Anti-money laundering
ACCA regularly meets with the Garda Financial Intelligence Unit (FIU) and Garda National Economic Crime Bureau (GNECB) under the auspices of the Joint Practice Group. This allows for information sharing and the onward dissemination of warnings on developments in money laundering and related crime. The recent meeting highlighted:
- An increase in investment fraud, sometimes using cloned websites or AI generated celebrity endorsement.
- A trend where mass resignation or rapid changes in directors for a company is a ‘red flag’ indicator of breach of sanction or of criminal activity.
- The new EU sanctions helpdesk will undertake due diligence checks on a new client for a practice finding it difficult to obtain sufficient reliable information about the client.
- Forewarning of major changes to the Register of Beneficial Owners necessitated by the 6th Anti-Money Laundering Directive (6AMLD).
This video will assist members who have to make a Suspicious Transaction Report.
Staff meals
For some time, there were tax issues arising where, for example, a lunch was provided to staff during a staff meeting. It was argued by Revenue that such catering gave rise to a benefit in kind (BIK).
Revenue has clarified the tax due on subsidised or free staff canteens
Following lobbying by ACCA through the Consultative Committee of Accountancy Bodies (CCABI), Revenue has now rationalised the position. Revenue has clarified that: ‘a taxable BIK will not arise where the following conditions are met:
- a specific operational requirement exists (eg a meeting where lunch is provided to avoid staff having to leave, staff working after normal hours, etc); and
- the meals are consumed on the employer’s premises; and
- the cost per employee does not exceed the civil service daily subsistence rate… currently €19.25 per employee per working day.’
The Revenue guidance also clarifies the taxation position regarding subsidised or free staff canteens.
Income tax disclosure
The European Union (Disclosure of Income Tax Information by Certain Undertakings and Branches) Regulations 2023 require EU-based ultimate parent undertakings or standalone undertakings to publish a report on income tax information once their net turnover is above €750m, for each of the last two consecutive financial years.
EU-based medium and large subsidiaries of a non-EU ultimate parent undertaking are required to publish a report on income tax information of the parent undertaking.
EU regulations implement a public ‘country-by-country’-style tax transparency regime in Ireland
Medium and large undertakings have the meaning in Article 3(4) of the Directive, which are that they: do not exceed the limits of at least two of the three following criteria; and exceed the limits of at least two of the three following criteria:
- balance sheet total: €20 000 000;
- net turnover: €40 000 000;
- average number of employees during the financial year: 250.
The Regulations implement a public ‘country-by-country’-style tax transparency regime in Ireland, requiring larger companies to publicly disclose income tax information by jurisdiction.
They came into operation for financial years beginning on or after 22 June 2024. If the financial statements are audited, the auditor must state whether the undertaking was in scope in the prior year and whether the report was published.
Where the company is subject to audit, the statutory auditors report shall include a statement:
(a) on whether the undertaking was required to publish a report on income tax information under the Regulations for the financial year preceding the financial year to which the report of the statutory auditors relates; and
(b) where the statutory auditors state that the undertaking was required to publish such a report, whether or not the undertaking published a report on income tax information in accordance with the Regulations.
Note that the wording for this auditors statement is included in the revised audit report guidance issued by the Irish Auditing and Accounting Supervisory Authority (IAASA) and will need to be included for all audit reports for financial statements for accounting periods beginning on or after 22 June 2024.
A private members bill intends to address concerns about service providers’ qualifications
For the avoidance of doubt, in smaller companies the auditor still has to confirm that the disclosure requirements do not apply, so this new audit report wording change will apply to all audit reports.
Auditors will have to check if a company is in scope and if they are in scope if they have published the information required by the Regulation.
Accountant title
A Private Members Bill, the Companies (Protection of Title: Accountant) Bill 2025, was introduced to the Dail by a government backbencher with the intention of protecting the public by ensuring that they are not misled as to the qualification of a service provider.
The proposal does not protect the work of an accountant, just the title. Unqualified persons will still be able to perform accounting-type work. Circumventing the legislation will be easily achieved by just using a different title, such as ‘taxation specialist’ or perhaps an abbreviation such as ‘Acct’s’ or using the Irish version of the title ‘Cuntasóir’.
The Minister responsible, in an answer to a Parliamentary Question some weeks ago, said that there was ‘no evidence of public demand, or evidence of abuse of the term to justify the introduction of such a protection’, although she also added that ‘the Department remains open to further engagement’.
