1. Consolidated vs non consolidated data : Belgium experience
Eurostat April 2013
Alexandre COLEAU
Financial Accounts

2. Consolidated vs non consolidated data : Belgium experience
Consolidation practices
Why Intrasectorial Loans ?
Impact of ESA 2010
Proposal

3. Consolidation practices (1/4)
Starting point: total non-consolidated loans from the CBSO
Correcting for non-negotiable 'bonds'
Deducting all loans vis-à-vis other sectors
Residual sector: NFC
Quarterly data: based on constant debt ratio

4. Consolidation practices (2/4)

5. Consolidation practices (3/4)
Quality issues
Annual data:
intrinsic to residual calculations (revisions mainly BoP - data)
limited nb of companies with large transactions
high mobility for tax reasons
Quarterly data:
high degree of estimation

6. Consolidation practices (4/4)

7. Why Intrasectoral Loans ? (1/2)
many intragroup transactions if many groups of companies contain multiple companies
tax ; legal & liquidity reasons:
coordination centres ('intragroup financing companies') & notional interest deduction
no taxation of capital gains on shares
no tax consolidation
preparing for succession via holding company
low cost for setting up a separate company

8. Why Intrasectoral Loans ? (2/2)

9. Impact of ESA 2010 (1/4)
Holding companies and 'Intragroup financing companies' : Institutional units according to ESA 95 / ESA 2010 (if decision-making autonomy or if held by non-resident parent)
Sector classification
ESA 95 (§2.23e) (§2.37) : S.11
(unless subsidiaries are principally engaged in financial
intermediation)
ESA 2010 (§2.14 & 2.21): S.127 ('Captive Financial Institution')
NACE 6420
not undertaking any management activities: distinction with head offices

10. Impact of ESA 2010 (3/4)
Expected impact on consolidated & non consolidated data

11. Impact of ESA 2010 (4/4) Important changes expected from:
Transfer from ESA 95 to ESA 2010
captive financial institutions?
Possible changes in tax regimes:
notional interest deduction
taxation of capital gains on shares

12. Proposal (1/2)
NBB research department proposition : break down the loans into
'Bank' Loans (from resident & non-resident bank + FVC)
'Non-bank' loans (intragroup with resident & non-resident)

13. Proposal (2/2)

14. Questions ? Thank you for your attention