Annex: Recognised rights

Measuring revenue in terms of net recognized rights better approximates the results of the year than net collection, by including rights recognized in the year that remain pending collection at the end of the year and excluding revenue from closed years or recognized in previous years. This same measure, with an adjustment for uncertain revenue collection (estimated based on an econometric model developed by the National Institute of Statistics and validated by EUROSTAT), is the one established in National Accounting for the imputation of most of the revenues, and specifically for taxes and social contributions (EC Regulation 2516/2000).

Net recognized rights are obtained as the difference between gross recognized rights and cancelled and annulled rights. They can be broken down into two broad categories:

• Simultaneously contracted rights in which the recognition of the right coincides with the entry. They reflect the voluntary compliance of taxpayers through, basically, self-assessments and customs liquidations.

• Previously contracted rights, where the right is recognized prior to entry. They include the settlements made by Management, Inspection, Customs and Collection in the exercise of tax compliance control procedures, the rights for self-assessments for which you requested deferral or recognition of debt, and the rights for territorial adjustments with the Provincial Treasuries.