Tax Treatment of Meals Provided to Employees

Tax Treatment of Meals Provided to Employees

Revenue published new guidance on the provision of staff meals which has come into effect from 1 October 2025 (Tax and Duty Manual Part Part 05-01-01o).

The guidance reiterates Revenue’s position in relation to the existing exemption for meals provided in canteens open to all staff and also provides welcome clarity on the tax treatment of staff meals provided outside a designated ‘canteen’ setting.

The term “meals” in this context is interpreted broadly to include a variety of food and beverages such as hot meals, sandwiches, snacks, fruit, biscuits, tea, coffee, water, juice, and soft drinks. Alcoholic beverages are explicitly excluded.

1. Meals provided on the Employer’s Premises

Meals brought onto and consumed on the employer’s premises will not be considered a taxable benefit-in-kind (BIK), provided the following conditions are met:

  1. The meals are made available to all employees; and
  2. Consumption takes place on the employer’s premises.

Example A: A hotel has 10 employees and there is no designated staff canteen. All employees are provided with a meal and a soft drink in the hotel restaurant each day they are working. As the meals are provided to all staff, and are served and consumed on the employer’s premises, the cost incurred by the employer will not be treated as a taxable BIK.

Example B: An employer with 30 office-based staff provides fruit baskets and non-alcoholic beverages in the board room for 10 senior staff members. There is no operational requirement for providing the refreshments. As the refreshments are not available to all staff, a taxable BIK arises for the 10 staff that avail of the benefit.

If meals are not available to all staff, or not consumed on the premises, the cost is a taxable BIK.

2. Working Lunches

Where employers provide meals to only a specific cohort of employees, such as “working lunches” or “working dinners”, to facilitate operational requirements / business needs, Revenue has confirmed that these will not be treated as a taxable BIK, where the following conditions are satisfied:

  1. A specific operational requirement must exist (e.g., meetings, overtime),
  2. The meals are consumed on the employers’ premises,
  3. The cost per employee must not exceed the 5-hour Civil Service subsistence rate (currently €19.25).

Example A: In November 2025, in order to complete a stock take, 10 of the 55 staff of a supermarket work overtime until 11:30pm. The employer orders in pizza at 8pm for the 10 employees so the employees do not need to leave the store. The total cost of the pizzas is €165. As the cost of the pizzas for each person (€16.50) does not exceed the 5-hour rate, there is an operational requirement and the pizzas are consumed on the employer’s premises, this will not be treated as a taxable BIK.

Example B: A manufacturing plant that usually ceases production at 8pm each evening schedules a non-routine night shift for 12 employees to meet production targets, providing dinners costing a total of €300. The cost incurred per employee is €25. As this amount exceeds the 5-hour rate, a BIK charge to tax arises on the full €25 per employee.

Where, tea, coffee, biscuits, etc. are available to all staff on the employer’s premises, this will not impact the daily limit per employee.

3. Meal Vouchers

The long-standing 19c deduction per voucher is abolished. From 1 October 2025, the full value of any employer-provided meal vouchers is treated as a taxable Benefit-in-Kind (BIK) and must be included in the employee’s notional pay for Income Tax, PRSI, and USC purposes.

Summary

Scenario Taxable BIK Key Conditions
Staff Canteen No ·       Open to all staff
Meals for all staff on company premises No ·       Available to all staff

·       Consumed on premises
Working lunches (operational need) No ·       Operational Need

·       Consumed on premises

·       ≤ €19.25 per person
Meals for select staff (no operational need) Yes ·       Not available to all staff, OR

·       No operational requirement
Meal vouchers (from 1 Oct 2025) Yes ·       Full face value taxable

·       No 19 cent deduction

To avail of the tax-free treatment, employers must maintain adequate records including the date the refreshments were provided, the total cost of the refreshments and the number of employees who availed of the refreshments.

Revenue may conduct spot checks, and where the daily cost limit is exceeded, the entire cost becomes taxable as a BIK and must be included in payroll for Income Tax, PRSI, and USC purposes.

Should you require any assistance on the  Tax Treatment of Staff Meals, please contact us.

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Revenue Issues Guidance on Karshan Disclosure Opportunity for Employers

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Revenue Issues Guidance on Karshan Disclosure Opportunity for Employers

In October 2023, the Supreme Court delivered an important judgment on the key factors to be considered to determine whether a worker is an employee or self-employed for income tax purposes. The Court decided that the question should be resolved using a five-step process.

Revenue then published guidance in May 2024 explaining the new five-step decision-making framework. It encouraged all businesses to review the nature of any contractor-type arrangements and consider any implications the Kharshan judgement may have for them.

Revenue have recently announced Karshan Disclosure Opportunity Guidance, an opportunity for employers to correct any payroll tax issues in respect of 2024 and 2025, arising from bona fide misclassification of employees as self-employed workers without penalty or interest. The deadline for submission of disclosures to avail of these favourable settlement terms is 30 January 2026.

Businesses who engage contractors should self-review all arrangements with contractors in light of the new five-step framework to see if a disclosure is required before the 30 January 2026 deadline.

If you require our assistance with this, please contact us.

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Budget 2026: Strategic Certainty for Irish Business in Uncertain Times

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Budget 2026 Analysis: Strategic Certainty for Irish Business in Uncertain Times

Budget 2026 was delivered by Minister Paschal Donohoe with a clear commitment of investing in the future to safeguard Ireland’s economic stability. For business leaders, the message is one of prudent optimism: the government is balancing fiscal discipline with targeted supports to help enterprises navigate global volatility and seize new opportunities.

Economic Resilience and Fiscal Prudence

Minister Donohoe’s speech underscored Ireland’s robust economic fundamentals – record employment, robust growth in domestic demand, and a healthy public finance position.

Budget surpluses are being used to reduce public debt and build up the Future Ireland Fund and the Infrastructure, Climate and Nature Fund, projected to reach €24 billion by the end of next year. This approach is intended to shield the economy from external shocks and provide a buffer for future demographic and structural challenges.

Housing and Infrastructure: Unlocking Growth

For those looking to buy a home, the government’s focus on housing and infrastructure is particularly significant. Over €5 billion in capital investment is earmarked for housing delivery in 2026, with reforms to planning and design aimed at boosting supply and affordability. Key measures include:

  • VAT reduction on apartment sales (from 13.5% to 9%) to stimulate construction and address viability gaps.
  • New Derelict Property Tax and extension of the Residential Development Stamp Duty Refund Scheme to incentivise regeneration and development.
  • Additional funding for Home Building Finance Ireland, including €200 million for SME builders.

These initiatives are designed to ease housing pressures, support workforce mobility, and enhance Ireland’s attractiveness as a location for investment.

Taxation and Business Supports

Budget 2026 introduces several measures to support enterprise competitiveness and innovation:

  • Reduced VAT for hospitality and hairdressing to 9% effective July 2026, supporting over 150,000 jobs.
  • Enhanced R&D tax credit, increased to 35%, and improvements to the Key Employee Engagement Programme (KEEP) to help SMEs attract and retain talent.
  • Revised Entrepreneur Relief, raising the lifetime gains limit from €1 million to €1.5 million, and a new stamp duty exemption for SMEs and start-ups trading on regulated markets.
  • Participation exemption and interest regime reforms to simplify the tax code and align with international best practice.

The government is also investing in digitalisation, green transition, and access to finance, with continued support for the Digital Games Tax Credit, Accelerated Capital Allowances for energy-efficient equipment, and targeted grants for sustainability projects.

Labour Market and Cost Pressures

With the minimum wage rising to €14.15 per hour and ongoing cost-of-living challenges, the Budget includes adjustments to the Universal Social Charge (USC) to ensure low earners are not penalised. The increased minimum wage though will add to the cost pressures that many small businesses are operating under.

While the extension of the Foreign Earnings Deduction (FED) and Special Assignee Relief Programme (SARP) and supports international mobility and export growth, the increase in the minimum entry salary threshold for the latter to €125,000 is restrictive.

Climate and Sustainability

Budget 2026 maintains Ireland’s commitment to climate action, with increased carbon taxes, extended supports for retrofitting and electric vehicles, and incentives for renewable energy generation. Revenues from carbon taxes are ring-fenced for social welfare and just transition measures, ensuring a balanced approach to sustainability.

Conclusion: Certainty, Competitiveness, and Confidence

For now, the days of “one-off’’ relief measures and ‘’give away budgets” are over. Budget 2026 is not about satisfying short-term objectives. People are now being asked to commit to strategic choices that will sustain Ireland’s economic success and competitiveness and enable a more balanced return for all in the future. That’s the theory anyway!

View the Budget 2026 highlights here.

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Budget 2026 Highlights

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Budget 2026 HighlightsMinister for Finance, Paschal Donohoe delivered the final Budget today, 7 October 2025. Below we outline the highlights of Budget 2026.

Personal Tax

  • No changes announced to Income Standard Rate Bands with the single band remaining at €44,000, with the married single earner at €53,000, and the married dual income band at €88,000.
  • Personal, PAYE, Earned Tax credits: similarly no changes to personal tax credits.
  • Rent Tax Credit: while remaining at €1,000, a commitment to increase over time was announced along with an extension of the credit to the end of 2028.
  • Small change to the second rate-band of Universal Social Charge to €28,700. The concession for full medical holders earning less than €60,000 is to be extended by two further years.
  • Mortgage Interest Tax Relief extended for a further two years with a reduced value applying in the final year.

 Enterprise/SMEs

  • Entrepreneur Relief: the lifetime threshold increases to €1.5m from 1st January 2026.
  • Key Employee Engagement Programme (KEEP) is being extended to the end of 2028.
  • The Special Assignee Relief Programme is being extended for a further five years, with the minimum qualifying income increasing to €125,000 to ensure the relief is appropriately calibrated. Measures to be introduced in the Finance Bill to streamline the administration process.
  • Foreign Earnings Deduction extended for a further five years.
  • The Research & Development Tax Credit is increasing from 30% to 35% and first year payment threshold increased from €75,000 to €87,500.
  • Participation Exemption extended to jurisdictions where no refundable withholding taxes apply.
  • Subject to commencement orders, the Section 481 Film Tax Credit is being enhanced to provide for a new 40% rate of relief for productions of at least €1m qualifying expenditure on visual effects work.
  • Digital Games Tax Credit extended to 2031, however this is subject to a commencement order.
  • A joint Department of Finance and Revenue along with public consultation on Withholding Taxes.

Housing Measures

  • A further opportunity for exemption in 2026 from the Residential Zoned Land Tax (RZLT) if landowners seek to have their lands re-zoned.
  • Exemptions or reductions in Corporation Tax on profits from the sale of some apartments, included in Cost Rental Schemes.
  • An enhanced Corporation Tax deduction for construction and conversion of apartments – from 8 October to end of 2030.
  • A Derelict Property Tax will replace the site levy which currently is charged at 7%. No rate yet announced but it is anticipated that it will not be less than 7%. Preliminary registers of dereliction will be published in 2027, with the tax being applied soon afterwards.
  • VAT rate of 9% on sale of new apartments from 8 October.
  • Residential Development Stamp Duty Refund Scheme is to be extended to 2030.
  • Living City Initiative extended to 2030 in special regeneration areas, an increase scope of properties for those constructed prior to 1975 and extending to “over the shop” properties. Five new regional centres being introduced into the initiative. Finally, relief is being increased from €200,000 to €300,000.
  • The deduction for Pre-Letting Expenditure from rental income will be extended for a further three years, to the end of 2030. The deduction is capped at €10,000 per property.
  • Home Building Finance Ireland to have additional funding of €200m to support home builders.

 VAT

  • In addition to the changes applying to the sale of new apartments, the reduced 9% rate will apply from 1 July 2026 for food catering businesses and hairdressing.
  • The 9% VAT rate for Gas and Electricity supplies is extended to the end of 2030.
  • Revenue are to introduce a phased role out of domestic electronic invoicing.

 Agriculture

  • The four Agricultural Tax Reliefs pertaining to Stamp Duty and Capital Gains Tax have been extended to 2029. The Farm Restructuring Relief is being expended to include woodlands and forestry.
  • The Extended Capital Allowance regime for slurry storage facilities has been extended for a further four years.

Climate

  • The Carbon Tax increase to €71 per tonne of CO2 emitted applies to auto fuels from 8 October and to all other fuels from 1 May 2026.
  • VRT Relief on electric vehicles extended for a further one year.
  • The Universal Relief on the OMV on electric vehicles will remain at €10,000 in 2026 and taper off to €5000 in 2027, €2,500 in 2028 and cease in 2029.
  • Accelerated Capital Allowances on Energy Efficient Equipment extended for a further five years to end of 2030.
  • Income tax disregard of €400 for income received by households who sell electricity to the grid extended to 2028.

Other Measures

  • The rate of tax on offshore funds and foreign life assurance products is to be reduced from 41% to 38%.
  • The bank levy will remain for a further year.
  • A separated Pool Betting charge to be announced after consultation in Budget 2027.
  • Excise Duty on tobacco products will increase by 50 cent from 8 October.

Read our tax team’s analysis of Budget 2026.

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Tax Guidance for Social Media Influencers: What You Need to Know

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With an increase in those earning income from social media and promotional activities, the Revenue Commissioners have issued a manual to reiterate that such income is liable to tax based on the application of ordinary tax rules.

Types of Taxable Income

Income derived from social media or promotional activities is chargeable to tax, even in circumstances where the activity is conducted on a casual basis only and is not the individual’s or company’s main business or main source of income.

Such income can be in the form of subscriptions, advertising, sponsorship, brand ambassadorship or endorsement fees and may be monetary or non-monetary in nature. Where the receipt is in non-monetary form, i.e. goods/services, then the value of such must be determined and is regarded as income.

Determining If Social Media Activities Constitute a Trade

Whether the profits or gains derived from social media or promotional activities arise in the course of a trade is a question of fact, having regard to the particular facts and circumstances of each case and also having regard to the ‘badges of trade’ and caselaw.

Example: Full Time Influencer

Orla is an adventure travel enthusiast. She is a full-time travel blogger and regularly posts content on various social media channels. She receives income from sponsored blog posts and affiliate marketing. Orla’s social media activity is carried out on an ongoing, frequent basis with the intention of making a profit. Her activity has the characteristics of a trade. She is obliged to return the income as Case I income.

Deductible and Non-Deductible Expenses

In computing the profits assessable to tax, certain expenses may be deducted provided they are:

  • Revenue and not capital in nature,
  • Incurred wholly and exclusively for the purposes of the trade, and
  • Not specifically disallowed in law.

When considering if an expense was incurred wholly and exclusively for the purposes of the trade, one should be aware that if the expense has both a business and non-business purpose then the entire expense is disallowed, e.g. clothes. Similarly, hair and make-up expenses are also disallowed.

If carrying on a trade, a deduction for capital expenses, in the form of capital allowances, may be available. However, if the income is derived from ad-hoc activities, then no deductibility is permitted for capital expenses.

Example: Casual Influencer

John is a full-time software developer who enjoys mountain hiking in his spare time. He pays an annual subscription to an online map and trails app. He posts reviews of trails and landscape photographs online on social media channels one or two times a year. People with occasionally contact John to purchase a photograph he’s posted on social media. He is obliged to declare the profit from the online activities. When calculating the taxable profit from the activity, he is allowed to deduct the costs of print, post and stationery incurred from sales of his photographs. The costs of the annual subscription to the hiking app or the cost of hiking clothing is not deductible, as the costs are a personal cost and not incurred directly in the provision of the social media content.  As John is not carrying on a trading activity capital allowances, e.g. on photographic equipment, are not available.

Business Structures and VAT Considerations

Such activities may be carried on by a person through a sole trade, partnership or a company.

In addition to Income Tax and Corporation Tax, persons carrying on a business need to be aware of their obligations to register and account for VAT should the value of their supplies exceed the relevant registration thresholds.

For further information on tax guidance for social media influencers, please contact us.

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Change to Audit Exemption Regime for Small and Micro Companies – Section 22 of the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024

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Section 363 of the Companies Act 2014 has been amended to ease the burden on small and micro companies registered in Ireland from the requirement to file audited accounts for two years as a result of loss of audit exemption due to the late filing of the annual return with the CRO (Companies Registration Office).  This is now Section 22 of the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024.

The amendment now provides for such small and micro companies, which would ordinarily be eligible to claim audit exemption, to retain their audit exemption status if they file an annual return late once in a five-year period

What are the requirements?

The following provisions apply:

  1. Must be eligible to claim audit exemption.
  2. Must meet the criteria for a small or micro company.
  3. Must not file late more than once in a five-year period.

Can a small group company avail of S. 22?

If a small group company files individually, then the company may apply S. 22 if it has only one late annual return within five years.

If, however, the companies within the group file consolidated accounts and any company is late filing its return, then all companies in the group must submit audited accounts for the next two years.

When does this change take effect?

The new provision is effective to all companies that meet the criteria, and file or have filed their annual return after 15 July 2025. If a late annual return was filed on or before this date then the old provisions shall apply i.e. audited accounts will be required to be submitted for the subsequent two years, in accordance with the Companies (Statutory Audits) Act 2018.

Conclusion

Eligible companies may avail of S.22 of the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024 in respect of a late annual return filing in certain circumstances. Consideration should be given on a case-by-case basis for eligibility to apply this provision.

Please contact us if you have any questions or need assistance.

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Transborder Workers’ Relief: A Guide for Irish Residents Working Abroad

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With the rise in cross-border employment, Irish tax residents working abroad may qualify for a significant tax relief known as Transborder Workers’ Relief. This article outlines the key eligibility criteria and how the relief is calculated.

What is Transborder Workers’ Relief?

Transborder Workers’ Relief is a tax relief available to individuals who are resident in Ireland but work and pay tax in another country. The relief effectively removes the earnings from a qualifying foreign employment from liability to Irish tax, provided that foreign tax has been paid and is not refundable.

Who Qualifies?

To claim the relief, the following conditions must be met:

  • You must be resident in Ireland for tax purposes,
  • You must work full-time in another country that Ireland has a double taxation agreement for a continuous period of at least 13 weeks,
  • You must pay tax in the foreign country on your employment income and are not due a refund of the tax paid,
  • You must be present in Ireland for at least one day for every week worked abroad.

It is important to note that the relief does not apply if the individual receives Seafarers’ Allowance, Foreign Earnings Deduction (FED), or split year treatment. Additionally, one cannot claim relief if they or their spouse or civil partner are proprietary directors of the company for which they work abroad.

How is the Relief Calculated?

The relief is calculated using a formula that determines the “specified amount” of Irish tax that can be relieved:

Specified Amount = (Total Irish Tax Due × Non-Foreign Income) ÷ Total Income

This means that the relief only applies to the portion of Irish tax attributable to the foreign employment income. You will not receive any credit for foreign tax paid if you qualify for transborder relief.

How to Apply

The relief is claimed through the annual income tax return (Form 11). Supporting documentation, such as foreign payslips, tax certificates, and travel records, may be required by Revenue.

Conclusion

Transborder Workers’ Relief can offer significant tax savings for Irish residents working abroad, but it requires careful planning and accurate reporting. If you think you may qualify, our tax team at Crowleys DFK is here to help.

 

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Residential Premises Rental Income Relief (RPRIR)

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Residential Premises Rental Income Relief (RPRIR)

The Residential Premises Rental Income Relief (RPRIR) was introduced in Budget 2024 to support the Irish rental market by incentivising landlords to retain properties for long-term letting. This article outlines the key features of the relief, eligibility requirements, and how landlords can benefit.

What is RPRIR?

RPRIR is a tax credit available to landlords who rent out qualifying residential properties. The relief is available from 2024 to 2027 and is designed to encourage continued participation in the rental market. The credit is valued at up to a maximum of €600 in 2024 and is set to increase in subsequent years.

Who Can Claim the Relief?

RPRIR is available to all individual landlords of ‘qualifying premises’. The relief is not available to companies or other entities such as trusts or partnerships.

Qualifying Premises:

A qualifying premises refers to a residential property owned by the landlord on 31 December in the year of assessment. The property must meet one of the following conditions:

1. It is occupied by a tenant:

  • under a tenancy registered with the Residential Tenancies Board,
  • let by the landlord to a public authority, or
  • subject to Part II of the Housing (Private Rented Dwellings) Act 1982, which pertains to formerly rent-controlled tenancies;

2. Alternatively, if the premises is not occupied by a tenant, the landlord must be actively marketing the property for rent.

In cases where RPRIR is claimed based on active marketing for rent, the landlord must provide evidence to support this claim, such as copies of advertisements for the letting.

Other Eligibility Criteria:

To qualify for RPRIR, a landlord must, on 31 December of that year, be:

  • compliant with their LPT obligations in respect of all qualifying premises, and
  • hold a valid Tax Clearance Certificate.

Conclusion

Residential Premises Rental Income Relief offers a valuable opportunity for landlords to reduce their tax liability.

For further guidance or assistance with your tax return, please contact us.

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Gender Pay Gap Reporting – What has changed in 2025?

Gender Pay Gap Reporting – What has changed in 2025

Gender pay gap reporting has been in place in Ireland now for three years. In this time, employers with more than 250 staff have been submitting reports on pay in their organisation, illustrating where gaps appear in the pay received by male and female members of staff. Introduced as part of the Employment Equality Act 1998 (section 20A) (Gender Pay Gap Information) Regulations 2022, these regulations have sought to promote gender equality by drawing attention to historic inequalities in society.

Now these regulations have changed. From 2025 onwards, employers in Ireland with more than 50 employees are required to publish gender pay gap reports. The scope of the regulations is widening and while this will provide a much clearer picture of the working environment in Ireland, it will also create new challenges for many employers.

Changes at a glance:

There are three key changes employers should be aware of. We have already seen that the number of organisations who must report has increased. Alongside this, the annual deadline for reporting has changed, and a new portal for submitting reports has been developed.

  1. New Organisations Eligible:
    Under the initial 2022 requirements, reporting was required only from organisations with over 250 employees. In 2024 this was revised down to organisations with over 150 employees, and now in 2025 it has been revised down again to organisations with over 50.Expanding the scope of the requirements will expand awareness of gender inequality in society. More organisations will become aware of their own pay gap and will be armed with the data they need to go about resolving this.
  1. New Reporting Deadline:
    Under the changed regulations, the method for making a gender pay gap report has two steps. First, an organisation must choose a snapshot date anytime in June. The report will present the organisation as it stands on that date in June. The deadline for publishing the report is five months after the chosen snapshot date. For instance, an employer who chooses 1st June as their snapshot date has a reporting deadline of 1st November. Parties familiar with the previous gender pay gap reporting requirements will note that previously six months were available between the snapshot date and the reporting deadline. This has been revised down by one month.
  1. New Reporting System:
    Prior to 2025 organisations were required to publish their gender pay gap reports either on their own website or through another method accessible to all employees and the public. Now, a new gender pay gap reporting portal will be launched in Autumn 2025. Employers will now report their data via the portal, with the option of publishing the report on their own website if they wish. The portal will provide the public with a searchable platform to access pay gap data.

What remains the same in gender pay gap reporting?

The change to the number of organisations required to make reports will be transformational for those brought under the scope of gender pay gap reporting. The new deadline and portal are also important changes. However, the remainder of gender pay gap reporting remains much the same as before.

Employers will still be required to provide statistics on remuneration, bonuses and benefits. The requirement to report on metrics such as the average and median hourly pay gaps, bonus gaps, and distribution of male and female employees across pay quartiles, is still in effect. So too is the requirement that the report disclose the percentage of employees who receive bonuses and benefits-in-kind, along with identifying any disparities in these areas.

Reporting these statistics will, the legislation hopes, encourage organisations to identify inequities, reflect on their practices, and take steps to cultivate a fairer workplace. Reporting will also foster accountability and push companies to view pay equity as not merely a compliance measure but as an integral driver of trust, morale, and inclusivity.

Empowering Equality Through Insightful Reporting

At Crowleys DFK, we understand that gender pay gap reporting is more than a compliance requirement it’s a strategic opportunity to foster transparency, trust, and transformation within your organisation. We can offer end-to-end support to help you meet your obligations and leverage your data for meaningful change.

Our services include:

  • Data Collection & Analysis
    We help you gather and validate the required data—covering pay, bonuses, benefits-in-kind, and working hours—ensuring accuracy and completeness.
  • Report Preparation & Submission
    We prepare your gender pay gap report in line with the latest guidance from the Department of Children, Equality, Disability, Integration and Youth.
  • Narrative Development
    Beyond the numbers, we help you craft a compelling narrative that contextualises your data, outlines your action plan, and communicates your commitment to equity.
  • Strategic Advisory
    Our consultants provide insights into workforce composition, pay structures, and progression pathways, helping you identify and address root causes of pay disparities.

Ready to Report with Confidence?

Whether you’re preparing your first report or refining your approach, we’re here to help. Contact Brian O’Donoghue, Manager in our Accounting & Financial Advisory Department, to learn more about our gender pay gap reporting services.

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New Government AI Guidelines May Be Too Broad for Practical Use

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New Government AI Guidelines May Be Too Broad for Practical Use

In the last three years artificial intelligence has become a significant presence in our working lives. As these technologies have grown, so too have the calls for regulation and guidance on their use. In response, the Government of Ireland has issued advisory guidelines for public sector organisations deploying AI. These new guidelines provide an extensive framework for deploying AI, which is surely welcome. The Guidelines, however, run the risk of being too broad. There are so many provisions included, touching on areas from climate change to diversity and inclusion to design requirements to transparency rules, that it is hard to imagine any organisation could apply these completely.

It is worth framing at the outset that these Guidelines have been written to be optional for public sector organisations. They can also be considered provisional, as the speed with which these technologies are changing makes fixed rules irrelevant. What the Guidelines establish instead are a series of seven principles intended to guide use of AI. In deploying AI, public sector organisations are now asked to consider the following:

  1. Human agency and oversight
  2. Technical robustness and safety
  3. Privacy and data governance
  4. Transparency
  5. Diversity, non-discrimination, and fairness
  6. Societal and environmental well-being
  7. Accountability

Each of these principles outline an ideal to be aspired to when using AI. For instance, “Principle 4: Transparency,” commits public sector workers to being transparent with end-users about the AI systems in use. There must be clear documentation of AI model development, and the public must be informed whenever they are interacting with an AI system. In many cases, these principles tie into existing laws or initiatives. “Principle 3: Privacy and Data Governance”, for example, relates to GDPR compliance, while “Principle 5: Societal and Environmental Well-Being” is informed by the Climate Action Plan.

Translating these principles into action involves following a “Project Lifecycle” for AI projects. This lifecycle breaks down any AI project into five key stages: “Design, Data & Models”, “Verification”, “Deployment”, “Operation”, and “Retirement”. Some of these stages are further divided into subsections. For instance, the Design stage includes Planning & Design, Data Collection & Processing, and Model Building, with each of these subsections outlining specific actions to be followed to complete the stage. It is here we encounter the scale of the Guidelines. Each stage comes with a set of actions and, in each case, there are enough actions to fulfil all seven of the principles. This means there is a minimum of seven actions per stage and a rapid ballooning of potential actions.

As an example, in the “Planning & Design” phase an organisation might choose to “set up role-specific responsibilities for oversight”, “integrate data minimisation and security protocols into the AI design”, or “conduct social impact assessments to ensure AI systems contribute positively to Irish society”, among other actions. On their own, the actions have value. Taken together they can represent an enormous burden. “Planning & Design” contains twenty-six potential actions, and this is only one of three sub-stages for “Design, Data & Models”. Furthermore, the Guidelines also suggest two additional planning stages, outside of the Project Lifecycle. These are the Decision Framework and the AI Canvas. The Decision Framework consists of a list of questions to be considered at the outset of a project, while the AI Canvas provides a worksheet comprised of fifteen questions for the Project Lead to answer during the planning stage of an AI project. These sections are also optional, although the AI Canvas in particular is more compressed and user friendly than the ideas set out in the Lifecycle.

It is worth bearing in mind that at this moment debates are ongoing within the European Parliament as to whether GDPR should be rolled back. Tech regulation in Europe has suddenly become very uncertain. At the same time, the government’s pre-existing commitments, such as targets in ESG areas, cannot be easily dropped. These Guidelines speak to this contrast: they put everything on the table as a possible means of regulation, but do not commit to any one method. Working out what to do with the Guidelines will be a challenge itself.

Contributors
                                                    

Vincent Teo | Partner & Head of Public Sector & Government Services

Vincent Teo
Partner & Head of Public Sector & Government Services

 Dr. Conor Dowling | Research & Policy Executive | Risk Consulting

Dr. Conor Dowling
Research & Policy Manager
Risk Consulting
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