Revenue has updated the Tax and Duty Manual regarding the Charitable Tax Exemption following the changes announced in Finance (No.2) Act 2023. The updated guidance confirms that: The tax exemption available under section 208 TCA 1997 is extended to include professional services income of a charity; and Revenue will withdraw the charitable tax exemption from the date in which the charity is no longer eligible, where withdrawn, Revenue will notify the Charities Regulator. The updated guidance also addresses applications for the tax exemption under section 208A TCA 1997 by overseas charities and under section 209 TCA 1997 for certain bodies established for the promotion of human rights.

The Bahamas, Belize, Seychelles, and Turks and Caicos Islands have all been removed from the EU list of non-cooperative jurisdictions, following agreement by Member States. While the Bahamas and Turks and Caicos Islands have been fully delisted, Belize and Seychelles have been moved from Annex I to Annex II (pending the results of a supplementary review). This is another important milestone in the Union’s ongoing efforts to promote tax transparency.

Revenue has updated the Tax and Duty Manual to reflect the increase in the employee (PAYE) tax credit to €1,875 for 2024 (from €1,775 in 2023) as provided for in Finance Act 2023, together with a new table to show the credit amount for prior years. 

Revenue has updated the Tax and Duty Manual regarding payments to property owners under the Repair and Leasing Scheme, which was introduced to bring vacant properties into social housing use.  The updated guidance clarifies that the scheme includes both a direct lease agreement and a rental availability agreement and, while both a local authority and an approved housing body (AHB) can enter into a direct lease agreement, only a local authority can enter into a rental availability agreement.  Further clarifications are also provided in relation to the amounts that may be reimbursed under the repair and leasing scheme.  References to the Home Renovation Incentive have been removed. Under the scheme, if a vacant property is suitable for social housing, the cost of necessary repairs is paid by the local authority or an approved housing body (AHB). The owner then leases the property to the local authority or AHB, who will make it available for social housing. The property owner receives an agreed lease payment from the local authority or AHB and the value of the repairs is gradually offset against this lease payment over the period specified in the lease.

Revenue has updated the Stamp Duty Manual which provides guidance on the stamp duty relief, under section 81AA SDCA 1999, in respect of certain transfers of agricultural land to young trained farmers. The manual has been updated to clarify the circumstances in which the relief can apply where the land is conveyed or transferred into joint ownership.  The updated guidance also addresses the application of limit on the relief in certain circumstances including where the land has been acquired by a young trained farmer and their spouse/civil partner who is not a young trained farmer.

Check out the latest items on the Agent Forum. Remember, in order to view each item, you must be signed up and logged in. We also take this opportunity to remind you that HMRC is currently conducting an exercise in which it is asking members of the forum to confirm they wish to continue to as a registered user.   All agents, who are a member of a professional body, are invited to join HMRC’s Agent Forum. This dedicated Agent Forum is hosted in a private area within the HMRC’s Online Taxpayer Forum. You can interact with other agents and HMRC experts to discuss topical issues and processes. 

Revenue has updated the Tax and Duty Manual for Remote Working Relief. The manual now reflects that payments to employees of the remote working daily allowance of up to €3.20 must be reported by employers under the Enhanced Reporting Requirements (ERR) which came into effect on 1 January 2024.  In addition, the updated guidance confirms that the remote working daily allowance applies to directors, including proprietary directors, where the director has incurred and defrayed relevant expenses ‘out of’ the relevant emoluments, that are subject to tax under the PAYE system, and all other conditions must be satisfied. 

At a Special General Meeting held on Wednesday 21 February, members of Chartered Accountants Ireland voted to approve a resolution to amalgamate with CPA Ireland. Over 10,000 Institute members voted. The resolution was passed by a majority in accordance with the Institute's Bye-Laws, with 53.5% of votes cast in favour. Members of CPA Ireland also approved the amalgamation proposal at an Extraordinary General Meeting also held on Wednesday 21 February. Both Institutes will now begin to work collaboratively on the next steps required to create a single Irish based accountancy body, named Chartered Accountants Ireland, which will be the largest professional body on the island of Ireland. The Institute will keep members informed of progress throughout this process.

The Digital Services Act 2024 (“DS Irish Act”) was passed into law on 11 February 2024 and came into force from 17 February 2024.Please click here for a DETE press release giving more details of the DS Irish Act. The EU Regulation (“Regulation”) commonly referred to as the Digital Services Act applies in full in all Member States from 17 February 2024.The Regulation establishes a pioneering regulatory framework to protect EU users of digital services and their fundamental rights online.  While the Regulation has direct legal effect in EU Member States, it was necessary to have national legislation to implement those provisions of the Regulation that provide for the supervision and enforcement of those obligations. The DS Irish Act 2024 fulfils Ireland’s obligations in this regard. The DS Irish Act formally designates and empowers Coimisiún na Meán as the Irish Digital Services Coordinator and the Competition and Consumer Protection Commission as a competent authority for online marketplaces under the Regulation. When the DS Irish Act was published as a bill late last year it was clarified at the time in a press release from DETE that it was a technical bill, drafted to address specific obligations on Member States of the EU to give effect to the supervision and enforcement provisions of the Regulation. The bill did not add to or amend the obligations on online platforms under the Regulation. Those obligations have direct legal effect in all Member States of the EU and do not require any implementing measures in national law. 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.  

Effective leadership requires more than competence. Compassion can help to foster a culture of both success and well-being, writes Paul O’Donnell Challenged by the after-effects of a global pandemic, organisations continue to change rapidly and are conscious of the need for effective leadership and talent engagement. Research suggests that compassionate leadership can bring the best results, but does compassion have a place in the world of work? The evidence suggests yes, it does. Compassion in the workplace improves collaboration, humility, trust and loyalty. Leaders who display compassion are more likely to have and hold on to engaged, committed and motivated employees. While good to have, empathy is an emotion. Compassion is an emotion with intention. Employees often avoid taking risks at work or rocking the boat during challenging times. They might be hesitant to report errors, for example, to voice concerns, suggest new ideas or share feedback. Demonstrating compassion as a leader can create a workplace environment conducive to emotional well-being, making employees feel safe enough to take risks that might help them to succeed. Compassionate leadership can benefit the leader as much as those they lead. Data shows a strong link between the demonstration of compassion and career advancement. Compassionate leaders enjoy greater life satisfaction and self-esteem and are viewed as stronger and more capable by their employees. By taking care of your staff, you are also acting in your own interests. Compassion alone is not enough, however. For leadership to be effective, it must co-exist with good judgment. Kindness cannot come at the expense of competence. The leaders who achieve the best outcomes are those who understand what motivates their employees and how to manage them towards desired outcomes. Leadership is hard: it necessitates pushing agendas, sharing critical feedback and knowing when to say no. Practising compassion as a leader does not imply the absence of these responsibilities. Instead, it means carrying them out while being conscious of people’s feelings. As Hougaard and Carter put it: “Wise, compassionate leadership is the ability to do hard things in a human way.” Developing compassionate leadership A study showed that 91 percent of over 1,000 surveyed leaders see compassion as vital to leadership. Eighty percent indicated that they wanted to improve their own compassion but did not know how. Compassion is not an inherent characteristic, but it can be developed. There are several steps leaders can take to develop a more compassionate leadership style. Have more compassion for yourself Taking care of others means minding yourself as well. If you are overburdened and burnt out, you won’t be able to help anyone else. Self-compassion requires getting enough sleep, taking short breaks throughout the day and setting aside time for yourself away from work. It also means not being too hard on yourself, recognising your mistakes, reframing setbacks as learning experiences and moving forward confidently. Be aware of your intentions Learn to manage your intentions before you speak to others by aligning your core values with your actions. Get to know each member of your team to understand what drives them and makes them feel valued. Advocate for change Compassion can become integral in an organisation. As a leader, think about policies that may be put in place to support employee well-being. This is beneficial to your employees and can lessen the onus on you over time. Can compassion become a hindrance? If you have a well-developed sense of compassion, but feel it hinders your ability to lead, there are a few things you should consider. Honesty and transparency As a leader, it is your job to offer guidance, even when it may be difficult for an employee to hear. If you step around the issue to be kind, you risk failing to convey your expectations and the employee will neither understand nor benefit from your help. Empathy vs compassion If you find yourself taking on the emotional burdens of your employees, take a step back and remember that you will be most helpful to them through action. Use your feelings of empathy as a catalyst for compassion and take practical steps to exercise it. Compassionate leadership propels success A compassionate outlook enhances a leader’s skills, resulting in more productive and motivated employees. Empowerment through compassion enables leaders and their teams to achieve their utmost potential, ensuring the organisation’s future success. Paul O’Donnell is CEO of HRM Search Partners

Expectations on businesses to combat climate change have intensified. Dave O’Shaughnessy outlines how organisations can use artificial intelligence to reach sustainability goals Last month, the World Economic Forum reiterated the need for urgent action on climate change, which was also the core message from COP28. With the world poised at this make-or-break moment, societal and stakeholder expectations of the role of business in reducing the effects of climate change are at an all-time high. In a US Pew Research Centre Survey published last October, 52 percent of respondents said they believe large businesses and corporations can do "a lot" to reduce the effects of climate change. This suggests that the expectation has moved beyond businesses simply fulfilling their environmental, social and governance (ESG) responsibilities to the view that they should be focused on even greater change. This change – termed “regeneration” – calls for a reinvention of systems across an organisation, from business models to supply chains, to help drive a positive impact rather than simply avoiding a negative one. While this is certainly an important objective, many organisations are currently facing external and internal pressures, long-term planning challenges and reporting requirements that have grown in scope and complexity to even reach a stage of compliance and organisation, let alone regeneration. It’s here that artificial intelligence (AI) is a game-changer. By harnessing data and driving efficiency, it can help your organisation meet your most immediate sustainability goals: achieving carbon neutrality, reduction of water use, and meet Science Based Targets initiative (STBi) targets as well as the UN Sustainable Development goals (UNSDGs). At the same time, AI also frees up your people to consider the bigger, long-term regeneration opportunities that can change your organisation’s environmental impact. There are three ways AI can assist with and organisations sustainability goals, which are outlined below. One: Guidance on sustainability reporting standards New directives such as the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence (CSDD) mean companies face increasing reporting requirements. The high volume of reporting points and the interrelationships between regulatory reports and voluntary frameworks (Global Reporting Initiative (GRI), the Carbon Disclosure Project (CDP), and the Sustainability Accounting Standards Board) adds to the complexity of the task and requires organisations to be able to interpret complex policy documents in a short space of time. Unsurprisingly, many organisations are struggling with where to begin, unsure of how they fare compared to expectations and are confused by the multitude of requirements. As a result, they are unable to forge an action plan or identify potential problems. Generative AI can alleviate this concern. Its ability to analyse large volumes of documents (in this case, the reporting requirements and frameworks) in real-time and then to provide easy-to-understand explanations gives companies a clear starting point. It also cuts down on complicated, manual research time and ensures consistency in understanding and actions among staff. A chatbot is one means of achieving this. It can ingest all the legislation, directives, frameworks, and facts relevant to your company’s sustainability needs and then act as a “personal assistant” for any user questions. By combining knowledge from a vast number of resources, your organisation-specific chatbot can provide enhanced understanding on complex topics at speed, support decision-making, and even provide references so users can review the sources or answers for fact checking and traceability. Two: Actionable insights With the objective to halve emissions by 2030, companies must have a comprehensive and integrated net zero approach involving all aspects of their operations and value chain. But while this integrated approach is key to meeting targets, extracting information from multiple sources and the analysis of that information (crucial if opportunities and hot spots are to be identified quickly and adjustments made) means considerable work for teams. AI has the ability to monitor and analyse multiple data points, often combined with outputs from machine learning or other algorithms, quickly and efficiently (e.g. forecasting total emissions or identification of raw materials that have the highest impact on CO2 reduction). It can also enhance the quality of insights generated by this analysis by providing explainable and clear “next best actions”. Three: Sentiment analysis Public sentiment can significantly impact a business's reputation and performance. Social media, in particular – a key source of sentiment information with many people sharing their views and experiences – can often prove difficult for companies to monitor and manage quickly. Sentiment analysis can assist with this. A form of natural language processing (NLP) that uses AI to evaluate and classify sentiments expressed in textual data can provide consolidated insights to businesses. Until recently, sentiment analysis required extensive training data, making the process time-consuming and expensive. The process has been revolutionised with the emergence of Large Language Models (LLM). LLMs perform very well when it comes to classifying text and analysing sentiment without the need for prior training, thus streamlining the sentiment analysis process. This innovation makes the collection and interpretation of public sentiment more seamless, helping businesses get a quicker and more accurate understanding of how they are perceived by the public. New opportunities Organisations that leverage AI will find it easier to meet their immediate sustainability goals and be better prepared to address future challenges. Quicker collation of information and analysis enables workforces to take greater initiative. By being able to make faster, more insightful decisions, people will have the time to identify new opportunities for greater environmental impact. Dave O’Shaughnessy is Partner and Sustainability Reporting – Technology Lead at EY

Workplace romances can pose challenges for employers. From policies to breakups, Moira Grassick offers 10 tips on how to avoid and manage potential difficulties Valentine’s Day was just a few weeks ago, but workplace romances can happen at any time of the year. If romance blooms in your workplace, it can sometimes cause complications ranging from gossip to complaints or grievances. Here are 10 tips to maintain control of your workplace and continue fostering a healthy and safe environment for your staff when dealing with an office romance. 1. Check your existing policies and procedures Are your existing policies and procedures appropriate for dealing with any problems that might arise as a result of workplace romances? It’s sensible to have either a confidentiality policy or conflict of interest policy in place, requiring employees to notify you of any change in their personal circumstances that might give rise to a conflict of interest. 2. Encourage staff to notify management of a workplace romance Requesting that employees notify management about their love life might seem awkward or over the top, but it is important that management be aware of any romantic relationship in the workplace. Then, they can decide if appropriate steps need to be taken. 3. Don’t ignore a workplace romance Not every employee will be comfortable reporting their new relationship. It could become known to management by other means that a personal, romantic relationship between staff members has developed. It’s best not to ignore this information and proceed as you would if you had learned about the relationship from the people involved. 4. Think about changing the work environment It is sensible to consider whether the reporting structures within teams need to be revised. Changes like these must be discussed with the people affected. Reassessing reporting structures in the case of a workplace romance, especially if management is one of the parties involved, can help allay any suspicion of favouritism that might arise at a future date. 5. Beware of favouritism Ensure that staff engaged in relationships with a colleague are not involved in any management decisions involving their partners. It is important that management decisions are taken impartially and that the impartiality of the decision is clear to everyone involved. 6. Don’t be afraid to take action Treat any complaints from staff members – involved in the relationship or not – seriously. If people are witness to, or experience, inappropriate behaviour in the workplace, it is an employer's responsibility to manage it. 7. Training management Most managers lack training and knowledge on how to tackle romantic relationships at work. Managers need to be aware of how to manage such situations, what the potential risks are and how to manage these risks. Managers should also have regular training on how to respond to harassment complaints that may arise as a result of a romantic relationships at work, or its aftermath. 8. Social events Christmas parties or work social events are often the source of workplace romances. It’s a good idea to remind staff that they are still expected to abide by company policies, even if the party is outside of the workplace. If something goes wrong, you, as an employer, could be liable. 9. Breakups Of course, not all love is made to last. Problems might arise if a workplace romantic relationship ends, especially if it doesn’t end smoothly. These situations could impact an employee's work performance or professional relationships. This might require thinking about moving the staff members involved. 10. Obligation to maintain a safe workplace Sexual harassment and bullying can often arise in the context of workplace romances. Employers should have policies and procedures in place to deal with any such incidents and related complaints. Love may be in the air, but it doesn’t have to poison the workplace. Be proactive, set expectations around conduct and enforce your workplace policies. Moira Grassick is Chief Operating Officer at Peninsula Ireland