Business Statistics Branch General Methodology and Register Branch

1. Eurostat Project THE IMPLEMENTATION OF A MORE EFFICIENTWAY OF COLLECTING DATA, 21-22 OCTOBER 2008Present and Future Role of Administrative Data in Structural Business Statistics Business Statistics Branch General Methodology and Register Branch

2. Outline of the Presentation • Existing Experience with AD • New Administrative Data • Existing Actions, Future Plans • Expected Benefits from New AD

3. Reasons For Use of AD • to meet strict requirements to detail of breakdown, accuracy by SBS and STS Regulations with reasonable sample size (esp. SME enterprises) • reduction of inactive units • correction of size classes (empl., turnover) • important units indentification (investments, turnover) • improvement of Business Register as sampling frame • treatment of (increasing) non-response • base for estimates by small enterprises population

4. Main Administrative Data used in Business Statistics and BR • monthly data about number of social insurance policyholders (t+2 months) • annual data about individual turnovers from income tax returns – natural and legal persons (t+11 months) • list of self-employed persons, who pay social insurance on their own (annually) • all data available from year 2000

5. The Role of Special Database • place, where information about activity and size of unit (number of employees) is collected, compiled and confronted from • administrative data • business statistics surveys under unified methodology and confronted with information from Business Register.

6. Input to Special Database • monthly - number of policyholders of social insurance from Ministry of Labour and Social Affairs - data from special monthly survey in industry and construction • quartely - up-to-date data from quartely business surveys from last quarter and later • annually - up-to-date data from all surveys involved in SBS from last year • concurrently - important changes in enterprise‘s demography obtained by field workers, subject matter statisticians or AD methodologists

7. Output from Special Database I Business Register Updates • monthly • updates of size of unit (number of employees) in frames and samples for „non-annual“ business surveys • requirements to correct unit activity, information relating to mergers, acquisitions etc. • annually - updates of size of unit (number of employees) to generate frames and samples for „non-annual“ business surveys - updates of size of unit (number of employees) to generate frames and samples for annual business surveys - updates of size of unit (number of employees) to update frames and samples for annual business surveys

8. Output from Special Database II Calibration Tables • quartely - only for enterprises with employees • annually • number of employees • turnover for unit without employees Output for National Accounts Department - quartely tables with number of social insurance policyholder by CZ NACE and institutional sector

9. Output from Special Database III Regional Aspects of Number of Social Insurance Policyholders • Data are provided by districts (NUTS 4) even for individual enterprises. • Number of Social Insurance Policyholders by NUTS 4 is the cornerstone for estimation of regional series.

10. New Administrative Data • Ministry of Finance • annual income tax returns including reduced balance and income statement both by legal and natural persons • monthly and quartertly VAT tax returns • Czech Social Security Administration • basis of social security insurance assessment

11. Income tax returns incl. balance and income statement • annual data with 9 months delay (preliminary data)/12 month delay (final data) from 2005 (reduced data)/2006 (complete data) • both natural and legal persons, coverage of small enterprises • only updates of preliminary data sent with final data • now 2005 and 2006 data available • key variables: • sales revenues, sales of sold goods, margin, value added • wages, number of employees • structure of assets, tangibles, intagibles, liquid assests, stocks • structure of liabilities and euquity • financial costs and revenues etc.

12. VAT Tax Returns • monthly (90 000 enterprises) and quarterly data (290 000 enterprises) with 2 months delay available from 2005 • now 1/2005 to 6/2008 data avaible • updates and corrections sent every month • obligation to pay VAT by turnover in last 12 months: • quarterly – 80 000 Euro (2 Mio CZK) • monthly – 400 000 Euro (10 Mio CZK), opt. 160 000 Euro • key variables: • domestic turnover • export/import of goods EU countries/outside EU • imports of services from EU/outside EU • due to changes in tax legislation risk of delivery data in the beginning of 2009

13. Basis of Social Security Insurance Assessment • monthly aggregates by enterprises (265 000 enterprises) with 2 month delay, supplement of number of social security policyholders, data available from 1/2006 to 6/2008 • no updates or corrections, just delayed records every months • key variable: • assessment of social security insurance (proxy variable for wages and salaries) • due to changes in legislation and extension of CSSA duties risk of delivery data in the beginning of 2009 (data will not be available for 1st quarter of 2009).

14. Existing Actions, Future Plans • data imports infrastructure (structure of databases, import scripts) • data cleansing (logical checks, accounting identities, confronting with BR, existing AD and survey data, validation of „important“ uknown enterprises – high turnover etc.) • analysis of definitions compliance of AD variable and statistical variable (in cooperation with internal experts and accountants) • analysis of coherence among different administrative data, surveys, devolpment of corresponding SW tools. • performance testing of calibration by new auxiliary variables, new imputation procedures etc. • analysis of relationship between survey data and lagged AD (eg. for preliminary SBS data 1 year old tax data are available)

15. Expected Benefits from New AD • further improvement of BR as sampling frame – activity, size classess, more efficient idenfication of important enterprises (with high turnover, assets) • better base for estimates by small enterprises for more variables (even tangibles and intangibles) for needs of national accounts • source for more efficient estimation techniques (callibration of assets by totals of tax assets), imputation – more detailed outputs avaiable • to provide more detailed data with the same sample size (survey by small enterprises may be eliminated in the future) • more stable time series

16. Thanks for your attention!