CONCEPTUAL MODELLING OF ADMINISTRATIVE REGISTER INFORMATION AND XML

- TAXATION METADATA AS AN EXAMPLE

heikki.rouhuvirta@stat.fi

Ottawa, 16-18 May 2005

Heikki Rouhuvirta, Statistical Methodology R&D

2.5.2005 2Heikki Rouhuvirta

Contents

Background The Challenge Primary Questions Test Case – Finnish Taxation Data Semantics of Register Data Taxation Metadata Definition Some Results The Future Some Practical Steps on the Way

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Background

Present state of compilation of administrative data as the challenge

CoSSI as the methodological framework for data semantics of

registers Codacmos

as the organizational base for concept testing

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Data Combining

DataSource

(e.g.RDB)

DataSource

datagathering(e.g. SQL)

Data communicationnetwork

(internet, WAN)

transmissionfile

(sequential/Flat File)

transmissionfile

DataStore

DataStore

physical media(CDROM, magnetic

tape)

tailor-made programsor ETL products

(e.g. Informatica, Oracle)

tailor-made programsor ETL products

(e.g. Informatica, Oracle)

Ope

ration

al syste

ms o

r

Data

Ware

ho

uses

Relational DB

FTP (+ VPN)

Destination NSI

Administrative Data Source

Statistical Register Data

HandbookOf

Taxationetc.

DataStore

(sequential/Flat File)

(Flat File)

StatisticalApplication

StatisticalInformation

DataStore

Relational DB

Survey Data

statistician

datagathering(e.g. SQL)

dataextraction/

transformation/loading

Present state of compilation of administrative data

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CoSSI

Common Structure of Statistical Information – CoSSI covers different ways of statistical data organization (statistical data

matrix and statistical table) includes a model to define contentual information in statistics Includes a model to define the methodology used in statistics (e.g.

measuring and classification) manages the complexity of statistical information (e.g. nested

variables structure) includes definitions for all types of the statistical information, data,

metadata for files, statistical metadata, quality declarations, charts the main objective was to organise statistical data so that they also

contain statistical metadata (describing both the structure and logic of statistical metadata at the same time)

Definition Descriptions available on the web at: http://www.stat.fi/org/tut/dthemes/drafts/cossi_definition_descriptions_v_09_2003.pdf

Statistical metadata see also from the web: http://www.stat.fi/org/tut/dthemes/papers/alternative_approach_to_metadata_codacmos_2004.pdf

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Codacmos

Cluster of Data Collection Integration & Metadata Systems for Official Statistics

EU Project 2003- 2004 (IST-2001-38636) Consortium:

Italian National Statistical Institute, Statistics Finland, University Of Edinburgh, National Statistical Service of Greece, DESAN Research Solutions, Statistical Division Of Municipality Of Milan, The Finnish Tax Administration, University Of Patras, Institute Of Informatics And Statistics, University Of Athens, National Social Security Institute, Tietokarhu Ltd, Statistics Norway

http://www.codacmos.eu.org TAXATION METADATA Partners: Statistics Finland, The

Finnish Tax Administration and Tietokarhu Ltd

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The Challenge:

how the present process, where the description of administrative data can mostly be read from the authorities' administrative handbooks, can be transformed into such that it meets the requirements for the usability and presence of the contentual description of data both in the production process to statistics producers and in the distribution of statistical information to users of statistics.

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Primary Questions

what are the metadata of administrative data? how to process the metadata specifying the interpretation

and use of administrative data collection and register data? how to combine the original data description (e.g. concept

definitions of register fields) to variable description and measurement information of statistics?

can accumulating interpretive metadata be “transported” in processing of information and if can, how?

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Test Case – Finnish Taxation

(Finnish taxation on the web at: http://www.vero.fi)

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type of income (income) income source

earned incomeCapital income

income accruing from wealth(personal income) business income

agriculturalincome

salaryrenumeration

based onregular

employment orthe performance

of personallabour services

(others)

pension

(others)

income fromforeign

employmentwages receivedfrom work done

abroad

capital gainsincome accruing

from profit onthe sale or

exchange of theproperty or

assets

fringe benefitbenefit from anemployer in the

other thanmonetary form

as part ofnormal wages

or salary

(others)

Taxation: Types and Sources of income

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(taxable income)

deductionamount deducted from tax, income subject to taxor net worth before final determination of tax to

be paid

taxable incomeincome remaining after deduction from

income subject to tax and serving as thebasis for determinig final tax

expense incurres in acquiring ormaintaining income

expense of financial loss incurred inacquiring or maintaining income

(Natural deduction)

standard deduction forworkrelated expenses

deduction from wages grantedofficio by the tax authorities,

replacing up to a certain sum thededuction for expenses incurred in

acquiring or maintaining income

deduction for pensioninsurance premiums

deduction allowed from earnedincome, determined on the

basis of premiums paid by thetaxpayer for pension insurance

and additional pensioninsurance

discretionary allowance forcircumstantial incapacity to

pay taxesdeduction allowed from earned

income on the basis of thetaxpayer's reduced ability to

pay taxes

Pension income allowancededuction granted ex officio bythe tax authorities on the basisof wages or business income

(deduction from pureincome)

(deduction from taxableincome)

(deduction from other than pureincome)

(others)(others)

(others)(others)

deduction for travelexpenses

deduction allowed fromearned income,

determined on the basisof the costs of travellingto and from home and

work

earned incomeallowance

deduction granted exofficio by the tax

authorities on the basisof wages or business

income

Low-income allowancededuction from earned income

granted ex officio by the taxauthorities to persons with a low

income

child maintenance creditdeduction from income taxgranted in state taxation,

based on child maintenancepayments made by the

taxpayer

domestic help creditdeduction granted from incometax, based on the payment for

or employer's contributionspaid on work that the taxpayerhas done in his/her home or

leisure-time residence

deduction for interestexpenses

deduction for interest expensesrelated to business income,

agricultural income, or capitalincome

credit for capital income deficitdeduction granted from tax onearned income on the basis ofexpenses incurred in acquiring

income, interest expenses or certainforms of financial losses when the

taxpayer has insufficient capitalincome to claim deductions for these

Income tax deductions

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Data Semantics of Register Data

Modelling methodology:starting point is to distinguish between

substance concept model andinformation model whereby the concepts are

described Information organizing method:

any which doesn't lose information Technology:

any without restrictions Result:

Taxation metadata definition (taxmeta.dtd)

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Basic Substance Concept

Tax type: i.e. Personal

taxation

Type of income:i.e. earned

income, capital income

Income:i.e. salary,

pension

Type of tax

deduction

Deduction

A)

B)

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Description Information

Internal instruction:Instruction on spesific income

and deduction area

Law:reference to a section of law

Law case:

reference to a law case

Formula:How the tax is

calculated

Income:i.e. salary,

pension

Deduction

1)

2)

3)

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Taxation Metadata Definition (taxmeta.dtd)

Available on the web at: http://www.stat.fi/org/tut/dthemes/drafts/taxmeta_dtd_v_01.txt

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Taxation Metadata

type of income

taxation type

type of deduction tax taxation lawtaxationname

taxationdescription

incometypenameincometypedescription

computing

. . .

+

*

#PCDATA

#PCDATA

#PCDATA

#PCDATA

taxation law*

income

deductiontypename

deductiontypedescription

#PCDATA#PCDATA

taxation law*

deduction

. . .

. . .

. . .

. . .

. . .

*

*

* * * *

*

*

Taxation Metadata - Logical Concept Model (I)

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income/deduction

internal instruction formula lawcase taxation lawname

description

title instructionyearcourt of law

. . .*

#PCDATA#PCDATA

#PCDATA

#PCDATA

*

. . .

. . .

number

content

* * *

+

+

. . .

Taxation Metadata - Logical Concept Model (II)

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… result from register standpoint

Demonstration Report is available on the web at: http://www.stat.fi/org/tut/dthemes/papers/

demoreport_on_taxation_metadata_codacmos_2004.pdf

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Taxation register view

Metadata

Tax type code used in the register

Value in euro

Plain-language code (derived or column name)

Structure view

Metadata view

Taxpayer’s tax register record

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… and result from statistics standpoint

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Disposableincome

Conceptual Definition:The key concept of ”disposable income” in income distribution statistics is arrived atwhen current transfers paid are deducted from gross income.

Operational Definition:The formation of the disposable income of individual or households is as follows:+ Distributed factor income (Wages and salaries , Entrepreneurial income, Property income)+ Current transfers received- Current transfers paid= Disposable income

Wages andsalaries

=variablename

Conceptual Definition:Wages and salaries refer to the compensations as money or benefits in kind re-ceived by householdsor persons during the year. The acquisition costs, excluding travel costs, of wages and salaries arededucted from them. The concept of wages and salaries used in income distribution statisticscomprises pay for regular working hours, as well as overtime pay and income from a secondary job

Operational Definition:The formation of the wages and salaries of individual or households is asfollows:+ wages and salaries in cash+ fringe benefits in kind based on employment relationship+ reimbursement of costs based on employment relationship - wage and salary acquisition costs (excl. travel costs)= wages and salaries

Source: Taxationregister

Income distribution statistics – statistical metadata

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Wages

=incomename

Description:Section 13 of the Preliminary Tax Withholding Act defines the conceptof wage as:1) Any wage, commission, benefit or compensation received in anemployment relationship;2) Meeting attendance fee, personal compensation for lecturing, feefor the membership of an administrative organ, managing director'sfee, wage drawn by a partner in a partnership company or limitedpartnership company and compensation received for a position oftrust.

Wage income refers to any pay, fee, partial fee and other benefit orcompensation paid for an office or post, or for work performed for itsprovider against compensation. Additional payments, such as senioritybonus, cost-of-living allowance, bonus for location in an isolated orsparsely populated area, rent allowance, Christmas bonus, giftcommission and percentage of profits, count as wage income.Housing, meal and other fringe benefits, as well as staff benefitssubject to tax also count as wage income.

lawcase

Content Description:Wage paid during period of notice, compensation paid fordismissal without justifiable grounds and retaining pay are alsocounted as wage income.

Ref:Decision of the Supreme Administrative Court 1988/ 2290)

Link to the Decision

Disposable income

Conceptual Definition: …..

Operational Definition: + …(Wages and salaries …

Wages and salaries

Conceptual Definition:Wages and salaries refer …...

Operational Definition: ….+ wages and salaries in cash+ fringe benefits in kind based on employmentrelationship…

= variable

Income distribution statistics – taxation register metadata (I)

statistical metadata

register metadata

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Fringebenefits

=incomename Description:

A fringe benefit received from the employer is valued at currentvalue according to detailed annual specifications issued by theNational Board of Taxation. Only the values of the most commonfringe benefits have been confirmed by a decision of the NationalBoard of Taxation.

Instruction:The values of the most common fringe benefits have beenconfirmed by a decision of the National Board of Taxation. Thedecision of the National Board of Taxation on the principles forcalculating fringe benefit values for taxation purposes (fringe benefitdecision) are-company housing [Decision No ...],-right to unlimited consumption of electricity in connection withcompany housing [Decision No...],-company garage [Decision No…],-meal benefit [Decision No…] and-company telephone [Decision No…].

Disposable income

Conceptual Definition: …..

Operational Definition: + …(Wages and salaries …

Wages and salaries

Conceptual Definition:Wages and salaries refer …...

Operational Definition: ….+ wages and salaries in cash+ fringe benefits in kind based on employmentrelationship…

= variable

Link to the Decision

Income distribution statistics – taxation register metadata (II)

statistical metadata

register metadata

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The Future

Could it be ….integrated register metadataa genuinely metadata-driven statistical production

processrich metadata is present and available in all production

stages, including editing as well as transforming of register concepts to statistical concepts

metadata accumulates as the process advances without losing old metadata

rich metadata is also available for users during the dissemination process of statistical information

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RDBXMLDB

Hand-book

ofRegister

Register Metadata(xml)

data gatheringQuestionnaires

(xml)

collection routinestransactionbased data

storage units baseddata reportwith meta

1° aggregation

data transmission

units and variable based data organisation

data combining

collected datamatrix based on CoSSI

<?xml version="1.0" encoding="iso-8859-1" ?><statmatrix> <matrixtitlegrp> <matrixtitle> <matrixmaintitle>Employees 2001.</matrixmaintitle> </matrixtitle> </matrixtitlegrp> <docmeta> <statxdf> <array> <fieldAxis> <axis axisId="axisvar1" axisIdRef="var1"> <axis axisId="axisvar2" axisIdRef="var2"> <axis axisId="axisvar3" axisIdRef="var3"> <read> <statmeta> <data> </array> </statxdf></statmatrix>

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Variable

Statistical unit

statistical metadatabased on CoSSI

combined data

xml based production system

checked values

conceptual formation new variables

new metadata

data editing

XML based metadata-driven statistical production

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Some Practical Steps on the Way

Plan to implement this scheme of things to metadata of other registers (e.g. population register)

Integration of structured statistical metadata system with statistical software packages (e.g. SAS, SuperStar) for simultaneous use