IFAC has released its Vision for High-Quality Sustainability Assurance, in which it describes sustainability-related disclosure as "finally taking its rightful place within the corporate reporting ecosystem, through global and jurisdiction-specific initiatives". In order to be trusted, sustainability disclosure must be subject to high-quality, independent, external assurance. This vision addresses the importance of global standards, regulation that supports decision-useful disclosure, and the value of an interconnected approach to sustainability and financial information reporting and assurance. IFAC explored these issues further in a video The State of Play in Sustainability Assurance – in which IFAC staff detail the global benchmarking study that captures and analyzes the extent to which companies are reporting and obtaining assurance over their sustainability disclosures, which assurance standards are being used, and which companies are providing the assurance service.  About IFAC IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce. In October 2021, Chartered Accountants Ireland co-published Climate Essentials for Accountants, a short glossary explaining common climate terms and jargon associated with climate.  

On 24 November the Ulster Society hosted a webinar examining the new Northern Ireland energy strategy and climate legislation which is under development. Gavan Walsh, Finance Director at NIE Networks, set out how this will impact every customer across Northern Ireland and presents a significant economic opportunity for the region. Russell Smyth of KPMG reported on the firm's review of the impact on the Northern Ireland economy of a move to rapidly decarbonise residential heating and transport through electrification. A recording of the webinar is available to view for free and on demand HERE A pdf copy of Gavan's slides are available HERE A pdf copy of Russell's slides are available HERE

By xxx, xxx at RSM As a result of the pandemic, the auditing profession around the world has changed from being largely on-site and office-based to a much more remote experience. While this appeared to be an overnight change for many, at RSM, we were already transforming how we deliver our services through increased digitalisation as a direct response to the changing needs of our expanding global client base and regulatory changes. As a firm and in response to our clients needs, we are now committed to long-term hybrid working, aligned to the Irish Government’s ‘Making Remote Work’ national strategy. As of today, over 50% of our clients are globally active companies and our goal is to be the advisers of choice to middle market leaders in Ireland. The Irish firm has grown its revenue by 70% since joining the RSM global network in 2016. At RSM, the success of our audit service delivery in the remote working environment has been under-pinned by three key pillars. Client focus First, we have remained focused on our clients’ needs – we believe a quality audit and client experience are not driven by where you work but rather the expertise of the team. Since the start of the pandemic, we have worked closely with our clients to support them throughout this period, ensuring the delivery of efficient and effective audits and advisory services. We have found that communication is a critical element of this, providing time at the right level to our clients. The pandemic has removed certain distance barriers, allowing our clients even more access to senior expertise, ideas and insights. People As a firm, we employ a people-centric approach. We don’t have a business-to-business strategy; it’s person-to-person. We understand that it’s our people that drive our business. While the communication channels may have changed, our talent experience has remained our focus, with a coaching model and exam support for our teams. This has been critical to develop our people, attract new talent and allow for the continued delivery of our services. Technology Having a robust digitalisation programme in place has been key for us in supporting our clients and interacting with colleagues across audit, tax, and consulting through seamless systems. At RSM, we have embraced a paperless environment, and continue to invest in digitalisation. This is supported by our client data collaboration platform including secure data sharing, which provides clear accountability. In person meetings have been replaced by video calls and screen-sharing, allowing for continued collaboration. Our audits also continue to evolve through our US based Audit Data Analytics Centre of Excellence, established in 2020, developing leading edge capabilities such as the use of Alteryx business intelligence in our audits. The strength of our existing and future technology is supported by the power of our RSM network, which comprises over 48,000 staff in 120 countries. RSM Audit – The Power of Being Understood Find out more about RSM Audit at rsmireland.ie   This article is sponsored by RSM Ireland.

The FRC has published a revised Audit Enforcement Procedure (“AEP”) and feedback statement. This follows consideration of the responses received to the consultation launched on 22 July 2021 regarding proposed amendments to the AEP.   The FRC welcomes the constructive and helpful engagement from stakeholders and has carefully considered respondents’ feedback and comments. The AEP has been further amended to reflect those responses.   The revised AEP will come into force on 5 January 2022. Current guidance will be amended to reflect the amendments to the AEP and will be made available on 5 January. A link to the revised AEP is available here.  A link to the feedback statement is available here. 

IAASA has published a thematic paper discussing the use of data analytics in Ireland’s statutory audit market, available here. IAASA’s paper provides an overview of the areas where auditors perform data analytical audit procedures and supports in place for auditors in using data analysis tools. IAASA’s paper also discusses challenges faced by auditors when using data analytics and looks at plans for further development and roll out of data analytics in audit. IAASA’s paper identifies key considerations for audit committees and sets out the focus of audit regulators with regard to data analytics, both from an international and an Irish perspective. The appendices to IAASA’s paper provide some examples of data analysis supports and the use of data analysis in audit areas. IAASA’s YouTube channel also now includes a video that shares key observations set out in the paper, available here. IAASA has also published some factsheets summarising insights from this paper. The factsheets on data analytics are available here.

The Irish government has urged food business operators and agri-food exporters to continue their preparations to meet new UK import control requirements, which will apply on a phased basis from 1 January 2022.  Most immediately, new pre-notification requirements in respect of exports to GB of products of animal origin, such as meat, dairy, fish and composite products, will come into effect on 1 January 2022.   Speaking at the 25th meeting of the Consultative Committee of Stakeholders on Brexit, Minister for Agriculture, Food and the Marine, Charlie McConalogue said:  “It is really important that exporters of products of animal origin to Great Britain are aware that, from 1 January, pre-notification of these exports by the UK importer, or an agent acting on their behalf, will be required via the UK’s Import of Products, Animals, Food and Feed System, or IPAFFS. This applies both to products exported directly to Great Britain and to products exported to the EU via the landbridge. It is vital, therefore, that exporters familiarise themselves with the requirements, examine their supply chains, identify who will make the required pre-notification, and ensure that the requirements can be met ahead of the 1 January deadline.”  Read more information on gov.ie.  UK: Full customs controls from 1 January 2022    The UK government has published a webpage to remind traders that from 1 January 2022 full customs declarations will apply for goods moving between Great Britain (GB) and the EU.  HMRC has also issued a similar reminder by email, which we have previously shared with readers.   Read more 

In response to recent public health restrictions on the hospitality sector to reduce the spread of COVID-19, Minister for Finance, Paschal Donohoe T.D. announced a targeted support for the sector last Friday. The scheme will be modelled on the Covid Restrictions Support Scheme, providing targeted and timely support to those affected. The Minister expects the scheme to be open for applications this week, with payments commencing shortly after. However, the Employment Wage Subsidy Scheme (EWSS) will remain in place at current rates of payment and qualification criteria. The Pandemic Unemployment Payment (PUP) is expected to reopen tomorrow. A weekly payment will be made to qualifying businesses in the sector whose trade is significantly impacted due to the restrictions set out in Health Regulations. Businesses who expect their turnover to be below half of what it was in 2019 will qualify for this additional support. The payment will amount to 12 percent of turnover for the same week in 2019 up to a maximum weekly payment of €5,000. Speaking about the scheme last Friday, Minister Donohoe detailed: “My officials are working with the Revenue Commissioners to develop this scheme and it is expected to be open for applications by next week with payments commencing shortly afterwards.” The Minister also confirmed that COVID-19 supports are being kept under review and “there will be no cliff-edge to supports for citizens and businesses”. A press release issued by the Department of the Taoiseach also details that the Employment Wage Subsidy Scheme (EWSS) will remain in place at current rates of payment and qualification criteria. It is also confirmed that there will be a further extension to the commercial rates waiver for the first quarter of 2022, and additional funding of €25 million will also be made available to support the live entertainment sector. In addition to the announcement of targeted supports for the hospitality sector, the reopening of the PUP was announced last Friday. The PUP is expected to reopen for a limited period to support people who may lose employment as a result of the change in restrictions. Minister for Social Protection, Heather Humphreys, T.D. confirmed: “My Department is finalising arrangements and full details will be announced, and the scheme will be ready for new applicants, by Tuesday.” In the press release issued by the Department of the Taoiseach, it was detailed there will be a number of refinements to the PUP design to target it more effectively. Further details will be made available by the Department of Social Protection.

Chartered Accountants Ireland, under the auspices of the CCAB-I, made representations to Revenue on the difficulties facing companies, due to COVID-19 disruption, in meeting the 23 December iXBRL deadline. Revenue confirmed that companies and their accountants can seek to make arrangements to ensure that a late filing surcharge and restriction on loss and group relief is not imposed where a company is genuinely unable to file iXBRL financial statements due to extenuating circumstances. A Revenue representative confirmed: Further to Item 6 on iXBRL Filings from TALC Collections on 25 November, we have issued an internal update to Revenue colleagues to say that some companies may be unable to submit their iXBRL financial statements for the year ended 31 December 2020 before the 23 December 2021 deadline due to difficulties completing audits and signing off on financial statements during the ongoing Covid-19 pandemic. As such, we’ve advised that they may see an increase in requests for waivers of Corporation Tax surcharges where the iXBRL submission is filed late and/or requests for tax clearance in the absence of the iXBRL submission. We then reminded colleagues that they may waive the Corporation Tax surcharge or issue tax clearance on a case-by-case basis when a company is genuinely unable to file the iXBRL financial statements due to extenuating circumstances, for example where key personnel are absent due to Covid. Affected companies should contact their operational branch via MyEnquiries where they wish to request a waiver of the Corporation Tax surcharge and/or request tax clearance. It was also confirmed that Revenue staff will consider withdrawing loss relief/group relief restrictions, which apply on the late filing of iXBRL financial statements, on a case-by-case basis. Requests to have surcharges waived and restrictions on loss relief/group relief withdrawn on a case-by-case basis should be submitted through MyEnquiries; select the “Corporation Tax” and “iXBRL” dropdown categories. Revenue confirmed that these queries will be prioritised. In line with Part 3.1.4 of the iXBRL Tax and Duty Manual, it was confirmed that filers can submit draft iXBRL financial statements, without permission from Revenue, where the only issue pending is director(s) sign off of the financial statements. The TDM confirms that in these circumstances, there is no need to resubmit the iXBRL financial statements, when they are signed-off later [unless the draft statements are different to the final ones submitted]. Where there are other issues giving rise to the draft financial statements, filers are required to contact the Revenue through MyEnquiries; select the “Corporation Tax” and “iXBRL” dropdown categories. Filers must outline the reason(s) for the draft financial statements and request permission to submit draft financial statements in that situation. If this is agreed, then the final signed-off set of financial statements must also be submitted in iXBRL format.

Revenue amended the Tax and Duty Manual Filing and paying Stamp Duty on Instruments - Chapter 3: Tax Reference Numbers. Included in the list of amendments is the new requirement for Irish incorporated, non-resident companies and foreign bodies corporate and unincorporated, to provide the tax reference numbers of associated companies registered in Ireland with a request for a tax reference number for the purposes of filing a stamp duty return. Read more for the details on further amendments. The amendments to the manual are as follows: Section 1.1 has been updated with a clarification for deceased non-resident persons. Section 1.4 has been updated with the new requirement to include associated companies' tax reference numbers, in addition to existing requirements. Section 1.5 has been updated to cover both bodies corporate and incorporate, in addition to the new requirement to include associated companies' tax reference numbers. Section 2 Tax types has been removed. Section 5 has been updated to provide clarification on the need to file stamp duty returns for Deeds of Assent. Section 7 has been added on the requirement for Embassies to register for tax with Revenue on Form TR2 (FT). Section 9 has been updated on the requirement for a written application for an exemption from electronic filing of stamp duty returns, in favour of a paper form. See Revenue eBrief No. 220/21 for further details. 

Revenue published a new Tax and Duty Manual Part 01-01 - Meaning of a “residential property”.  Where a property is a “residential property” on 1 November in a given year, the property is liable for local property tax (LPT) for the following year.  In determining whether a property is a “residential property”, Revenue makes reference to the below matters: whether a property is a “building”, as defined in section 2 of the Local Property Tax Act 2012; the exclusion of certain types of structure; what constitutes a “dwelling”; the use of a property as a dwelling or its suitability for such use; the inclusion of associated buildings and land; and the extent of the associated land to be included. The manual also addresses some ancillary matters such as valuation issues and Revenue determinations and appeals. See Revenue eBrief No. 221/21 for further details. 

Revenue updated the Tax and Duty Manual Part 07-02 - Surcharge (income tax, corporation tax, capital gains tax) – which sets out the surcharge that can be imposed for non-compliance with the filing of local property tax (LPT) returns and the payment of LPT liabilities. The updates relate to the cap on an LPT-generated surcharge and the confirmation that a late 2022 LPT return would not generate a surcharge on the filing of a 2020 Form 11. The manual has been updated to take account of: the reduction in the size of the cap on the surcharge from 100 percent to 50 percent of the LPT liability where a person becomes fully LPT-compliant; and the eBrief issued on 12 November 2021 stating that the late filing of an LPT return after the 10 November 2021 filing date (extended from 7 November) would not generate a surcharge for the income tax Form 11 return for the year 2020. See Revenue eBrief No. 219/21 for further details. 

Revenue’s preliminary local property tax (LPT) statistics as at 2 December indicate that return compliance for 2022 is now at 80 percent, while payment compliance stands at 90 percent. The due date for payment of 2022 LPT for property owners without a payment option in place is 12 January 2022. Revenue’s preliminary analysis indicates that average LPT valuations returned by property owners are comparable to average sales prices from the Central Statistics Office (CSO). The average valuation band selected by property owners required to value their properties on 1 November 2021, for their 2022 LPT obligations is €200,001 - €265,500, while the average sales price in September 2021 per the CSO was €295,000. Revenue details that “the minor difference between LPT valuations and the most recent sales prices are to be expected give the nature of the two data sources being compared and the characteristics of Ireland’s property market”. Revenue notes in its key findings within the statistical report that it has “confidence that property owners filing their LPT returns have overall made reasonable and honest efforts to determine the appropriate valuation band for their property.” Page 7 of the statistical report provides the average valuation band selected and the average sales price in each Local Authority area. Dublin City, Dún Laoghaire-Rathdown, Offaly, South Dublin and Wicklow have average sales price higher than the upper end of the average LPT valuation band limit.