In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service bulletin is also available.   Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service Appendix 1: DE 1/10: Requested and Previous Procedure Codes  Making an export declaration using a pre-shipment advice  4-digit to 3-digit procedure to additional procedure code correlation matrix for imports;  Making an export supplementary declaration  Making a full export declaration  Notice to exporters 2024/12: export declarations move from CHIEF to CDS from 4 June 2024  Report a problem using the Customs Declaration Service  Notices made under the Customs (Export) (EU Exit) Regulations 2019  Appendix 2 C21i: DE 1/11: Additional Procedure Codes  Authorised Consignee Temporary Storage (ACTS) location codes for Data Element 5/23 of the Customs Declaration Service  Check if a business holds Authorised Economic Operator status. 

The Directorate-General for Taxation and Customs Union has published the 2024 edition of the Annual Report on Taxation. The report scrutinises the structure of tax revenues across the EU, according to their economic function and the type of tax, with a focus on the differences across countries and over time. In addition, this year the report examines the contribution of tax systems to a competitive and prosperous EU economy. Overall, the report aims to inform stakeholders of recent developments and to provide policymakers with insights that can help them improve the functioning of tax systems in the EU.  

Revenue has updated the Tax and Duty Manual which provides guidance on the payment and receipt of interest and royalties without deduction of income tax. The manual has been revised to address instances which may arise where there is a short delay in receipt of a completed certified Form 8-3-6 Interest, or completed uncertified Form 8-3-6 Interest and tax residence certificate, by the person making the interest payment. 

Revenue has updated the Tax and Duty Manual regarding the rate of tax at which repayments are to be made to reflect the 2024 rate band and tax credit values in its examples.  Section 460 TCA 1997 provides that a repayment of income tax to which a person is entitled, after the granting of any personal tax credit/relief, for any year of assessment, is to be made at the standard rate of tax or the higher rate, as appropriate. Where a person has no taxable income for a year of assessment, any tax paid by them in respect of their income for that year is refundable in full. However, any such repayment cannot exceed the difference between the correct tax liability and the amount of tax actually paid.  

Revenue has updated the Capital Acquisitions Tax Manual regarding Certificates of Discharge. References to "Clearance Letter (Form I.T. 10)" and the "Abolition of the status of CAT as a charge on property that has been the subject of a gift or inheritance in the previous 12 years" have been removed, in accordance with Finance Bill 2010.  

Charities with tax exemption are issued with a reference number beginning with the letters CHY. Section 208B(9) TCA 1997 permits Revenue to publish the name, address and CHY number of a charity. Revenue has updated the Tax and Duty Manual which provides guidance on the Charitable Tax Exemption to include a link to the list of bodies with the exemption. 

Revenue has updated the Tax and Duty Manual which provides guidance on payments made in respect of the Magdalen Restorative Justice Ex-Gratia Scheme. The updated material clarifies that the investment exemption applies to the person who received a 'relevant payment' under the scheme (paragraph 4). In addition, references to pre-2015 claims are deleted as they are no longer relevant. The usual time limits apply with regard to refund claims for the tax year 2015 and subsequent years. 

Section 112 TCA1997 provides the statutory basis of assessment for income tax chargeable under Schedule E, including the persons chargeable and the extent of the charge to tax. The charge to tax covers all salaries, fees, wages, perquisites or profits whatever derived from the office, employment or pension for the year of assessment. Revenue has refreshed the Tax and Duty Manual which provides guidance on the Schedule E basis of charge to improve ease of reference for users. Further information is available in eBrief No.181/24. 

Revenue has updated the Tax and Duty Manual which provides guidance on tax equalisation arrangements. The updated manual states that employers are required to ensure that payroll submissions under shadow payroll arrangements are accurate and reviewed for accuracy on an ongoing basis (paragraph 5, step 2). In addition, examples 5.1 and 5.2 have been updated to reflect Finance (No.2) Act 2023 amendments. 

Revenue has updated its guidance on the online Non-resident Landlord Withholding Tax (NLWT) system which commenced from 1 July 2023.   Section 1041 TCA 1997  provides that the person making the payments will be required to submit a rental notification (RN) providing certain information regarding the landlord and the rental income on which tax is being withheld. The NLWT system allows tenants/other direct payers and collection agents to input RNs for residential or commercial/agricultural properties, and provides a facility for both collection agents and tenants/others to set up a repeat RN. The manual has been updated to include guidance on setting up a repeat RN and creating a direct debit mandate (paragraph 5).  Collection agents and tenants are required to provide the unique property identifier, obtained from the landlord, when submitting the RN, such as the Local Property Tax identifier (LPT ID) for residential property. As rented non-residential properties do not have an LPT ID, the manual now includes guidance on the creation of a commercial ID for such properties (paragraph 9).  Other updates include:  Additional guidance for collection agents (paragraph 11) and non-resident landlords (paragraph 13)  ROS certificate and sub-certificate queries (appendix 2)   Extracts from the Notes for Guidance reflecting the Finance Act 2023 updates (appendix 3).  Further information can be found in eBrief No. 186/24. 

Tax revenues for the first half of the year were €44.7 billion, according to the recent June Exchequer figures. The figures represent a €3.8 billion increase (or 9.3 percent) on the same period last year. Aggregate tax receipts for the first half of 2024 are now ahead of expectations, with the over-performance largely due to corporation tax receipts. An Exchequer surplus of €3.1 billion was recorded in the first half of the year.   The breakdown of tax revenues is as follows:  Income tax receipts were €16.7 billion to end-June, €1.2 billion, or 7.5 percent higher than the first six months of 2023 and somewhat above profile.  VAT receipts to end June were strong at €11 billion, €0.6 billion (6.2 percent) higher than the same period last year and in line with expectations.  Corporation tax receipts of €12.2 billion were collected to end-June, 15.4 percent ahead of the same period last year and 11.2 percent (or €1.2 billion) ahead of profile.  Total gross voted expenditure to end-June amounted to €47.1 billion, €5.2 billion (12.4 percent) ahead of the same period in 2023.  Commenting on the figures, the Minister for Finance, Jack Chambers TD said:  “June is a key month for tax revenues and the strong performance across the first half of the year is a welcome indicator of the health of our economy, most clearly reflected in the robust growth in income tax and VAT revenues.  The stand-out feature is undoubtedly the sharp spike in corporation tax receipts in June, which means that in the year to date, this revenue stream is well above its level in the same period last year.  That said, there has been considerable volatility – in both directions – in corporation tax revenues over the last number of months, underlying the need to treat around half of these receipts as windfall in nature. There is also overwhelming evidence that confirms the highly concentrated nature of these receipts.  The two new investment vehicles – the Future Ireland Fund and the Infrastructure, Climate and Nature Fund – signed into law last month will help us to address some of the risks around windfall tax revenues, but this must be coupled with a balanced approach to budgetary policy. With this in mind, Government will set out the fiscal parameters for Budget 2025 in the Summer Economic Statement, which will be published next week.” 

  In this week’s Sustainability/ESG bulletin, read about a new Government report highlighting the barriers to climate action, the NTMA’s 2024 mid-year review with positive climate investment news, CSO figures showing increases in business energy use, and the launch of collaborations between IAFA & IAASA on sustainability reporting, assurance and education. Also covered are funding updates from Northern Ireland and Europe, and the usual awards, jobs, articles, resources and events.   Ireland news New Government report identifies the barriers to climate action A new report from the Department of the Environment, Climate and Communications highlights the barriers people experience in taking climate action, including the barriers faced by business and the support and guidance needed to take part in climate action. The report, 'Climate Conversations 2023 – From Individual Action to Collective Engagement', builds on the Environmental Protection Agency's ‘Climate Change in the Irish Mind’ study, and provides insights into the "attitude behaviour gap" that can help shape climate policy and public engagement that speaks to people directly. NTMA’s 2024 mid-year review The National Treasury Management Agency (NTMA) has published its 2024 mid-year business update. The update notes that investors have reacted favourably to the establishment of the two new savings funds, the Future Ireland Fund and the Infrastructure, Climate and Nature Fund. ISIF has further strengthened its programme of investments across its priority themes, and is ahead of schedule in its 5-year €1bn Climate Action programme, with over 77% of the total already committed after a little over three years. NewERA, meanwhile, has provided financial and commercial advice to Government Ministers and Departments, with a particular focus on climate and Ireland’s transition to a low-carbon economy. CSO figures show increase in business energy use The Central Statistics Office (CSO) recently published statistics on business energy use in 2022, which found that energy use by Irish resident enterprises increased by 22% in 2022. There was a 1.3% increase in energy use by the industry sector while it rose by 47% in the services sector. The cost of energy purchases by Irish resident enterprises increased by 83% from €8.8 billion in 2021 to €16.2 billion in 2022. Overall, the services sector accounted for 54% of business energy use in 2022. The total quantity of renewable energy purchased by enterprises in the industry and services sectors was 8% higher in 2022 compared with 2021. Irish Science Media Centre to tackle rising misinformation A new all-Ireland Science Media Centre (SMC) has opened on a pilot basis to combat misinformation in news media and foster a deeper public understanding of science. Its objectives include tackling misinformation, enhancing public understanding of science, championing higher standards in science reporting and communication, improving science literacy in news media and the wider public, and providing policymakers with evidence-based information on topical controversies through the news media. The pilot is part of the development of the global network of Science Media Centres. Earlier this year, the World Economic Forum warned that AI-driven misinformation is now world’s biggest short-term threat. IAFA & IAASA Collaborations The Irish Accounting and Finance Association (IAFA) and the Irish Auditing and Accounting Supervisory Authority (IAASA) are delighted to launch a research funding competition to support and advance research projects for IAFA members. Applications from researchers within all accounting and finance disciplines are welcome from now until 30 September. Projects that can demonstrate relevance to policymakers, standard setters, regulators, as well as the academic community, professional advisors and business owners are particularly welcome. Research projects with a specific focus on the following areas are encouraged (see call document for specific topics): Sustainability in Accounting Education, Sustainability Reporting, Sustainability Assurance, Audit Quality. UK/Northern Ireland news Proposed changes may ban zero-hour contracts Economy Minister Conor Murphy has proposed changes to employment law in Northern Ireland that could ban zero-hour contracts. The consultation aims to introduce new legislation next year, potentially replacing zero-hour contracts with a "banded hours" system, ensuring workers are guaranteed an average number of hours annually. Another proposal includes granting workers the right to one week of unpaid carers leave every 12 months, aligning Northern Ireland with the rest of the UK. The consultation will run until the end of September with the responses informing the draft legislation. Funding for investment in sustainable technologies – manufacturing sector Funding has been made available to businesses developing sustainable technology solutions for the manufacturing sector. The funding is available under The Investment Readiness Programme, part of the Made Smarter Innovation Sustainability Accelerator. Eligible businesses must be registered and active in the UK, and looking to raise investment and grow their business in the next six to12 months. Where next for SMEs and Net Zero? The UK Energy Research centre ran a webinar ‘Where Next for SMEs and Net Zero?’ on Tuesday 18 June 2024. The recording is now available on the UKERC website, where you can also download presentations and see related reports from UKERC's ‘SME Governance for Net Zero’ research project.  Europe News Denmark is reportedly set to introduce the world’s first carbon tax on agriculture after a an agreement between the Danish government, farmers, the food industry, and environmental groups. The law is expected to be approved by the Danish parliament later this year, with farmers reportedly to be charged “almost €100 a year” per cow once the levy rolls out in 2030. A new strategic foresight report, published by the European Environment Agency, calls for the need to further align European economic, social and security policies with the climate and environmental objectives. The ‘Europe’s Sustainability Transitions Outlook’ report highlights the need to take a broader view on such priorities as security, competitiveness or fairness, recognising that Europe’s socio-economic systems and wellbeing of its citizens depend crucially on a healthy and resilient natural environment, a stable climate and long-term sustainable use of resources.  World news The UN Global Compact is launching a global community for SPARK designed for small and medium-sized enterprises (SMEs) participating in the UN Global Compact. The Compact is the world’s largest voluntary corporate sustainability initiative. The aim of SPARK is to facilitate the exchange of best practices with some of the most innovative and influential SMEs around the world, to build knowledge, and form partnerships to accelerate progress toward the Sustainable Development Goals (SDGs).   Worth your time ‘Temperature Check’ a monthly climate newsletter issued by The Journal, has clear, easy-to-read coverage of climate policy and news from around the world. (Find it here) Articles Market forces are not enough to halt climate change (Irish Times) Wildfires ravaging Arctic Circle - EU monitor (BBC) Renewable energy accounted for 44.7% of all electricity production in the EU last year, making it the leading source of electricity in the bloc. (Euronews) Temperatures exceeding 30 degrees likely to become more common in Ireland – study (Irish Times) Sharp rise in number of climate lawsuits against companies, report says (The Guardian) Navigating exams with neurodiversity – Antje Derks from Chartered Accountants Worldwide explores strategies for success and self-advocacy (The Bottom Line – Accountancy Ireland) Podcast There are more than 800 startups promising to draw carbon dioxide from the air to help the world meet its climate goals. But there may not be enough buyers willing to pay for that service. Listen to more on Zero: The Climate Race (from Bloomberg) Resource: Business guides to communicate sustainability efforts The UN Global Compact Network United Kingdom has launched a series to help businesses overcome difficulties they may be experiencing in communicating their sustainability efforts. SDG Storytelling for Sustainability  guides companies on using the SDGs as a framework to communicate ESG strategies, and educate internal stakeholders on the importance of sustainability integration. Jobs A financial/reporting accountant is sought for an 'Energy/Sustainability/Renewables' role in Dublin 2 - NQ ACA. Find out more here. Upcoming Events The Law Society of Ireland 2024 Environmental, Social and Governance (ESG) Massive Open Online Course (MOOC) Delivered over 5 weeks, the Law Society’s 2024 MOOC on ESG is now available online and on demand. The MOOC is free and open to all, and Institute Professional Accounting Lead, Dee Moran, is speaking on the topic of the sustainable reporting landscape. Carbon Brief What are the key climate priorities for the new UK government? Following the UK general election, Carbon Brief is hosting a free webinar next week to discuss the key climate issues facing the new government. No formal presentations – just an informed discussion with three expert panellists who will also be answering your own questions. Panellists: Chris Stark, CEO of the Carbon Trust and former chief executive of the Climate Change Committee Emma Pinchbeck, chief executive, Energy UK Camilla Born MBE, independent climate advisor and former UK senior official at COP26 Webinar, Tuesday, 9 July, 10-11am (BST) International Sustainable Finance Centre of Excellence (ISFCOE), The Evolving Landscape of Sustainable Finance in Ireland: Legal, Regulatory and Market Insights IFSCOE has announced it is to launch two Skillnet Ireland-funded reports: a Legal & Regulatory Study prepared by Matheson, and the Market Report prepared by KPMG. This event is a culmination of extensive research and analysis on the evolving landscape of market regulations and sustainability practices, and it promises to offer invaluable insights. In person, 10 July 2024, Time: 9AM – 10.30AM, Venue: Euronext Dublin Chartered Accountants Ireland, Chartered Accountants Ireland Leinster Society 47th Published Accounts Awards, closing date for entries is next week. Includes two sustainability categories: Sustainability and ESG Reporting Award – Listed entities Sustainability and ESG Reporting Award – Unlisted entities Sustainable Energy Authority of Ireland (SEAI) SME Business Briefing Join SEAI for a webinar to learn how your business can save money and energy this year. A full agenda will be issued shortly.  Virtual, Tuesday, July 23, 2024 10:00 AM - 11:00 AM Chartered Accountants Ireland, The SME and SMP Sustainability Workshop A workshop for SMEs and small/medium accounting practices (SMPs) on how to get ahead of the sustainability curve. This interactive half-day session will focus on positive actions you can take to understand the ‘trickle-down’ effect of the Corporate Sustainability Reporting Directive ('CSRD’), green public procurement, access to sustainable finance, and how to make your practice more sustainable to save costs and respond to staff and client demands. Virtual, Chartered Accountant House, 13 September, 9.30- 12.30; €60 members; €75 non-members; 3 hours CPD points. EPA, Circular Economy Conference 2024 Online and in-person (Aviva Stadium, Dublin), 25 September Environment Ireland, Environment Conference In person, Croke Park, 17 October IAFA & IAASA  Integrating Sustainability Reporting and Assurance into Accounting Education Conference The conference is a collaboration between IAFA and the Irish Auditing and Accounting Supervisory Authority (IAASA) and aims to build awareness of the implications of sustainability reporting & assurance for accounting education, and to foster meaningful dialogue & collaboration among stakeholders to drive positive change. It will explore: Challenges and opportunities facing accounting education in the context of sustainability reporting and assurance, Corporate Sustainability Reporting Directive (CSRD) and its implications for accounting education, Future skills for sustainability reporting and assurance, Strategies for enhancing accounting education and student skills development. In person, 1st November, Maynooth University Network for Chartered Accountants working on ESG projects Are you a Chartered Accountant working in ESG or working on ESG-related projects? Would you like an opportunity to engage with other Chartered Accountants working in this space to share insights, challenges and opportunities? Chartered Accountants Ireland now has a network to allow members working in sustainability/ESG to meet and discuss all matters of interest re ESG and accounting. Next meeting: Wednesday, 25 July, 14:00-15.30 Zoom If you would like to attend, please email sustainability@charteredaccountants.ie     You can find information, guidance and supports to understand sustainability and meet the challenges it presents in our online Sustainability Centre.