1. Secondary distribution and use of income accounts
THE CONTRACTOR IS ACTING UNDER A FRAMEWORK CONTRACT CONCLUDED WITH THE COMMISSION

2. ..\Session 1A\Sequence of accounts.docx

3. Secondary distribution of income account
Uses Resources
Balance of primary incomes
Social benefits, taxes
Other current transfers
Social benefits, taxes
Other current transfers
Disposable income

4. Current taxes on income and wealth (D.5)
taxes on income (D.51);
- taxes on individual or household income,
examples of which are income from employment,
property, entrepreneurship, pensions,
etc.,;
- taxes on the income or profits of corporations;
- taxes on holding gains;
- taxes on winnings from lotteries or gambling etc.

5. Current taxes on income and wealth (D.5)
(b) other current taxes (D.59).
- current taxes on capital which consist of taxes payable on the ownership or use of land or buildings by owners;
- poll taxes, levied per adult or per household;
- expenditure taxes, payable on the total expenditures of persons or households;
- payments by households for licences to own or use for non-business purposes vehicles etc.

6. Current taxes on income and wealth (D.5)
Accrual compilation of taxes and social contributions (ESA 2010, 4.82)
Taxes and social contributions should be recorded net of those unlikely to be collected
Taxes recorded in the accounts are derived from two sources:
Cash receipts;
Amounts evidenced by assessments and declarations.

7. Current taxes on income and wealth (D.5)
Accrual compilation of taxes and social contributions (ESA 2010, 4.82)
a) Cash receipts
Amount is time adjusted
e.g. tax liability raised in one month is paid the next,
then simply lag the cash series to move it back one month

8. Current taxes on income and wealth (D.5)
Accrual compilation of taxes and social contributions (ESA 2010, 4.82)
b) Amounts assessed and declared
Use a coefficient (e.g. expect 95% will be collected)
adjust tax revenue
adjust within D.995 as capital transfer
If €100 assessed as due, record € 95 as tax record €100 as tax revenue and -€5 in D.995

9. Social contributions and benefits (D.6)
Net social contributions (D.61)
Actual or imputed contributions made by households to social insurance schemes to make provision for social benefits to be paid.
(b) Social benefits other than social transfers in kind (D.62)
(c) Social transfers in kind (D.63)
Individual goods and services provided for free or at prices that are not economically significant to individual households by government units and NPISHs.

10. Other current transfers (D.7)
Net non-life insurance premiums (D.71)
Non-life insurance claims (D.72)
Current transfers within general government (D.73)
Current international cooperation (D.74)
Miscellaneous current transfers (D.75)
VAT- and GNI-based EU own resources (D.76)

11. Use of income account Uses Resources Disposable income
Final consumption (HH and government)
saving
Disposable income

12. Final consumption (P.3, P.4)
Time of recording and valuation (ESA pp):
Expenditure on a good is recorded at the time of change of ownership; expenditure on a service is recorded when the delivery of the service is completed.
Expenditure on goods acquired under a hire purchase or similar credit agreement, and also under a financial lease, is recorded at the time the goods are delivered even if there is no change of ownership at this point.

13. Final consumption (P.3, P.4)
Time of recording and valuation (ESA ):
Own-account consumption is recorded when the output retained for own final consumption is produced.
The final consumption expenditure of households is recorded at purchasers' prices.
This is the price the purchaser actually pays for the products at the time of the purchase.

14. Thank you for your attention
CONTRACTOR IS ACTING UNDER A FRAMEWORK CONTRACT CONCLUDED WITH THE COMMISSION