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Links in the LEED data

The taxation system administrative data is linked to the BF data by the employer IRD number, a unique identifier common to both sources. All people and businesses that register for tax purposes with Inland Revenue are issued with an IRD number. The IRD number of a business entity is transferred to the BF and associated with a unit enterprise. Therefore employees, linked to their employer via the EMS, can also be linked to an enterprise on the BF. This enterprise is linked in turn to one or more geographical units (or physical locations) on the BF. These links between employees and employers and between enterprises and geographical units can be followed over time.

It should be noted that the datasets are not an exact match. The Inland Revenue data contains reporting units which cannot be linked to enterprises on the BF, as the BF is restricted to economically significant businesses. An ‘IRD only‘ unit is created for these, with information sourced from Inland Revenue data.

Unit record links in the LEED data

Diagram, unit records links in the LEED data.

The link between the tax and Business Frame (BF) data represented in the figure above is:

  1. between the same business at enterprise level at a given time period.

Links within the tax data represented in the figure above are:

  1. between a person (“employee”) and business (“employer”) at a given time period 
  2. for the same person over time 
  3. for the same business over time.

Links within the BF data are:

  1. for the same business over time at enterprise level
  2. for the same business over time at geographic unit level
  3. between an enterprise and its geographic units at a given time period.

Linking methods

The accuracy of the links in LEED can have a significant impact on the quality of any derived statistics. As a consequence a concerted effort is made to investigate and repair links within the base data.

The IRD number of a business is used as a matching variable between the tax data and the BF data. The IRD number is a very good numeric identifier but it is not an exact match between the two sources.

An IRD number may be used by an employer to report for a group of employers. In this situation, the Inland Revenue reporting unit and the BF statistical unit(s) do not align and an incorrect link is made to the BF enterprise. Some manual review and intervention is required on an ongoing basis to correctly deal with these business entities and their complex business and taxation filing structures.

An IRD number may also be changed for purely administrative reasons and result in two IRD numbers that refer to the same business. Alternatively, the same IRD number can refer to different businesses where different reporting units exist in the tax system and on the BF.

For these reasons, simply using an exact match on an IRD number would create false links and miss correct ones, and affect the quality of derived statistics. The methods used to repair these links are outlined in the following section.

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