From education and the next generation, advances in technology and the evolving role of the accountant, to business and the economy, what can we expect in the New Year? As we look ahead to the New Year and the opportunities and challenges it will bring for society and the economy, our District Society Chairs give us their take on what lies ahead for the profession in 2024. Brendan Brophy, Chair of the Young Professionals Committee The accountancy profession is poised for transformative developments in 2024 and young professionals will find themselves at the forefront of this dynamic landscape.  The coming year promises a paradigm shift in the role of accountants in business.  Beyond the traditional domains of financial reporting and compliance, there is a growing emphasis on strategic financial management. Young professionals are expected, not only to interpret financial data, but also leverage their insights to drive business decisions. Our ability to communicate financial information in a clear and compelling manner is becoming as crucial as the technical expertise itself. In Ireland, where the business ecosystem is marked by resilience and innovation, the role of accountants is expanding to encompass a broader spectrum of advisory services.  Accountants are increasingly being called upon to provide strategic insights that guide organisations through economic uncertainties and market fluctuations. The expectation is for accountants to be proactive contributors to organisational growth, acting as trusted advisors who understand the intricacies of both finance and business operations. Advancements in technology continue to reshape the profession and we can expect to see this trend accelerate in the year ahead.  Automation and artificial intelligence are streamlining routine tasks, allowing accountants to focus on higher-value activities such as analysis, interpretation and strategic planning. As a young professional, staying abreast of these technological developments and embracing them as tools for efficiency will be paramount. Morna Canty Ahern, Chair, Chartered Accountants Ireland Midwest Society An accountant will always have a seat at the table and, for some, the shift in the traditional role of accountant is the ghost of Christmas past. Currently, we find ourselves as a profession in high demand but facing a lack of supply.  The many routes to qualify as an accountant – along with the Government’s renewed focus on apprenticeships – means that our sector can now actively address the skill shortage we face and meet the demand for high-quality professionals through education.  Education is the ‘gateway to the future’ in building the Chartered brand, but it does not end with our qualification. Education is a cycle, a continuous process of learning and acquiring knowledge pre- and post-qualification. Chartered Accountants are always seeking opportunities to learn and our education must emphasise and support the reality of our role today, and not the traditional role of the ghost of Christmas past. Through technology, our role now is to provide leadership in business, rather than simply counting costs.  Despite this, fewer young people are choosing a career in accountancy and this is because the role of the modern accountant is not accurately portrayed to students at second and third level.  We welcome the commitment by the Department of Education to review the second-level accounting syllabus.  A focus on promoting the true working life of today’s accountant through educational campaigns by our members will help the next generation to visualise a future in our profession. Becoming an accountant is a commitment to lifelong learning and, as we approach 2024, we need to develop educational access programmes in partnership with third-level institutions so we can engage and encourage younger generations to become accountants.  Our members are natural mentors, often contributing at many levels to their local economy and offering support to their communities.  A renewed focus in 2024 on engagement with the Institute and our District Societies will help to deepen these relationships and strengthen the value attributed to the role of the Chartered Accountant in communities around the country.  As a profession, we are not just ‘about numbers’; our unique ability to strategically shape organisations through trusted advice and guidance contributes far beyond the balance sheet. James Fox, Chair, Chartered Accountants Ireland Cork Society It has been great to see the theme of #NextGen at the forefront of Chartered Accountants Ireland in 2023, building on previous discussions with national policymakers regarding the potential changes required to the Leaving Cert accounting syllabus. I see this process as being a key driver for promoting the profession, keeping up to date with advances in technology and encouraging younger generations to pursue a career in accountancy. The future of accountancy as a career is a hot topic and one I expect to see further discussion on in 2024.  Having spoken to many students and second-level teachers since I became Chair of our Cork Society, I can see that there is still work to be done to change perceptions of what a career in accountancy is really like. In 2024, I will continue to listen to our members, to key stakeholders in second- and third-level education and to the next generation themselves, to see how Chartered Accountants Ireland can remain not just relevant, but at the forefront of shaping the national dialogue and influencing policymakers. It is important that we clearly demonstrate how Chartered Accountants continue to play a crucial role in industry, practice and many other sectors, and in the midst of rapid developments in technology. A career as a Chartered Accountant is varied, interesting and dynamic, and the academic curriculum and internship programmes on offer to the younger generation must reflect this. I would also hope, in 2024, that further light is shone on the supports small-to-medium sized practices need as we move forward. They play a vital role at a local and national level and are at the coalface of our profession, supporting entrepreneurs and training new members. It is vital that these practices get sufficient support to grow and thrive in the future, particularly with regard to technology, and I hope that this is high on the agenda nationally in 2024. Des Gibney, Chair of Chartered Accountants Ireland Leinster Society Despite the economic impact of COVID-19 and the negative impacts of high inflation, soaring energy costs, rising interest rates and over €2 billion in warehoused Revenue debt, business insolvencies in Ireland remain at the same level as 2019, which itself marked a historic low. The sectors bearing the brunt of these economic pressures currently include construction, hospitality and retail. I predict that the commercial property sector in Ireland will also come under significant pressure over the next 12 to 18 months due to a combination of higher interest rates and the prevalence of hybrid working. Between 2012 and 2018, insolvencies averaged 1,000 per annum. Recent figures indicate that we can expect 600 corporate insolvencies this year, so we are not faring too badly, relatively speaking, despite the macro-economic situation worsening since 2018. I believe there is a combination of reasons for the low level of corporate insolvencies we are currently seeing, including uptake of formal restructuring procedures such as the Small Company Administrative Rescue Process (SCARP) and examinership. Generous Government supports made available over the COVID period have helped.   The Government has also played its part by providing struggling SMEs with the SCARP option, which can save a company where it is insolvent but has a viable business. It is a cheaper and faster process than examinership. However, since the legislation was enacted in 2021 there have been approximately 50 SCARP appointments. Thirty companies were approved, nine failed and the balance were restructured outside the process. This level of uptake is disappointing. However, SCARP is still in the early stages and we must remember that uptake of the examinership legislation brought in back in the nineties was also initially very low. Having advised companies on insolvency and restructuring matters for decades, my experience has been that owners and directors tend to put off taking formal action until they are left with no other option. In some regards, particularly in the case of family-owned businesses, I understand this reluctance. The most common source of corporate pressure comes from either a creditor or the prospect of the company imminently running out of cash and being unable to meet their wage bill. Once matters reach this stage, the options available to the company reduce significantly.  To avoid this, my advice to business advisors, directors and shareholders is to understand the statutory responsibilities of directors when the company is approaching insolvency and the implications this may have for their other business interests or employments.  The next step is to explore the options available to the company by seeking advice early from an experienced insolvency practitioner. Marion Prendergast, Chair of Chartered Accountants Ireland Northwest Society The prospects for the Northwest region in 2024 are undeniably positive, drawing on my first hand experience as a member of the Northwest Society and my role in the regional public sector. In the wake of the COVID-19 pandemic, there has been a notable influx of professionals choosing the Northwest for work across diverse industries, setting the stage for robust economic growth. As Chair of the Northwest Society, I’ve had the privilege of connecting with numerous members who have either returned from overseas or opted to move here from bustling urban areas.  The common thread in these decisions is the pursuit of better work-life balance, reduced commuting times and a focus on family support – benefits the Northwest region provides. In my role as Head of Finance at Sligo University Hospital, I’ve witnessed the successful recruitment of highly skilled expatriates choosing to return home. Unlike in the past, when we might have competed with larger city hospitals, the appeal of the Northwest is now a major draw for individuals relocating to the region and contributing to the local economy. Nevertheless, like any region, the Northwest faces challenges that demand attention. Our road and rail networks require substantial investment, with the N17 urgently needing upgrading as the main connection to Ireland West Airport. Additionally, improved road connections to Northern Ireland and faster rail links to the capital are essential for accommodating the needs of remote workers effectively. Addressing the housing shortage, particularly for families, requires increased investment. While these challenges are widely acknowledged and are high on the Government’s agenda, their resolution is crucial for the Northwest to retain its appeal to high-calibre talent. As members of Chartered Accountants Ireland, we are well-equipped to play a pivotal role in finding solutions. Our diverse membership spans various industries and functions, and our local District Societies serve as vital connectors, especially for those engaged in remote work.  The view from London The members of the London Society Committee were pleased to see an increased appetite for in-person events throughout 2023 and we expect this trend to continue, writes Michael Gilmartin, Chair of Chartered Accountants Ireland London Society. In 2024, however, we expect demand for in-person events to be driven not by pent-up demand post-COVID but by a softer labour market in which companies may start to mandate more compulsory days in-office. The UK economy is forecast to grow by a modest one percent in 2024 and there remains much uncertainty globally.  Given the financially challenging times, it is vitally important that we continue to be a force for good within the Irish community in and around London. Our biggest challenge is trying to engage with members who are based in the Greater London Area.  This isn’t unique to the London Society, but with a population in excess of 9.5 million people in Greater London, we will always face intense competition vying for our members’ attention. The interests of our members continue to evolve to reflect those of wider society and we will continue to offer novel, less traditional events in 2024.  Michael Gilmartin is Transformation Director, Dentsu International The view from Northern Ireland There’s a lot to be positive about in Northern Ireland, particularly when it comes to the creativity, innovation, drive and resilience in the business community, writes Paul Millar, Chair of Chartered Accountants Ireland Ulster Society. We have entrepreneurs who have a positive vision for Northern Ireland and who have the drive to realise this vision.  There are significant sectoral strengths in areas such as digital and ICT, life and health science, advanced manufacturing, fintech, agri-food and the creative industries – and we have great renewable energy potential. Twenty-five years on from the Good Friday/Belfast Agreement, there is also a great level of interest from US investors in supporting businesses in Northern Ireland. In recent months, we’ve seen the US Special Envoy to Northern Ireland, Joe Kennedy III, lead a trade mission of 50 US executives to Northern Ireland.  There is a clear message that Northern Ireland has something to offer – growth potential, a skilled workforce and unique dual market access to the UK and EU. We could be on the verge of something special. The US is Northern Ireland’s largest source of foreign direct investment, supplying 45 percent of projects in the last 20 years. One-third of all foreign direct investment and 51 percent of the jobs created have come from the US.  A growing interest in further investment could be a great sign. It could be a catalyst to boost everything else within our society, from health and education to housing and wellbeing. Of course, there are challenges. The cost-of-living crisis, and the cost of doing business, continue to be difficult for everyone. Just about every sector is facing a skills shortage and when we need leadership the most, we continue to face a democratic deficit at Stormont. Public services are in a difficult position. There are substantial pressures on public sector finances and significant budget overspends to deal with. We need a devolved administration back up and running at Stormont to deal with these issues. At the time of writing, there have been positive signs that perhaps the Executive and Assembly suspension could end soon. We urgently need this to be the case. Paul Millar is Chief Executive of Whiterock Finance

Accountancy Europe Board Member Shauna Greely tells us about the organisation and its work and priorities for the year ahead  Accountancy Europe is a representative body based in Brussels at the heart of the European Union and I am a Vice President and Board Member. Our focus is to give a unified voice to the accountancy profession in Europe, including Chartered Accountants across the island of Ireland, and to ensure that your perspectives, priorities and insights are heard by the policy makers, regulators and standard-setting bodies operating at a European level. For me, this is particularly important because Ireland is a proud member of the EU and I am proud to be able to represent members of Chartered Accountants Ireland in Europe. Accountancy Europe is heavily engaged with accounting standard setters, such as the European Financial Reporting Advisory Group, the International Accounting Standards Board and other key stakeholders involved in the interests of the accountancy profession. Accountancy Europe helps inform European policy debate in areas such as sustainability, SMEs, tax, reporting and audit – and promotes high-quality financial reporting, auditing and ethical standards.  One of our biggest priorities right now is combatting climate change and the crucial role sustainability reporting has to play in reducing carbon emissions and ensuring that companies are operating as sustainably as they can. I am concerned about climate change and the impacts this is starting to have on all our lives. I hope that Accountancy Europe and the profession as a whole can play its part in raising awareness about climate change impacts and sustainability, so that we can bring about positive change. It is vital that we get this right and that the right level of reporting is introduced for organisations, both large and small, across the EU.  Sustainability reporting brings to mind the saying, “What gets measured gets done”. It has such an enormously important role to play in combatting climate change and puts the accountancy profession front and centre in these efforts. This is all the more important because the younger generation of professionals coming into the workplace have a social conscience. They want to do good in their lives and in their work, and they want to be part of professions and organisations that are doing good and can attest to it. The accountancy profession is at the coalface of climate reporting and Accountancy Europe ensures that this pivotal role is represented as one voice to the European Parliament, the European Commission and the policy makers in Brussels who are shaping the future of the EU. Shauna Greely is a Senior Finance Business Partner with Ulster Bank and past President of Chartered Accountants Ireland  

IFAC Board Member Joan Curry tells us about the organisation and its work and priorities for the year ahead  The International Federation of Accountants (IFAC) is the global voice for the accountancy profession. I describe it as the members’ body for members’ bodies.  IFAC was established in 1977 at the 11th World Congress of Accountants in Germany. At that time, there was recognition that the profession needed a global voice and perspective. Now, IFAC represents 180 member and associate organisations in 135 jurisdictions, including Chartered Accountants Ireland. Its reach extends to millions of accountants worldwide.  At this high level, IFAC represents the public interest by advocating for, and amplifying, the relevance, reputation and value of our profession globally. We operate across three pillars: supporting the development, adoption and implementation of international standards; ensuring the highest-quality education for the profession; and looking to the future to identify and respond to emerging developments so that we can ensure the profession is future-ready. I joined the IFAC Board in November 2019 and am one of 23 Board Members from around the world. We govern and oversee the operations of IFAC, ensuring that its mission and vision are progressed through its organisational structures. Coming into 2024 and as the world becomes ever more connected and integrated, our priority is to ensure the continuation and enhancement of trust and confidence in the accountancy profession. This is our North Star, both at a global level and in every jurisdiction in which our members operate. To this end, we have introduced a set of reforms in recent years to help maintain the independence of standard setting. There is now a structure that allows standard setting to be developed and delivered in an independent arena, rather than under the banner of IFAC.  In creating this new structure, IFAC supports, monitors, promotes and advocates for the work of the standard-setting boards in developing independent standards across audit, assurance and ethics. These standards are directed towards the areas of greatest public interest and underpin trust and confidence in the profession. This is important in every sense but especially so given the global drive to develop sustainability reporting standards so that the profession can play its part in tackling climate change. IFAC represents the profession in supporting the delivery of the G20’s Sustainable Development Goals and ensures our voice is heard on issues with global impact, such as climate change. We will continue to be future-focused and to ensure that issues of importance to all accountants, including the younger generation, are at the heart of IFAC’s mission and vision.  We recognise the diversity of thought and inclusion required to maintain the relevance of the profession into the future and the importance of our role in envisioning how the profession will evolve and the impact we can make in the years ahead. Joan Curry is Head of Finance at the Department of Transport and a member of the Council of Chartered Accountants Ireland

Minister for Finance Michael McGrath outlines his expectations for the Irish economy and business in 2024 Over the past number of years, our economy and society have weathered multiple unprecedented challenges: Brexit, a once-in-a-century pandemic followed by the Russian invasion of Ukraine, and the associated impact on energy prices and inflation.  Yet despite all these headwinds and reinforced by Government support, our economy has proven remarkably resilient, with our labour market essentially at full employment and public finances on a positive trajectory. As we look ahead to 2024, I am encouraged by the strength our economy has demonstrated in the wake of so many external shocks.  Next year, Modified Domestic Demand (MDD) – my preferred measure of the domestic economy – is forecast to grow by 2.2 per cent. While this is lower than the growth we have experienced in recent years, it compares favourably with the outlook for many of our competitors. The increase in financing costs facing businesses because of this monetary policy tightening is unfortunately a challenge Irish business will continue to contend with in 2024.  This greater burden comes at a time in which businesses are already facing inflation at multi-decade highs.  Thankfully, there is some evidence that we have now turned a corner on inflation. Inflation is expected to continue to ease over the coming months with the rate projected to fall just below three percent next year.  It is important to note that the outlook for ‘core’ inflation – which excludes energy and unprocessed food – has proven to be more persistent as inflationary pressures have become broader.  Looking at the international picture, the balance of risk is very much tilted towards the downside.  A small, open economy like Ireland is particularly vulnerable to global economic developments. Geopolitical tensions and further changes to monetary policy are key risks facing our economy over the coming period. As Minister for Finance, one of my priorities is to ensure that businesses have the support they need amidst all these challenges.  In the lead-up to Budget 2024, I examined the tax reliefs and supports available to Irish businesses and met with, and listened to, the views of stakeholders from across the country.  Based on this, I announced a wide-ranging package of measures to support enterprise in Budget 2024.   Among these measures, I am increasing the Research and Development (R&D) Tax Credit from 25 percent to 30 percent. The first-year payment threshold is also being doubled from €25,000 to €50,000, which will provide valuable cashflow support to companies engaged in smaller R&D projects.  These amendments will ensure that Ireland remains competitive in attracting employment and investment in R&D.  I am also introducing a new targeted Capital Gains Tax relief that will allow angel investors to benefit from a reduced 16 percent rate of CGT when they dispose of a qualifying investment for gains up to twice the value of their investment.  This relief aims to encourage investment in this important sector of our economy, helping these enterprises access the necessary capital to grow and develop. In the same vein, I am also enhancing the Employment Investment Incentive Scheme by standardising the investment period to four years for all investments, and doubling the amount an investor can claim relief on for four-year investments to €500,000.  Further changes are also being made to the scheme to ensure that it is compliant with the new EU General Block Exemption Regulation.  To support Irish SMEs in engaging key employees, I have recently commenced the outstanding Finance Act 2022 amendments to the Key Employee Engagement Programme, following receipt of State aid approval from the European Commission.  This includes an extension of the scheme to the end of 2025 and doubling the amount of issued, but unexercised, qualifying shares a company can hold from €3 million to  €6 million.  In my engagement with stakeholders, a clear message has emerged: businesses find the administrative requirements of tax supports and schemes to be complex.  To examine this issue, Revenue will be establishing a subgroup of the Tax Administration Liaison Committee (TLAC).  This group will examine Revenue-administered tax schemes and reliefs for business, with a focus on identifying any opportunities to simplify and modernise the administration of business supports. It will report on its findings in the course of 2024.  My department will also undertake several reviews in 2024 to further examine how specific enterprise support reliefs and schemes can work better for Irish business.  I am very optimistic for the future of business in Ireland. The suite of enterprise tax measures announced in Budget 2024 is a sign of our commitment to ensuring that Ireland is an attractive location for start-ups and scale-ups across a range of sectors.  Michael McGrath, FCA, is Minister for Finance and a TD for Cork South Central

The objectives of the National Action Plan Against Racism will be implemented within the Institute, and among members and students, under a recently unveiled Ethnicity Network Group initiative At Chartered Accountants House on a recent evening in late October, members of the Ethnicity Network Group (ENG) announced their plans to implement the objectives of the National Action Plan Against Racism (NAPAR) within the Institute. The ENG is committed to supporting the implementation of NAPAR recommendations within the Institute both as a professional body and employer, explains Deborah Somorin, ENG founder and Co-Chair.  “The National Action Plan Against Racism will be a catalyst for creating more equitable, diverse and inclusive workplaces for people from ethnic minority backgrounds in Ireland,” says Somorin, who is Manager, People Advisory Services, EY Ireland. “Organisations will now acknowledge that racism exists in Ireland and hopefully put in place policies to create authentically anti-racist environments where everyone has fair access to opportunities to gain employment and grow in their careers.” As well as supporting the implementation of NAPAR recommendations within the Institute, Somorin and her ENG colleagues are also committed to supporting members and students who want to implement the recommendations within their own organisations. This is especially important given the recent rise in anti-immigration narratives in Ireland – and the profession is not immune, explains Somorin’s ENG Co-Chair Aisling McCaffrey, Director of Sustainability and Financial Services Advisory at Grant Thorton. “A recent Chartered Accountants Ireland survey found that 43 percent of members and 66 percent of students have personally witnessed or heard someone else being discriminated against in the workplace,” says McCaffrey.  “The survey also found 28 percent of people who identified as being an ethnicity other than white felt their ethnicity had a negative impact on their career as a Chartered Accountant. Only three percent of people who identified as being white responded the same.” The development of NAPAR This isn’t the first time Ireland has attempted to tackle the issue of racism. The country’s first National Action Plan Against Racism was introduced in 2005. When it ended in 2008, however, it was not renewed, leaving “an important vacuum contributing to a ‘normalisation’ of racism”, according to a report by the European Commission against Racism and Intolerance, published in 2019. The UN High Commissioner for Human Rights issued guidelines on creating a new National Action Plan Against Racial Discrimination in 2014. In turn, Ireland – with a mandate established under the Irish Human Rights and Equality Commission Act – created the Irish Human Rights and Equality Commission in 2014. Its purpose was to “protect and promote human rights and equality in Ireland and build a culture of respect for human rights, equality and intercultural understanding in the State”. An Anti-Racism Committee was subsequently established in 2020 by then Minister of State at the Department of Justice and Equality, David Stanton TD.  The committee was given the mandate to conduct research on racism in Ireland, research best practice in other countries and come up with recommendations to tackle racism here. “We did a number of interviews and consultation processes with different departments and ministers, agencies and bodies,” explains Dr Bashir Otukoya, Anti-Racism Committee member, law lecturer and Higher Executive Officer for the Courts Service.  Dr Otukoya took part in a panel discussion at the October launch of the ENG’s NAPAR initiative at Chartered Accountants House. “We had hundreds of written submissions from members of the public, and we put all of that together to end up with NAPAR,” he says. “Each of the board and community members have their own expertise in different fields, like human rights, anti-discrimination and equality law – and [we have] members of communities that are affected by racism. We went at it from an angle of experience and knowledge.” For ENG member Reabetswe Moutlana, Audit Manager at EY, one of the most important aspects of NAPAR is the momentum it creates for collective action. “NAPAR recognises that the journey towards an inclusive society is a collective journey and, therefore, puts the onus on everyone – the State, private actors, organisations and individuals – to work together to make Ireland a safe place for all,” says Moutlana. “The Action Plan also focuses on a victim/minority-centred approach. The key principle of the plan is that ‘affected groups should participate in the development and oversight of all government policy initiatives and targeted measures to address racism…This essentially means that this is a plan created by affected persons, for affected persons.” NAPAR and the Ethnicity Network Group Established in 2022, the mission of the Ethnicity Network Group within Chartered Accountants Ireland is to promote a sense of belonging and inclusion for people who belong to Traveller, Black, Asian and other minority ethnic groups within the profession. “As such, we see it as our role to promote awareness of NAPAR, provide suggestions for key actions across the profession and assist with its implementation where possible,” says Deborah Somorin. Both Somorin and Dr Otukoya recognise that the strengths of the plan are its five key objectives, comprising very specific action points and target dates. The plan also acknowledges the intersectionality between racism and other forms of oppression, and that the required actions and remedies cannot follow a one-size-fits-all approach.  “We were very careful with how we set the objectives in NAPAR,” explains Dr Otukoya. “We wanted it to be relatable to everyday citizens. So, objectives like being seen, being equal, being heard, and being counted were [designed to be] persuasive and in plain language, usable and implementable by anyone.” NAPAR awareness Even though NAPAR was launched on 21 March 2023, few members present at the ENG event at Chartered Accountants House in October were aware of it, according to McCaffrey.  “This could indicate a lack of awareness around the plan, which means that it is more difficult to keep those in charge of it accountable for the actions proposed, especially as this is more of a short to longer-term plan,” she says. “We want as many people as possible to know about NAPAR and become allies towards creating a safe and equal environment while also promoting it. It’s important that the responsibility for raising awareness and promoting NAPAR does not solely rest on affected persons. This is a collective journey.” NAPAR and the Institute The Ethnicity Network Group has devised a four-step plan to integrate NAPAR into the operations of the Institute, explains Somorin: We will support Chartered Accountants Ireland in its role as an employer, in creating an anti-racist working environment by implementing relevant NAPAR actions; We plan to work with decision-makers to implement NAPAR actions related to Chartered Accountants Ireland’s role as a professional educational body; We will develop members’ and students’ awareness and understanding of NAPAR and how they can implement it within their organisations; and We plan to roll out the industry’s first Ethnicity Pay Gap report. NAPAR can positively influence the world of work, not just for employees, but also employers, Somorin believes. “As noted in NAPAR, inclusive communities are vital to ensure that minority ethnic groups feel a sense of safety, connection and belonging,” she says.  “For employees, we believe that being part of an inclusive workplace, where the impacts of racism are acknowledged and addressed, creates an enabling environment for individuals to reach their highest potential.  “For employers, I believe that embedding key considerations linked to NAPAR will lead to improved retention of staff and, in turn, increase access to a more diverse talent pool.  “This increase in diversity enables companies to relate better to all customers and clients, promotes balanced internal discussion and challenges thinking, which often results in driving innovation – all of which is good for business.” *Written by Liz Riley Northern Ireland Racial Equality Strategy 2015–2025 In Northern Ireland, The Racial Equality Strategy 2015–2025 was launched in December 2015. Alfie Wong, MBE, is Head of Racial Equality Delivery at The Executive Office, Northern Ireland Civil Service (NICS) Race and Ethnicity Champion, founder of NICS Race and Ethnicity Network and Chartered Accountant. Here, he outlines the key outcomes of the strategy: - Outcome 1: Equality of service provision People from a minority ethnic background can access and benefit from all public services equally. - Outcome 2: Elimination of prejudice, racism and hate crime Effective protection and redress are provided against all manifestations of racism and racist crime, and a victim-centred approach is promoted. - Outcome 3: Increased participation, representation and belonging People from minority ethnic backgrounds participate, and are represented fully, in all aspects of life – public, political, economic, social and cultural – and enjoy a shared sense of belonging. - Outcome 4: Cultural diversity is celebrated The rights of people from minority ethnic backgrounds to maintain their culture and traditions in line with human rights norms – and to pass them on to subsequent generations – are recognised and supported.

The International Accounting Standards Board (IASB) has launched a consultation on improved accounting requirements for financial instruments with characteristics of debt and equity. In the exposure draft, the IASB proposes; to clarify the underlying classification principles of IAS 32 to help companies distinguish between debt and equity; to require companies to disclose information to further explain the complexities of instruments that have both debt and equity features; and to issue new presentation requirements for amounts—including profit and total comprehensive income—attributable to ordinary shareholders separate to the amounts attributable to other holders of equity instruments. The consultation remains open until 29 March 2024.

The Institute has issued revised Anti-Money Laundering (AML) Supervision Regulations, trust and company service providers (TCSPs) and bookkeepers, Ireland (AML Supervision Regulations) replacing and renaming the Money Laundering Supervision Regulations.  The revised AML Supervision Regulations are effective from 1 January 2024. To whom do the AML Supervision Regulations apply? The AML Supervision Regulations provide for the Institute’s AML supervision of entities which are within the Institute’s statutory remit as an AML supervisor in Ireland, but which are not subject to the Institute’s Public Practice Regulations.  In general terms, these entities are TCSPs and/or bookkeepers which count Institute members amongst the principals of the entity.  Whether a particular TCSP or bookkeeper is within the Institute’s AML supervisory remit or that of another competent authority is determined, in accordance with AML legislation and agreements between the competent authorities, with reference to the composition of the principals at the specific TCSP or bookkeeper entity.  The AML Supervision Regulations provide further information in this regard. What changes do the revised AML Supervision Regulations bring for Institute registered TCSPs and bookkeepers? Revisions to the AML Supervision Regulations include: A revised introduction and new guidance at Appendix 1 to enhance clarity as regards scope of the AML Supervision Regulations; New requirement for a registered TCSP and/or bookkeeper to ensure that every principal is either a member of the Institute or has been granted AML affiliate status by 1 January 2025.During 2024 the Institute will engage with the Money Laundering Compliance Principals at registered TCSPs and bookkeepers to facilitate compliance with this requirement; New requirement for a registered TCSP and/or bookkeeper to make a declaration, on behalf of the entity, acknowledging the entity’s obligations under Institute Bye-Laws and Regulations and AML legislation. A mechanism to ensure that the Institute can remove a persistently non-compliant entity from its supervisory remit.Where the Institute cannot continue to be responsible for AML supervision of a TCSP or bookkeeper by virtue of a decision of an Institute regulatory Committee or Disciplinary Body to de-register (or refuse registration to) the entity, it is not appropriate for a member of the Institute to remain as a principal at that entity.The revised AML Supervision Regulations provide that an Institute member ceases to be an Institute member where he/she continues to act as a principal at a registrable TCSP and/or bookkeeper within 90 days of that entity being refused registration or de-registered by a regulatory Committee or a Disciplinary Body of the Institute. Guidance: Revised AML Supervision Regulations Guidance is available on the Institute’s website. Previous editions: The revised AML Supervision Regulations replace the previous edition of the Money Laundering Supervision Regulations which remain available to read in the Institute’s online archive of Regulations.  

Revised Public Practice Regulations – effective 1 January 2024 The Institute has issued revised Public Practice Regulations with effect from 1 January 2024.    Institute members engaged in public practice comply with the Public Practice Regulations.  Key revisions are summarised below: Anti-money laundering (AML) supervision: The revised Public Practice Regulations include explicit reference to the Institute’s role as AML supervisor for practising firms.    While firms are familiar with AML supervision and already engage with the Institute in this regard, the revised Public Practice Regulations introduce some new regulatory obligations in this regard.  In particular, the revised Public Practice Regulations: Include a new chapter addressing AML supervision; Define an ‘AML supervised firm’; Require an AML supervised firm to ensure that each of the firm’s principals is either a member of the Institute or has been granted AML affiliate status by 1 January 2025. During 2024 the Institute will engage with the Money Laundering Compliance Principals at AML supervised firms to facilitate compliance with this requirement; Require all AML supervised firms to make a declaration, on behalf of the firm, acknowledging the firm’s obligations under Institute Bye-Laws and Regulations and AML legislation.This declaration will be sought as part of the firm annual return process going forward; Include explicit ongoing fit and proper requirements for beneficial owners, principals and relevant managers at AML supervised firms. Professional indemnity insurance (PII) requirements for authorised investment business firms, Ireland Regulation 7.18A of the Public Practice Regulations reflects a new Central Bank of Ireland requirement for firms authorised by the Institute for investment business (IB) to have specific minimum professional indemnity insurance (PII) which is ringfenced for IB claims.   The Institute has written directly to the IB compliance principals outlining the revised PII requirements.    This topic is covered in more detail in the August edition of the Professional Standards Regulatory Bulletin. Simplified regime for potential ‘dual- PC’ holders Chapter 5 of the revised Public Practice Regulations provides that an Institute member engaged in public practice is exempt from the requirement to hold an Institute practising certificate (PC) where that individual is a member of, and holds a PC from, another specified accountancy body.    While these dual-membership cases are infrequent, the revised approach streamlines regulatory processes between the accountancy bodies, simplifies compliance for individuals and minimises the risk of regulatory gaps or duplication.  Institute PC regime applies only to Ireland and the UK The definition of practising certificate has been revised to state that the Institute’s PC regime applies only to public practice in Ireland and the UK.  This is a clarification and not a change to the Institute’s PC regime.  Where members engage in public practice in jurisdictions other than Ireland or the UK the member complies with any local requirements regarding public practice in that jurisdiction.  Guidance: Revised Public Practice Regulations Guidance is available on the Institute’s website. Previous editions: The revised Public Practice Regulations replace the previous edition of the Public Practice Regulations which remain available to read in the Institute’s online archive of Regulations.  

"Finance is the great enabler of climate action" This was the message of UN Climate Change Executive Secretary Simon Stiell in a speech at a Green Climate Fund event today “Scaling up Access and Impact”.  And it is a key message of this year’s COP, at which a record number of financial executives are attending. Many may be drawn to what Nikita Singhal, co-head of sustainable investment & ESG at Lazard Asset Management, describes as possibly “the greatest alpha-generation or investment-return” in a long time. Singhal  was speaking at the Bloomberg Business Forum at COP28, and was one of several investors who see opportunities for investment returns in action on the twin crises of climate change and biodiversity destruction. “Let's be clear,” said another such investor, Prudential Plc Chair Shriti Vadera, who reminded the Forum “The private sector only does things that are commercial and create a commercial return: they are to preserve the capital of their customers, savers, pensioners and depositors.” Highlights Chair of the IFRS Foundation Trustees, Erkki Liikanen addressed COP28 and reflected on progress since the IFRS Foundation announced the decision to establish the International Sustainability Standards Board at COP26 in 2021.   Export credit agencies, supporting a combined estimated US$120 billion in global trade in 2022, have formed a net-zero alliance. The UN-convened Net-Zero Export Credit Agencies Alliance will be the first net-zero finance alliance comprising public finance institutions. “Public finance has been the missing piece in the net-zero financial landscape,” said Inger Andersen, Executive Director of UNEP. “Export Credit Agencies are in a strong position to deliver more sustainable global trade and to complement the work already being undertaken by the private finance sector”.   Climate Trace the non-profit project has released data “of unprecedented granularity” that shows how countries have been dramatically under-reporting their greenhouse gas emissions;   An 18-month collaboration between leading climate researchers across more than 20 nations has produced a report titled 10 New Insights in Climate Science 2023/2024. The report aims to help inform policy implementation at COP28 and beyond. It warns that humans will increasingly be unable to live in and move from/to places where climate risks continue to rise, and also warns of compound risks which will amplify the climate crisis and increase in uncertainty. Podcast Tripling renewables is one of the goals under discussion at COP28. Find out where more investments are needed and why decarbonizing energy is easier than you think. (Zero)  

The Institute, under the auspices of the CCAB-I, made representations on behalf of members at last week’s meeting of the TALC Collection subcommittee. Among the issues discussed, Revenue provided updates on the implementation of the Enhanced Reporting Requirements for employers, the Debt Warehousing Scheme and the vacant homes tax. Revenue also reminded the group of the costs to which the VAT flat rate farmer scheme applies. Revenue is aware of an issue in the Statement of Net Liabilities process and will be contacting the affected taxpayers.  Enhanced Reporting Requirements for Employers (EER)   Despite the CCAB-I's concerns over the introduction of ERR, Revenue has advised us that the requirements will enter force from 1 January 2024. In the meantime, Revenue intends to go live with the reporting portal in the second week in December. In the meantime, Revenue will continue to hold information webinars up to 14 December 2023 on the new  requirements for employers for agents and employers.   Revenue issued e-Brief 254/23 this morning referencing an update to Revenue’s guidance on the small gift exemption, which include examples of how ERR will apply.   A recent snap poll of our members last week has indicated that 60 percent of organisations are not ready for the Enhanced Reporting Requirements. As the 1 January 2024 deadline approaches, we continue to meet with Revenue to discuss implementation and guidance. We will continue to keep members updated via Chartered Accountants Tax News.   Debt Warehousing Scheme   Revenue reported that the total debt warehoused in the scheme was €1.8 billion consisting of over 57,000 businesses, 67 percent of which owe less than €5,000 each. Over 5,500 businesses owe a combined €1.5 billion, each owing in excess of €50,000. Revenue is continuing its telephone outreach campaign contacting businesses owing in excess of €50,000.   The Debt Warehousing Scheme is currently in Period 3, running from 1 January 2023 to 1 May 2024, with interest accruing at 3 percent per annum on the unpaid debt. The 3 percent interest charge will be incorporated into the phased payment arrangement (PPA) for its duration. Where there is no PPA, the interest will be charged retrospectively.   Taxpayers have until 1 May 2024 to agree a PPA with Revenue and are reminded that they can make interim payments during this period, and also request for the offset of any refunds owing against the balance of tax warehoused.   To assist taxpayers and their agents in quantifying the PPA instalments and interest payments, Revenue is providing a PPA calculator on its website. Revenue is encouraging taxpayers to engage now in the PPA process as there is flexibility in terms of payment terms, amounts and downpayments. In addition, payment breaks can be arranged once the PPA has been commenced. A nominal downpayment amount of 0.1 percent of tax and interest can be input using the online application system to commence the process of engagement and negotiation with the caseworker.   Revenue has prepared a number of ‘How to” videos in relation to the PPA process which are now available on the Revenue website (link to videos).   Vacant Homes Tax  Revenue provided current statistics on the Vacant Homes Tax (VHT) that was due to be reported on by 7 November 2023. Of the 50,000 properties reported to Revenue, only 5,000 properties were declared vacant. Revenue wishes to remind property owners that there is only an obligation to file a VHT return where the property is vacant.  Of the 5,000 declared to be vacant, 2,000 properties have been claimed to be exempt VHT. The VHT liability on the remaining 3,000 properties is due for payment by 1 January 2024.  Earlier in the year, Revenue wrote to owners of some 25,000 properties to advise them of the actions they needed to take, where the data available to Revenue indicated that the recipient may have a liability to Vacant Homes Tax (VHT). Revenue received responses from 45 percent of this cohort. Revenue intends to review the non-responders after the due date for payment of VHT, 1 January 2024.  Statement of Net Liabilities  Revenue is aware of some 1,000 instances in the Statement of Net Liabilities process where an offset of 2022 Income Tax refund against 2023 Preliminary Tax was selected but the refund issued, resulting in an underpayment of 2023 preliminary tax. Revenue will be contacting the affected taxpayers.  VAT Flat Rate Farmers Scheme  Farmers who are not registered for VAT are not, in the normal course, entitled to credit for, or repayment of, VAT incurred by them on their business inputs. However, a flat-rate farmer, who would not otherwise be entitled to reclaim VAT on costs incurred for the purpose of their farming business, can reclaim VAT on certain costs in accordance with Value-Added Tax (Refund of Tax) (Flat-rate farmers) Order 2012. Revenue wishes to remind farmers, and their agents, that VAT reclaimable is that VAT paid in relation to costs incurred only on:  (a) the construction, extension, alteration or reconstruction of that part of the building or structure which was designed solely for the purposes of a farming business and has actually been put to use in such a business carried on by him or her,  (b) the fencing, drainage or reclamation of any land which has actually been put to use in such a business carried on by him or her, or  (c) the construction, erection or installation of qualifying equipment for the purpose of micro-generation of electricity for use solely or mainly in his or her farming business.  It is to be noted that outlay for other purposes, such as on the acquisition of milk bulk tanks, feed bins, milking parlour equipment, automatic scrappers and automatic calf feeders do not come within the scope of this refund order. 

Revenue has updated the VAT Tax and Duty Manual on the VAT treatment of portfolio management services has been updated to provide further guidance s in line with the judgement in the Court of Justice of the European Union (CJEU) Deutsche Bank case (C-44/11).  

Revenue has updated the Tax and Duty Manual regarding the payment and receipt of interest and royalties without deduction of tax. The guidance has been updated:  in respect of the application of interest withholding tax to interest paid to Irish partnerships and foreign tax transparent entities (section 5.3), and  refers to the European Stability Mechanism (ESM) and the ESM acting through a subsidiary body or sub-entity (section 8).  In addition, instructions on how to report availing of the practice in section 9 for Form CT1 2021 and Form 11 2021 have been deleted.