Pharma and Life Science Tax Programme Jan 13 - Deloitte...2021/01/13 · Colin Forbes Partner, Tax...

Pharma and Life Science Tax ProgrammeWednesday 13th January 2021

© 2021 Deloitte Ireland LLP. All rights reserved. 2

Colin ForbesPartner Tax & Legal

Welcome


Pharma and Life Science Tax Programme

Event Date Topics

Today Employment tax issues including revenue audits, health-checks & reward

Wed, 27 January Global mobility matters including COVID-19 arrangements, Brexit & immigration

Wed, 10 FebruaryShare remuneration, corporate tax, transfer pricing, VAT & customs

Wed, 24 February Intellectual property, R&D tax credits & government grants


Colin ForbesPartner, Tax & Legal

+353 1 417 2993

[email protected]

Today’s speakers:

Breda MullaneyDirector, Tax & Legal

+353 1 417 3622

[email protected]

Jane DrewManager, Tax & Legal

+353 1 417 2646

[email protected]

Anne KelleherDirector, Tax & Legal

+353 1 417 2901

[email protected]

Debbie JenningsDirector, Tax & Legal

+353 1 417 2530

[email protected]

mailto:[email protected]






AgendaWelcome and Introductions

Thank you and Closing

Employment Tax - Recent Issues and Updates- Revenue Audits and Interventions

Reward- Future of Rewards- Gender Pay Gap Reporting


Breda Mullaney Director, Tax & Legal

Debbie JenningsDirector, Tax & Legal

Employment Tax


Recent Issues / Updates


COVID-19 - Reliefs and Concessions – Local Employees

Taxis to/from Work

Health & Safety concerns – No BIK(Ceases 31 Dec 2020)

COVID-19 Testing/ Flu Vaccine

Medical insurance

Different treatment depending on whether refund made to the employer or refund split between employer and employee

Working/ Partying from Home

E-workers: €3.20 per dayEmployer Provided EquipmentSeasonal Parties

Small Benefit Exemption

Relaxation of rules for vouchers given to frontline and other key staff(Ceases 31 Dec 2020)

Company Cars

No BIK if employer prohibits use/takes back possessionMileage based on Jan 2020 ( Was to cease 31 Dec 2020 – but now continues)

No BIK for testingFlu vaccine – new concession, but appears to be just for 2020

Employer Provided Accommodation

Temporary in natureTo mitigate against transmission risks(To be reviewed in first half of 2021 re cessation)


Updated guidance in early January 2020 (eBrief 03/20)

Conditions:

− Is there a statutory requirement for the membership?

− Is there a legal reason that necessitates membership to perform the employees duties?

− Is membership commercially necessary?

− Is membership an indispensable condition of the tenure of employment?

Check Revenue indicators!

Professional Subscriptions


−New rules to be introduced from 1 January 2023 in relation to company vehicles

−Will apply 5 different categories depending on Co2 emissions

−Calculates the BIK based on the category of the vehicle and the business mileage

−BIK charge will be calculated at between 9% and 37.5%

−Currently calculated at between 5% and 30%

−Exemption for electric vehicles will be abolished

Company Cars


Revenue Audits / Interventions


A Changed Landscape

Landscape continually

evolving

Tax is being digitalised

Revenue’s access to

Information and use of

technologies growing

Risk related behaviour is

driving revenue audit/

compliance interventions

E-Audits will soon be the

norm


Hot Topics – Employment Taxes

Employee Expenses

Travel and Subsistence

DirectorsMobile

Workforce

Professional Subscriptions

Medical Insurance

Premiums –Gross versus

NetCompany Vehicles BIK

Contractors


What to

consider?

What to consider? What can you do?

Disclosure to Revenue

PAYE Settlement

Agreement

Health –Check

PAYE Modernisation

Co-operative Compliance Framework (CCF)


Anne KelleherDirector, Tax & Legal

Jane DrewManager, Tax & Legal

Reward


Changes planned for the next 12 months Thinking forward 5 years + what changes to reward could be made

• There is a clear correlation between

how companies have been impacted by

COVID-19 and their stance on salary

increases

• Greater flexibility in working patterns

• Movement towards companies

introducing new recognition schemes to

reflect the new working environment

• Companies differ in their approach to

reward framework changes from more

tactical i.e. introducing a new benefit,

to more wholescale changes focused

on simplifying reward frameworks

• Companies considering introducing RSUs

• Expected to see radical change in the

economy, society and the way we work

• Companies predicted that reward

frameworks would be simplified, with

increased transparency and flexibility

6%

10%

11%

17%

35%

0% 10% 20% 30% 40%

Non-financialmeasures

Less focus on variable pay

Considering RSUs in future

Simplicity /transparency

Flexibility

Future of RewardWhat changes are companies looking to make?

We asked companies what changes they were planning to make over the next 12 months and what changes they thought they might want to make in the future as the organisation evolves.

• Future of Reward - Below board reward structure summary, December 2020, Deloitte


Underpinned by fair pay and core rewards package

Base salary

Benefits

Bonus

• Narrowly defined

• Remain market based to providethe fundamental, baselinemonetary reward required to meetemployee expectations

• Become more personalized and dynamic to suit individual needs

• Align with what motivates individuals

• Agile and meets the needs of the remote worker

• More focused on instant recognition and collective sharing of success

Thoughts for the future

The future workforce, workplace and nature of work itself are shifting to become more agile, more digitalised

and more skills and experience based.

Future of Reward

Thoughts for the future

The future of reward will include new types of rewards which focus on different motivational levers.

Invest in the skills andcapabilities of theworkforce

Promote and encourage specific outcomes, performanceor behaviours

Translate and connect the organisation’s purpose, mission, ethics and values to worker’sinterests

Promote & encourage a thriving workforce and / or which enhance the workforceexperience

Equity

Traditional Reward Future of Reward

• Often one size fits all

• Sometimes opaque to employees

• Not always aligned to organizational goals and what workers value

• Future of Reward - Below board reward structure summary, December 2020, Deloitte


Gender Pay Gap Reporting

Expected elements in the calculation of GPG

Mean / Median

gender bonus gap

% of men and

women receiving a

bonus

% of men and

women in each pay

quartile

Mean / Median GPG

for employees on

temporary contracts

Mean / Median

GPG

Mean / Median GPG

for part-time

employees

% of men and

women receiving

BIK’s

What to consider, what you can do

• Employers with 250 or more employees.

• Submit the information to a designated public body as well as on company website

• Disclosure expected to be similar to the UK but with several additions

Reporting Requirements

• Legislation is before Dáil Éireann at the Fourth Stage

• Expected regulation and awareness 2021, estimated reporting end 2022

• EU Gender Equality Strategy 2020-2025 published in March 2020

Legislation

1. Engagement 2. Resources3. Know your

GPG4. Implement

changes5.

Communications


Colin Forbes Partner

Close


Pharma and Life Science Tax ProgrammeOther events as part of the series

Event Date Registrations Links

Wed, 27 January Global mobility matters including COVID-19 arrangements, Brexit & immigration

Wed, 10 FebruaryShare remuneration, corporate tax, transfer pricing, VAT & customs

Wed, 24 February Intellectual property, R&D tax credits & government grants

Thank you for attending

Webinar | Wednesday 13th January

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