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New Enterprise Group Delineation using tax information

Oktober 6-7th 2009

Ivo Beuken

Anita Vaasen- Otten

(Statistics Netherlands)

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Introduction

• The challenge• The new EG delineation• An example• Conclusions • Simulation results

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The challenge

• Using more data from administrative sources

• New EG delineation using tax group registration

• Now only 100% ownership relations• Future:

• 95% relationship for Corporate tax• 50% relationship for VAT

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The new EG delineation

• Searching for fiscal units and creating control links

• example “ACME”

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An example

ACME Holding

ACME RetailACME

WholesaleACME

Leasing

ACME Car Lease

100%100%

70%

Home shopping

99%

100%

Real Estate

53%

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Current Registration

Enterprise 1

Enterprise 3Enterprise 2

Enterprise Groupcontaining

1 or more EnterprisesACME Holding

ACME RetailACME

WholesaleACME

Leasing

ACME Car Lease

100%100%

Home shopping

100%

Real Estate

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Enterprise 1

Enterprise 3Enterprise 2

Enterprise Groupcontaining

1 or more EnterprisesACME Holding

ACME RetailACME

WholesaleACME

Leasing

ACME Car Lease

100%100%

Home shopping

100%

Real Estate

Additional tax information

Fiscal unit Corporate taxFiscal unit Corporate tax

Fiscal unit VATFiscal unit VAT

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ConclusionsBetter link with administrative tax

data Better and more complete EGs:

8% extra relationsPayroll problem solved partially • No exact position of Legal Units in

cluster of control• Time-lag issues • EG may contain relations via abroad• Fictitious events

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Simulation results

About 13 % MORE employment and turnover registered on both VAT and corporate tax, uniquely linked

% empl. on VAT

% empl. on corp. tax

% turnover on VAT

% turnover on corp. tax

Current EG

85% 84% 74% 84%

New EG 98% 98% 87% 97%