Revenue has issued new guidance on the VAT treatment of admission to events outlining the relevant place of supply rules for events and related ancillary services. The guidance also sets out the new place of supply rules, effective from 1 January 2025, for virtual or streamed events delivered to non-taxable individuals. The relevant place of supply rules will be determined by considering whether the event is a physical event, a virtual event or an electronically supplied service and if the supply is to a non-taxable person or to a business. A useful summary table is included in section 4.4 of the guidance summarising the various rules. The guidance confirms that the rate of VAT applicable to admission to an event depends on the type of event being held. Ancillary services associated with admission to an event follow the same place of supply rules applicable to the event itself. The manual relating to the VAT treatment of education and vocational training has also been updated as it includes a consequential amendment arising from the new place of supply rules.

The Department of Finance and the Department of Public Expenditure and Reform have published the Fiscal Monitor for June 2025 confirming an Exchequer surplus of €4.5 billion to the end of June. This compares to a surplus of €3.1 billion recorded for the same period last year. Tax receipts collected to the end of June were €49.5 billion, which was €4.7 billion higher than the same period in 2024. Excluding the once off receipts from the Court of Justice of the European Union (CJEU) judgement in the Apple State Aid case, total receipts amounted to €47.7 billion, an increase of €3 billion on the corresponding period in 2024. Income tax receipts for the month of June were €2.9 billion which was €0.1 billion ahead of receipts collected in June 2024. On a year-to-date basis, receipts to the end of June of €17.4 billion were up by €0.7 billion (4.3 per cent), when compared to end of June 2024. June is considered a significant month for corporation tax payments and receipts of €7.4 billion were collected last month which was an increase of €1.5 billion compared to June 2024.  On a cumulative basis, receipts of €14.8 billion represented an increase of €2.6 billion on the same period last year. When the once-off CJEU receipts are excluded, cumulative corporation tax receipts to June 2025 amounted to €13.1 billion, up on the same period last year by €0.9 billion. VAT receipts collected in the month of €0.2 billion reflecting the fact that June is a non-VAT due month. Cumulative receipts of €11.6 billion were ahead by 5.8 percent on end of June last year. Commenting on the figures, Minister for Finance, Paschal Donohoe said: “June is a key month for tax receipts. The steady performance across most revenue streams in the first half of the year is a positive sign of the strength of our economy as we navigate a deeply uncertain period. Corporation tax receipts in June have seen a sharp increase, which follows a sharp decline last month. This serves as a reminder of the extreme volatility in this revenue stream, and of its inherent unsuitability as a basis for permanent spending commitments” Commenting on the figures, Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, Jack Chambers said: “Tax revenues are strong. As we prepare for Budget 2026, we need to carefully manage expenditure in the second half of the year, while continuing to commit the necessary resources to improve our public services, support our people and enhance quality of life across our country.”

The regulatory difficulties facing frontier workers in Ireland are having an increasing impact on the all-island labour market. The lack of clarity and indeed fundamental barriers to employment are significantly impeding the mobility of cross-border workers. Last Thursday, the Institute’s Head of Public Policy, Stephen Lowry raised the issue directly with the UK’s Minister of State for Europe and North America Stephen Doughty MP at a meeting hosted by the British Irish Chamber of Commerce. Minister Doughty agreed to personally bring these issues to the attention of his colleagues in HM Treasury. Earlier in the week, the Institute’s Head of Tax, Gearóid O’Sullivan attended a meeting convened by InterTradeIreland with Minister Peter Burke, Department of Enterprise, Tourism and Employment, and Minister Caoimhe Archibald, Department for the Economy NI. The Institute is working with InterTradeIreland to address issues relating to the mobility of workers. Last year, the Institute formed a working group to discuss the complexity of cross-border employment arrangements across the island. We informed the Ministers that the Institute’s working group will be writing to them later in the summer with our initial recommendations. Both Ministers noted that they welcome the insights from the group.

Last month we highlighted the key aspects of how the 2025 Spending Review will specifically impact on HMRC. Overall, the Spending Review announced an additional settlement for HMRC of £0.5 billion in 2026/27 which will be used to “make HMRC a digital-first organisation”. The Department was also set two ambitious targets related to this; that by 2029/30, 90 percent of taxpayer interactions will be digital self-serve and HMRC will have reduced the number of letters it sends by 75 percent. The Institute recently met with HMRC to discuss this.    In the meeting we highlighted to HMRC how ambitious these targets are and expressed concern about the impact on current service levels as HMRC seeks to achieve these targets. The transition to a digital-first organisation must not result in a deterioration of service levels and HMRC will need to communicate clearly how it will deal with incoming post as it moves to becoming digital first.     We also asked when HMRC expects to publish both its digital roadmap and its broader transformation roadmap which will be critical elements in seeking to achieve these targets. HMRC noted that these are expected to be published over the summer and both will set out in more detail how HMRC intends to achieve the targets set by government. The Institute will continue to discuss this and service levels with HMRC; we welcome your feedback at any time on this by email to tax@charteredaccountants.ie.     The House of Lords Treasury Committee is currently conducting an inquiry into the Spending Review and continues to take oral evidence from experts.  

The Institute is pleased to advise that HMRC will be delivering a webinar for our members on Tuesday 16 September 2025 on Making Tax Digital for income tax. The webinar will cover key technical points and readiness tips ahead of the first phase of mandation from April 2026 for sole traders and landlords with gross income above £50,000. There will also be an opportunity to ask questions. More details, including a booking link, will be available in the coming weeks.  

Last week we highlighted a request from HMRC for agents to participate in phase two of testing the VAT Import One Stop Shop (IOSS) system in Northern Ireland, the system which allows business to report and pay VAT on imports of low value goods to consumers. As mentioned HMRC is now working on the phase of delivery of this which will allow agents to register and act on behalf of businesses. HMRC is seeking agent volunteers to participate in testing during phase two. Read more about how you can get involved in this unique opportunity and email tax@charteredaccountants.ie if you would like to participate or require more information.  

In this week’s detailed miscellaneous updates which you can read more about below, HMRC is seeking participants for a 12-month project aimed at improving corporation tax guidance, and a number of changes have been made to the personal tax query resolution service.   In other news this week:    The Institute for Fiscal Studies has published a paper which asks what role taxation can/might play in reducing inequality in low/middle-income countries,   HMRC has published a guidance collection page for taxpayers on setting up and running a small business, and   HMRC is holding webinars this week looking at statutory maternity and paternity pay and statutory sick pay.   Corporation tax guidance research project   HMRC’s Comms and Guidance team are currently conducting research as part of a 12-month project aimed at improving corporation tax guidance. According to HMRC, this initiative is being conducted in response to reports that there is a lack of understanding around certain tax principles.   The project will explore the following four phases:   wholly and exclusively,   capital v revenue,   record keeping, and   director’s loans.   The team is currently in the discovery phase for wholly and exclusively, the goal being to understand how organisations manage and submit expenses on their corporation tax return, and how well they grasp the relevant tax principles. HMRC’s team is keen to speak with:   Limited companies,   Foreign companies with a UK branch or office,   Clubs, co-operatives, or other unincorporated associations (for example: community groups, sports clubs), and   Agents and accountants acting on behalf of these taxpayers.    They are especially interested in micro-entities and small companies with:    An annual turnover of no more than £10.2 million, and   No more than 50 employees.    The research is being undertaken via a 60-minute MS Teams session and will require completion of a consent form and privacy notice in advance. As a thank you, participants will receive a £60 Love2Shop voucher, redeemable at a wide range of high street and online retailers.    If you or a client would be interested in participating, please contact customerengagementforums@hmrc.gov.uk.    Changes to the personal tax query resolution service for agents   Earlier in the year we highlighted the launch by HMRC of a new enquiry service for agents, the personal tax query resolution service which was launched on 31 March. HMRC has been analysing and improving the service since then to make it quicker and easier to access; this includes introducing interactive guidance and enabling agents to access the service using the 'Where's my reply' tool instead of emailing HMRC. These changes are now live.    The ‘Where’s my reply’ tool should first be used by agents to check that their query meets the eligibility criteria before the agent subsequently submits their query. Queries should therefore no longer be sent by email. The aim of this change is to enhance the user experience, save time, and increase HMRC’s efficiency so that the relevant teams can focus on dealing with eligible queries and responding within the relevant timeframes. The guidance in the ‘Tax agents handbook’ has since been updated to reflect this.    By way of reminder, this service is specifically for PAYE and Self-Assessment queries for individuals; it is not available for employer related queries. Before using the service, you must:    have checked the ‘Where’s my Reply’, and at least 20 working days must have passed from the reply date given by the tool,   have tried at least twice to resolve the query by contacting HMRC’s Agent Dedicated Line or Agent Webchat, and   not have already initiated a complaint with HMRC related to the query.    In response, HMRC aims to:    make contact with the agent within 48 hours to acknowledge their query,   provide an update every five working days by phone, and   resolve the query within 20 working days or make an action plan if this is not possible.    To help HMRC resolve queries within the set timeframe, agents are asked to:    provide all relevant information and documentation,   respond promptly if HMRC asks for clarification, or more information,   not to chase a query before the 20 working days have passed, and   not to use this service to chase repayments. 

In this week’s post EU exit corner, we bring you the latest guidance updates and publications relevant in the post EU exit environment. The most recent Trader Support Service bulletin is also available as is the most recently published Brexit and Beyond newsletter from the Northern Ireland Assembly EU Affairs team. HMRC is seeing an increase in applications to the UK Internal Market Scheme and have developed a document setting out helpful hints and tips to help minimise errors when applying and speed up the authorisation process. And finally, the new UK-US Trade deal came into force last week.  Miscellaneous guidance updates and publications   This week’s miscellaneous guidance updates and publications are as follows:  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service,   Simplified procedures exclusion list of procedure and additional procedure codes for CDS,   Appendix 2: DE 1/11: Additional Procedure Codes of the Customs Declaration Service (CDS),   Appendix 22: Declaration Category Data Sets Landing Page and Introductory Text,   Appendix 2: DE 1/11: Additional Procedure Codes,   Appendix 1: DE 1/10: Requested and Previous Procedure Codes,   Reference Document for The Customs (Northern Ireland) (EU Exit) Regulations 2020,   Data Element 2/3: Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS),   Manage your import duties and VAT accounts,   Software developers providing customs declaration software,   Apply for repayment of import duty and VAT (CHIEF),   How to claim a repayment of import duty and VAT if you've overpaid,   Check if a business holds Authorised Economic Operator status,   Apply for a repayment of import duty and VAT in the Customs Declaration Service,   Check when you can account for import VAT on your VAT Return,   External temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service, and   Internal temporary storage facilities (ITSFs) codes for Data Element 5/23 of the Customs Declaration Service.

  In this week’s Sustainability/ESG Bulletin read about a publication on the contribution of sectoral level economic activity to GHG emissions levels in Ireland, consultations in Northern Ireland on both plastic pollution and the draft Climate Action Plan 2023-2027, and the launch of the UK’s new Modern Industrial Strategy. Also covered is the proposed amendment to the EU’s Climate Law, a recommendation on tax incentives to support the EU’s Clean Industrial Deal, economic losses from climate extremes, updates on nature data and transition planning, as well as the usual articles, resources and upcoming events.   Ireland Green ‘Flash’ registration plates for electric vehicles A new initiative has been announced that will make it easier spot and acknowledge vehicles with no CO2 emissions. Distinct licence plates for electric vehicles, with a green vertical stripe – or 'flash' – will be available to all fully electric vehicles drivers on an optional basis, in an effort to entice more people and companies to invest in sustainable vehicles. Other countries, such as the UK, Germany and Norway, have introduced similar plates for electric vehicles to highlight the presence of zero-emission vehicles on the roads. Renewable Transport Fuel Policy 2025-2027 The Renewable Fuels for Transport Policy Statement 2025 – 2027 has published, setting out a pathway for the achievement of Ireland’s Climate Action Plan biofuel targets, as well as delivery of the targets and requirements under European regulation. This latest iteration of the policy explores the potential for further deployment of renewable fuels for all transport modes, and seeks to strengthen sustainability assurance mechanisms within EU frameworks. The policy contains 19 actions aimed at delivering on the objectives over the next two years. First meeting of the National Energy Affordability Taskforce The Minister for Climate, Energy and the Environment, Darragh O'Brien, T.D., has chaired the first meeting of the National Energy Affordability Taskforce (NEAT). This Taskforce was established to identify and implement measures to enhance energy affordability for households and businesses. Among other things, it aims to publish a National Energy Affordability Action plan which will include medium-term and long-term measures and structural reforms to lower costs for households and businesses. Contribution of sectoral level economic activity to GHG emissions levels The Department of Finance has published a paper examining the trends in greenhouse gas (GHG) emissions in Ireland over the last 30 years and the extent to which sectoral level economic activity currently contributes to GHG emissions levels. Key findings in the paper, titled A Decomposition of Economic Activity linked to Greenhouse Gas Emissions in Ireland June 2025, highlight that Ireland’s total GHG emissions per capita are the third highest in Europe, and that the Agriculture Forestry and Fishing sector is the largest contributor to the overall GHG emissions in Ireland, and one of the lowest contributors to employment, GVA and exports in the economy. Call for SDG Champions The Department of Climate, Energy and the Environment is seeking Expressions of Interest for participants in the 2025-26 Sustainable Development Goal (SDG) Champions Programme. Applications are sought from all organisations and groups who would like to act as an advocate for the SDGs and are a good practice example of how to promote and achieve the goals. Applications will be accepted in written or video format up to 5pm on Wednesday, 30 July. Climate Conversation report publishes The Department has also published the latest in a series of annual 'Climate Conversation' public consultation reports. This fourth report, which gathered 1,949 responses through an online public consultation between May and September 2024, provides critical insights into Irish citizens' attitudes, understanding, and involvement in climate action. Among other findings the report shows a heightened climate concern and desire for collective action but points to a persistence of misconceptions, particularly around the effectiveness of different carbon-reducing actions. The report makes several recommendations, including enhancing cross-government collaboration on climate initiatives. SEAI Energy Awards 2025 now open for applications Applications are now open for entrants to the Sustainable Energy Authority of Ireland (SEAI) 2025 Energy Awards 2025. These awards showcase excellence in sustainable energy and are open to individuals, community groups, SMEs and large businesses from both the public and private sector across the island of Ireland. You can register and apply using the SEAI’s online application portal by 5pm, Thursday 17 July.   UK/Northern Ireland Minister launches report which focuses on developing a more sustainable built environment Economy Minister, Dr Caoimhe Archibald, has launched a report outlining a strategic vision for decarbonising Northern Ireland’s built environment by 2050. It emphasises retrofitting buildings, improving energy efficiency standards, and investing in green skills as key steps toward reducing carbon emissions. The report also presents future scenarios to guide long-term planning and highlights the economic and environmental benefits of sustainable development. Public Consultation on Northern Ireland's plastic pollution The Department of Agriculture, Environment and Rural Affairs (DAERA) has launched a 12-week public consultation on Plastic Pollution Plan for Northern Ireland, seeking public feedback on Department's current policies’ reduction measures as well suggestions to further eliminate plastic pollution. DAERA Minister, Andrew Muir, emphasised the need for collective action to tackle plastic pollution and create green jobs, new economic opportunities, and a cleaner environment. The consultation remains open until 24 September 2025. Public Consultation on Northern Ireland's draft Climate Action Plan 2023-2027 A 16-week public consultation on Northern Ireland’s first Climate Action Plan is now open, with participation invited from all interested parties. Described by Minister Muir as a “a roadmap towards a more sustainable future”, the draft plan outlines how Northern Ireland will reduce greenhouse gas emissions to net zero by 2050. The plan, which is required under the 2022 Climate Change Act, includes policies and proposals identified by departments to reduce emissions across all sectors of our economy and society. In addition to the draft Climate Action Plan, other climate initiatives currently being progressed by DAERA include a consultation on the third Northern Ireland Climate Change Adaptation Programme, work to progress the establishment of the Just Transition Commission following consultation earlier this year and a forthcoming consultation on Northern Ireland’s fourth carbon budget. The consultation is open until 8 October 2025. Separately, an independent panel appointed by Minister Muir has published its interim report on environmental governance  in Northern Ireland, highlighting the need for stronger oversight and accountability. The report draws on public feedback, stakeholder engagement, and expert input, and suggests that the current system is inadequate for protecting the environment. It explores options such as establishing an independent Environmental Protection Agency, with final recommendations expected later this summer. UK unveils new Modern Industrial Strategy The UK government has unveiled its new Modern Industrial Strategy, promising a reduction of up to 25 percent in electricity costs for thousands of businesses. The new 10-year strategy aims to unlock billions in investment and support 1.1 million new well-paid jobs over the next decade by addressing two particular barriers facing UK industry: high electricity prices and long waits for grid connections. Other actions include unlocking billions in finance for innovative business, especially for SMEs, an extra £1.2 billion each year for skills by 2028-29, reducing regulatory burdens and boosting R&D spending to £26 billion per year by 2029-30. Several plans to deliver the strategy were also published,  including the Clean Energy Industries Sector Plan, and the Professional and Business Sector Services Plan. The latter is the UK’s plan to ensure the sector is at the forefront of seizing new commercial opportunities created by new technology, including AI. Separately, in an address to the Climate and Innovation Forum as part of London Climate Action Week, the UK Energy Secretary Ed Miliband outlined plans to support banks and large companies in developing climate transition plans, i.e. setting out a roadmap that outlines how they intend to adapt and transform their operations, strategies and business models to align with their climate goals. As part of its commitment to secure Britain’s position as the sustainable finance capital of the world and help businesses and investors seize the opportunities from the clean energy transition, three consultations were announced to modernise the UK’s sustainable finance framework:   a climate-related transition plan manifesto commitment new UK Sustainability Reporting Standards  the development of a voluntary registration regime for the providers of assurance of sustainability reporting EUROPE Amendment to Climate Law proposed The European Commission has proposed an amendment to the EU Climate Law, setting a legally binding target to reduce net greenhouse gas emissions by 90 percent by 2040 compared to 1990 levels. New “flexibilities” are included in the proposal, which have reportedly drawn criticism for potentially watering down the bloc’s climate ambition, include a limited role for “high-quality international credits” from 2036, the use of domestic permanent emissions removals within the EU Emissions Trading System (EU ETS) and additional flexibilities across certain hard-to-decarbonise sectors. The Commission's proposal setting a 2040 climate target will now be submitted to the European Parliament and the Council for discussion and adoption under the ordinary legislative procedure. Business and political leaders urges EU to uphold ‘non-negotiable principles’ Several business and political leaders have written to the Institutions and Governments of the European Union advising them that the recent EU regulatory package on sustainability (Omnibus I), aimed at simplifying rules and boosting the competitiveness of the European economy, risks dismantling the regulatory framework on sustainability that has been carefully built over the years. The letter lists what it describes as ‘non-negotiable principles’ and political commitments that should be upheld as they have established the European Union as a global leader in social and environmental matters. The letter urges the EU to send clear signals to the market to, among other things, achieve the strategic goal of a sustainable and prosperous economy, so that economic actors accelerate decarbonisation, enhance their resilience to climate change, and adopt sustainable management models that respect human rights. Recommendation on tax incentives to support Clean Industrial Deal The European Commission has issued a Recommendation on Tax Incentives to support the Clean Industrial Deal, aiming to accelerate the EU’s transition to a climate-neutral industrial base. The proposal encourages Member States to adopt accelerated depreciation and targeted tax credits for investments in clean technologies and industrial decarbonisation, while ensuring alignment with EU state aid rules. It emphasizes principles such as targeted support, simplicity, and timely implementation to make tax incentives more effective and accessible for businesses. Economic losses and impact preparedness tool The European Environment Agency has published an interactive product that aims to raise awareness both among European decision makers and the public about the urgent need to both mitigate and adapt to climate change and strengthen resilience. The Climate Impacts and Preparedness Assessment explores how heatwaves, floods, droughts and wildfires are increasingly affecting Europe. Using interactive maps and charts, it shows what happened in the past and what’s projected for the future, and provides examples of how the continent is preparing. Separately, the EEA briefing 'Economic losses and fatalities from weather- and climate-related extremes' shows that economic losses from weather- and climate-related extremes amounted to just over €45 billion in 2023 for 38 European countries, including EU and other EEA member and cooperating countries. Total economic losses from weather- and climate-related events exceeded €790 billion between 1980 and 2023. Most countries also reported that over 50 percent of their losses were uninsured, widening the gap between economic losses and insured losses. In many cases this figure exceeded 90 percent.    WORLD The Taskforce on Nature-related Financial Disclosures (TNFD) has announced the launch of a new phase of work aimed at enhancing global access to decision-useful nature data. This phase is intended to inform a set of recommendations to be presented at COP30, the UN Climate Change Conference, taking place in Belém, Brazil, in November 2025.  The IFRS Foundation has published guidance on disclosures about transition plans. The guidance supports entities applying IFRS S2 Climate-related Disclosures and is designed to enable them to provide high-quality information about their climate-related transition when applying IFRS S2. It also covers disclosures about any transition plan an entity has, including both mitigation and adaptation efforts. The IFRS Foundation will continue to monitor disclosures provided by entities applying IFRS S2 and will consider the need to enhance the application guidance in IFRS S2. Listen Listen as David McGee, PwC ESG Leader, talks about PwC's new report 'Reconfiguring the Global Food System' which looks at re-designing how we produce, process and consume food (16 mins) Did you know? Safety in the sun must now be considered by employers as a hazard, where employees are exposed to hazardous environmental conditions. Read more from Ibec. Articles There are several ingenious tacks we can take to help cut our emissions (Irish Times) Do voluntary sustainability standards for business work? (Havard Business Review) Government seeks views on draft UK Sustainability Reporting Standards (ICAEW) Government launches UK sustainability assurance regime consultation (ICAEW) How can the private sector contribute to systemic resilience? LinkedIn Post - Lindsay Hooper, Cambridge Institute for Sustainability Corporations Are Bringing Climate Talk to a Whisper (Bloomberg) Transition planning: how to achieve net zero (ICAEW) Events   Dublin Chamber, International Roundtable on Circular Economy with ECOPath The ECOPath Project supports SMEs in adopting Circular Economy practices to strengthen and implement their ESG performance. It equips SME staff with the knowledge and skills needed to reduce their company’s environmental impact through circular approaches. Join EcoPath Project and SMEs from Sweden, Germany, Spain, and Croatia to discuss these approaches, and the curriculum developed so far and have your say. Webinar, Wednesday 9 July, 10.00-11.30. ICAEW, ESG – how should the financial statements reflect sustainability? The objective of this session is to provide auditors and preparers of financial statements a summary of how ESG and sustainability should be reflected in their annual report. Webinar, Thursday, 10 July, 09:30 - 12:30 BST and 15/07/2025, 09:30 - 12:30 BST ICAEW, Sustainability in Practice A morning of expert-led discussion, practical exercises, and peer learning—all focused on helping you build and deliver impactful sustainability services. In person, 3 September, 8.30-12.00, Chartered Accountant Hall, Moorgate Place, London, EC2R6EA Diversity Mark, Diversity Mark Annual Summit 2025 This event will explore how diversity and inclusion can drive sustainable business growth, gathering over 300 business leaders, executives, and inclusion advocates for a full-day programme featuring keynote speakers and breakout sessions. It aims to equip attendees with practical strategies to create more inclusive workplaces and foster meaningful change across sectors. In person, October 2025, Titanic Belfast   Sustainability Centre You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.    

The Corporate Enforcement Authority (CEA) has today published its second Annual Report. The CEA writes that the Report details the CEA’s activities during 2024 in furthering its strategic objectives as set out in its Statement of Strategy 2022-2025. The Report features 22 case studies that highlight the wide-ranging impact of the CEA. Those case studies evidence a careful and tiered approach towards the utilisation of the CEA’s suite of enforcement powers. Please click the link to read the CEA press release with a summary of the highlights of the report and click to read the CEA 2nd Annual Report. 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.

In Irish news this week, Revenue has revised its guidance on the VAT waiver of exemption following the High Court decision in the Killarney Consortium case and Revenue has also updated its guidance on Relevant Contracts Tax (RCT) to clarify the application of RCT on contracts involving both the sale of land and provision of construction services. In UK news, the latest Tax Gap data has been published and HMRC is seeking agent volunteers to take part in testing during phase two of delivery of its Import One Stop Shop system. In International news, the European Commission has published its annual report on taxation. Irish 1. Revenue has updated its guidance on the collection of cancellation amounts arising from the cancellation of a waiver following the High Court’s judgment in the Killarney Consortium C v Revenue Commissioners case. 2. Read the updated guidance published by Revenue on the RCT treatment of contracts that involve both construction services and land sales. UK 3. The 2023/24 Tax Gap data has been published by HMRC. 4. Are you an agent involved in filing Import One Stop System (IOSS) returns and payments on behalf of clients? HMRC is seeking agents to participate in testing during phase 2 of delivery of the IOSS system. Read about what you can expect and how to get involved. International 5. Read the Annual return on taxation 2025 which was recently published by the European Commission. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount. You can also read this week’s post EU exit corner here.  

From the Professional Accountancy team…... Background In the  case of Downtul Limited (in liquidation ) Patrick O'Connell, Ciaran Butler and Colum Butler the liquidator of Downtul Limited (“Downtul”) sought to have two directors (the Respondents) restricted for a period of 5 years from acting as director or secretary of a company. Downtul entered a lease (“Lease”) with Stephen Court Limited (landlord) in respect of a property from which a Starbucks outlet was operated. A separate related company (Atercin Liffey Unlimited Company, “Atercin”) operated the Starbucks. Downtul did not occupy or use the leased property and had no income, or means to generate income, to discharge the liabilities arising under the Lease, including rent. There was also no evidence of any enforceable mechanism for Downtul to recover monies from Atercin to meet its liabilities. Restriction of director -acting honestly & responsibly The case established that Downtul bore the liability and burden of the Lease. The separate related company Atercin occupied and traded from the property and earned revenue from that trade. At all times since the Lease was entered, Atercin and not Downtul had occupied the Property and operated the coffee shop throughout the term of the Lease.  There was no evidence of any agreement or consideration being given to the rights of Downtul. In allowing Downtul to enter and maintain these arrangements, and in failing to ensure an enforceable mechanism by which Downtul could obtain the funds necessary to discharge its liabilities as they fell due or otherwise protect its position, the Respondents failed to demonstrate responsible conduct with regard to the interests of Downtul as a separate legal entity within the Group. Mainly for the above reasons the judge was not satisfied the respondents has acted responsibly in conducting the affairs of Downtul. It was noted that a finding of illegality or unlawfulness is not required to restrict a director under S819. the fact that a transaction is not unlawful does not mean it is not relevant to assessing a director’s honesty or responsibility. The judge also said that the failure to keep proper accounting records, the omission of material disclosures from the financial statements and the failure to minute a single board meeting since 2017 are also – independently of her primary findings of irresponsibility – separate grounds on which she was not satisfied that the Respondents acted responsibly. As she was not satisfied that the Respondents acted responsibly with regard to the conduct of the affairs of Downtul the judge said she was mandated by section 819(2) to make the declaration of restriction sought by the Liquidator.   Accounting records and materiality/disclosure/corporate governance The judgement stated that there were no accounting records, disclosures in financial statements, or board minutes which even refer to the apparent arrangements between Downtul and Atercin. The financial statements make no reference to the Lease or to the receipt of monies from Atercin to pay the rent and other charges associated with the Starbucks property. This the court said underlines the lack of transparency in relation to the affairs of Downtul. Company accounts and records should contain a true and fair view of the company’s financial position. The case also considered the issue of disclosure of material transactions under FRS 102(1A) to ensure a “true and fair view” is given of the company’s financial position. The judge said that a responsible view of Downtul’s financial position would lead to the conclusion that the Lease and issues that arose with the landlord (rent suspension, legal proceedings) are matters that would be material for a user of the financial statements. The evidence and perspective of the Liquidator that these items collectively are material and significant for Downtul was accepted by the court. The judge found in the particular circumstances of Downtul, and the specific evidence adduced, the books that were kept were not sufficient to demonstrate a responsible approach by the Respondents to the maintenance of accounting records such as to enable compliance with section 282 of the Companies Act 2014. the fact that it is a small company or a company with limited activity does not provide an excuse or justification for not maintaining even a minimum record of Downtul’s transactions (quite apart from the more fundamental issues with Downtul’s interaction with Atercin). Finally, on the corporate governance side the judge noted that the Respondents chose to become directors of more than 170 and more than 200 companies respectively. Being a director of so many companies brings with it onerous and important responsibilities. She was not suggesting this is a light task when the Respondents are responsible for some 150- 200 companies, but it was the Respondents who made the decision to incorporate and direct the affairs of such a significant number of companies. The fact they have so burdened themselves cannot absolve them of the obligation to separately discharge the duties incumbent on them in each of those roles. The only question is whether they acted responsibly with regard to the affairs of Downtul. In the absence of any record of a meeting or decision with regard to Downtul from 2017 onwards, she simply could not be, and was not, satisfied in that respect. Conclusion The judgment contains an extensive examination of the grounds for restricting a director under section 819 of Companies Act 2014. There are other useful aspects to this judgment also, including for example an account of the relevant duties of expert witnesses. Readers should note that the judge found that the respondents discharged the burden of showing they acted honestly. However, because she found they had not acted responsibly this was enough to trigger the operation of the restriction provisions in section 819. It should also be noted that the directors have been restricted for 5 years, not disqualified. Restricted means that the person cannot act as a company director (or secretary) for 5 years unless the company of which they wish to be director has an allotted share capital of €100,000 (in the case of companies other than PLCs) with each allotted share to be paid for in cash. Readers can find out more about disqualification of directors in the Corporate Enforcement Authority’s very useful note on the subject CEA Information Note 2024/1 -Circumstances leading to disqualification under the Companies Act 2014 and the associated consequences. 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