In this issue the CBI's Fitness & Probity review process, recently put in place following the McMenamin 'AB' judgement. features prominently and in relation to this we express a hope that the review will take due account of the point made by legal adviser James Grennan that "our constitutional democracy protects fundamental rights to fair procedures and to earn a living".
On the bread and butter issue of earning a living, new Minister of State in the Department of Finance Neale Richmond has hit the ground running setting out an emphasis on the potential for jobs in the financial services industry, in Dublin and the regions, and, in a welcome new point for the official agenda, the potential of moving up the value chain for an IFSC that has now reached maturity, emphasising the potential for expanded 'front office' activity in the future mix for the industry.
That future mix is rich and varied, with many aspects emphasised in the latest Action Plan for the Ireland for Finance Strategy, recently published. This plan, is an agenda for state agencies in the main, and emphasises sustainability this year, alongside other key aims, and sits alongside other plans emanating from Government, most importantly in the year to come in the area of taxation and expenditure, referencing a 'whole of government' approach for SMEs, such as that outlined by Deloitte's Tatiana Kelly.
There is also the Department of Finance's Funds Industry review, now underway in earnest, and other submissions, such as that for a branded Irish SPE vehicle, which IDSA's CEO Gary Palmer speaks about.
This month's issue of the Irish Tax Monitor includes an assessment of the Department of Finance's Strawman proposal on the introduction of a participation exemption for foreign dividends, while tax policy enhancements to support Irish SMEs also feature. Roundtable topics include BEPS Pillar 2 and investment funds; share options; VAT on FS negotiation services; TAC determinations; ERR updates and aircraft leasing.
In the latest issue of Finance Dublin the strength in depth of Ireland as a financial services centre, serving capital markets that span the globe is vividly in evidence in this month's issue, which profiles in outline the 220 Deals that have been nominated for the Finance Dublin Deals of the Year 2024. The Awards, which will be announced in 2 months' time, will reflect the ever evolving markets that are covered in the five broad categories listed, including M&A, Debt and Equity Capital Markets, Financial Services and Loans and Financing, be it in banking or more broadly based credit origination.
Also in this issue: analysis of IFSAT's findings in AB and Central Bank of Ireland; the Commission's AML package; criminal enforcement of financial services law; Sustainable Banking, reform of SFDR; Ireland's new investment screening rules.
This month's issue analyses the fundamental changes in the taxation of financial services ushered in the Finance Act. Amongst these are changes Revenue's approach to the taxation of leasing, and the ramifications for Ireland aircraft leasing sector. Interest deductibility rules and the new concept of 'qualifying finance companies' introduced in the Act also feature. Further implications of a move to a territorial tax system are analysed as well as the concept of 'trading' in Irish tax law, which has implications for funds, insurance and the tax treatment of many other Irish corporate structures.
In the latest issue of Finance Dublin we feature the views of the newly incumbent Lord Mayor of the City of London Michael Mainelli who visited Dublin in a whirlwind series of meetings, including with the Taoiseach for an hour at the end of January, and in an interview in the issue he makes very clear that London will offer an open door to Dublin and its businesses as a financial centre - as a partner to the City's necessary new post-Brexit focus on a truly global role.
Also starting the year on the front foot are the Department of Finance who made their final pitch to secure for Ireland the HQ of AMLA, the proposed headquarters of the European Union's Anti Money laundering Authority. While the jury will be out on the siting for it until a scheduled decision on February 22nd, the mood music seems to be good as to the prospects of it coming to Ireland.
2024 brings with it 'a brand new tax system' as BEPS Pillar Two, which includes the introduction of a minimum tax rate for the world's largest corporates, enables a once-in-a-generation reform of Ireland's corporate tax regime. These BEPS reforms and further planned moves at EU level, such as 'Unshell' proposals, mean refinements to Ireland's tax offering will be required to remain competitive.
In this issue the opportunities for growth that present themselves for Ireland's funds industry for 2024 are examined including the soon to be implemented update of the European Long Term Investment Fund (ELTIF) regime, coined ELTIF 2.0. The incoming IAF/SEAR is considered, with the broad Impact welcomed by Lisa Kealy, EMEIA ETF Leader of EY. Gerry Brady, a funds board director, and former CEO of leading funds administration organisations in Ireland provides an overall assessment, making the point that many elements of the IAF already exist in existing executive and board obligations, and that on balance it will have a positive impact on the jurisdiction's standing.
The latest issue has an assessment of the incoming (on December 29th) IAF legislation's constitutionality and vulnerability to legal challenge by the Vice Chair of the Financial Services Bar Association, John Freeman BL. This is part of the issue's overall cover feature, and it appears alongside Central Bank Deputy Governor Derville Rowland's reassurances on the Bank's intentions to be proportional and mindful of the potential the IAF will have to improve financial regulation in Ireland. These articles along with new expert adviser assessments, build on the various IAF features in the October and November issues in particular.
The Key Employee Engagement Programme (KEEP), including an extension of the programme to 2025 features and comes as the Department of Finance launches a new Public Consultation on the taxation of share-based remuneration. The consultation will form part of a broader review of share-based remuneration and the Irish share scheme environment to ensure Ireland's options 'meet the needs of modern companies and their employees.'
With the Central Bank releasing its final guidance on the Individual Accountability Framework financial services industry legal advisers comment on the regime as it is set for coming into effect from December 29th next. While a number of changes have been welcomed, industry concerns persist about the new powers with advisers pointing out that they still fall short of allaying uncertainties about the implementation of the regime.
The race to host the soon-to-be established EU Anti Money Laundering Authority (AMLA) also features in the issue with Ireland's credentials being backed by a strong bid from the Government, with Dublin topping a poll of global anti-crime professionals as their recommended best location for the AMLA HQ. The Government had no hesitation in doubling down on its position regarding the Apple tax case once the AG from the European Court of Justice published his surprise decision to refer it back down to the lower court that decided initially in Ireland's favour. Analysis of the factors behind this important and landmark case, one that will be central to Ireland's international tax identity as an EU member state is in the November issue.
Elsewhere in the issue there are a number of developments that can fuel positive expectations about the consolidation of IFS business in Ireland. These include the green light from the Central Bank of a full fledged regulatory Sandbox, of similar features to those in other jurisdictions. It will add to the 'Innovation Hub' that the CBI has operated since 2018, and which received 375 engagements from project developers. Also, looking at developments north of the Irish border, Jenny Santiago Young, Regional Director for Ireland of UK Government Agency Invest Northern Ireland, highlights the unique strengths of the sector in NI, and which should be seen as complementing businesses in the Republic.
In this issue, the unexpected latest twist in the Apple case is analysed, with the non-binding opinion of the EU Court of Justice's AG likely to mean a final judgment remains years away. It is now likely to run and run, with the Irish Government instantly doubling down on its position, as confirmed by Minister for Finance Michael McGrath. The Finance Bill is also analysed, as are the latest developments around BEPS, including the new MLC for Amount A and the Revenue Commissioners plans to modernise Ireland's VAT system.
The latest issue of Finance Dublin contains a series of articles by the heads of the biggest representative bodies in the financial services industry and leading company directors' institutes about the most radical set of proposals for reform of the regulation of the industry since the Great Financial Crisis - the Individual Accountability Framework (IAF). They paint a clear picture of growing unease about the framework with the bodies calling for more time to assess the IAF's potential consequences, for examination of possibilities for reform, and for a postponement of the measures until mid 2024 at least.
Regulation was cited as one of the key reasons behind the erosion of Ireland's attractiveness as a hub for international insurance in an Insurance Ireland-commissioned report by Milliman, presented at the European Insurance Forum. The broader cost of doing business and talent shortages were also identified to help invigorate Ireland's cross-border insurance industry.
The dangers in the delay of revamping aspects of Ireland's corporate tax regime feature with The Irish Tax Institute President Tom Reynolds expressing disappointment (he is joined in this by BDO's Angela Fleming in the Irish Tax Monitor) that the introduction of territorial tax elements to the Irish regime has been decoupled from the introduction of BEPS rules.
While the introduction of BEPS around the world continues, with the Irish Government's BEPS Pillar II legislation contained in the Finance Bill, in this month's issue we feature the potential channels for resolving tax disputes under the new international tax rules. How to best use the time afforded by the likely delay to the introduction of the EU's ViDA reforms also feature as do the main Budget points for the financial services industry including interest deductiblity rules, the bank levy and newly enhanced R&D regime.
The Finance Dublin Annual Accountancy Survey shows a year of strong fee income growth amongst Ireland's leading firms and big changes at the top of the table. The figures for latest year ends ending in 2022 and 2023, show Republic of Ireland fee income growth of 17% for 2022-3 with a new leader as all of the Big Four firms switch places in terms of their size and growth rankings at the top.
The "Agile" software project management system can also be applied to complex financial services projects. EY's Jeff Cowhig and Kieran Hanley assess the possibilities, with examples of its successful application in FS.
The 2023 edition of the Finance Dublin Yearbook, the annual print & E paper snapshot of Ireland's financial services centre - including the world's 3rd largest funds centre, the 6th largest financial services exporter, and with our updates of the significant developments in the profiles of the top 500+ financial services companies and institutions in Ireland.
The Yearbook's 2023 Review & Outlook provides an overview of the 'state of the centre' - reflecting a year of exceptional progress as IFS industry in the jurisdiction of Ireland deepened and strengthened, despite the headwinds caused by monetary tightening in global financial markets. This is covered in a series of analytical articles in the publication, featured here.
The Yearbook contains the 2023 Finance Dublin Yearbook's Professional Services Guide, with its Who's Who of advisers and practitioners in the jurisdiction.
The full E-Paper edition can be accessed by subscribers HERE.
With uncertainty around the makeup and timeline of the EU's Unshell Directive Maple's Lynn Cramer assesses the current proposals and demands on in-scope entities. With the proposed implementation date of 1 January 2024 now likely slipping to 2026, she says, 'Given the general desire of taxpayers for stability (and, yes, certainty), the two year back and forth in relation to these proposals is highly unsatisfactory. That is particularly true given that aspects of the proposals involve a review of activities and fact patterns during a lookback period (of one year, or two - yet more uncertainty).'
Despite uncertainty around timelines for the EU's ATAD 3 (the Unshell Directive) Deloitte's Anna Holohan outlines the actions that can be taken now in preparation for the new rules so that entities can demonstrate substance or ease compliance with the proposed reporting standards that could be required.
BDO's Mark O'Sullivan outlines the changes and implications for companies availing of the R&D Tax Credit following significant updates by the Revenue Commissioners, and the considerations companies availing of the credit need to take when deciding to opt-in to the new rules during the transition period.
July saw the publication by the Department of Finance of data on the background to the 2024 Budget, in the Tax Strategy Group papers. This article puts forward a hypothesis positing why, after 2016, there has been an acceleration of the growth in the Corporation Tax yield.
As a result of the latest BEPS guidance from the OECD new areas of concern are beginning to come into focus for stakeholders, with one such areas, aircraft lessor's ability to avail of BEPS SBIE examined in detail in this month's Irish Tax Monitor. Life insurance, and in particular the treatment of the Ireland-specific 'old basis business', is also raised as an area that requires guidance in relation to BEPS rules. Other topics featuring this month include ESG and the tax function; the EU's Carbon Adjustment Mechanism, simplifying Ireland's interest deductibility rules, VAT developments and the latest key TAC decisions.
The prospect of Double Taxation of US corporates in Ireland has been raised by the American Chamber of Commerce in Ireland if the proposed QDTT to level up Irish corporation tax to 15% for qualifying (large) companies is not recognised as creditable foreign tax in the US.
Writing in the latest issue of the Irish Tax Monitor, Louise Kelly, Partner, Corporate and International, Corporate Tax, Deloitte Ireland LLP (pictured) says: "both sides of the political divide in the US may coalesce around the need to give an FTC for the QDTT to ensure that US groups are not financially disadvantaged; it is perhaps the one aspect of Pillar Two on which it could be hoped that a consensus would be reached at an early stage".
