Page 245 - Contributed Paper Session (CPS) - Volume 6

CPS1908 Klára A. T. et al.
- N3 category covers both agricultural own account production and costs of
own account construction.
- N4 includes legal persons included in Register but not included in statistics.
- N5 covers agricultural production of small enterprises and sole proprietors
included in register but not in statistics.

- Economic performance due to deliberate misreporting and VAT fraud
without complicity belongs to N6 category.
- Sole proprietors not subject to VAT but submit Tax return, wages and salaries
in kind, gratuity, tips and reimbursed costs included in N7 category.
The estimations for these items should be harmonized by the three
mentioned approaches: production, income generation and employment
method.
The balancing item in National Accounts process table reconciles the
production, the expenditure and the income generation sides, while in the
employment PT it reconciles the two approaches of compilation of
employment in domestic concept: the PT approach and that derived from the
national concept as Table 1. shows.
We have examined each exhaustiveness adjustment category whether
covering additional nonobserved employment or not. It is illustrated in Table
2.
The investigation of these non-observed economic categories should be
based on different data sources and from different concepts in order to
facilitate the cross validation. For example, the N6 category of exhaustiveness
adjustment from production side can be based on tax audit data, or theoretical
VAT estimation (Eurostat (2005a)), while the N6 labour input should based on
labour inspection data.
Table 2.: Possible non-observed employment by Exhaustiveness categories
Improvement Kind of activities,
Type of data required in which may not result
Exhaustiveness source for estimation additional
adjustment category
estimation method nonobserved
employment
Producer should be
registered Private accommodation
N1 Surveys yes
(underground of households
producer)
Administrative
N2 Illegal producer data no

Producer not obliged Surveys,
N3 to be registered administrative yes
data
Registered legal Surveys,
N4 person not included administrative no
in statistics data

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