Chapter 7: The Distribution of Income Accounts Fifth meeting of the Advisory Expert Group on National Accounts United Nations, New York 19-23 March 2007

Investment income 7.16 Property incomes receivable from the ownership of financial assets or natural resources listed under resources in the allocation of primary income account are: Investment income receivable by the owners of financial assets from either resident or non-resident units Rents receivable by owners of natural resources leased to other units.

Question to the AEG 1. The editor has proposed to introduce a heading, Investment income, under property income (equal to property income less rent) to facilitate consistency with the BPM. Do you think that the introduction of Investment income is appropriate for the SNA?

Employer’s social contributions 7.37 and 7.56 to 7.58 on compensation of employees. Social insurance contributions payable by employers may be further divided into: i. contributions to social security schemes; ii. actual social contributions to employment-related social insurance schemes; and iii. imputed social contributions to employment-related social insurance schemes.) This means creating a split of actual contributions between social security and other schemes.

Question to the AEG Do think it is appropriate to create a new entry for social security, under compensation of employees, or do you think, that the entries of the current SNA: actual social contributions (D121) and imputed social contributions (D122) are sufficient?

Recording of taxes and social contributions ulikely to be collected 7.76 In some countries, and for some taxes, the amounts of taxes eventually paid may diverge substantially and systematically from the amounts due to be paid…… Proposal by Eurostat: "In practice, taxes (and social contributions) evidenced by declarations and assessments but unlikely to be collected should be neutralized in the same accounting period by subtracting their amounts from the total amounts of taxes (and social contributions) or by a capital transfer from general government to the relevant sectors".

Question to the AEG Do you think that more emphasis should be given to treatment of taxes unlikely to be collected? Is the sentence proposed by Eurostat appropriate?

Accrual basis recording of interest by financial instruments The paragraphs 7.94 to 7.111 of the current version of SNA explaining the recording of interest on accrual basis by various financial instruments have been removed from chapter 7. Some of the detail on interest on individual securities will be moved to chapter 17.

Question to the AEG Do you think that chapter 7 should contain a description of the recording of accrued interest by various financial instruments as in the current version of SNA ?