Since the announcement in the Budget, now confirmed in Finance Act 2011, of changes to the tax treatment of professional subscriptions paid by employers for their employees, Chartered Accountants Ireland has been in regular contact with the Minister, the Department of Finance, and the Revenue Commissioners, to set out the issues these changes create for members of our Institute.

We have set out the legal and regulatory framework, particularly with reference to the Companies (Auditing and Accounting) Act 2003, within which members of our Institute must operate and the support offered by our organisation to our members from professional subscriptions. We have requested that the former BIK exemption for professional subscriptions, where it applied, should now translate to a Schedule E deduction for the employee.

At the time of writing, Chartered Accountants Ireland understands that a statement of practice or similar direction may be issued by Revenue shortly to clarify how they will operate the new arrangements.

We acknowledge that this is an urgent matter for our member firms wishing to determine their approach to professional subscriptions for 2011 and beyond and for our employed members who are keen to finalise their subscription arrangements. Chartered Accountants Ireland has stressed to Revenue that the matter is time sensitive. Members will be notified of any developments or conclusions on this matter.