1. PFTAC GDP Compilation and Forecasting Workshop Use of administrative data
Suva, Fiji
October 17-21, 2016

2. Session Outline
Sources
Challenges
Focus on tax data

3. Administrative Data Taxation records Imports and exports data
Company tax
Self employed tax
Taxes on salaries and wages
Gross revenue tax
Imports and exports data
Customs
Regulatory data on banking and other industries
annual and quarterly finance/insurance returns to central bank
If no CB, financial services commission? Different names, FIC, Palau
business licences (BR)
returns to business registrar, Palau? AG?
number of taxis, buses, trucks
building permits (wpip)

4. Administrative Data cont.
Government Accounts
Can be tardy but monthly expenditure data, wages, are compiled
Business accounts
Public enterprises
Public companies
Social security, national provident fund
Wages by industry by month, employment numbers
Development project data -- aid management unit
Often excluded from Government budget data
Trade or business associations – chamber of commerce
Knowledge of industry, need to be consulted before surveying
Get their backing, know what they can provide...

5. Administrative Data cont.
This is a huge amount of information.....
none of it involving a great deal of input from the NSO
but it does need to be collected
systems set up for receiving it in a timely manner
work through management channels as needed
it is all easier and cheaper than running a new survey
some effort will yield big reward
in fact,
YOU CAN’T DO NA PROPERLY WITHOUT IT!

6. Administrative Data – Strengths and Weaknesses
Low cost for NSO
Coverage sometimes very good
Ongoing collection = time series
Timeliness
Timelier than independent surveys
Weaknesses
Not always consistent with NA concepts – coverage, classifications, definitions, etc
but NSO can assist with this
Lack of control of data processes (editing, quality control, changes of rules, etc.)
All data need editing

7. Admin Data - Challenges
Obtaining the data, and if so:
Timeliness
Applying NA classifications
Ensuring consistency over time – admin processes or rules change (e.g., tax, customs)
KNOW YOUR DATA *
Opportunities to assist the admin agency with classifications, database management, feedback on the results... *

8. Admin Data – Challenges
Adjustment to NA concepts
Benchmark ratios
Usually I/O in constant P, O/S-Output unusual
How often to update?
What other data to use?
What level of detail to adjust?

9. Admin Data – Tax Tax of Profits/Income
affects government revenue so may be good quality, coverage and timeliness
depends on timeliness of business accounts/audits
depends on accounting standards, government regulations
limited to coverage as defined by the tax authorities
enterprise level detail only
may provide detailed accounts
may overstate expenses, understate income
all of which you will find in survey data!!

10. Admin Data – Tax Value Added Tax Timely – quarterly/monthly
collected under tax act , where penalties really do apply
Formal sector
Capital purchases and sales included
Capital purchases sometimes separated
Gives a direct VA indicator
cash only
May overstate expenses, understate income
self policing except for end user sales
Provides Business Register data!

11. Value Added Tax Countries will vary on data specifics
Data on monthly return potentially available
Namibia:
Sales split into capital goods and other
Local purchases
Local capital purchases ?
Imported purchases
Imported capital purchases ?
? = popular idea but tends not to work

12. Value Added Tax Vanuatu e.g. Total Sales & Income including VAT
Less Zero-rated supplies divide by 9 =
VAT charged, plus other if any
Total purchases VAT inclusive, divide by 9 =
Vat paid on local G&S
VAT paid on imported supplies
Difference VAT to pay....
Handout...

13. Revenue/profit tax
Annual business tax returns contain more detailed accounting information
Still effectively provide a production account
But more info on capital items in most cases
Also more info on employee-related expenditures that may be income in kind
Adopt a detailed algorithm to transform annual tax returns into output, IC and GVA
Use the results by industry to benchmark quarterly VAT/GST returns

14. Example of VAT form - Tonga

15. Example of income tax form - Tonga

16. Example of income tax form - Tonga

17. Example of income tax form - Tonga

18. Example of income tax form - Tonga

19. Exercise Look at the sample company account provided
Use the knowledge you’ve gained to transform the items listed into
Output IC
GVA (as a residual of the above)
This involves hard choices but practice helps!