A series of Virtual Training to Advance Revenue Administration (VITARA) reference guides have been developed based on the content of the VITARA online modules. The recently published VITARA Reference Guide on The Audit Program focuses on how an audit program fits into the overall set of activities a tax administration undertakes to promote and enforce compliance with its tax laws.

The European Commission is taking action against 27 Member States for not communicating how they have incorporated eleven EU directives into national law. These directives cover areas such as the environment, financial stability, justice, taxation, and transport. The Commission has sent formal notices to these countries, giving them two months to respond and complete the transposition. If they fail to do so, the Commission may issue a reasoned opinion. The infringement procedures include failure to transport the Directive on the special VAT scheme for small enterprises and Ireland has been included on the list.

The International Monetary Fund (IMF) has published a working paper, Strengthening tax governance through legal design. This working paper develops an analytical framework which can be used to identify the key legal features that should be embedded in tax administration and tax procedure laws, to ensure a balance between tax administration powers and adequate taxpayer protections.

  In this week’s Sustainability/ESG Bulletin read about the Small-scale Renewable Electricity Support Scheme, sustainability and innovation in a new leadership programme for SMEs resources for creating a sustainable business, and a new nature recovery fund for Northern Ireland. Also covered is the sustainability implications for businesses of the new EU Competitiveness Compass, the new standards and guidance from IAASB and IESBA to strengthen sustainability reporting and assurance, and well as the usual articles and upcoming events.   Ireland news Small-scale Renewable Electricity Support Scheme The Small-scale Renewable Electricity Support Scheme (SRESS), the renewable electricity scheme without an auction, operated by the Department of the Environment, Climate and Communications, opened for applications this week (27 January). Small-scale renewable energy projects are defined as renewable electricity generation technologies with an electricity output greater than 50kW, but smaller than typical commercial generators. The SRESS will be operated on the basis of a policy lifetime out to 2030 and includes a 15-year tariff support lifetime for successful export applicants.   CSO figures on 2022 fossil fuel subsidies released CSO figures released this week show a 68% increase in fossil fuel subsidies in Ireland in 2022, from €2.8 billion in 2021 to €4.7 billion in 2022, including direct subsidies to households and tax rate reductions on petrol and diesel. Separately, 2024 was confirmed by the Copernicus Climate Change Service (C3S) to be the warmest year on record globally. Human-induced climate change remains the primary driver of extreme air and sea surface temperatures, with fossil fuel use one of the key contributing factors. Sustainability and innovation in new Dynamic Leadership SME programme Enterprise Ireland, in partnership with Dublin City University (DCU), has launched Dynamic Leadership: Roadmap to Growth. The leadership development programme is designed to equip senior leadership teams of Irish SMEs with the tools, strategies, and insights required for sustainable growth and international success. Programme highlights include a focus on innovation and sustainability, workshops on digital transformation, sustainability, and calculating carbon footprints. Resources for businesses to optimise energy usage and reduce costs The Sustainable Energy Academy Ireland (SEAI) has launched two free new eLearning modules through the SEAI Energy Academy platform: www.seaienergyacademy.ie/. Designed to help businesses optimise their energy usage and reduce costs, the modules are: The new "Fundamentals of Hot Water" module provides comprehensive guidance on managing hot water systems effectively across various business settings. While particularly valuable for sectors with high hot water demands—such as hospitality, manufacturing, and healthcare—the module offers insights relevant to businesses of all sizes.    "Introduction to Building Management Systems," focuses on the increasingly important role of Building Energy Management Systems (BEMS) in modern business operations. This module demonstrates how BEMS technology can revolutionise the way businesses control their building services and reduce energy waste.  Women in Finance Charter 2025 Annual Survey underway The 2025 Annual Survey is now underway for Signatories of the Women in Finance Charter, an initiative to promote greater gender equality in the financial sector. Firms signing the Charter commit to achieving greater gender balance across their organisations, set targets appropriate to the company, and formulate an action plan to achieve these targets. The closing date for the survey is 9 February and further details on the Charter and guidelines for signatories will be available on the Balance for Better Business website. Case Studies for sustainable businesses The Department of Enterprise, Trade and Employment (DETE) has published case studies on how businesses are becoming more sustainable. Three businesses are profiled, including Sweet N Green café, Stories by Ola, and Laundry Lab. For more information on all the supports available to business visit the National Enterprise Hub on neh.gov.ie.    Northern Ireland/UK news Northern Ireland launches nature recovery fund A new fund to support Nature Recovery environmental projects, the first of its kind, across Northern Ireland, has been launched by Environment Minister Andrew Muir. Councils and voluntary organisations can now apply for the Nature Recovery Challenge Fund Competition 2025/26 – 2027/28 which will offer a minimum grant award of £50,000. More details are on the DAERA website. UK government announces offshore infrastructure measures The UK government has announced measures to accelerate the construction of offshore infrastructure, with up to 13 major offshore wind projects expected to generate up to 16GWs of electricity, create employment in the offshore wind sector, and potentially unlock £20-30bn of investment in clean power. Earlier in January the government announced measures to support nature recovery at scale in for the Planning and Infrastructure Bill  as part the government’s Plan for Change. Aligning transition planning and financial planning- resource Accounting for Sustainability (A4S) has developed a resource on transition plans, with support from ICAEW. The resource, Aligning Transition Planning and Financial Planning: key questions for finance teams, outlines key questions for finance teams to help understand the different transition planning activities that may have financial implications. Transition plans can have many benefits, such as delivering new revenue streams, but to turn them into action they need to be supported by adequate financial resources.   Europe News The European Commission has launched its Competitiveness Compass framework, a strategic initiative which aims to “rekindle economic productivity and secure the EU’s competitive edge”. It aims to promote sustainability through an Affordable Energy Action Plan, a Clean Industrial Deal, an Industrial Decarbonisation Accelerator Act and through tailor-made action plans for energy intensive sectors, such as steel, metals, and chemicals. It further sets out an approach and a selection of flagship measures to achieve the three transformational imperatives identified in the Draghi report, i.e. around innovation, decarbonisation and competitiveness, and security. One such measure is the Simplification Omnibus Packages, which aim to reduce the reporting obligations for businesses by up to 25 percent (and up to 35 percent for SMEs), and align various EU regulations related to sustainability, such as the Corporate Sustainability Reporting Directive (CSRD) and the EU Taxonomy. It is anticipated that the Competitiveness Compass will help smaller companies integrate sustainability into their operations without facing excessive administrative burdens. World news IAASB and IESBA unveil new standards and guidance to strengthen sustainability reporting and assurance The International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA) have launched an integrated effort to support effective implementation of their landmark standards aimed at advancing trust and transparency in sustainability reporting and assurance. Taken together, the IAASB and IESBA sustainability-related standards, as well as the new IESBA standard on using the work of experts, provide a unified global approach to address the growing demand for trustworthy sustainability information to support stakeholder decisions. Report highlights carbon pricing as essential for green hydrogen growth A report from the Potsdam Institute for Climate Impact Research has shown that the growth of green hydrogen is unattainable without carbon pricing. The report, Green hydrogen: Big gaps between ambition and implementation, emphasises the need to focus more on demand-side measures to increase the number of green hydrogen consumers, rather than concentrating solely on supply-side measures. It highlights legislation like the EU’s Renewable Energy Directive, which mandates that green hydrogen must constitute 42 percent of all hydrogen used in industry by 2030, as a crucial step forward. Additionally, it advocates for carbon pricing to account for the environmental costs of producing hydrogen with fossil fuels. Planetary Insolvency report - Risk management and policy decisions A new report has identified an increasing risk of ‘Planetary Insolvency’ – severe societal and economic disruption caused by a breakdown in critical ecosystem services.  The report, Planetary Solvency - finding our balance with nature, brings together risk management techniques, the latest climate science, and systemic risk assessment methodologies assesses the ability of our planet now, and in the future, to support human society and the economy. It is the latest in a series of papers focussing on climate risk from the Institute and Faculty of Actuaries (IFoA) and the University of Exeter, and highlights how risk management techniques, informed by the latest science, can help to guide policy decisions to support future prosperity. Technical Roundup (From our colleagues in Professional Accounting) The FRC has published a thematic review of Climate-related Financial Disclosures by Alternative Investment Market (AIM) and large private companies, following their first cycle of mandatory reporting in the UK.   EFRAG has published a document mapping the voluntary Eco-Management and Audit Scheme against the ESRSs.   Accountancy Europe has set up a tracker that monitors the transposition of the CSRD across the European Economic Area.   (update) Accountancy Europe has also published a FAQs webpage addressing common questions about sustainability reporting assurance. It’s organised into two sections: 1. key concepts of assurance in sustainability reporting and 2. EU regulatory framework.   Articles Why businesses must lead the charge on climate action (Accountancy Ireland - Briefly) The ESG divide in 2025 (Accountancy Ireland - Briefly) What has to happen next for the circular economy to become established in Ireland? (Irish Times) New sustainability reporting rules could hurt Ireland’s reputation, law firms warn (Irish Times) Trump’s Week One Ends With a Heap of Climate Rollbacks (Bloomberg) Administrative burden reduction: Accountancy Europe’s first specific recommendations (Accountancy Europe) What’s the Business Outlook for Nature in 2025? (Business for Biodiversity Ireland) Building credibility and trust in sustainability reporting and disclosure (ICEAW Insights) How accountants can create sustainable value (CPA Canada) Events A4S, The Sustainability Value Triangle The webinar includes exclusive findings from research with professionals: The sustainability actions with the highest perceived impact on value; Insights into overcoming barriers to cross-functional collaboration; The role of mandatory reporting in fostering integration. Expert panelists include: Brad Sparks, A4S;’ Dr. Robert Eccles, Saïd Business School, University of Oxford; Mardi McBrien, IFRS Foundation Virtual, 6 February, 16.00 GMT   Chartered Accountants Leinster Society, 𝗣𝗲𝗿𝘀𝗽𝗲𝗰𝘁𝗶𝘃𝗲𝘀 𝗼𝗻 𝗖𝗦𝗥𝗗 𝗶𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻  Discover how the implementation of CSRD will present both challenges and opportunities for companies in Ireland from Deloitte's Hollie Keating, Director and Sustainability Reporting & Assurance Lead, and Gareth Martin, Audit Managing Director Virtual, 12 Feb | 1-2pm | FREE Queen’s Business School, QBS Business Breakfast Insights: Sustainability 2030 and beyond Queen’s Business School is hosting the Business Breakfast Insights series, offering insights to help businesses navigate economic and environmental challenges. This first event will explore sustainability in business, with a focus on digital sustainability and sustainability reporting. In person, 13 February, 8.30-10.30, Queen’s Business School, Riddel Hall, Belfast, BT9 5EE   A4S, Sustainability in Action Webinar: Management Information This interactive webinar, aimed at finance professionals, will provide practical insights on how to refocus management reporting and management information by introducing a more integrated approach. Information drives decisions – our speakers will show how considering social and environmental factors results in better information that drives better decisions. Virtual, 25 February, 16.00 GMT Jobs Trinity College Dublin seeks a researcher/project manager for Ecosystem Accounting project (Link to job details)   Sustainability Centre You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.    

Following on from our story on Monday in which we highlighted the Institute’s plans to flag our concerns about the 2023/24 self-assessment online filing deadline to HMRC in the context of the recent storms, the Institute requested that HMRC take a pragmatic approach to this issue. We can now share the outcome of those discussions after receiving an update from HMRC. This confirms that whilst a blanket easement is not possible, HMRC will take a sympathetic approach towards those filing after the deadline on a case by case basis. The Institute therefore recommends that if a return is filed late because of the recent weather, the additional information box should be completed to outline the specific reason(s) why and claim reasonable excuse. HMRC will therefore cancel penalties where taxpayers can provide a reasonable excuse. The full update from HMRC is as follows: “ Thank you for raising the possible impacts of the recent severe weather across parts of Ireland and the UK on people and businesses in the run up to the Self Assessment deadline. Undoubtedly, this would have impacted some individuals, businesses and agents still trying to submit SA returns. Given the timing of these very recent events and the fact that areas most impacted are difficult to identify, we are not in a position to invoke a unilateral easement. We will however take a sympathetic approach towards those filing after the deadline on a case by case basis. We don’t want to collect penalties – our aim is to support taxpayers to get their tax right and avoid fines. We will cancel penalties where taxpayers can provide a reasonable excuse within 30 days of the penalty being issued, in which case no financial fine is levied. We will of course take into account the impact of adverse weather when it comes to such appeals. We will also take steps to ensure that teams reviewing forthcoming appeals are alert to the detail of the guidance and will apply it empathetically, appropriately and consistently. Please be reassured that HMRC will be delivering a fair, even-handed and consistent approach across everyone impacted in whatever capacity.” By way of reminder, those without a reasonable excuse will be issued with a penalty including: an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time, after 3 months, additional daily penalties of £10 per day, up to a maximum of £900, after 6 months, a further penalty of 5 percent of the tax due or £300, whichever is greater, and after 12 months, another 5 percent or £300, whichever is greater. 31 January 2025 is also the due date for paying any remaining income tax and Class 4 national insurance contributions for 2023/24 and is also the first self-assessment payment on account deadline for 2024/25.

In Irish news, Revenue has issued two new Tax and Duty manuals which outline both the registration requirements and the operation of the residential zoned property tax, and new guidance has been published on the close company surcharge. In UK news, we issue a reminder that the 2023/24 online self-assessment filing deadline is Friday 31 January 2025, and the Institute responds to the HMRC consultation on new ways to tackle non- compliance. In International news, the US President has published a memorandum stating the Two-Pillar Solution has no force or effect in the US. Ireland 1. Revenue has published two new Tax and Duty manuals on the operation of residential zoned property tax (RZPT) and the registration obligations for this tax. 2.Read about the updates to the Tax and Duty manual on the close company surcharge. UK 3. Read about the 2023/24 online self -assessment filing deadline and the possible impact of Storm Éowyn. 4. The Institute recommends that HMRC should review its existing compliance powers before introducing any new powers. International 5. President Trump publishes a Memorandum on OECD Global Tax Deal stating that the Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy has no force or effect in the United States. Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount. You can also read this week’s post EU exit corner here.  

On Tuesday, 18 March 2025, the European Commission and the European Parliament will co-host the third EU Tax Symposium. The event is to bring together finance ministers, politicians, policymakers, academics and others to discuss the future of EU tax systems under the theme Strengthening Competitiveness and Fairness to Build Prosperity. Registration is now open for the symposium which will take place in Brussels and will also be livestreamed.

Following his inauguration on 20 January 2025, the President of the United States of America, Donald Trump, has published the Presidential Actions. The publications include a Memorandum on the OECD Global Tax Deal which states that the OECD’s Two-Pillar Solution to Address the Tax Challenges Arising from the Digitalisation of the Economy has no force or effect in the United States.

On 29 January the Ulster Society hosted a webinar to brief newly qualified Members. This webinar was designed to help recently qualified members (within the last three years) to get the most out of their qualification and their career - but all members are very welcome to watch. Event Focus: •    CPD Requirements: Understand your Continuing Professional Development obligations and how to meet them. •    Career Advice: Explore resources and guidance for planning your next steps. •    Networking & Mentoring: Connect with peers and experienced professionals for support and opportunities.  confidence and open doors to new opportunities A recording of this webinar is available to view, for free and on demand, HERE A pdf copy of Joe Carroll's slides, as shown in the webinar are available HERE A pdf copy of Karin Lanigan's slides, as shown in the webinar are available HERE

Chartered Accountants Worldwide has launched its inaugural global report into the resilience of the Chartered Accountancy profession— a groundbreaking study conducted by Chartered Accountants Worldwide Wellbeing Taskforce in collaboration with the Resilience Institute. View the Global Wellbeing Report here.  This report examines the state of resilience and well-being within the Chartered Accountancy profession, drawing on insights from a global survey of 697 Chartered Accountants. While Chartered Accountants play a critical role in safeguarding financial integrity, their work often entails significant stress and complexity. Dive deeper into the Global wellbeing report with the experts behind the research. In this must-watch companion episode of Difference Makers Discuss, the report’s authors and the Dee France, Chair of the Chartered Accountants Worldwide global wellbeing taskforce break down key insights and share immediately actionable tips to help you thrive—both professionally and personally. Watch now and start making positive changes today: Building Resilience and Well-Being in the Accountancy Profession The survey highlights key strengths—curiosity, altruism, and creativity—that drive success within the profession. However, it also uncovers challenges such as multitasking, avoidance, and worry, which can erode resilience and mental health. Addressing these issues through targeted skill development and resilience training presents an opportunity to foster a thriving and sustainable profession. As trusted advisors and business leaders, Chartered Accountants have a unique chance to lead by example, cultivating workplace cultures where well-being is not an afterthought but an integral part of daily practice. By prioritising resilience, the profession can set a powerful precedent, showing that success and well-being can—and must—go hand in hand. Dee France, Wellbeing and Support Lead at Chartered Accountants Ireland and Chair of the Chartered Accountants Worldwide Wellbeing Taskforce commenting on the findings said "It's important to look at the challenges within the profession and the one that came up in the study itself; multi-tasking, hyper vigilance and poor sleep quality were defined".  View the Global Wellbeing Report

Recent trends The Institute’s Professional Standards Department has recently seen an increase in the frequency and complexity of proposed restructures of accounting and audit firms including: Institute firms acquiring or merging with other accounting and audit firms; Changes in a firm’s principals (retirements, additions); Creation of new firms within a firm network structure (including the splitting of an existing firm into a number of smaller firms sometimes with a focus on a particular business line or jurisdiction); Interests in a firm being fully or partially acquired by larger firms or other external investors including the involvement of private equity investors in firm/network ownership structures. These trends are observed in both Ireland and the UK. Early engagement with the Institute advised Firms who are considering a change in the firm’s structure or ownership are advised to engage with the Institute’s Professional Standards Department at an early stage in the process.  Such early engagement is important to ensure that any impact on existing or proposed firm authorisations, and/or on the AML supervision of any entities in the structure, is fully understood and properly planned for.  Law and Institute Regulations in both Ireland and the UK set out detailed eligibility criteria which must be met by firms authorised in reserved areas such as audit and investment business.  These eligibility criteria include specific requirements regarding the qualifications of principals and those having ownership/control at authorised firms.  While Institute Regulations require firms to notify the Institute promptly after a change in circumstance which could impact authorisations takes place, firms will benefit from early engagement with the Institute in relation to proposed restructuring transactions.  Firms will, no doubt, want to avoid a situation where a significant transaction concerning the firm’s structure has taken place only to discover that the revised structure negatively impacts the firm’s eligibility for authorisation in a key area. Firms considering a restructure should contact the Institute at authorisations@charteredaccountants.ie.  The Institute will advise the firm regarding the information which should be shared with the Institute initially and as the restructuring plans progress.  The Institute will request information to enable a full understanding of the proposed restructure and the impact on the firm’s eligibility for authorisation(s).  Such information is likely to include the detailed agreements and documentation underlying a transaction such as revised partnership agreements, constitutional documents such as articles of association and where relevant, service level agreements between entities within the revised structure. Frequently, the complexity of restructuring transactions requires that the Institute dedicates significant time to review the relevant documentation, engage with the firm’s principals and conclude in relation to ongoing or new authorisations as a result of a firm restructure.  A firm’s engagement with the Institute early in the restructuring process helps ensure sufficient time for Institute consideration and for the processing of any new applications for individual or firm authorisations arising. The Institute cannot provide legal advice in relation to potential firm structures.  The Institute assesses information provided to conclude whether the Institute can continue to provide authorisations to the restructured firm(s) in reserved areas in accordance with the Institute’s Regulations. Oversight bodies In certain cases, it may also be appropriate for a firm and/or the Institute to engage with relevant oversight bodies such as IAASA or the FRC.  For example, an audit firm which is registered with the FRC as a UK public interest entity (PIE) auditor will be obliged to share information with the FRC in relation to a transaction which could impact UK audit registration. Fees For new notifications of restructuring arrangements received on or after 1 January 2025, the Institute may charge a separate fee to firms for the consideration of the impact of a firm restructure on a firm’s authorisations in reserved areas and/or on AML supervision where relevant.  The fee will be dependent on the complexity of the proposed restructure and the work involved in the Institute’s assessment of all relevant information.  This fee will contribute to the cost incurred by the Institute in the consideration of the proposed restructure and may include a contribution towards any legal advice which the Institute needs to undertake in this regard. Further information Any queries in relation to any of the matters raised above can be directed by email to authorisations@charteredaccountants.ie

On 28 January the Ulster Society held a thought-provoking webinar addressing the pressing challenges organisations face around skills and talent. This lunch-time session explored: The anticipated impact of the Programme for Government for Northern Ireland on skills policy. Current trends in Higher Education and Further Education and their role in shaping the workforce. The latest research on changing skills demands, including the influence of AI and sustainability commitments. Real-world examples of how leading local organisations in all sectors are tackling skills gaps, encouraging returners to work, fostering upskilling and training, and dealing with talent attraction and retention. Our panel of experts shared their insights and experiences, offering practical takeaways that apply across all sectors. A recording of this webinar is available to view, for free and on demand HERE