31 October 2023 is the self-assessment paper filing deadline for 2022/23 to avoid penalties. Readers are reminded that if an online self-assessment return cannot be filed by virtue of one of the online filing exclusions or special cases (search GOV.UK for details as these regularly change) meaning the return must be filed on paper instead, then in those cases, the 2022/23 paper filing deadline is extended to 31 January 2023. A reasonable excuse claim should accompany such returns.

At the recent meeting of the FTA, which brought together tax commissioners and delegates from around the world, representatives agreed on new areas of collaboration to transform the future of tax administration. The three areas identified were the vision of Tax Administration 3.0, effective implementation of the Two-Pillar Solution, and enhancing global capacity building efforts.

A new report published by the OECD reflects on the importance of the international tax agenda for African economies. The report was commissioned at the request of the G7 president, Japan, to inform discussions at the G7-Africa Ministerial Roundtable held in October.

The OECD has published a new convention on implementing Amount A of Pillar One. Amount A of Pillar One sets out rules for the reallocation of profits of the largest and most profitable multinationals to countries regardless of their physical presence. As such, it is seen as a key measure in bringing international tax policy into the modern era. The OECD has forecasted that the proposals could produce global annual tax revenue gains of as much as €32 billion with the greatest gains flowing to low and middle-income countries.

The role of performance measurement and control in prisons in the UK and Ireland continues to evolve, write Mariannunziata Liguori and Martin Kelly The prison sector in the United Kingdom (UK) and the Republic of Ireland (ROI) is significant and forms the backbone of the criminal justice system in both jurisdictions. In 2021, approximately £5.4 billion was spent on the prison system in the UK, where His Majesty’s Prison and Probation Service (HMPPS), an executive agency of the Ministry of Justice (MoJ), is responsible for 117 prisons in England and Wales, including 104 public prisons and 13 private. Three private sector companies – G4S, Sodexo and Serco – manage the private prisons with a combined operational capacity of 16,000 places. As of March 2021, there were 78,058 prisoners overall. In ROI, the annual budget for the Irish Prison Service (IPS) for that year was €395 million, for an average of 3,792 prisoners. The IPS operates as an office of the Department of Justice (DoJ). There are currently 12 prison sites in the Irish prison estate, none run privately. We have recently conducted research exploring the relationships among key stakeholders and performance management tools involved in the provision of prison services in both the UK and ROI. Key stakeholders In the UK, specifically in England and Wales, within HMPPS, the Prison Group Directors are responsible for the operational delivery and strategic development of up to seven prisons at a time. To manage the contracts with private providers, moreover, there is a Head of Custodial Contracts for HMPPS, who ensures that the private contractors deliver to the expected standards.  At the local level, prison governors are expected to provide vision and strategic direction for prisons, ensuring that their site is secure and operationally stable, while maintaining decency and compliance with key performance metrics and targets. In the ROI, the governor in charge of each prison is accountable to the Minister for Justice, through the Director General of IPS, for the safe and secure custody, care and rehabilitation of the prisoners in their care. The governor is also responsible for effective corporate governance at prison level and for cost-effective performance against agreed plans. The research highlighted that, in the ROI, key stakeholders (DoJ, IPS and governors) considered a strong and clear governance system as essential. IPS and governors were perceived as the main actors through whom all decisions and changes had to pass and be approved. A main underlying factor emerging in the provision of prison services was the ability to manage relationships across the wide range of stakeholders and levels involved. Such relationships were influenced by both human agents’ behaviours/attitudes and contextual/physical factors (such as regulation, changes in control and performance measurement systems, availability of resources, contractual aspects, etc.). When compared with the UK, a greater emphasis on softer control and measurement aspects, such as social and human conditions, as well as Health and Safety, became apparent in the ROI. Within the UK, on the contrary, key stakeholders (MoJ, HMPPS, governors and contractors) emphasised contract management issues as being critical to the delivery of services. In both jurisdictions, the role of, and relationships between, the governors and HMPPS/IPS were of critical importance. The empirical evidence suggested the need for greater clarity on their respective roles and responsibilities. The contention for increased efficiency and transparency has led, over time, to a proliferation of new control and performance measurement tools, with an excessive emphasis on standardised and quantified performance measures. If care is not taken, this could lead to a diminution of accountability by narrowing the focus of management on a few numbers, rather than the overall quality of the service provision. Performance measurement and control The research showed that, compared with the ROI, the UK stakeholders at all levels were more wedded to business-like approaches, stressing the importance of efficient and cost-effective prisons and good contracts to manage their services. In both jurisdictions, and regardless of their public/private nature, prisons mainly replicated external mandatory controls and measures. However, there was also an acknowledgement of the unifying role played by accounting and measurement practices and the benefits that common standards and professionalism could bring when new knowledge and techniques are integrated into existing systems. In 2018, a new performance framework, the Prison Performance Tool (PPT), was introduced in the UK to monitor the performance of prisons. Similar in principle to the Balanced Scorecard, the PPT uses a data-driven assessment of performance in each prison to derive overall prison performance ratings. Data for the various measures in the PPT, along with overall prison ratings, are released at the end of each year on GOV.UK, as part of the Prison Performance Ratings publication. These ratings are publicly available and form the basis of a league table of prison performance. The PPT performance measures are weighted according to HMPPS’s priorities. For example, in 2019/20 there was an emphasis on safety and drug levels, living conditions and risk management, as well as security measures and data quality. In ROI prisons, more integrated and comprehensive performance-measurement systems are currently being developed with the aim of strengthening governance and accountability, improving the prisoner’s journey and the safety and security of prisons. IPS has recently introduced a new operating model to align functional responsibilities between directorates and the various operational sites (including prisons) and to provide clarity on decision-making authority and accountability. The Oversight Agreement 2022–24 sets out the key governance and reporting arrangements. Consistently, IPS is required to develop a multi-year Strategic Plan. This defines the mission, vision and values of the service and is expected to incorporate appropriate objectives and goals along with relevant indicators and targets against which performance can be measured. At present, only a limited number of performance metrics are produced and made publicly available. Moreover, such quantitative performance data are limited in scope. For instance, there is no breakdown of figures for each prison, so it is difficult to see which are performing well, or otherwise, against the relevant targets. While key stakeholders in both the UK and ROI indicated that many of the performance measures in place were relevant, governors frequently pointed out that prisons were not sufficiently resourced to achieve some of the targets set, which ultimately affected the prisoners’ experience. It was concerning, in particular, that there was still relatively limited information, in the public domain, in relation to health and education in prisons. With reference to private prisons in the UK, moreover, the role of the public sector controller was identified as being particularly critical. The controller is the MoJ’s on-site representative in each private prison and effectively monitors performance on the ground. Private prisons’ performance is measured through the same system public sector prisons are subject to. In addition to this, however, each contract also has specific contract-delivery indicators (CDIs) built into it with financial incentives. If a private prison operator does not meet its target for a CDI, it may incur a financial penalty. Contracts between private prison providers and the MoJ are highly complex. The contracts are normally an extensive suite of documents comprising the main contract and up to 30 detailed schedules, many with their own constituent parts and appendices. For the 13 private prisons in England and Wales, there was a significant level of compliance and assurance reporting. Private prisons were generally perceived to be under greater control and scrutiny, when compared with their public counterparts, because of the greater contract detail and the presence of public sector controllers within their walls. A potential concern in this area would be the narrow competitive base of the UK prison market and, consequently, the MoJ and HMPPS’s continued reliance on the same few contractors, even when there is evidence of inadequate performance levels.   Conclusions The prison system represents a unique context in which many different stakeholders collaborate. Partnerships are critically important to ensure good performing prisons. Governors in both jurisdictions were conscious of the limitations of performance measurement and that existing indicators did not always reflect their priorities. If the application of performance measurement systems is perceived as inflexible, staff will focus on short-term achievements, paying less attention to the longer-term impacts. The enabling or constraining effect of the systems set in place, and their ability to influence, in one way or another, decisions and behaviours was perceived as being particularly important. If performance is to be effective, an integrated and inter-organisational governance approach becomes essential. Whilst the research highlighted that some excellent work is being carried out in individual prisons in both the UK and ROI, there is still some ambiguity as to how, exactly, this is being effectively captured within the wider performance reporting and control systems of the public sector. In both jurisdictions, there is a clear and increasing desire for consultation and inclusion in decision-making processes. The role of performance measurement and control is evolving and no longer covers only the assessment of organisational results, but increasingly includes managing change, organisational relationships and the external environment. Successful prisons will be those that broaden their view, from looking inward to looking outward towards the community. This article is one of the outputs of a research project by Mariannunziata Liguori (Durham University Business School) and Martin Kelly (Queen’s Management School, Belfast) funded by Chartered Accountants Ireland Educational Trust

In a competitive professional services landscape, visible expertise can be an asset. Mary Cloonan outlines five strategic steps you can take to build trust and stand out in your field In today’s competitive environment, innovative professional services firms prioritise visible expertise to help maximise business development opportunities.  There are a few reasons visible expertise is essential for professional services. First, it’s a way to differentiate your firm from your competition. In a world where firms are constantly vying for attention, being known as an expert in your field sets you apart. Second, it’s a way to build trust with your current and future clients. When you share your ideas and knowledge, you demonstrate confidence in what you do. This confidence transfers to those who see you as an expert, instilling trust in your abilities. Third, it allows you to prioritise market development efforts and resources. By selecting a few key areas, you can focus marketing efforts to maximise returns from minimum investment. And finally, by sharing your ideas and thoughts on a given topic, you are positioning yourself as an authority – someone up to date on the latest trends and changes. To embark on this journey, here are five steps you can take: 1. Claim a segment Select a specific sector or industry segment and focus your efforts on this area. Build your knowledge through reading, attending relevant events, networking and writing about it. Sharing your ideas positions you as an authority. 2. Know your audience Understand your target audience. Identify their pain points and position your visible expertise as the solution. It also helps to tailor your knowledge to the specific needs of your audience. 3. Sharpen your skills You can’t have expertise in anything unless you stay up to date with the latest trends and changes in your industry. By continuously educating yourself, you can position yourself as an authority in your industry. Whether through articles, blog posts, speaking engagements or podcasts, ensure you have the most current information. 4. Create a profile-building plan Plan how you will share your expertise. Determine the best platforms for your content that align with your target audience’s presence. Consider a mix of content types, such as articles, blog posts and videos, to reach a wider audience. 5. Execute the strategy Consistency is key. Execute your plan effectively and keep your target audience in focus. Track your progress by monitoring website traffic and social media engagement. Once you consistently push your expertise to the target market (through articles, videos, social media posts, etc.), adapt your strategy based on the feedback and insights gained along the way. Building visible expertise is a gradual process, but by starting with these five steps, you will be on your way to becoming the top-of-mind choice for your target audience.  Mary Cloonan is the Founder of Marketing Clever

Succession is a multifaceted process that involves financial, emotional and strategic considerations. Mark Butler explores the critical aspects of ensuring the seamless transition of a business from one family member to another Succession decisions in a family-owned business can either fortify its legacy or lead to its downfall.  Having navigated the challenges of Brexit and COVID-19, businesses are now focused on long-term planning and preparing for the unexpected. In family-owned businesses, this includes succession planning, and getting the process right is crucial. Early-stage conversations The foundation of a successful succession plan is open and honest communication. Family members, especially the current owner(s), should initiate conversations about their wishes and intentions for the business’s future early to mitigate misunderstandings and conflicts down the road. By discussing their vision for the business, leaders can set expectations and ensure alignment among family members. The next generation Incorporating the next generation into the business as soon as practical is vital. This not only allows them to learn the ropes but also provides an opportunity to build the necessary skills and experience. Mentorship and on-the-job training can help bridge the generation gap and sustain relationships with suppliers and clients to ensure a smooth transition. Waiting until the last moment to involve successors can be risky, as it may leave them unprepared to take the reins. Owners should give the next generation every chance to learn while they are still there to assist.  Let go and step back One of the most challenging aspects of managing succession is the emotional struggle to let go. Founders and current owners often have a deep emotional attachment to the business they have built over the years. Knowing when to step back and relinquish control can be an emotional wrench. Recognising that this is in the best interests of the business and the family’s future can help to make the transition smoother – but not necessarily easier for many. Structure for business, not tax Structuring the business appropriately can help to ensure its sustainability during and after succession. While planning for tax efficiency is essential, it should not come at the expense of the business’s overall health. Business goals and the company’s best interests should always take precedence over tax planning. Planning first and then executing tax-efficient strategies is more prudent than forcing the business into a tax-efficient mould. Tax benefits, such as retirement relief, can help to minimise the costs of passing on the business, but they are there to help succession, not dictate it. Family shareholder agreements A robust family shareholder agreement is a cornerstone of successful succession planning. This agreement outlines the rights and responsibilities of family members with a stake in the business and addresses issues such as shareholding percentages, decision-making processes, dispute resolution mechanisms and the roles of family members within the company. A well-drafted agreement can prevent conflicts and provide a clear framework for the governance of the business. Fairness vs. equal shareholdings Fairness in succession does not always mean equal shareholdings for all. Each family member may have different skills, interests and levels of involvement in the business. The primary goal should be to ensure the long-term sustainability and prosperity of the business. This may involve distributing shares based on merit, responsibilities and contributions rather than a one-size-fits-all approach. Fairness should be synonymous with the best interests of the business and the family. Secure the business’s legacy Succession planning in a family-owned business is complex and delicate. It requires open communication, early involvement of the next generation, the courage to let go, proper business structuring, family shareholder agreements and a fair distribution of responsibilities and shares. Some business families think their company and family issues are unique. Sometimes, they are correct, but advice from experienced advisors can help to structure a succession journey that starts long before the keys are handed over. Succession should be viewed as an opportunity to secure the company’s legacy and foster growth, not merely as a financial transaction. By prioritising these elements, family businesses can ensure a seamless transition that benefits the enterprise and the family it supports. Mark Butler is Managing Partner at HLB Ireland

Budget 2024 introduced measures for individuals and businesses facing another winter of high costs. Brian Brennan discusses this year’s package and the future-focused benefits of the new State funds The tax package of €1.3 billion introduced under Budget 2024 cast a wide net across Irish society, from income tax breaks for individuals and mortgage interest relief for homeowners to a rental credit increase for tenants, tax relief for landlords and tax reliefs and supports for businesses. The Budget also provided for tax-raising measures, including extending the bank levy to raise €200 million. A substantial tax package The tax packages for Budget 2024 and Budget 2023 were substantially larger than the tax measures introduced in the two previous pandemic Budgets. While substantial budgetary packages are becoming the norm, so are the inflationary challenges facing businesses and individuals. Minister for Finance Michael McGrath had to formulate a tax package at the risk of fuelling inflation balanced against the need to take action to provide respite to households and businesses facing another winter of high energy and living costs. Given Ireland’s exchequer surplus for 2022 and forecasts of short- to medium-term surpluses on the back of strong tax yields, it is difficult to imagine the Government failing to deliver a package of this magnitude. Business measures Companies in Ireland, both multinational and indigenous, will welcome enhancements to the research and development (R&D) tax credit. The rate increase from 25 percent to 30 percent will maintain the net value of the existing credit for businesses subject to the new 15 percent minimum effective tax rate resulting from the Base Erosion and Profit Shifting (BEPS) Pillar Two reform package. SMEs and those companies outside the remit of Pillar Two will benefit from the rate increase. SMEs will also welcome the doubling of the first-year payment threshold from €25,000 to €50,000.  A new capital gains tax relief (CGT) for angel investment in innovative start-ups has the potential to provide alternative funding streams for new businesses. Qualifying investors may avail of an effective reduced rate of CGT of 16 percent – or 18 precent, if through a partnership – on a gain up to twice the value of their initial investment subject to a lifetime limit of €3 million. The details of how the new rate will apply will be set out in the Finance Bill. This is certainly a welcome initiative in supporting enterprises that hopefully avoids being so restrictive as to be of limited practical use. The Employment Investment Incentive and Key Employee Engagement Programme will also be enhanced. Minister McGrath announced the establishment of a dedicated working group focused on simplifying and modernising the administration of business supports. This was in response to feedback that the rules and requirements surrounding tax reliefs and schemes are complex, which can make them difficult to access. Plans for an extensive public information campaign with Revenue to raise awareness of the range of tax credits and reliefs available to PAYE taxpayers were also announced. Regarding revenue-raising measures, Minister for Public Expenditure and Reform Paschal Donohoe  announced an increase of 0.1 percent to all PRSI contribution rates from 1 October 2024. While the Minister described this as a “modest” increase, it paves the way for further increases in the years ahead to fund the pension system for our ageing population. Wise use of resources While tax breaks and supports dominated media coverage of Budget 2024, it is essential to acknowledge the fiscal prudence demonstrated by the Government in plans to establish two new funds to ensure that windfall taxes do not become part of Ireland’s core national spending. The Future Ireland Fund will help fund the healthcare, pension and home care costs of Ireland’s ageing population. It will receive €4 billion on the dissolution of the current National Reserve Fund and 0.8 percent of GDP annually from 2024 to 2035, with the potential to have accumulated €100 billion by 2035. The Infrastructure, Climate and Nature Fund aims to address Ireland’s record of halting capital spending during economic downturns. This fund will also support climate action with €3 billion earmarked for capital projects to help keep Ireland on track to meet carbon budgets. The National Reserve Fund will make a €2 billion contribution in 2024. Additionally, €2 billion will be invested yearly until the Infrastructure, Climate and Nature Fund reaches €14 billion. Future budgets In Budget 2024, the Government is striving to make the best use of the resources available now to alleviate the impact of inflation on households while also sustaining an environment in which businesses can grow. Of course, there is always more a government can do regarding support. However, if Ireland can achieve the funding targets underpinning the two new State funds announced under Budget 2024, the country will be in a good position to respond to unforeseen future events. Brian Brennan is a tax partner at KPMG You can hear more about Budget 2024 on the Accountancy Ireland podcast, available on Spotify, Apple Podcasts and at accountancyireland.ie.

Looking beyond headline corporation tax receipts to the health of the corporate sector is key Budget 2024 is a first step towards meaningful support for entrepreneurs Use of tax policy as a lever to encourage landlords to remain in rental market will work for society and the economy   High time for childcare to be recognised as part of critical infrastructure     10 October 2023 – Reacting to today’s Budget speeches, Chartered Accountants Ireland has highlighted the importance of supporting enterprise across the country. The Institute represents over 32,700 members, two-thirds of whom work in business.   Supporting enterprise   Director of Public Affairs, Dr Brian Keegan commented  “A healthy corporate sector is critical to Ireland’s economic growth. Without it, the state simply doesn’t have the tax receipts to effect change across so many areas of the economy and society.    “It’s positive to see the focus switching away from the headline corporation tax receipts and the enterprise sector being singled out and supported. These businesses create significant local employment and deserve the support announced today of a €250 million fund to help meet the increased cost of doing business in 2024.   “We hope that the scheme is introduced in a timely manner as businesses are already grappling with additional costs of statutory sick pay, impending pension auto-enrolment and a significant uplift in the minimum wage to €12.70.”  Supporting entrepreneurism   The Institute has also noted the uplift in the R&D credit from 25% to 30% as well as an enhanced capital gains tax relief for angel investors. It states that these measures send the signal that Ireland is open for business and wants to support entrepreneurism.  Dr Keegan continued  “The R&D tax credit has been hugely successful in encouraging research and innovation and creating employment. New capital gains tax reliefs for angel investors should result in early funding being made available to businesses when they need it most – at inception. There have been few new initiatives for the corporate sector in the past decade, and it was positive today to see recognition of the sector to Ireland’s economy.”   Tackling housing  The lack of adequate, affordable, reasonably located housing for staff is one of the biggest barriers to expansion reported by Chartered Accountants Ireland members. The Institute said that today’s tax break of €600, rising to €1,000 over three years, announced for small, private landlords if they remain in the rental market will help to boost Ireland’s housing supply. Cróna Clohisey, Tax and Public Policy Lead said  “Small landlords are an essential feature of a fully functioning residential property market, and properties owned by these landlords are more likely to be in regional, less densely populated parts of the country, providing much needed rental stock in areas that are not as attractive to institutional investors.  “Today’s announcement for landlords will help stabilise the rental market and give more certainty to tenants but also importantly make it more attractive for a small private landlord to enter the rental market. Combined with an increased rental tax credit, the measures will go some ways to helping people access housing, and it will work for society and the economy.”  Childcare as a critical infrastructure issue   Today’s announcement of an increase in the national childcare subsidy (NCS) from €1.40 to €2.14 as well as extending the NCS to certain childminders will help with the cost of childcare but will not address significant capacity constraints within the market.   Clohisey continued  “The cost of childcare is unaffordable for many working parents and today’s announcement to increase the NCS from September 2024 is welcome. However, a survey of our membership last month shows that in addition to cost, the biggest challenge working parents face is a lack of available childcare places.      “While a commitment was made today to address supply issues through core funding, we are asking government to recognise that childcare provision is part of the critical infrastructure necessary for a functioning economy. The crisis needs to be addressed with a long-term strategy with children at the forefront, that adequately funds the sector, increases capacity, and supports working parents.”    ENDS      

The Minister for Finance, Michael McGrath TD and the Minister for Public Expenditure and Reform, Paschal Donohoe TD, will announce Budget 2024 on Tuesday 10 October 2023. We will issue our Budget 2024 newsletter tomorrow evening covering all the main points. You can keep up-to-date with the announcements by visiting the Institute's Budget 2024 landing page.  

Three Chartered Accountants share their perspectives on the changing role of the Chief Financial Officer in today’s fast-paced business, regulatory and societal environment Johnny Harte Founder True Fund Solutions  The Chief Financial Officer (CFO) in a company has long been considered the chief bean-counter whose job has been to say ‘no’ more than ‘yes’.  And in the past, this has been true. CFOs today still have responsibility for the core finance function in an organisation, but they are now increasingly regarded by management and key stakeholders as value-creation partners in a business, and their expanding role reflects this. As a starting point, to realise more efficiencies, CFOs are now investing more in technologies to assist the finance team. Transactional activities are being replaced by artificial intelligence and machine learning technologies, and the way in which financial information is being presented, shared and consumed has changed in line with the expectations of end-users. The CFO may have responsibilities outside the core finance function, too, like human resources and IT, so collaborating with many other departments in the business is more important than ever.  New initiatives to address issues such as environmental, social and governance (ESG) concerns fall under the remit of the CFO as well.  As an example, the financial implications and reporting obligations of ESG are felt company-wide, but they ultimately feed into the finance function. Companies find themselves in times of rapid change that offer potential opportunities, like product innovation, access to new markets, and even the development of new business models. Change can also result in potential risks such as cyber security, geopolitical and environmental concerns, however.  CFOs, by necessity, find themselves at the heart of all of this and play a vital role in navigating the landscape and advising on strategic decisions that can shape the future of the business. CFOs are in a unique position in a company in so far as everything that is important eventually gets reflected in numbers. The old line of “you can’t manage what you can’t measure” still holds true. Karen Sugrue Hennessy  Sustainability Consultant and CEO Real Leaf Farm As our nation, along with the rest of the world, faces mounting pressure to fulfil its climate change commitments, Chief Financial Officers (CFOs) are stepping into a critical leadership role.  According to the Environmental Protection Agency (EPA), Ireland is currently on track to achieve just 29 percent of its committed 51 percent net zero target by 2030. Finance stands as a pivotal enabler in the acceleration of climate action, as emphasised by the Intergovernmental Panel on Climate Change report (AR6).  CFOs, accountants, bankers and directors are primed to lead the charge by shifting their focus away from financing environmentally detrimental projects and redirecting their efforts toward funding initiatives that bolster the transition to a sustainable economic model. By 2029, all businesses, including SMEs, will be mandated to enhance transparency and accountability concerning corporate sustainability, operating under the Corporate Sustainability Reporting Directive.  Significant challenges lie ahead, however. Recent research conducted by LinkedIn revealed that close to 95 percent of financial professionals in 48 countries, including major European nations, lack essential green skills.  Shockingly, Ireland ranks at the lowest end of the spectrum in Europe, with just 0.16 percent of finance job postings related to green skills, according to LinkedIn data. So, where should CFOs begin their journey to upskill in this pivotal area, which is undeniably becoming a sought-after area of expertise?  An excellent starting point is joining Chapter Zero Ireland – a collaborative initiative between Chartered Accountants Ireland, IBEC and the Institute of Directors.  Chapter Zero’s primary purpose is to ensure that companies are well prepared for the future and that global net-zero aspirations translate into robust plans and measurable actions.  The evolving role of CFOs in Ireland is not merely a response to regulatory demands; it represents a unique opportunity for financial leaders to champion a more sustainable and responsible future for both their businesses and the nation.  Embracing this transformation is not only a strategic imperative but a moral obligation that can reshape Ireland’s path toward a greener, more prosperous future. Mark Mulqueen CFO KPMG Ireland Like other C-suite roles, the Chief Financial Officer (CFO) role has evolved significantly, reflecting the evolving landscape of business, technology, regulation, global markets and shifting expectations from internal and external stakeholders.  In addition to the traditional CFO responsibilities as financial ‘gatekeeper’, the role has broadened beyond core topics to become more like that of a strategic partner. At the centre of this evolution is a business appetite for greater insights, data-driven commercial partnering, and a more significant focus on profitability and an organisation’s need to transform operating models and core supporting technology.  Consequently, CFOs must keep up to date with the changing landscape of data, technology, taxation and compliance while also managing the organisation’s financial health. As business models continue to transform, looking to the future, this presents opportunities and challenges for CFOs. The value of data – going beyond traditional finance data to provide valuable insights to enhance forward-focused decision-making. Embrace the challenges of data – overcoming disparate systems with multiple data sources to ensure reliability and accuracy is critical to the role. Automation – managing the changing role of technology and staff in traditional finance processes. Talent retention and acquisition – with a broader set of new challenges, it is essential to have the right skills in the team to leverage the opportunity presented by data and technology. Risk – managing risks posed by fraud and cybercrime. Expectation gap – managing the strategic role of the CFO versus the volume of traditional finance work. Leveraging technology, adding new skills to finance teams, and managing this change will allow CFOs to help companies become more agile and responsive to market changes.  The result will provide more value through greater insights on a broader range of topics and the ability to support faster data-driven decisions through automation and technology while simultaneously supporting business change and managing new risks posed by regulation toward sustainable, profitable growth.  The one constant that will remain for CFOs is change.

Despite housing and health and climate crises, our experience living and working in Ireland has never been so good, writes Cormac Lucey Come election time, the positions political parties advocate for can generally be classified into either continuity or change.  With a general election looming in the Republic no later than March 2025, the battlelines are already emerging. The parties of the outgoing Government will campaign for continuity. The parties of the opposition will seek change.  Ironically, despite the Government’s many policy failures (housing, health, etc.), it has a strong story to tell.  If a person were to choose when they would live in Ireland over the last thousand years, the rational choice would be today.  Life expectancy Take the very simplest index of national well-being. The average life expectancy in 1950 in the Republic of Ireland was 60. Today, it is just under 83 years old. This staggering progress reflects healthier lifestyles, better diets, safer workplaces and improved healthcare.  Income Income levels today are far ahead of those our parents and grandparents could aspire to. Last year, Ireland’s modified gross national income (the measure of national income designed to exclude globalisation effects) was €273.1 billion. This equates to income per head of €54,600.  The key to this is productivity growth. If productivity output per person grows at a rate of two percent per annum – the general experience over the 20th century – people should be 7.2 times as well off after a century.  If annual productivity growth is just one percent – roughly what we’ve experienced since the millennium – people will be just 2.7 times as well off after a hundred years. It is the slowdown in underlying productivity growth which is the most serious economic issue facing the global economy today. Employment We must also consider the range and depth of job opportunities available today. When I graduated from university in 1981, many of my classmates had to emigrate as the economic conditions were so poor in Ireland. Today, Ireland has record low unemployment. Young people travel the world for fun and to expand their horizons rather than out of financial necessity.  Ireland’s successful policy of attracting foreign direct investment to these shores means that people can work for the world’s largest and most financially successful companies without leaving the country.  Climate Young people may argue that, by presiding over damaging climate change, older generations have eaten the seed corn they will need.  A 2021 global survey led by the University of Bath in the UK illustrated the depth of anxiety many young people feel about climate change. Close to 60 percent of the young people approached said they felt very worried or extremely worried. Three-quarters said they thought the future was frightening. Fifty-six percent said they believe humanity is doomed. These widely held viewpoints illustrate the degree of public hysteria surrounding the debate over climate change.  Bjorn Lomborg (The Copenhagen Consensus Center, Copenhagen Business School and the Hoover Institution, Stanford University) recently made the point in Science Direct that scenarios set out under the UN Climate Panel (IPCC) show human welfare “will likely increase to 450 percent of today’s welfare over the 21st century. Climate damages will reduce this welfare increase to 434 percent”.  Lomborg expects that, in the context of general human progress, climate change will represent a speed bump rather than the end of the road.  To quote the former British Prime Minister Harold Macmillan, we’ve “never had it so good”.  Cormac Lucey is an economic commentator and lecturer at Chartered Accountants Ireland *Disclaimer: The views expressed in this column published in the October/November 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.