washing your face, developing a night-time skincare routine, reading a book or stretching.    This is one of the harder habits to develop but try to limit your use of technology an hour before bed. Our devices keep us awake and stimulate the brain through the activity itself but also from the blue light emitted from the screen. Most phones these days have a blue light filter and can be scheduled to switch on at a certain time.  Thrive is the Institute’s dedicated wellbeing hub which provides emotional and practical support to our members, students and their family members for life. Should you find yourself in a difficult situation, the team at Thrive can help steer you through life’s ups and downs. Talk to us today on mobile: (353) 86 024 3294 or email us.

  In this week’s Sustainability/ESG bulletin, read about recommendations by the Department of Finance on energy and vehicle tax, Ireland’s commitment to accelerating action on the UN SDGs, electricity consumption by data centres, and the business skills needed to report on nature. Also covered is HMRC’s provisional environmental taxes exchequer receipts, and the International Organization for Standardization (ISO) plans to develop an international standard on net zero, as well as the usual articles and events. Ireland news Department of Finance energy and vehicle tax strategy paper publishes The total yield from energy and vehicle taxes was €4.3 billion in 2023, representing 5 percent of overall tax receipts for 2023. This is according to the Energy and Vehicle Taxation Tax Strategy Group (TSG) paper, published this week by the Department of Finance, with the aim of informing budgetary policy. Read more here. Ireland's commitment to accelerating action on UN SDGs Minister Ossian Smyth, Minister of State at the Department of the Environment, Climate and Communications, has reaffirmed Ireland’s commitment to the full implementation of the UN Sustainable Development Goals (UN SDGs). Minister Smith delivered Ireland’s National Statement at the UN High-Level Political Forum on Sustainable Development in New York last week, where he also highlighted the shared responsibility for the implementation of the 2030 Agenda for Sustainable Development, adopted by all United Nations Member States in 2015. The outcomes of the Forum will build towards the Summit of the Future, which will take place on 22-23 September, during the UN General Assembly High-Level Week 2024. National Energy and Climate Plan (NECP) 2021-2030 Ireland has submitted its updated National Energy and Climate Plan (NECP) 2021-2030 to the European Commission. Whereas the annually updated National Climate Action Plans reflect new policies and measures to increase Ireland’s ambitions in pursuing energy and climate targets, the NECP acts more as a collation of existing policies, measures and actions, such as the Climate Action Plan, the National Development Plan, and Project Ireland 2040. It also provides an analysis of how Ireland is performing relative to EU-wide targets and will identify gaps and areas that Ireland can improve on, which should be reflected in updated policies and measures in subsequent Climate Action Plans. Research finds air pollution link with mental health Research published by the Economic and Social Research Institute (ESRI) and funded by the Environmental Protection Agency (EPA) has found that long-term exposure to air pollution is associated with poorer mental health in older people. Commenting, one of the paper’s co-authors, Professor Anne Nolan, noted that measures to reduce pollution from industry, transport and agriculture will be required to hit the targets set out in the recent Clean Air Strategy, which commits to the achievement of the WHO air quality guidelines by 2040. Data centres 2023 electricity consumption Figures released by the Central Statistics Office (CSO) this week show that data centres in Ireland now account for 21 percent of the total metered electricity consumption in the State, a four-fold increase on 2015 consumption of 5 percent. In comparison, urban and rural households used 18 percent and 10 percent respectively. Skills for sustainability reporting on nature Business for Biodiversity Ireland, in partnership with National Parks and Wildlife Service, is carrying out research into the biodiversity skills required to run a sustainable business in Ireland. They have created a survey for businesses to help them identify the skills, knowledge and competencies that may not yet be represented in their businesses. The survey takes two minutes to complete, and the findings will be presented to the Skills and Labour Market Research Unit and other relevant entities for their consideration. UK/Northern Ireland news HMRC has published provisional 2023/24 data on exchequer receipts from a range of environmental taxes, including the climate change levy. Overall receipts for 2023/24 are expected to be lower than in 2022/23. The total provisional Climate Change Levy (CCL) and Carbon Price Floor (CPF) receipts for the financial year 2023 to 2024 were 13% lower than the financial year ending 2023 and the total provisional Landfill Tax (LFT) and Aggregates Levy (AGL) receipts were 22 percent and 8 percent lower, respectively, than the financial year ending 2023.   Europe News Ursula Von der Leyen was re-elected as EU Commission President for a second term insisting the EU “stay the course” on the goals set out in the European Green Deal. A new law on sustainability requirements for a wide range of everyday household products has entered into force in the EU. The Ecodesign for Sustainable Products Regulation (ESPR) will enable requirements to be set with the aim of  ensuring products last longer, are easier to repair/recycle, contain more recycled materials, and are more energy and resource-efficient. Work will now focus on implementing the regulation. The European Commission has selected 134 transport projects to receive over €7 billion in EU grants  for sustainable, safe and smart investment in infrastructure. Ireland is set to receive €157.5 million, with Dublin Port's receiving €73.8 million and the Port of Cork €38.4 million. The remainder will fund multi-country EU projects with participation of an Irish national entity. The insurance industry has set out its priorities for a more prosperous, resilient, and competitive European Union. Insurance Europe calls on EU policymakers to continue to tackle climate change, with concrete actions on climate adaptation and strengthening resilience. Applications are open until 25 September for the 2025 European Prize for Women Innovators, celebrating women entrepreneurs who drive positive change. Categories include Women Innovators, Rising Innovators, and Women Leadership, with prizes up to €100,000. World news The International Organization for Standardization (ISO) has announced it will develop its first international standard on net zero, with a planned launch at COP30 in November 2025. The standard is an evolution of the ISO Net Zero Guidelines (launched at COP27), into an independently verifiable international standard, providing clear guidelines and robust requirements to support the net zero transition. Thousands of experts are expected to collaborate on the new standard, integrating the latest climate science. IFAC has pulled together numerous resources available for small- and medium-sized practices (SMPs), including a Small Business Sustainability Checklist . This is a diagnostic tool that SMPs can use with their SME clients to help them start their sustainability journey. Also available is their Sustainability Information for Small Businesses: The Opportunity for Practitioners , which highlights the range of emerging services SMPs can provide to their clients  Articles If the earth is getting hotter, why is this summer so dismal? (RTÉ)   Climate Heroes app has helped 60 communities across Ireland take climate action (Irish Times)   Ireland climbs to 5th in EY Renewable Energy Attractiveness Index (RTÉ)   Humanity has just five years to prevent irreversible climate damage, warns Ryan (Irish Times)   Upcoming Events The Law Society of Ireland 2024 Environmental, Social and Governance (ESG) Massive Open Online Course (MOOC) Delivered over 5 weeks, the Law Society’s 2024 MOOC on ESG is now available online and on demand. The MOOC is free and open to all, and Institute Professional Accounting Lead, Dee Moran, is speaking on the topic of the sustainable reporting landscape. Chartered Accountants Ireland, The SME and SMP Sustainability Workshop A workshop for SMEs and small/medium accounting practices (SMPs) on how to get ahead of the sustainability curve. This interactive half-day session will focus on positive actions you can take to understand the ‘trickle-down’ effect of the Corporate Sustainability Reporting Directive ('CSRD’), green public procurement, access to sustainable finance, and how to make your practice more sustainable to save costs and respond to staff and client demands. Virtual, Chartered Accountant House, 13 September, 9.30- 12.30; €60 members; €75 non-members; 3 hours CPD points. Chartered Accountants Ireland, Advance your knowledge on the Corporate Sustainability Reporting Directive  Would you like to know more about the Corporate Sustainability Reporting Directive (CSRD)? Join Dee Moran, Professional Accountancy Lead, and Mike O’Halloran, Technical Manager, both from Chartered Accountants Ireland to understand more about the directive, the transposition into Irish law and what it might mean for your organisation. Virtual, 18 September, 10-11am, 1 hour CPD points Chartered Accountants Ireland, Advance your knowledge on 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, 25 September, 10-11.30am, 1 hour CPD points EPA, Circular Economy Conference 2024 Online and in-person (Aviva Stadium, Dublin), 25 September Environment Ireland, Environment Conference 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, 1st 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, 28 August, 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.

The total yield from energy and vehicle taxes was €4.3 billion in 2023, representing 5 percent of overall tax receipts for 2023. This is according to the Energy and Vehicle Taxation Tax Strategy Group (TSG) paper, published this week by the Department of Finance, with the aim of informing budgetary policy. In the paper, the Department states that it does not recommend a Car Parking Levy at this time, identifying a number of non-tax measures which could be implemented instead to achieve the same objectives in a more efficient and/or equitable manner. Examples include congestion charges, road usage charges, Clean Area Zones and Low Emissions Zones, ‘Cashing out’, reallocation of road space, increased investment to enable sustainable mobility, remote working policies, and direct expenditure on alternative routes or modes of public transport. The paper also identifies fiscal measures which could potentially raise revenue for the Exchequer and encourage behavioural change linked with reducing road transport emissions. Proposals include: an extension of the VRT relief for battery electric vehicles a 1 percent VRT rate increase across bands 11-20 (which would only affect cars with above average emissions), and which is estimated to raise €26 million based on 2023 registrations increasing the VRT NOx surcharge by €5 per mg/km, which would raise €15.5 million; and certain changes to capital allowances thresholds.

In Irish news, a delegation from the Institute recently met the Minister for Finance to discuss CCAB-I's Pre-Budget 2025 submission, Revenue publishes statistics on Local Property Tax and Vacant Homes Tax, and Revenue advises that work is ongoing to resolve issues with the Form 11 income tax return. In UK news today, we look at another tax related appointment in the new Labour government and miscellaneous updates covers a range of changes including the latest Agent Update.  Ireland A delegation from the Institute, under the auspices of the CCAB-I, met the Minister for Finance, Jack Chambers TD to discuss the CCAB-I’s Pre-Budget 2025 submission. Revenue has published statistics on Local Property Tax and Vacant Homes Tax for 2024. Revenue is working to resolve issues with the Form 11 income tax return. UK The new Exchequer Secretary to the Treasury has been appointed as the current parliamentary session is extended to 30 July. Read our miscellaneous updates which covers a range of changes including the latest Agent Update. 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.  

Readers, in particular employers, may find useful A &L Goodbody thoughts and insights after 18 months of the new whistleblowing regime | A&L Goodbody LLP (algoodbody.com) .It is written 18 months after Ireland transposed the EU Whistleblowing Directive through the Protected Disclosures (Amendment) Act 2022 (“2022 Act”). It notes for example a substantial increase in the number of whistleblowing claims and discusses the question most frequently asked by its international employer clients. This is whether the employer can retain its centralised reporting channel at parent company level with the introduction of the 2022 Act or whether each legal entity in a group has to have its own internal reporting channels and procedures. Readers are also reminded of the Institute resources in this area. The Institute pages on protected disclosures on the technical hub have a large volume of information and resources available on this topic. This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.  

Following the recent publication of Revenue’s new guidelines for determining employment status for taxation purposes (which applies the new test outlined in Karshan), Revenue has updated the Tax and Duty Manual which provides guidance on the tax treatment of remuneration of Members of State & State Sponsored Committees, Boards, Commissions & other Bodies.