Taxes on production and imports paid to the Institutions of the European Union
a) taxes paid directly by resident producer units to the Institutions of the
European Union (the ECSC levy on mining and iron and steel producing enterprises);
b) taxes collected by national governments on behalf of the Institutions of the
European Union, namely:
(1) receipts from the common agricultural policy:
levies on imported agricultural products, monetary compensatory amounts levied
on exports and imports, sugar production levies and the tax on isoglucose,
co-responsibility taxes on milk and cereals;
(2) receipts from trade with third countries: customs duties levied on the basis
of the Integrated Tariff of the European Union (TARIC);
(3) receipts from VAT in each Member State.
4.26 . Recording of taxes on production and imports: taxes on production and imports
are recorded when the activities, transactions or other events occur which
create the liabilities to pay taxes.
4.27 . However, some economic activities, transactions or events, which under tax
legislation ought to impose on the units concerned the obligation to pay taxes,
permanently escape the attention of the tax authorities. It would be unrealistic
to assume that such activities, transactions or events give rise to financial
assets or liabilities in the form of payables or receivables. For this reason,
the amounts to be recorded in the system are determined by the amounts due for
payment only when evidenced by tax assessments, declarations or other
instruments which create liabilities in the form of clear obligations to pay on the part
of taxpayers. The system does not impute missing taxes not evidenced by tax
assessments.
Taxes recorded in the accounts may be derived from two sources:
amounts evidenced by assessments and declarations or cash receipts. (a) If assessments and declarations are used, the amounts shall
be adjusted by a coefficient reflecting assessed and declared amounts never
collected. As an alternative treatment, a capital transfer, to the relevant
sectors could be recorded equal to the same adjustment. The coefficients shall
be estimated on the basis of past experience and current expectations in respect
of assessed and declared amounts never collected. They shall be specific to
different types of taxes. (b) If cash receipts are used, they shall be time-adjusted so
that the cash is attributed when the activity took place to generate the tax
liability. This adjustment may be based on the average time difference between
the activity and cash tax receipt.
4.28 . The total value of the taxes which should be recorded includes any interest
charged on arrears of taxes due and any fines imposed by taxation authorities if
it is impossible to record such interest and fines separately from taxes; it
also includes any charges which may be imposed in connection with the collection
or recovery of taxes outstanding. Correspondingly, it is reduced by the amount
of any tax rebates made by general government as a matter of economic policy
and any tax refunds made as a result of over-payments.
4.29 . In the system of accounts, taxes on production and imports (D.2) appear:
a) among uses in the generation of income account of the total economy;
b) among resources in the allocation of primary income account of the general
government sector and in the external account of primary incomes and current
transfers.
Taxes on products are recorded as resources in the goods and services account
of the total economy. This enables the resources of goods and services
Other taxes on production (D.29) appear among uses in the generation of income
accounts of the industries or sectors which pay them.