A survey of Chartered Accountants across all sectors in the Republic of Ireland economy has shown that Brexit is the number one concern for finance leaders in the year ahead. An overwhelming 87 percent of respondents said that the Republic of Ireland’s trade relationship with the UK would be badly affected. Respondents told us that free trade in goods and services between the UK and Republic of Ireland as well as a frictionless border would be the most important components of any Brexit deal.

The survey results closely paralleled the results of a similar survey carried out in April by the Chartered Accountants Ulster Society which measured Brexit sentiment among Chartered Accountants in Northern Ireland. 96 percent of Northern Ireland Chartered Accountants who responded said free trade in goods and services needs to be an important aspect of any deal negotiated with the EU. 95 percent were opposed to a hard border. Furthermore 80 percent of Northern Ireland Chartered Accountants believed that Northern Ireland will be more negatively affected by Brexit compared to the rest of the UK.

However, some Chartered Accountants did identify some potential upsides for Ireland when UK ultimately leaves the Union. In terms of opportunity for the Republic of Ireland, 37 percent of respondents said that Brexit would have a positive impact on FDI. 45 percent of respondents view the opportunity for financial services headquarter operations relocating to Ireland as being significant.

Brian Keegan, Director of Public Policy and Taxation at Chartered Accountants Ireland said “These findings confirm that there is one crucial outcome needed for Ireland from the Brexit negotiations and that is a smooth customs regime between the EU and the UK. Post-Brexit, and without a trade agreement, customs duties will typically add anything between 2% and 50% or even more to the cost of imports and exports between Ireland and the UK. Even if the outcome of Brexit talks between the UK and the EU results in free trade, there will still be customs controls applied.”

As an all-island business body, Chartered Accountants Ireland is ideally positioned to identify these commercial concerns and is highlighting them to the negotiators. Chartered Accountants Ireland remains optimistic that sensible and practical solutions can be found which will minimise disruption to business.