The Institute is currently considering amendments to the Audit Regulations UK.  The proposed amendments would align the Audit Regulations UK more closely with the Institute’s Audit Regulations, Ireland.    The key changes proposed can be summarised as follows: A new requirement for audit-registered sole practices (both individual sole practitioners and single-director corporate practices) to put in place alternate arrangements which would take effect in the event of the death or incapacity of the sole practitioner. Additional material to clarify the obligations of audit firms and responsible individuals (RIs) in relation to continuing professional development requirements (CPD). The ability for the Quality Assurance Committee to impose regulatory penalties on RIs. It is anticipated that the revised Audit Regulations UK would become effective from 1 January 2024 (pending necessary approvals) with a proposed transition period of six months thereafter for compliance with the requirement for audit-registered sole practices (to put in place alternate arrangements). The Audit Regulations UK set out the Institute’s rules for the authorisation and supervision of statutory audit firms and RIs in the UK.  The Audit Regulations UK are issued jointly by Chartered Accountants Ireland (the Institute), the Institute of Chartered Accountants in England and Wales (ICAEW) and the Institute of Chartered Accountants of Scotland (ICAS).  A public consultation is ongoing in relation to the draft revised Audit Regulations UK.  The details of this consultation and the draft revised Audit Regulations UK are available to read here.   Audit firms and RIs registered for audit in the UK by Chartered Accountants Ireland and who wish to provide comments in relation to the draft revised Audit Regulations UK can email those comments to professionalstandards@charteredaccountants.ie

In Irish news, Revenue confirms extended opening hours for the peak Pay & File period and outlines property owners’ obligations in respect of the new Vacant Homes Tax and we bring you an update from last week’s meeting of Main TALC. In UK news, read about the latest elements of the Windsor Framework to take effect and the one-year extension to the Trader Support Service. In International news, the Carbon Border Adjustment Mechanism (CBAM) enters its transitional phase.  Ireland Revenue has published its extended opening hours for the 2023 Pay and File period. Revenue has outlined property owners’ obligations in respect of the new Vacant Homes Tax. Read our update from last week’s meeting of Main TALC. UK Read about the latest elements of the Windsor Framework to take effect and the one-year extension to the Trader Support Service. International The Carbon Border Adjustment Mechanism (CBAM) has entered its transitional phase. 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.

Your Individual Annual Return 2023 is now available for completion online.  Please ensure it is submitted by 31 October 2023. Click here for your Individual Annual Return. Please note, timely completion will ensure that all members in practice are invoiced correctly for 2024 Regulatory Fees.

Minister Dara Calleary, TD has signed the Companies Act 2014 (Section 682) Regulations 2023. The Regulations, which came into effect on 1 October 2023, prescribe a revised Report for use by liquidators when making reports to the Corporate Enforcement Authority under section 682 of the Companies Act 2014. The revised section 682 report should be used for all submissions made from 1 October 2023. The Rules of the Superior Courts (Order 74) 2023 also commenced on 1st October 2023. There are two new questions included: - Question 22 requires the liquidator to confirm whether the directors have demonstrated that they have had regard to the interests of their employees in accordance with the requirements of section 224 of the Companies Act 2014. - Question 32 requires additional information where liquidators are asked to indicate whether they have advised directors, in respect of whom relief is not sought, of the grounds upon which an application to have them restricted will be brought.

The FRC have issued a project update relating to the ongoing periodic review of FRS 102 and FRS 105. In its update, the FRC noted that they received 54 response letters to FRED 82 and they are now preparing final amendments for issue which will take into account the responses received. Earlier this year, the Institute’s Financial Reporting Technical Committee issued a response to FRED 82. The FRC have indicated that they expect to issue the final amendments to FRS 102 and FRS 105 in the first half of 2024, with an expected effective date of periods commencing on or after 1 January 2026 for the changes. This is 1 year later than the date proposed in FRED 82. The FRC are working on amendments to the standards and provided updates on the revenue recognition and lease accounting sections which respondents provided feedback on during the consultation process. They will continue to work towards a “five-step model” for all FRS 102 and 105 preparers, while seeking simplifications to ensure proportionality for micro-entities. In addition to this, they have indicated that they will consider how to ensure that the “on-balance sheet” model of lease accounting under FRS 102 will be proportionate and understandable for FRS 102 preparers of all sizes.

The Institute has responded to the International Accounting Standards Board’s (IASB) request for information relating to IFRS 9 Financial Instruments impairment requirements. The IASB’s request for information begins the post-implementation review of IFRS 9’s impairment requirements and this allows the IASB to assess whether the effects of applying the new requirements on users of financial statements, preparers, auditors and regulators are those the IASB  intended when it developed the requirements. IFRS 9 has been effective for annual periods beginning on or after 1 January 2018. Some of the key points made by the Financial Reporting Technical Committee on behalf of the Institute include; Broadly speaking, the impairment model in IFRS 9 is working as intended and produces relevant and reliable information. There are some areas where users of the standard would benefit from additional guidance and educational material (for example- the definition of credit losses, calculation of expected credit losses on inter-group loans which are repayable on demand and interaction of impairment with other IFRS standards). There is a high cost of applying the impairment requirements to intercompany loans, often with limited benefit due to investors often placing greater reliance on the consolidated financial statements. The simplified approach for trade receivables, contract assets and lease receivables is working well in practice and is widely used. A recommendation that the IASB provide guidance regarding minimum disclosure requirements in IFRS 7 to achieve greater consistency in the information provided. The increasing prevalence of questions arising in relation to ESG risk when applying impairment requirements and the need for more guidance and educational material.

Revenue has published details of its ROS supports and extended opening hours to facilitate and support taxpayers and their agents for the 2023 Pay and File period. Extended support opening hours The ROS Technical Helpdesk, the Collector General’s Division (including ROS Payment Support) and the Income Tax support line will provide the following extended opening hour services for the 2023 peak Income Tax Pay and File period. Date ROS Technical Helpdesk     01-7383699 Business Taxes (Income Tax only)     01-7383630 Collector General's Division (including ROS Payment Support)   01-7383663 Friday, 10 November 2023 09.00 - 17.00 09.30 - 17.00 9:30 - 13:30 Monday, 13 November 2023 09.00 - 20.00 09.30 - 20.00 09.00 - 20.00 Tuesday, 14 November 2023 09.00 - 20.00 09.30 - 20.00 09.00 - 20.00 Wednesday, 15 November 2023 09.00 - 0.00 09.30 - 0.00 09.00 - 20.00   Further information is available in eBrief no.203/23.

Revenue has published a new Tax and Duty Manual on DAC7. The manual provides guidance on the presence and participation of foreign tax officials in administrative enquiries as part of an exchange of information request under DAC7. 

Last week we notified readers that the Institute is meeting with HMRC tomorrow to discuss the 31 October 2023 deadline for using the VAT margin scheme for second hand vehicles purchased from Great Britain and moved to Northern Ireland before 1 May 2023. Sales of such vehicles after the end of the VAT margin scheme on 31 October 2023 will mean that VAT must be charged on the full selling price. These vehicles do not qualify for the VAT related payment scheme which commenced on 1 May 2023. Today is the deadline for providing us with supporting evidence that many of these vehicles are currently unsold and are expected to remain unsold on 31 October 2023. A reminder of the evidence that HMRC is seeking is set out below.  HMRC has requested details or estimates in respect of the following:- The numbers of second-hand vehicles dealers in Northern Ireland had in stock on 1 May 2023 that were sourced from Great Britain;  How many of these remain unsold at present, and their estimated value;  How many are likely to be unsold on 31 October 2023, and their estimated value; and  If there is any category of vehicle that may be particularly affected by having a cut-off date of 31 October 2023 after which the margin scheme could no longer be used.  We recognise that many dealers may not be able to provide all of the detail requested in such a short period of time, especially the category of vehicle, but any information or evidence to support the difficulties being experienced in selling these vehicles would be appreciated.  The meeting will also be an opportunity to discuss the new second-hand motor vehicle VAT related payment scheme. Feedback on the end of the VAT margin scheme and the new VAT related payment scheme should be emailed to the Institute by the end of today Monday 2 October 2023. 

Revenue has published a new Tax and Duty Manual for financial institutions in respect of their reporting obligations under section 891B TCA 1997 and associated regulations. 

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. We also update you on recent developments in relation to the Windsor Framework and the latest Trader Support Service (“TSS”) bulletin is also available. Last week it was  announced that the TSS is being extended one further year to 31 December 2024. The Institute has been lobbying for a further extension to the TSS and welcomes this decision but will be considering what permanent supports are needed in this area in future.  Update on the Windsor Framework  Last week HMRC published further details on the Windsor Framework as some significant elements of it began to take effect from the end of September.   From 30 September 2023, the new UK Internal Market Scheme expanded the range of businesses able to benefit from the new arrangements provided to protect internal UK movements, including the removal of EU tariffs. In tandem, the new sanitary and phytosanitary “green lane” arrangements took effect, including the new Retail Movement Scheme for agrifood retail products, new rules to allow plants to move into Northern Ireland and new arrangements to enable seed potatoes to move once again from Great Britain to Northern Ireland. As these changes bed down in the coming weeks and months, contact us to share your feedback and any problem areas which arise.  Miscellaneous updated guidance etc.   The following updated guidance, and publications relevant to EU exit are available:-  Customs declaration completion requirements for goods subject to sanitary and phytosanitary checks under the Northern Ireland Protocol;  Draft Decision No 1/2023 of the Specialised Committee on Participation in Union Programmes under the Trade and Cooperation Agreement adopting Protocols I and II and amending Annex 47 to the Trade and Cooperation Agreement;  Third Trade Specialised Committee on Customs Cooperation and Rules of Origin Agenda;  Using the Trader Dress Rehearsal service;  List of customs training providers;  Making an import supplementary declaration;  Making a simplified frontier declaration;  Making a full import declaration;  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service;  Receive goods into and remove goods from an excise warehouse (Excise Notice 197); and  Paying additional excise duty for goods moving to Northern Ireland.   

The OECD has released the latest outcomes on the implementation of Country-by-Country reporting (CbCR). CbCR is the reporting mechanism which gives effect to BEPS Action 13 and requires tax administrations to collect and share detailed information on large multi-national enterprises operating in their jurisdiction. The OECD has reported that implementation of CbCR in countries has largely been consistent with the Action 13 minimum standard.