The Trump-Putin relationship is forcing NATO and the EU to shift from a competitive relationship to a strategic, collaborative mindset, writes Judy Dempsey In the wake of Russia’s 2022 invasions of Ukraine, the North Atlantic Treaty Organisation (NATO) and the European Union have both been forced to reassess their fundamental strategic roles as guardians of Europe as they explore collaborative responses to the crisis.  The real catalyst for this strategic shift is the actions of US President Donald Trump, rather than those of Russian President Vladimir Putin.  Trump has shaken Europe, challenging its long-held belief that the US would always provide a protective umbrella. During his first term as US President, Trump criticised NATO’s European allies for underspending on defence, underscoring a perceived inequity in burden-sharing within the alliance.  Now, he has signalled his willingness to consider withdrawing the US from NATO altogether, questioning the reliability of Article 5, which commits the military alliance to defending any member country under attack.  Not anymore, Trump says—if they have not spent enough on their security. Weakened US support for NATO, or a complete exit from the alliance, would leave the EU vulnerable.   The decades-long transatlantic relationship would be dangerously undermined—a goal of successive Russian leaders.  Trump is doing Putin’s bidding by putting Ukraine’s sovereignty, independence and territorial integrity on the negotiating table. In doing so, the US President has ignored how Russia has repeatedly broken the ceasefire Ukraine’s President Volodymyr Zelensky agreed to in March.  With this major shift in American foreign policy, NATO and the EU, including neutral countries such as Austria and Ireland, must move fast in several ways.  First, the Europeans cannot wait for Trump to weaken his commitment to the alliance. Major NATO and EU countries—Britain, France, Germany and Poland—need to form coalitions of the willing to prepare for an eventual withdrawal of the US from NATO.  NATO’s European ‘caucus’ needs to be strengthened, military capabilities assessed and the expenditure required to compensate for a potential US exit assessed. That won’t be easy, and it will be costly. Second, the EU Commission wants member states to embrace serious defence ambitions, another costly task, requiring time and clear communication with voters.  In the meantime, there is no reason the EU and NATO cannot share capabilities under the special “Berlin Plus” arrangements, giving the EU access to NATO assets and planning capabilities if the alliance is not militarily involved. Such a partnership could serve as a foundation for an EU-led coalition of the willing for Ukraine. Third, in light of the ongoing conflict, it’s crucial for the EU and NATO to increase their military, economic and political support for Ukraine.  NATO’s European members could take over from the US leadership of the Ramstein forum, known as the Ukraine Defence Contact Group. Established in 2022 after Russia invaded Ukraine, its 50 countries provide military support to Ukraine.  Finally, Germany and other countries are discussing Europe’s nuclear powers with France and the UK. This would have been unthinkable a few months ago, demonstrating just how much Trump’s relationship with Putin is upending the transatlantic relationship. Judy Dempsey is Nonresident Senior Fellow at Carnegie Europe *Disclaimer: The views expressed in this column published in the April/May 2025 issue of Accountancy Ireland are the author’s own. The views of contributors to Accountancy Ireland may differ from official Institute policies and do not reflect the views of Chartered Accountants Ireland, its Council, its committees or the editor. 

Key market indicators are flashing warning signs and investors should brace for turbulence, warns Cormac Lucey Timing global equity markets is not an easy task. But when several separate indicators signal caution, it may be time for alarm.  This is currently the situation regarding US equity markets as President Donald Trump launches his much-anticipated tariff wars on America’s allies.  Signal 1: US unemployment rate In the past, when the unemployment rate in the US started to rise after many years of steady falls, it has signalled a shift in the economic cycle, often presaging recession.  The US unemployment rate hit 4.1 percent in February, up considerably from its April 2023 low of 3.4 percent.  According to BCA Research, the investment research company, there has never been a situation in which the three-month moving average unemployment rate has risen by more than a third of a percent—as is now the case—without a recession following. Signal 2: The US yield curve The yield curve depicts the differing interest rates that apply to government debt of varying maturities.  When shorter-term debt yields higher returns than longer-term debt, it is usually the result of central banks raising short-term interest rates too high.  Recession generally follows shortly after the normal state of affairs, where longer-term interest rates exceed short-term rate returns. This normal state of affairs returned last December.  Signal 3: US price/earnings ratio  Right now, the Standard and Poor’s (S&P) forward price/earnings ratio (which compares today’s price to predicted—or forward—earnings) comfortably exceeds 20. That is one of the highest S&P ratios observed in a half-century.  In the past, higher prices have tended to anticipate lower investor returns. Signal 4: US cyclically adjusted price-to-earnings ratio A significant drawback of the conventional price/earnings ratio is that when we compare a highly inflated share price to cyclically inflated earnings, the situation can appear okay.  The cyclically adjusted price-to-earnings (CAPE) ratio seeks to correct this defect by dividing equity prices by their average earnings over the previous decade.  This way, the CAPE avoids the risk that cyclically elevated earnings may make cyclically elevated share prices look normal.  The CAPE ratio currently stands at 36.34 times cyclically adjusted earnings. This puts current equity values among the highest ever recorded.  If return patterns observed in the past are replicated, we might expect real equity returns (after inflation) to come in just slightly above zero over the next 15 years. Signal 5: US price/book ratio  The price/book ratio compares the market price of the equity market to the book value of the net assets on the balance sheets of those companies on the market.  The US market’s price/book ratio is currently higher than it has ever been, even at the peak of the tech bubble in 2000. When we examine our five bear market indicators, we can see that they are each signalling caution, suggesting extreme prudence regarding equity returns in the near future.  This caution is only increasing in response to the trade tensions US President Donald Trump continues to unleash.  Signal 6: US trade tariffs I expect continued turbulence as Donal Trump continues to push the trade tariff agenda he unveiled to the world on 2 April.  We might hope for signs of compromise to lead a relief rally, but the upshot in the first instance has been upheaval in the markets.  While the tariffs may be the catalyst that has unleashed this upheaval, however, it is my view that they are not the ultimate cause of the recessionary/bear market conditions we are seeing emerge in the US.  I don’t expect to see equity markets bottom out until some time later this year or early next. Investor caution Equity markets do not follow a neat pattern. They often overshoot in one direction only to then overshoot in another. Just because six key signals are all neatly pointing in one direction doesn’t mean equities will immediately fall in value. In the medium term, however, it does suggest that future returns will be weak and that investors should be cautious. Cormac Lucey is an economic commentator and lecturer at Chartered Accountants Ireland *Disclaimer: The views expressed in this column published in the April/May 2025 issue of Accountancy Ireland are the author’s own. The views of contributors to Accountancy Ireland may differ from official Institute policies and do not reflect the views of Chartered Accountants Ireland, its Council, its committees or the editor. 

Julia Rowan answers your management, leadership and team development questions I am highly qualified with both general and specialist accountancy qualifications. I work hard to high standards and meet my deadlines. I get on well with colleagues and other stakeholders. Over the past 18 months, I’ve applied for promotion twice, but I have not been successful. Candidates I consider less qualified and experienced than me have instead secured both roles. What can I do to increase my chances of success? You feel you are being overlooked and there are several reasons why this might be happening.  One thing is for sure, however: if you want people to see you in a different light, you need to do something different.  My guess is that people expect high performance from you, so when you deliver, you may be “simply” meeting expectations.  You sound like quite a task-focused person—nothing wrong with that. Any thoughts below are intended to complement, not replace, your task focus. Your question reminds me of an executive I worked with: he shared the same high standards yet also found himself overlooked.  He always downplayed his achievements. For example, at progress meetings, he would simply say “done” in the catch-up as a way to express that he had completed a task. In today’s busy (and often hybrid) workplace, we need to be a little more intentional about how we communicate. “Done” does not cut it.  Marketing people talk about “selling the sizzle, not the sausage” and this may be something you need to focus on. It goes without saying that long stories are not needed, but something like “I sent that out on X date. Three people replied, I’ve followed up with two more and I discovered that…” gives people a little more insight into you.  Task-focused people can come across as impatient, which can be daunting. Moving up in an organisation involves winning hearts as well as minds. Here are a few thoughts about what you can do: Focus on building relationships. This could simply mean taking a bit more time for daily interactions, or it could involve strategically building relationships to increase your visibility. Find reasons to meet with colleagues in person. Share interesting materials when you can. Work on your interview skills. In particular, you may need to build up your achievements (Google ‘competency STARS’), not just in interviews but also during performance reviews. If you haven’t already done so, get feedback on recent interviews.  Ask your manager or others knowledgeable about your field to support you in expanding your skill set. For example, ask them to organise a mentor for you, bring you to higher-level meetings or place you on a project team. You can also attend to this yourself through reading, attending courses, etc. Reflect on how you talk about yourself. There seems to be a perception that, despite your high standards, you are not ready for promotion. Perceptions can take a while to change. Honest feedback from people who have your back may be the most useful input of all. Julia Rowan is Principal Consultant with Performance Matters Ltd, a leadership and team development consultancy. To send a question to Julia, email julia@performancematters.ie

The safe stewardship of the accountancy profession means tackling the challenge of career burnout and prioritising work-life balance for the next generation, writes Dr. Caroline McGroary, FCA Like many professions globally, accountancy strives to be a beacon of excellence, with our members balancing multi-faceted roles as trusted business leaders and gatekeepers of the public interest.  Bestowed by decades of attracting and retaining the world’s brightest minds, this status ensures the safe stewardship of our profession from one generation to the next.  As we sit at this critical juncture in the history of our profession and contemplate our future, we are propelled to consider some of the greatest opportunities and challenges facing our profession and the next generation of business leaders.  In this article, we delve deeper into one such area of interest—namely the attractiveness of the profession to the next generation and the importance they are placing on well-being and work-life balance (or work-life harmony, as it is now commonly referred to). To focus this debate, we explore the concept of burnout, a topic of major concern for those at any stage of their career and one that is firmly on the agenda of well-being teams across professions, particularly in April, during Stress Awareness Month.   Burnout and the next generation The International Federation of Accountants (IFAC) describes accountancy as “the language of business”. While this adage has been true for more than a century, our roles have changed drastically. In addition to providing robust financial information, accountants now assume the role of business leaders, responsible for actively leading and transforming organisations across industries and regions. Despite these changing roles, it has for many years been widely documented that working long hours, enduring stressful working environments and sacrificing personal time for work demands, is an “accepted culture” in the accountancy profession.  This was further reiterated in a recent study by the Association of Chartered Certified Accountants, which asked young accounting professionals about their experiences. Recurring themes in the ACCA’s Global Talent Trend 2023 report included dissatisfaction with pay, a lack of interest in their work, burnout and concerns about work-life balance and flexibility. This work further highlighted that long working hours—previously considered a badge of honour—now act as a deterrent for younger people wanting to join the industry. These views align with Deloitte’s 2024 Gen Z and Millennial Survey which found that work-life balance was the top priority among respondents who believe long working hours drive stress. Based on these insights, we must challenge whether long hours, stress and burnout is an “accepted culture” in our profession and if so, properly consider the long-term effects on ourselves, our colleagues, our profession and the next generation.  We have learned that burnout can prompt early-career accountants to leave their jobs, and even the profession.  Recognising the potential cost of this, we need to gain better insights into the experiences of this group of professionals.  The value of such research was evident in a study of close to 400 junior accountants published in Australia. Researchers Vincent K. Chong and Gary S. Monroe found that role ambiguity and role conflict led to job-related tension for these professionals, which in turn contributed to burnout. This subsequently led to reduced job satisfaction and organisational commitment, with the final stage being intention to leave the profession. The practical implications of this research were the insights it offered into the drivers and outcomes of burnout, and thus the potential means to better support employees and reduce turnover.  Learning experiences of trainee accountants Reflecting on our role as educators of the next generation of our profession, we also need to consider the impact of burnout on the learning experience of trainee accountants. In research conducted at Dublin City University by Professor Barbara Flood (a Chartered Accountant), organisational psychologist Professor Yseult Freeney and I, we uncovered some useful insights.  In our study of approximately 1,200 trainee accountants in Ireland, we found that these younger members of the profession reported feeling “exhaustion” on a regular basis.  This had a negative effect on their ability to attend lectures, and their interest in and enthusiasm for their studies.  Despite feelings of exhaustion, they were committed to cognitively engaging in their studies, however, as they recognised the importance of passing their exams for career progression.  The main concerns emerging from this research included the type of learning taking place at the trainee stage and how these experiences were shaping their view of the profession—some referred to “feelings of resentment”, “anxiety” and “mental drain”.  For Sinead Donovan, past President of Chartered Accountants Ireland, supporting and advocating for the next generation of accountants is a priority. During her term as President, Donovan had as her theme the “next generation” (#nextgen).  She stresses the ongoing need to understand more about the challenges facing younger accountants and their more experienced counterparts, who act as crucial role models. Donovan also expressed concerns about the findings of a recent study commissioned by the Irish Centre for Business Excellence (ICBE) Skillnet on future leaders’ perceptions, motivations, skills and needs. The study revealed that future business leaders are “stepping out of leadership ambition...to avoid burnout at the top”.  “I would challenge the view that leadership roles needed to be overtly busy and always ‘on the edge’ of stress,” Donovan says.  “While I acknowledge that people still need to be pushed and challenged, the key is knowing when this becomes too much.”  The former Chair of Grant Thornton Ireland sees an important step in addressing this problem as “assigning responsibility back to the employer to help understand the challenges facing these future leaders, provide adequate support, and in turn, showcase how leaders can exist, and indeed thrive, without burnout.” Tackling the ill effects of burnout on younger accountants will be “integral to the future of the profession,” Donovan says. Tackling burnout: the employer’s role Donovan’s view is supported by Gillian Bane, a fellow Chartered Accountant and founder of Well Work 360. Bane established the workplace health and wellbeing consultancy in 2023 having herself experienced burnout in her career post-qualification.  “I wasn’t aware at the time that I was experiencing burnout and, in hindsight, had actually suffered multiple bouts before it stopped me in my tracks,” Bane says.  She highlights the importance of employer support and understanding to help tackle the causes and effects of work-related burnout, as well as the stigma that continues to surround mental health in the workplace. “Employee support needs to be much more than offering employees coping mechanisms, such as mindfulness classes,” Bane says.  “It needs to be a combination of supporting the individual with ways of coping, monitoring work design and workload, improving team dynamics and leadership setting the culture at an organisational level.” Supporting resilience in the profession Chartered Accountants Worldwide (CAW) recently launched its inaugural global report into the resilience of the Chartered Accountancy profession—a groundbreaking study conducted by the CAW Wellbeing Taskforce in collaboration with The Resilience Institute.. This report examines the state of resilience and well-being within the profession, drawing on insights from a global survey of 697 Chartered Accountants.  While Chartered Accountants play a critical role in safeguarding financial integrity, the report found that their work often entails significant stress and complexity. “This research highlighted some of the key strengths of the accountancy profession, such as curiosity, adaptability, creativity and a strong commitment to serving clients and colleagues,” says Dee France, Wellbeing and Support Lead at Chartered Accountants Ireland and Chair of the CAW Wellbeing Taskforce. “That said, these strengths lie alongside challenges such as multitasking, avoidance, worry and sleep deprivation, which over time can reduce resilience, lead to burnout, fatigue and impact negatively on mental health.” The profession now has a unique opportunity to lead by example, cultivating workplace cultures in which well-being is not an afterthought but an integral part of daily practice, France says.  Taking action to reduce burnout There is acceptance that burnout is something that can be experienced by anyone, at any stage of their career, in any profession.  It is a multidimensional concept embedded in an ongoing complex psychological process, and associated with a range of consequences that—if not understood and addressed—will negatively impact our profession in the long run.  As accountants, we can clearly make the business case for why this topic is important and needs further attention. Equally, as members of a profession built on a bedrock of trust, integrity, competence and respect for others, we recognise our moral obligation to take action and encourage our many stakeholders to engage in this important debate.    To this end, we seek the support of the accounting profession and other professions, academics, training firms, well-being teams and senior leadership teams to work together to:   Better understand the concept of burnout; Explore the prevalence of burnout across organisations and professions; Seek to understand its root causes and effects; Provide tailored support and resources for those who may be suffering from burnout or “on the edge”; and Challenge the stigma that still exists around mental health and burnout, as well as acknowledging that it can affect anyone. Collectively, we as Chartered Accountants are in a unique position to change the trajectory of our profession when it comes to tackling concerns like burnout.  In doing so, we will continue to attract the brightest minds and empower the next generation of accountants to go forward to lead our profession in the future.  Dr. Caroline McGroary, FCA, is a Lecturer at Dublin City University and a Council Member and Education and Lifelong Learning Board Member at Chartered Accountants Ireland

Pinergy founder Enda Gunnell, FCA, set up his renewable energy start-up in 2012, playing a crucial role in laying solid foundations for Ireland’s sustainable future Groundbreaking energy transition company Pinergy has grown to generate revenues of more than €250 million in little more than a decade by doing things differently, and founder Enda Gunnell sees more room for growth.  “That’s one of the reasons I want to stay in this industry,” he says. “The Irish energy sector is going through a once-in-a-century change and, with this level of change, there is always opportunity.” Embracing change is nothing new for Gunnell, who left behind a highly successful career in practice to set up Pinergy in 2012.  He had initially come to accountancy “through the usual route”, he says. “I qualified with a B.Comm from University College Dublin (UCD) in 1989 and did the recruitment milk round, before being taken on by Mazars.  “That was the last year the B.Comm exams were held in the autumn, and I had had enough of university by that time.” Gunnell didn’t yet know what lay in store, however. “I started my training contract with Mazars and within a fortnight I was back at UCD working on their audit,” he says.  “I spent 23 years with Mazars and was involved with UCD in one way or another for quite a bit of that time. The university then became my landlord when I founded Pinergy.” Gunnell had played a role in helping UCD acquire a building adjacent to the Beech Hill Office Park and helped to develop a strategy to host partnership ventures with industry. “They had some spare space and that was our first office,” he says. Having started his career with Mazars, Gunnell later moved into consulting.  “I thoroughly enjoyed my time with Mazars. I got great exposure to a wide range of clients across different sectors, including large corporates, institutional clients and a lot of owner managed SMEs.  “I was partnering with owner managers who had 50 or 60 people working for them but had no one to talk to. I was that person.” Having been a Partner with Mazars for close to 10 years, Gunnell decided the time was right to try something new.  “I was probably looking for opportunities for a few years by that stage,” he says. “I had got a bit disillusioned with professional services and the timesheets, chargeable hours and so on. Some of the projects I found interesting were not the type of things to earn high fee income in the short term.” At the same time, Gunnell was working with owner managers, helping them to build their businesses. They were, he says, “good people”. “I found myself thinking I would love a chance to do that myself. I hadn’t really thought about what type of business I wanted to go into, I just wanted to get out there and do it.” Entrepreneurial start: the early days The year was 2012, Gunnell was 43 years of age and a Partner with Mazars.  “I figured someone would give me a job if it didn’t work out. I was open to that risk,” he says. Ireland was in deep recession at the time in the aftermath of the financial crash and Gunnell spotted an opportunity in the fledgling pay-as-you-go electricity market.  “The energy regulator was putting pressure on the electricity suppliers not to cut people off, if at all possible,” he explains.  “One of the solutions chosen was to install pay-as-you-go meters in debtors’ homes and collect the arrears through the homeowners’ electricity credit purchases.” Gunnell’s approach was somewhat different. “We used the same technology, but differently. We went into the ‘lifestyle choice’ end of the market,” he explains. “Our market was people who wanted help budgeting. We used the technology to bring the same customer experience people had become used to with pay-as-you-go mobile phone accounts.  “Ireland didn’t have a pay-as-you-go electricity market up until then.  “In the UK, 15 percent of the market was designated as pay-as-you-go and, in Northern Ireland, it was much higher than that.” Although Ireland’s electricity market had been deregulated since the late 1990s, getting a licence to supply power was not easy.  “They said they welcomed competition, but I wasn’t sure if they were really interested in small start-up players like Pinergy,” Gunnell says.  “We partnered with an existing licencee initially and got our own licence from within the industry after that. We are now one of about seven national players in the market.” The licence was just the start. Power supply is a highly capital-intensive business.  “I was very fortunate to have the support of a high net worth individual in the early years of the business. I didn’t have the financial wherewithal to do it myself,” Gunnell says. “At that time and for a long number of years, half my time was spent growing the business and the other half was spent raising the money to fund the growth.” Raising money in Ireland post-crash was no easy task.  “The banks became too conservative. No doubt they gave out money too easily to property developers, but they went to the other extreme after that.  “We did everything to raise finance, from placing ads in newspapers to issuing our own loan notes. It was real shoe leather capital.” Pinergy has evolved considerably in the years since. “The industry is very old-fashioned. Customer loyalty is not rewarded,” Gunnell says.  “The incumbents sign people up for 12 to 24 months at a discount and then jack up the prices. That encouraged people to switch to get a discount somewhere else. We decided to do things differently and run the business from the customer perspective.  “We embraced technology. We were the first electricity company to embrace smart meters.  “Customers didn’t have to go to a shop; they could buy credit online or on their phone and it would go straight onto the meter, while being able to see their consumption on an app.” Paris Climate Accord  The Paris Climate Accord in 2015 gave added impetus to the firm’s growth. “A smart meter is an energy efficiency device. The average home wastes 20 percent of its energy. Smarter users use less,” Gunnell says. “We were a challenger brand and wanted to sell less electricity to customers. The incumbents were in the business of selling kilowatts, but how can they help save energy when their business models are built on selling as much of it as possible?” Pinergy then broadened its offering by going into business with other energy technology providers in areas like micro wind, solar, LED lighting and data services.  Two of those partnerships in the solar PV and data areas are now Pinergy subsidiaries. Energy efficiency and ESG reporting  The next pivot came with the company’s move into the commercial market. “There is only so much you can do in a domestic household. We used our capability in smart metering to bring a new offer to the commercial market,” Gunnell says. “We were able to supply data on consumption along with green, renewable power.  “We help our customers understand their power consumption and why they are using more than you should at different times.  “Our business is about energy efficiency. We are supporting customers through the energy transition and providing them with the data they require for emissions and environmental, social and governance (ESG) reporting.” Commercial business now accounts for 90 percent of the Pinergy portfolio.  “We pulled back a little bit from the domestic market. The State was rolling out smart meters anyway. There was no point in us duplicating that effort,” Gunnell says. Next phase of growth: energy generation Pinergy is about to embark on the next phase of its growth journey following the acquisition of a majority stake in the business by Sojitz group, the Tokyo-based multinational.  Sojitz has acquired the holding of long-term shareholders, the Coates family. “We wouldn’t have been able to achieve our growth ambitions without our previous majority shareholder,” Gunnell says. “The Coates family have been phenomenally supportive of the company and the management team over the years.  “Without their support, we might not have been able to keep going during the energy crisis and we are eternally grateful for that.  “But, to keep going and moving forward in a capital-intensive industry like ours, we need access to funds that can’t be provided by a family office.  “The Sojitz group is a huge company with 25,000 employees and is listed on the Tokyo stock exchange.” Gunnell’s ambition now is to see Pinergy evolve into a vertically integrated company with capacity to generate its own renewable energy.  “To get involved in that in any meaningful way you need hundreds of millions of euros,” he says.  “Sojitz has been in Ireland for 10 years and already has a generating capacity of of almost 250 megawatts. “They are on the same wavelength as us and share our philosophy about partnering with customers in ways that make everyone more sustainable.  “We will now be able to start building our own generating assets.  “We will also broaden out to a dual fuel offering as well as broaden the energy services capability within the business.  “When we have our generating asset base in place, we want to move back into the domestic market.” The future of sustainable energy As Gunnell sees it, the future of energy is all about sustainability. “Energy providers have a key role to play in our sustainable future,” he says. “In the past, it was about supplying power generated by burning dirty fuel. In the future, it will be about minimising consumption of clean, green, renewable power.  “We have been embracing the sustainability agenda at Pinergy for the past 10 years. We will continue to support our customers through the energy transition and help them meet their sustainability and ESG reporting obligations.” Interview by Barry McCall

This is the first MRA between CPA Australia and Chartered Accountants Ireland, who are both full members of the International Federation of Accountants (IFAC) and collectively represent more than 215,000 members in more than 100 countries worldwide. Speaking at the signing ceremony in Melbourne, CPA Australia CEO Chris Freeland said that this agreement is a significant milestone in the relationship between the two bodies. “Signing this agreement enables our respective organisations to work together to provide high quality education programs and build the technical capabilities of accounting, business and finance professionals,” Mr. Freeland said.  “This agreement stands as a mark of our mutual commitment to share information and ideas. It broadens the global vision of our respective members and promotes the ongoing advancement of the profession in both Ireland and Australia.  “Importantly, it provides members from both professional bodies a pathway to take up each other’s designation and enhance their career opportunities.” Chartered Accountants Ireland President, Barry Doyle, FCA, CPA said “As a small island, Ireland has always been outward facing, and our members use their qualification globally. This Agreement will benefit the many Irish professionals building their careers in Australia and will allow both bodies to collaborate even more closely in supporting all our members. “The historic amalgamation of Chartered Accountants Ireland and CPA Ireland in 2024 created the largest professional body on the island, with this expanded Institute now the only Ireland-based accountancy body. CPA Ireland enjoyed an enduring relationship with CPA Australia over several decades, and there is now an exciting opportunity to build upon this for the benefit of our members and our respective economies.” The MRA was signed by Chris Freeland AM, CEO, CPA Australia and Barry Doyle, President, Chartered Accountants Ireland.  

In Irish news this week, the US administration announces tariffs on EU imports and the Fiscal Monitor for March 2025 has been published. In UK news, we look at the key tax changes which have taken effect with the start of the new financial and tax years, and we encourage members to take our short survey on Making Tax Digital for Income Tax.  In International news, the OECD has updated the central record of Pillar Two legislation with qualified status for a transitional period. Ireland 1. Read about the tariffs recently announced by President Trump and we provide some relevant key information resources for practitioners. 2. The Department of Finance and the Department of Public Expenditure and Reform have published the Fiscal Monitor for March 2025 which confirms an Exchequer surplus of €4.1 billion to the end of March. UK 3. Read about the key tax changes which have taken effect from this month as the new financial and tax years commence. 4. Take our short survey on Making Tax Digital for Income Tax. International The OECD central record of Pillar Two legislation which has transitional qualified status has been updated. 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.    

In April 2025 Accountancy Europe issued its publication “New EU AML rules: advice for accountancy practitioners”. The document “…outlines  concrete steps for accountancy practices, national institutes of accountants, auditors and advisors to take to be ready when the EU anti-money laundering and countering the financing of terrorism (AML/CFT) legislation takes effect in 2027….”   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.

It’s now less than a year to the first tranche of mandation of MTD for income tax for unincorporated sole trade businesses and landlords with turnover exceeding £50,000. The Institute is inviting those members affected by this change to take a short five question survey which we are using as a temperature check to assess readiness and further discuss the challenges this presents with HMRC. The survey will remain open for the next two weeks and will take less than 5 minutes to complete. A more detailed survey on MTD will be launched before the summer. Take the survey now.  The Northern Ireland Tax Committee met recently with HMRC’s MTD Programme Director who also was in attendance at the February 2025 Practice News webinar. HMRC gave an update on the current status of the MTD project whilst also reflecting on its challenges. HMRC’s ambitions for the next phase of testing in 2025/26 were also discussed. HMRC has recently been writing to agents who are likely to have clients in the first phase of mandation; this is now being followed by letters to taxpayers.   HMRC is also keen to hear about the plans of our member firms to get ready for this major change and specifically why firms are not planning to take part in testing in 2025/26. In particular HMRC would welcome views on what challenges/blockers are getting in the way of participation. Email tax@charteredacocuntants.ie to share your views.  Despite our reservations about MTD, the Institute will continue to work with HMRC on MTD readiness and is developing a cross-department MTD strategy to assist members in their preparations. We will also continue to represent members views as we approach April 2026.  HMRC has also published new guidance for agents about client authorisations and signing clients up for making tax digital for income tax. The step by step guides for agents and individuals and guidance for sole traders and landlords have also been updated. These publications are available as follows:  Add your client authorisations for Making Tax Digital for Income Tax, Sign up your client for Making Tax Digital for Income Tax, Making Tax Digital for Income Tax as an agent: step by step, Making Tax Digital for Income Tax for individuals: step by step, and Sign up for Making Tax Digital for Income Tax. From 7 April 2025 until next April, HMRC will also be contacting users who have signed up to participate in the MTD trial about how the testing of the service is progressing. 

In order to assist readers, we have highlighted some key information resources to help you understand the impact of last week’s tariffs. There have been comments from all across the Accountancy profession, including some helpful publications providing tips for businesses as they adapt to the new global trading conditions. We also bring you the official White House publications which have accompanied the announcement of the tariffs. This includes the Fact Sheet which sets out the administration’s basis for claiming that the tariffs are a necessary tool to combat the myriad trade deficits the US operates with its global trading partners. Press releases from Government and the EU Statement by President von der Leyen on the announcement of universal tariffs by the US Statement by Taoiseach Micheál Martin on US decision to impose tariffs Statement from the Tánaiste on US announcements on tariffs House of Commons on what US tariffs on EU goods could mean for Northern Ireland Commentary from Accountancy profession KPMG - US tariffs - Understanding the implications for Ireland and the EU Grant Thornton - The implications of tariffs and trade wars PwC - US reciprocal tariffs EY – What are the implications of US President Trump’s reciprocal tariffs on global trade Deloitte - Tackling shifting tariffs: Timely tips for business leaders BDO – Tariffs & Trade in 2025: Practical Steps for Exporters and Importers Insights from Tax Research Tax Foundation - Trump Tariffs: The Economic Impact of the Trump Trade War Chartered Accountants Ireland reaction to US administration’s new tariffs Parliamentary Budget Office Trade between Ireland and the US April 2025 Official White House material Official White House Executive Order Official White House Article – “Tariffs Work – and President Trump’s First Term Proves It” Official White House Fact Sheet declaring National Emergency US International Trade Administration Official Website 2025 National Trade Estimate Report on Foreign Trade Barriers

The Department of Finance and the Department of Public Expenditure and Reform have published the Fiscal Monitor for March 2025 which confirms an exchequer surplus of €4.1 billion to the end of March. This compares to a deficit of €0.3 billion recorded for the same period last year. Tax receipts collected to the end of March were €23.6 billion, which was €3.5 billion ahead of the same period last year. 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 €21.9 billion, an increase of €1.8 billion. Income tax receipts for the quarter were €8.2 billion which was €0.3 billion (3.6 per cent) ahead of the same period in 2024. Corporation tax receipts of €4.8 billion were collected in the quarter which was an increase on the last period last year by €2.3 billion. When once-off CJEU revenues are excluded, cumulative corporation tax receipts to the end of March 2025 amounted to €3.0 billion, ahead of the same period last year by €0.6 billion. VAT receipts for the first quarter of 2025 were €7.6 billion ahead of the same period last year by €0.5 billion. Commenting on the figures, Minister for Finance, Paschal Donohoe said: “I deeply regret the announcements in relation to tariffs announced by the US administration yesterday. Tariffs are economically destructive; they drive up the cost of doing business, put upward pressure on inflation, all the while creating uncertainty for investment and future growth This is clearly an exceptionally uncertain period for our economy, but today’s figures show that, because of the careful management of our public finances, we are approaching the challenges ahead from a position of strength”

The Minister for Finance, Paschal Donohoe has today published the General Scheme of Finance (Local Property Tax) (Amendment) Bill 2025. The Bill provides for a new Local Property Tax (LPT) valuation period which will commence in 2026 and will last for five years. LPT liabilities will be calculated by reference to self-assessed market values as of 1 November 2025 and it is estimated that 96 percent of properties in the State will remain in their existing band. The changes are expected to generate approximately 8 percent additional yield for LPT annually for local authorities. The main changes are as follows: Valuation bands will be widened by 20 percent which results in most property owners (those with properties valued at €525,000 or lower on 1 November 2025) paying between €5 and €25 extra a year, Base LPT charges will increase by between 5 to 6 percent for properties valued under €1.26 million, For LPT liabilities on properties valued between €1.26 million and €2.1 million, the base LPT charges will increase by 7 to 14 percent to reflect the significant increase in property value since 2021, Properties valued at €2.1 million or above will be subject to LPT based on the actual value of the property, The income thresholds for deferral of LPT will be adjusted to account for inflation, wage growth and increases in State payments since 2021, The LPT exemption for properties damaged by defective concrete blocks will be expanded, ensuring relevant properties in Clare, Limerick and Sligo will become eligible for this LPT exemption, Subject to a data protection impact assessment, Eircode’s will become a mandatory field in LPT returns, and A change is being made to the local adjustment factor which allows local authorities to vary the amount of LPT collected in their area. From 2026 onwards, local authorities will be able to vary LPT collected upwards by a maximum of 25 percent. The maximum they may choose to vary LPT downwards by will remain at 15 percent. A table comparing the current and proposed LPT charge structure is included in the Press Release.  Commenting on the changes, Minister Donohoe said: “Together with my government colleagues, I have worked to find a way that will deliver on our commitment to ensure fairness in relation to Local Property Tax. Given the growth in property prices in recent years, the proposed changes are fair, progressive, and will ensure consistency and stability in the upcoming valuation period. The Programme for Government commits to ‘ensure fairness and stability in Local Property Tax payments and continue to retain revenue collected locally in the same local authority’. I believe that the measures announced today achieve that objective”.