Introduction digital ‘data dictionary’ financial reports (XBRL taxonomy)
In June of this year, the Dutch XBRL taxonomy, a digital data dictionary for financial reports (annual accounts, tax returns and lists of statistics) was completed. At present, we are working hard to implement the taxonomy that will radically simplify the composition of these reports from the entrepreneur’s financial records. Attention will thereby be drawn to the necessary infrastructure to make sure that an easy exchange of the reports with the Chambers of Commerce, the Tax and Customs Administration and Statistics Netherlands will also be possible. On 9 June a covenant was signed on the collaboration between the Government and businesses on the use of the XBRL taxonomy for financial information obligations to the Government. Leading software suppliers thereby confirmed that they will include this ‘data dictionary’ in their packages without increasing the price. XBRL taxonomy example for foreign countries
Other countries monitored with great interest the Dutch approach to reduce the administrative burden for entrepreneurs via a XBRL taxonomy. Australia, New Zealand and the United States have already initiated projects following the Dutch example. Many EU Member States and Japan have also expressed their interest in the innovative project. |
If such an accounting package is used, the right data for the annual accounts, tax returns and economic statistics can be gathered in one step from the records and filed digitally with the Chamber of Commerce, the Tax and Customs Administration and Statistics Netherlands. It is expected that the digitalization of the reports will save entrepreneurs (or their intermediaries) on average 33% of the time required to compose annual accounts. The intermediaries, such as accountants and tax consultants, pledged by signing the covenant that they will pass on the cost benefits ensuing from the use of the taxonomy to their clients. This means that the real benefits of the data dictionary will accrue to the entrepreneurs. Top
Licenses
In 2005 a Taskforce screened the licenses in the Netherlands and concluded a lot could be improved. The Dutch Parliament also stated that half the license systems could disappear. Next, in the first halve of 2006 a major project has been carried out in the Netherlands. All government licenses have been screened on simplification and reduction possibilities. About a 1,000 licenses have been screened with a specially developed analyses model. Result: 22% of the license-systems can be abolished. Further, simplification possibilities have been found in 124 systems. In the coming period the government will realise the implementation. Top Subsidy schemes
Companies often perceive applying for subsidies as complicated and bureaucratic. Although in this Cabinet period subsidy applications cannot be part of the quantitative reduction objective, the Cabinet is making efforts to keep the red tape involved in applying for subsidies to a minimum for businesses. A method has been developed to measure the administrative burdens generated by subsidies. The Ministry of Agriculture, Nature & Food Quality has already applied the method to all its subsidy schemes and drafted reduction proposals. The Ministry of Economic Affairs is also beginning to make an inventory of the administrative burdens involved in its subsidy schemes. Now that the method has been developed, the administrative burdens arising from subsidy schemes in 2007 will be an integral part of the new zero measurement. In anticipation of this, the administrative burdens generated by new subsidies are already being assessed and presented to ACTAL for testing. Furthermore, ministries are focusing on administrative burdens when evaluating existing schemes. Top Municipalities and provinces
Of the administrative burdens facing the municipalities themselves (generated by tasks performed in the context of the authority to administer their own affairs), 190 million euros relate to environmental permits. The Ministry of Housing, Spatial Planning and the Environment is researching the possibilities of reducing the red tape through improved coordination with the Housing, Spatial Planning and the Environment permit. The Cabinet, Inter-Provincial Consultation (IPO) and Association of Netherlands Municipalities (VNG) are working on concrete agreements to tackle administrative burdens arising from autonomous municipal tasks and from their policy freedom in administering their own affairs. These agreements, geared to reducing red tape, arise from the Inter-Administrative Relations Code upon which the Cabinet, IPO and VNG reached agreement in November 2004. To support their activities, all municipalities have been provided with an instrument to help them identify and quantify (autonomous) administrative burdens. By presenting best practices, this manual suggests ways of reducing red tape. In the context of the deregulation project initiated by the IPO, a zero measurement is conducted for administrative burdens generated by provincial rules for companies, the public and organisations within society. Based on that, the IPO and separate provinces will draft reduction proposals and a plan of action. The VNG drafted a reduction plan in Spring 2005. Both documents served as input for agreements made between the Cabinet, IPO and VNG in the Government’s Consultation of May 2005. Top |
