Tax Structure and Tax Evasion in Latin America

6(5,(

PDFURHFRQRPtDGHOGHVDUUROOR

7D[VWUXFWXUHDQGWD[HYDVLRQ
LQ/DWLQ$PHULFD
-XDQ&DUORV*yPH]6DEDLQL
-XDQ3DEOR-LPpQH]
(FRQRPLF'HYHORSPHQW'LYLVLRQ
6DQWLDJR)HEUXDU\

7KLV GRFXPHQW ZDV SUHSDUHG E\ -XDQ &DUORV *yPH] 6DEDLQL FRQVXOWDQW DQG -XDQ 3DEOR -LPpQH] (FRQRPLF
$IIDLUV2IILFHURIWKH(FRQRPLF'HYHORSPHQW'LYLVLRQRIWKH(FRQRPLF&RPPLVVLRQIRU/DWLQ$PHULFDDQGWKH
&DULEEHDQ (&/$& DW WKH UHTXHVW RI WKH /DWLQ $PHULFDQ 'HYHORSPHQW %DQN &$) WR EH SUHVHQWHG DW WKH
:RUNVKRS RQ 3XEOLF )LQDQFH DQG 'HYHORSPHQW KHOG LQ -XQH LQ %RJRWD LQ WKH IUDPHZRUN RI WKH SURMHFW
5(''HYHORSPHQWDQG)LVFDO3ROLF\
7KH WUDQVODWLRQ RI WKLV GRFXPHQW ZDV SUHSDUHG ZLWKLQ WKH IUDPHZRUN RI WKH 3URMHFW HQWLWOHG 0DFURHFRQRPLF
SROLF\ VRFLDO HTXLW\ DQG VRFLDO SURWHFWLRQ *(5 H[HFXWHG E\ (&/$& MRLQWO\ ZLWK 'HXWVFKH
*HVHOOVFKDIW IU ,QWHUQDWLRQDOH =XVDPPHQDUEHLW *,= DQG ILQDQFHG E\ WKH )HGHUDO 0LQLVWU\ RI (FRQRPLF
&RRSHUDWLRQDQG'HYHORSPHQWRI*HUPDQ\%0=
7KDQNV DUH GXH WR 'DOPLUR 0RUDQ 'LDQD )DMDUGR $UGLOD DQG ,VDEHO /ySH] $]F~QDJD IRU DVVLVWDQFH DQG
FRQWULEXWLRQVWRWKLVGRFXPHQW
7KHRSLQLRQVH[SUHVVHGLQWKLVGRFXPHQWZKLFKKDVQRWXQGHUJRQHIRUPDOHGLWLQJDUHWKRVHRIWKHDXWKRUDQGGR
QRWQHFHVVDULO\UHIOHFWWKRVHRIWKH2UJDQL]DWLRQ

8QLWHG1DWLRQV3XEOLFDWLRQ
/&/
,661SULQWHGYHUVLRQ
&RS\ULJKW8QLWHG1DWLRQV)HEUXDU\$OOULJKWVUHVHUYHG
3ULQWHGLQ8QLWHG1DWLRQV6DQWLDJR&KLOH

0HPEHU6WDWHVDQGWKHLUJRYHUQPHQWDOLQVWLWXWLRQVPD\UHSURGXFHWKLVZRUNZLWKRXWSULRUDXWKRUL]DWLRQEXWDUHUHTXHVWHGWR
PHQWLRQWKHVRXUFHDQGLQIRUPWKH8QLWHG1DWLRQVRIVXFKUHSURGXFWLRQ

&(3$/6HULH0DFURHFRQRPtDGHOGHVDUUROOR1 7D[VWUXFWXUHDQGWD[HYDVLRQLQ/DWLQ$PHULFD
&RQWHQWV
$EVWUDFW
, ,QWURGXFWLRQ
,, 5HFHQWWD[WUHQGVLQ/DWLQ$PHULFD
$ &KDQJHVLQWKHOHYHORIWD[EXUGHQLQ/DWLQ$PHULFD
% 3ULQFLSDOFKDQJHVWRWKHWD[VWUXFWXUHV
,,, &RQVWUDLQWVRQDFKLHYLQJWKHGHVLUHGREMHFWLYHV
RIWD[V\VWHPV
$ ,QVXIILFLHQWXQHTXDODQGYRODWLOHWD[EXUGHQ
% $QXQEDODQFHGVWUXFWXUHELDVHGWRZDUGVLQGLUHFWWD[HV
& 7D[GLVWRUWLRQVLQWKHLQFRPHWD[DQGWKHELDVWRZDUGV
FRUSRUDWHWD[DWLRQ
' 1DUURZWD[EDVHVIRUDOOWD[HV
,9 (IIHFWVRIHYDVLRQRQWKHWD[VWUXFWXUH
$ 7KHLPSRUWDQFHRIPHDVXULQJHYDVLRQRIWKHSULQFLSDOWD[HV
% /HYHOVRI9$7DQGLQFRPHWD[HYDVLRQLQ/DWLQ$PHULFD
9 $OWHUQDWLYHVFKRVHQWRLQFUHDVHWKHWD[EXUGHQLQ
WKHUHJLRQ¶VFRXQWULHV
$ 7D[HVRQILQDQFLDOWUDQVDFWLRQV
% 0LQLPXPVRUVXEVWLWXWHWD[HVWRUHSODFHWKHLQFRPHWD[
& 7KHUROHRIUHYHQXHVIURPWD[HVRQQDWXUDOUHVRXUFHV
9, 7KHUROHRIWD[DGPLQLVWUDWLRQVDQGVWUDWHJLHVLQFRPEDWLQJ
HYDVLRQLQ/DWLQ$PHULFD
$ &KDQJHVLQHIIRUWVWRFRPEDWHYDVLRQ
% 5HFHQWVWUDWHJLHVDGRSWHGE\WD[DJHQFLHVWRDGGUHVV
WKHQHZHFRQRPLFSDUDGLJPV
& &XUUHQWFKDOOHQJHVIDFLQJWD[DGPLQLVWUDWLRQV

9,, (YDOXDWLQJWKHSHUIRUPDQFHRIWD[DGPLQLVWUDWLRQVLQ/DWLQ$PHULFD:KDWGR
ZHFXUUHQWO\NQRZ"
$ &ULWHULDIRUFRPSDUDWLYHHYDOXDWLRQRIWD[DGPLQLVWUDWLRQV
,QGLFDWRUVUHODWHGWRHIILFLHQF\FRVWRIFROOHFWLQJUHYHQXH
,QGLFDWRUVRIFROOHFWLRQHIILFDF\
,QGLFDWRUVRIKXPDQUHVRXUFHVHPSOR\HG
% $SSURDFKHVWRPRGHUQL]LQJWD[DGPLQLVWUDWLRQVLQWKHUHJLRQ&KRRVLQJWKHULJKWFRXUVH
9,,, 6XPPDU\DQGFRQFOXVLRQV
%LEOLRJUDSK\
6HULH0DFURHFRQRPtDGHOGHVDUUROORLVVXHVSXEOLVKHG
7DEOHLQGH[
7$%/( &/$66,),&$7,212)/$7,1$0(5,&$1&28175,(6%</(9(/
2)7$;%85'(1$1'3(5&$3,7$*'3
7$%/( &+$1*,1*7$;%85'(1,17+(&28175,(62)/$7,1$0(5,&$
%(7:((1$1'
7$%/( 3(5&(17$*(&+$1*(,17$;%85'(1,1/$7,1$0(5,&$
7$%/( &+$1*(6,1/$7,1$0(5,&$¶67$;6758&785(
7$%/( &+$1*(6,1/$7,1$0(5,&$¶67$;6758&785(
7$%/( /(*$/,1&20(7$;5$7(6$9(5$*(,1/$7,1$0(5,&$
$1'7+(2(&'
7$%/( ',675,%87,9(,03$&72)7$;32/,&<,1/$7,1$0(5,&$
$1'7+(2(&'
7$%/( 6758&785(2),1&20(7$;5(9(18(,1/$7,1$0(5,&$
%<&28175<
7$%/( 6(/(&7('&28175,(67$;(;3(1',785(
7$%/( &203$5,6212)5$7(62)9$7$1',1&20(7$;(9$6,21
7$%/( 180%(52)&28175,(6:,7+7$;(621),1$1&,$/75$16$&7,216
,1/$7,1$0(5,&$$1'7+($6,$3$&,),&5(*,21
7$%/( 5(9(18(6)5207$;(621),1$1&,$/75$16$&7,216
7$%/( 0,1,08062568%67,787(6)257+(,1&20(7$;,1
/$7,1$0(5,&$
7$%/( )($785(62)7+(7$;5(*,0(65(/$7('721215(1(:$%/(
352'8&76
7$%/( 63(&,$/5(*,0(6)2560$//7$;3$<(56,1/$7,1$0(5,&$
7$%/( 6758&785(2)/$7,1$0(5,&$17$;$'0,1,675$7,216
7$%/( 6758&785(2)7$;$'0,1,675$7,216,1620(2(&'&28175,(6
7$%/( '28%/(7$;$7,21$*5((0(176,17+(&28175,(6
2)/$7,1$0(5,&$
7$%/( &+$1*,1*&2672)&2//(&7,1*5(9(18($6$3523257,21
2)7$;5(9(18(6,16(/(&7('/$7,1$0(5,&$&28175,(6
7$%/( 727$/63(1',1*2)7$;$'0,1,675$7,216,16(/(&7('/$7,1
$0(5,&$1$1'2(&'&28175,(6
7$%/( ,1',&$72562)7+(&2//(&7,21()),&$&<2)7$;$'0,1,675$7,216
,12(&'&28175,(6
7$%/( ,1',&$72562)86(2)3(56211(/,17$;$'0,1,675$7,216
2)/$7,1$0(5,&$1$1'2(&'&28175,(6
)LJXUHLQGH[
),*85( &+$1*(,10$,17$;(6$6$6+$5(2)7+(7<3,&$/7$;6758&785(
,1/$7,1$0(5,&$
),*85( 7$;%85'(1$1'6758&785(,1/$7,1$0(5,&$$6&203$5('
:,7+27+(5*528362)&28175,(6

),*85( &203$5,621%(7:((17$;%85'(1$1'3(5&$3,7$*'3333

),*85( &+$1*(6,1/(*$/5$7(6)25,1&20(7$;$1'9$7,1
/$7,1$0(5,&$V72
),*85( 5$7(2)9$7(9$6,21$1'9$7352'8&7,9,7<&2168037,21,1'(;
),*85( 7$;(9$6,21,10(;,&2
),*85( 7$;(9$6,21,10(;,&2
),*85( ),6&$/5(9(18()52035,0$5<352'8&76
),*85( &2672)&2//(&7,21$6$3523257,212)7$;5(9(18(6
,16(/(&7('/$7,1$0(5,&$1$1'2(&'&28175,(6
),*85( 180%(52)(03/2<((6$1'7$;%85'(1&2//(&7('%<7+(7$;
$'0,1,675$7,2162)/$7,1$0(5,&$1&28175,(6
),*85( 180%(52)(03/2<((63(53(5&(17$*(32,172)7$;%85'(1
&2//(&7('%<7$;$'0,1,675$7,216,1/$7,1$0(5,&$1$1'
2(&'&28175,(6
%R[LQGH[
%2; %5,()127(210(7+2'2/2*<
%2; 7$;())257,1/$7,1$0(5,&$
%2; (;,67,1*0(7+2'62)0($685,1*(9$6,21
%2; (9$/8$7,1*7$;$'0,1,675$7,216',))(5(17$3352$&+(6

$EVWUDFW
:KHQ VWXG\LQJ WD[ LVVXHV LQ /DWLQ $PHULFD DORQJ ZLWK DQ\ UHJLRQDO
SHUVSHFWLYH LQGLYLGXDO FRXQWU\ GLIIHUHQFHV PXVW EH WDNHQ LQWR DFFRXQW
'HVSLWH WKLV UHJLRQDO GLYHUVLW\ WKH WD[ V\VWHPV RI WKH YDVW PDMRULW\ RI
/DWLQ $PHULFD¶V FRXQWULHV VKDUH FHUWDLQ NH\ FKDUDFWHULVWLFV WKH
FRPSRVLWLRQRIWKHLUWD[VWUXFWXUHVWKHWHFKQLFDOHFRQRPLFSROLWLFDODQG
DGPLQLVWUDWLYH FRQVWUDLQWV WKH\ IDFH FXUUHQW WUHQGV LQ WD[ SROLF\ DQG
DGPLQLVWUDWLRQDQGDKLJKHVWLPDWHGOHYHORIWD[HYDVLRQ
7RGD\¶VJOREDOL]HGZRUOGFDOOVIRUWKHQHHGWRDOLJQWD[SROLFLHVDQG
DGPLQLVWUDWLRQV ZLWK WKRVH XVHG LQ RWKHU FRXQWULHV PRUH DGYDQFHG LQ WKH
VXEMHFW $ WDVN QRW H[HPSW RI SURIRXQG FKDQJHV LQ WKH SURFHVV RI
LPSURYLQJ WD[ DGPLQLVWUDWLRQ WR HUDGLFDWH VRPH RI WKH UHVWULFWLRQV
PHQWLRQHG DERYH LW LV HVVHQWLDO WR LQVWLWXWH WD[ UHIRUPV WKDW SURPRWH
FRQYHUJHQFHDPRQJWKHUHJLRQ¶VFRXQWULHVWRZDUGVDWD[VWUXFWXUHV\VWHP
WKDWIDFLOLWDWHVLQFUHDVHGWD[FROOHFWLRQV
7KH SXUSRVH RI WKLV SDSHU ZDV WR VWXG\ WKH HYROXWLRQ DQG PDMRU
IHDWXUHVRIWKHW\SLFDO OHYHO DQGVWUXFWXUHRIWKHWD[EXUGHQLQWKHUHJLRQ
RYHU WKH ODVW \HDUV LGHQWLI\LQJ LPSRUWDQW GLIIHUHQFHV EHWZHHQ WKH
FRXQWULHVDQGKLJKOLJKWLQJWKHSULQFLSDOREVWDFOHVDQGFRQVWUDLQWVWKDWPRVW
RI WKH FRXQWULHV KDYH HQFRXQWHUHG LQ DWWHPSWLQJ WR LQFUHDVH WKHLU WD[
UHYHQXHVDQGPRGLI\WKHLUWD[VWUXFWXUHV

, ,QWURGXFWLRQ
6WXGLHV RQ WD[ LVVXHV LQ /DWLQ $PHULFD JHQHUDOO\ RIIHU D FDYHDW EHIRUH
H[SUHVVLQJ FRQFOXVLRQV RQ WKH UHJLRQ DV D ZKROH )RU UHJDUGOHVV RI WKH
FRQFHSW LQYROYHG WKH ZLGH UDQJH RI HFRQRPLF VRFLDO DQG JHRJUDSKLFDO
IDFWRUVDFURVVWKHUHJLRQLQHYLWDEO\UHTXLUHVWKDWDORQJZLWKDQ\UHJLRQDO
SHUVSHFWLYHLQGLYLGXDOFRXQWU\GLIIHUHQFHVEHWDNHQLQWRDFFRXQWLQRUGHU
WRDYRLGIDOOLQJYLFWLPWRPHDQLQJOHVVJHQHUDOL]DWLRQV
$Q\ DQDO\VLV RI /DWLQ $PHULFD¶V WD[ V\VWHPV WKHUHIRUH UHTXLUHV
WKLV FDXWLRQDU\ QRWH VLQFH WKHUH DUH VLJQLILFDQW GLIIHUHQFHV IURP RQH
FRXQWU\ WR DQRWKHU LQ WKH RYHUDOO OHYHO RI WD[ UHYHQXHV FXUUHQWO\ EHLQJ
FROOHFWHGWRIXQGWKH6WDWH¶VYDULRXVSXEOLFVSHQGLQJREOLJDWLRQVDVZHOO
DV LQ RWKHU DVSHFWV RI LQGLYLGXDO WD[ V\VWHPV $ FRXQWU\¶V WD[ EXUGHQ LV
GHWHUPLQHG E\ LWV SUHYDLOLQJ WD[ VWUXFWXUH WKH JRYHUQPHQW¶V DELOLW\ WR
HIIHFWLYHO\ LPSOHPHQW SXEOLF SROLF\ DQG WKH OHYHO RI LQVWLWXWLRQDO
GHYHORSPHQW LQ SODFH WR DOORZ IRU HIIHFWLYH FROOHFWLRQ RI OHJDOO\
HVWDEOLVKHGWD[HV
'HVSLWHWKLVUHJLRQDOGLYHUVLW\WKHWD[V\VWHPVRIWKHYDVWPDMRULW\
RI /DWLQ $PHULFD¶V FRXQWULHV VKDUH FHUWDLQ NH\ FKDUDFWHULVWLFV WKH
FRPSRVLWLRQRIWKHLUWD[VWUXFWXUHVWKHWHFKQLFDOHFRQRPLFSROLWLFDODQG
DGPLQLVWUDWLYH FRQVWUDLQWV WKH\ IDFH FXUUHQW WUHQGV LQ WD[ SROLF\ DQG
DGPLQLVWUDWLRQDQGDKLJKHVWLPDWHGOHYHORIWD[HYDVLRQ
7KHW\SLFDO/DWLQ$PHULFDQWD[VWUXFWXUHLVKHDYLO\ELDVHGWRZDUGV
LQGLUHFW WD[DWLRQ ZLWK WKH YDOXH DGGHG WD[ 9$7 FRQVWLWXWLQJ WKH PDLQ
VRXUFHRIWD[UHYHQXHV7KHVHFRQGPRVWLPSRUWDQWUHJLRQDOWD[LQWHUPV
RI DPRXQWV FROOHFWHG ²WKH LQFRPH WD[² LV WDUJHWHG WR WKH FRUSRUDWH
VHFWRUZKHUHLWVUHGLVWULEXWLYHHIIHFWLVGRXEWIXOJLYHQWKDWLWVKLIWVWKHWD[
EXUGHQWRQDWXUDOSHUVRQVE\PHDQVRIKLJKHUFRVWVIRUJRRGVDQGVHUYLFHV
7KLV LVVXH LVDW WKH URRW RI WD[ UHIRUP SROLFLHV ZKLFKDWWHPSW WR DFKLHYH
JUHDWHUEDODQFHQRWRQO\EHWZHHQGLUHFWDQGLQGLUHFWWD[HVEXWDOVRLQKRZ

WKH LQFRPH WD[ LV DSSRUWLRQHG EHWZHHQ LQGLYLGXDOV DQG FRUSRUDWLRQV ZLWK HPSKDVLV RQ WKH HIILFLHQF\
FRVWVDQGLPSDFWWKDWHDFKW\SHRIWD[KDVRQLQFRPHGLVWULEXWLRQ
+RZHYHU WKH PDQ\ IDLOXUHV DQG PHDJUH UHVXOWV DFKLHYHG E\ WKHVH UHIRUP HIIRUWV LQ YDULRXV
FRXQWULHVZLWKLQWKHUHJLRQKLJKOLJKWWKHVHYHUHDQGSHUHQQLDOFRQVWUDLQWVHQFRXQWHUHGLQFOXGLQJLWKH
KLJK GHJUHH RI LQIRUPDOLW\ LQ PDUNHWV IRU JRRGV DQG IDFWRUV LL WKH VFDQW LQVWLWXWLRQDO FDSDFLW\ WR
PDQDJHDQGPRQLWRUSD\PHQWRIWD[HVLLLWKHORZOHYHORIWD[PRUDOHZLOOLQJQHVVWRSD\WD[HVDQGD
SHUFHSWLRQ LQ PDQ\ RI WKH FRXQWULHV WKDW WKH 6WDWH ODFNV OHJLWLPDF\ DQG DV D FRQVHTXHQFH RI WKH
IRUHJRLQJIDFWRUVLYWKHKLJKRYHUDOOUDWHRIHYDVLRQZLWKUHJDUGWRDOOWD[HV
7KLV UHJLRQDO SDWWHUQ RI WD[DWLRQ LV RFFXUULQJ PRUHRYHU DORQJVLGH D QHZ WD[ SDUDGLJP RQH
GHVLJQHG WR LQFUHDVH WUDGH RSHQQHVV DQG H[SDQG ILQDQFLDO DQG WUDGH RSHUDWLRQV LQWHUQDWLRQDOO\ 7KLV
GHYHORSPHQW KDV EURXJKW ZLWK LW WKH QHHG WR DOLJQ WD[ SROLFLHV DQG DGPLQLVWUDWLRQV ZLWK WKRVH RI
FRXQWULHVLQRWKHUUHJLRQVRIWKHZRUOGDWDVNUHTXLULQJSURIRXQGFKDQJHV
2QHH[DPSOHRIWKLVLVWKHLQWHUQDWLRQDOWUHQGRQHRIWKHPDMRUODQGPDUNVRIWKHODVWWZRGHFDGHV
WRZDUGVVHSDUDWLQJWD[DGPLQLVWUDWLRQIURPWD[SROLF\PDNLQJWKHWZRIXQFWLRQVDXWRQRPRXV$QGZKLOH
LW LV ZLGHO\ EHOLHYHG WKDW WKHVH GXDO IXQFWLRQV DUH PHUHO\ WZR VLGHV RI WKH VDPH FRLQ D QXPEHU RI
FRXQWULHVLQWKHUHJLRQKDYHHQFRXQWHUHGGLIILFXOWLHVLQFRRUGLQDWLQJWKHWZRDQGVWLOOPDLQWDLQLQJWKHLU
LQGHSHQGHQFH $OO WRR RIWHQ WD[ DGPLQLVWUDWLRQ LV GULYHQ H[FOXVLYHO\ E\ WKH JRDO RI WD[ FROOHFWLRQ
QHJOHFWLQJWKHEDVLFQHHGWRHQVXUHDQHIILFLHQWDQGHTXLWDEOHWD[V\VWHP&RQYHUVHO\DV%LUGKDV
VWDWHG³WKHEHVWWD[SROLF\LQWKHZRUOGLVZRUWKOLWWOHLILWFDQQRWEHLPSOHPHQWHGHIIHFWLYHO\´
$FFRUGLQJO\LQWKHSURFHVVRILPSURYLQJWD[DGPLQLVWUDWLRQWRHOLPLQDWHVRPHRIWKHFRQVWUDLQWV
FLWHGDERYHLWLVHVVHQWLDOWRHVWDEOLVKYLDEOHPHWKRGVRIRUFKHVWUDWLQJWD[UHIRUPVVRWKDWWKH\SURPRWH
FRQYHUJHQFH DPRQJ WKH UHJLRQ¶V FRXQWULHV WRZDUGV D PRUH HIILFLHQW HTXLWDEOH PRUH HIIHFWLYHO\
DGPLQLVWHUHGDQGPRUHFUHGLEOHLHVRFLDOO\OHJLWLPDWHWD[VWUXFWXUH²LQVKRUWDV\VWHPWKDWIDFLOLWDWHV
LQFUHDVHGWD[FROOHFWLRQVZKLOHDWWKHVDPHWLPHHQKDQFLQJWKH³TXDOLW\´RIWD[V\VWHPV2QHLPSRUWDQW
VWHS LQ WKLV GLUHFWLRQ ZRXOG EH WR GHYHORS DQG SXEOLVK SHUIRUPDQFH LQGLFDWRUV IRU WD[ DGPLQLVWUDWLRQ
7KLV ZRXOG LPSURYH WKH GLVVHPLQDWLRQ RI LQIRUPDWLRQ DQG KHLJKWHQ WKH WUDQVSDUHQF\ RI WKH DJHQFLHV
LQYROYHGZKLOHDOVRSURYLGLQJDEDVLVIRUFRPSDULQJUHVXOWVRIGLIIHUHQWWD[DGPLQLVWUDWLRQV
7KHSXUSRVHRIWKHSUHVHQWUHSRUWLVILUVWRIDOOWRVWXG\WKHHYROXWLRQDQGPDMRUIHDWXUHVRIWKH
W\SLFDO OHYHODQGVWUXFWXUHRIWKHWD[EXUGHQLQWKHUHJLRQRYHUWKHODVW \HDUVLGHQWLI\LQJLPSRUWDQW
GLIIHUHQFHVEHWZHHQWKHFRXQWULHVDQGFODVVLI\LQJWKHPLQWKUHHGLVWLQFWJURXSV7KHVHFRQGVHFWLRQKDVD
GXDOSXUSRVHRQRQHKDQGWRKLJKOLJKWWKHSULQFLSDOREVWDFOHVDQGFRQVWUDLQWVWKDWPRVWRIWKHFRXQWULHV
KDYHHQFRXQWHUHGLQDWWHPSWLQJWRLQFUHDVHWKHLUWD[UHYHQXHVDQGPRGLI\WKHLUWD[VWUXFWXUHVDQGRQWKH
RWKHU WR GHWDLO WKH PDLQ WD[ SROLF\ DOWHUQDWLYHV DGRSWHG E\ WKHVH FRXQWULHV LQ UHFHQW \HDUV WR LQFUHDVH
WKHLUWD[EXUGHQV
7KHWKLUGVHFWLRQLVGHYRWHGWR YDULRXVDVSHFWVRIWD[HYDVLRQSDUWLFXODUO\WKHZD\VLQZKLFK LW
KDUPV WKH WD[ V\VWHP LQFOXGLQJ PHWKRGV JHQHUDOO\ XVHG WR HVWLPDWH OHYHOV RI HYDVLRQ DYDLODEOH
LQIRUPDWLRQRQHYDVLRQLQWKHUHJLRQ¶VFRXQWULHVDQGLQIRUPDWLRQRQVSHFLILFFDVHVZKHUHWKHUHKDVEHHQ
VLJQLILFDQWSURJUHVVLQPDNLQJTXDQWLWDWLYHPHDVXUHPHQWVRIHYDVLRQ7KHIRXUWKDQGILIWKVHFWLRQVFRYHU
WD[DGPLQLVWUDWLRQ,QSDUWLFXODUWKH\DQDO\VHVWUDWHJLHVLPSOHPHQWHGWRLPSURYHFROOHFWLRQRIWKHPDMRU
WD[HV IROORZLQJ ZKLFK WKH\ SUHVHQW D YDULHW\ RI SHUIRUPDQFH LQGLFDWRUV IRU /DWLQ $PHULFDQ WD[
DGPLQLVWUDWLRQV WDNLQJ DFFRXQW RI PHWKRGRORJLFDO FRQVWUDLQWV GHVLJQHG WR PHDVXUH HIILFLHQF\
HIIHFWLYHQHVVDQGWKHDYDLODELOLW\RIUHVRXUFHV7KHILQDOVHFWLRQRIWKHSDSHUSUHVHQWVDVXPPDU\RIWKH
VWXG\DQGLWVSULQFLSDOFRQFOXVLRQV

,, 5HFHQWWD[WUHQGVLQ
/DWLQ$PHULFD
7KH ODVW \HDUV KDYH VHHQ SURIRXQG VRFLDO HFRQRPLF DQG LQVWLWXWLRQDO
FKDQJHVLQ/DWLQ$PHULFDDQGWKHVHFKDQJHVKDYHKDGWKHLUHIIHFWRQWD[
SROLF\ 7D[ EXUGHQ KDV LQFUHDVHG FRQVLGHUDEO\ GULYHQ E\ HFRQRPLF
JURZWKHIIRUWVWRDFKLHYHPDFURHFRQRPLFVWDELOLW\LQFUHDVHGFRPPRGLW\
SULFHVDQGWKHWD[UHIRUPVRIWKHHDUO\V
7KHVH UHIRUPV GLUHFWHG DW LQFUHDVLQJ ILVFDO UHYHQXHV WR GHDO ZLWK
JURZLQJGHPDQGVIRUVSHQGLQJHVWDEOLVKHGWKHYDOXHDGGHGWD[9$7DV
/DWLQ $PHULFD¶V SULQFLSDO WD[ +RZHYHU WKH ELDV WRZDUGV LQGLUHFW
WD[DWLRQDORQJZLWKWKHQDUURZLQFRPHWD[EDVHDQGKLJKGHJUHHRIQRQ
FRPSOLDQFH KDYH OLPLWHG HIIRUWV RI WKH UHJLRQ¶V WD[ V\VWHPV WR SXUVXH
REMHFWLYHVUHODWHGWRLQFUHDVHGHTXLW\DQGJUHDWHUVWDELOL]DWLRQ
7KLV FKDQJH LQ SDUDGLJP KDV DOVR DIIHFWHG WD[ DGPLQLVWUDWLRQ
FRYHULQJLVVXHVVXFKDVWKHSURYLVLRQRIGLIIHUHQWLDOWUHDWPHQWIRUGLIIHUHQW
FDWHJRULHV RI WD[SD\HUV VLPSOLI\LQJ WD[ V\VWHPV E\ HOLPLQDWLQJ
GLVWRUWLRQDU\ DQG OHVV LPSRUWDQW WD[HV LQFRUSRUDWLQJ LQIRUPDWLRQ
WHFKQRORJLHVDQGGHDOLQJZLWKWKHFKDOOHQJHVRIRSHQ²DQGFRQVHTXHQWO\
PRUHLQWHUFRQQHFWHG²HFRQRPLHV
'HVSLWH WKHVH JHQHUDO WUHQGV KRZHYHU OHYHOV RI WD[ UHYHQXH DQG
UHFHQW FKDQJHV WR WD[ VWUXFWXUHV YDU\ FRQVLGHUDEO\ IURP RQH FRXQWU\ WR
DQRWKHU 7KXV ZKLOH VRPH FRXQWULHV VXFK DV %UD]LO DQG $UJHQWLQD
FXUUHQWO\ KDYH WD[ EXUGHQV H[FHHGLQJ RI *'3 RWKHUV VXFK DV
(FXDGRU*XDWHPDODDQG3DUDJXD\KDYHWD[EXUGHQVRIQRPRUHWKDQ
RI *'3 7KHVH ODWWHU FRXQWULHV DOVR VKRZ VORZHU JURZWK UDWHV WKDQ WKH
IRUPHUJURXS

7DEOH VKRZV D QRWDEOH UHJLRQDO SKHQRPHQRQ 6LPSOH DYHUDJHV RI WD[ UHYHQXH VHULHV DV D
SHUFHQWDJHRI*'3DQGSHUFDSLWD*'3LQFRQVWDQW8QLWHG6WDWHVGROODUVZHUHFDOFXODWHGIRU
/DWLQ$PHULFDQFRXQWULHV(&/$&7KHUHVXOWLQJILJXUHVZHUHDQG86UHVSHFWLYHO\IRU
$URXQGWKHVHYDOXHVZHUHLQWHUPHGLDWHJURXSVO\LQJZLWKLQRIWKHDYHUDJHV7KXV
WKH FRXQWULHV ZLWK ³KLJK´ WD[ EXUGHQV DQG ³KLJK´ DYHUDJH SHU FDSLWD *'3 IRU FDQ EH
FRQVLGHUHGWREHWKRVHWKDW H[FHHGWKHUHJLRQDODYHUDJHRIHDFKYDULDEOHIRU WKHSHULRGE\ZKLOH
WKRVHWKDWDUHEHORZWKHDYHUDJHVFDQEHFRQVLGHUHGWREH³ORZ´ZLWKUHJDUGWRWKRVHYDULDEOHV
2QH PLJKW VXSSRVH WKDW FRXQWULHV ZLWK KLJK LQFRPH OHYHOV DV PHDVXUHG E\ SHU FDSLWD *'3
ZRXOGEHWKHRQHVZLWKWKHKLJKHVWOHYHOVRIWD[EXUGHQSRLQWLQJWRDGHTXDWHWD[HIIRUW+RZHYHUWKHUH
DUH FRXQWULHV LQ /DWLQ $PHULFD VXFK DV WKH 3OXULQDWLRQDO 6WDWH RI %ROLYLD DQG 1LFDUDJXD ZLWK WD[
UHYHQXHVDERYHWKHUHJLRQDODYHUDJHEXWZLWKYHU\ORZ*'37KHUHDUHDOVRSDUDGR[LFDOFDVHVVXFKDV
0H[LFR ZKLFK KDV KLJK SHU FDSLWD LQFRPH LQ UHODWLRQ WR WKH UHJLRQDO DYHUDJH EXW RQH RI WKH UHJLRQ¶V
ORZHVWWD[EXUGHQVDOHYHOLQFRQVLVWHQWZLWKLWVGHJUHHRIGHYHORSPHQW

7$%/(
&/$66,),&$7,212)/$7,1$0(5,&$1&28175,(6%</(9(/
2)7$;%85'(1$1'3(5&$3,7$*'3
$YHUDJHSHUFDSLWD*'3
'ROODUVDWFRQVWDQWSULFHV

+LJK 0HGLXP /RZ
DERYH86 8686 EHORZ86
+LJK $UJHQWLQD
$YHUDJHWD[EXUGHQ
%UD]LO
JUHDWHUWKDQ 8UXJXD\
&KLOH
RI*'3
3OXULQDWLRQDO6WDWHRI
0HGLXP &RVWD5LFD

%ROLYLD
EHWZHHQ 3DQDPD &RORPELD
+RQGXUDV1LFDUDJXD
DQG %ROLYDULDQ5HSXEOLFRI
3HUX
9HQH]XHOD
(FXDGRU
/RZ
0H[LFR 'RPLQLFDQ5HSXEOLF (O6DOYDGRU*XDWHPDOD
OHVVWKDQ
3DUDJXD\
6RXUFH$XWKRUVEDVHGRQGDWDIURPWKH(FRQRPLF&RPPLVVLRQIRU/DWLQ$PHULFDDQGWKH&DULEEHDQ(&/$&

'HWHUPLQLQJWKHUHDVRQVIRUWKHKHWHURJHQHLW\RIWKHFXUUHQWVLWXDWLRQUHTXLUHVWKDWRQHH[DPLQH
WKH HYROXWLRQ RI WKH WD[ EXUGHQ LQ /DWLQ $PHULFD LQ WHUPV RI ERWK OHYHO DQG VWUXFWXUH ²D WDVN
XQGHUWDNHQLQWKHIROORZLQJVHFWLRQ
$ &KDQJHVLQWKHOHYHORIWD[EXUGHQLQ/DWLQ$PHULFD
7KH DYHUDJH WD[ EXUGHQ LQ /DWLQ $PHULFD LQFOXGLQJ FRQWULEXWLRQV WR VRFLDO VHFXULW\ KDV LQFUHDVHG
FRQWLQXRXVO\RYHUWKHODVWWZRGHFDGHV,QDEVROXWHWHUPVWKHLQFUHDVHKDVEHHQFORVHWRRI*'3DQG
LQ UHODWLRQ WR WKH DYHUDJH IRU LW KDV JURZQ ,Q PRVW RI WKH UHJLRQ¶V FRXQWULHV WKLV
LQFUHDVHLVGXHWRWKHJUHDWHUSUHSRQGHUDQFHRIJHQHUDOWD[HVRQJRRGVDQGVHUYLFHVDQGWRWKHH[SDQVLRQ
RI WD[ EDVHV DV D UHVXOW RI WKUHH PDLQ IDFWRUV D VWURQJ DQG DFFHOHUDWLQJ HFRQRPLF JURZWK GULYHQ E\
ULVLQJSULFHVIRUSULPDU\VHFWRUJRRGVEWKHLQWURGXFWLRQRIQRYHOLQLWLDWLYHVVXFKDVPLQLPXPWD[HV
DQGWD[HVRQILQDQFLDOWUDQVDFWLRQVDQGFUHIRUPVWRWD[VWUXFWXUHVDQGWD[DGPLQLVWUDWLRQ
7KHVXFFHHGLQJVHFWLRQVDQDO\VHWKHVHIDFWRUV,WVKRXOGEHERUQHLQPLQGWKDWSURYLGLQJDEURDG
RYHUDOO DQDO\VLV RI WKH HYROXWLRQ RI WD[ SROLF\ LQ /DWLQ $PHULFD LV D FRPSOH[ XQGHUWDNLQJ VLQFH WKH
PDFURHFRQRPLF FLUFXPVWDQFHV DV ZHOO DV WKH HIIRUWV WR LPSURYH WKH WD[ EXUGHQ KDYH YDULHG IURP

FRXQWU\WRFRXQWU\7DEOHVXPPDUL]HVWD[EXUGHQDYHUDJHVE\WKUHH\HDUSHULRGVIRU/DWLQ$PHULFDQ
FRXQWULHVEHWZHHQDQG
7KH WDEOH VKRZV SURIRXQG LQWHUFRXQWU\ GLIIHUHQFHV ZLWK UHJDUG WR WKH PDJQLWXGH RI WKH WD[
EXUGHQ )RU H[DPSOH %UD]LO¶V ILJXUH ZDV RI *'3 IRU WKH ELHQQLXP FRPSDUDEOH WR
OHYHOVLQGHYHORSHGFRXQWULHVZLWK$UJHQWLQDUDQNLQJVHFRQGEHKLQG%UD]LOZLWKRI*'3IRUWKH
VDPHSHULRG7KHVHWZRFRXQWULHVKDYHOHGWKHUHJLRQLQWHUPVRILQFUHDVHGWD[EXUGHQRYHUWKHODVWWZR
GHFDGHV)RUPRVWRIWKHUHJLRQ¶VFRXQWULHVKRZHYHUWKHOHYHORIWD[DWLRQLVOHVVWKDQRI*'3ZLWK
ILJXUHVLQH[WUHPHFDVHVVXFKDV0H[LFRDQG*XDWHPDODDWDURXQGRI*'3

7$%/(
&+$1*,1*7$;%85'(1,17+(&28175,(62)/$7,1$0(5,&$%(7:((1$1'
7KUHH\HDUDYHUDJHVDQGSHUFHQWDJHVRI*'3

*URXS
%UD]LO
$UJHQWLQD
8UXJXD\
*URXS
&RVWD5LFD
&KLOH
1LFDUDJXD
%ROLYLD3OXULQDWLRQDO6WDWHRI
3DQDPD
&RORPELD
3HUX
+RQGXUDV
9HQH]XHOD%ROLYDULDQ5HSXEOLFRI
*URXS
(O6DOYDGRU
3DUDJXD\
0H[LFR
'RPLQLFDQ5HSXEOLF
(FXDGRU
*XDWHPDOD
$YHUDJH*URXS
$YHUDJH*URXS
$YHUDJH*URXS
6LPSOHDYHUDJH/DWLQ$PHULFD
:HLJKWHGDYHUDJH/DWLQ$PHULFD
6RXUFH$XWKRUVEDVHGRQ(&/$&GDWD
1RWH 7KH FRYHUDJH DSSOLHV WR DOO OHYHOV RI JRYHUQPHQW LQ WKH FDVHV RI $UJHQWLQD WKH3OXULQDWLRQDO 6WDWH RI %ROLYLD
%UD]LO&KLOH&RVWD5LFD&RORPELDDQG0H[LFRIRUFHQWUDOJRYHUQPHQWRQO\)RUWKHUHPDLQLQJFRXQWULHVWKH
GDWDDUHIRUWKHFHQWUDOJRYHUQPHQW7KHODVWURZLQWKHWDEOHVKRZVWKHWD[EXUGHQIRUHDFKFRXQWU\ZHLJKWHGE\WKH
FRXQWU\¶VVKDUHRI/DWLQ$PHULFD¶V*'3EDVHGRQWKHVHULHVLQFXUUHQWGROODUV(&/$&

$V FDQ EH VHHQ WKHUH DUH GLIIHUHQFHV ZLWKLQ WKH JURXSV ZLWK UHJDUG WR WKH DFWXDO FKDQJH LQ WD[
EXUGHQGXULQJWKHSHULRG,QHDFKJURXSLWLVSRVVLEOHWRLGHQWLI\FRXQWULHVWKDWKDYHOHGWKHJURZWKLQWD[
UHYHQXHDQGWKRVHLQZKLFKFKDQJHKDVEHHQORZHUWKDQWKHUHJLRQDODYHUDJHDVZHOODVFRXQWULHVWKDWLQ
DQ H[FHSWLRQDO PDQQHU KDYH PRYHG LQ WKH RSSRVLWH GLUHFWLRQ VXFK DV 0H[LFR DQG WKH %ROLYDULDQ
5HSXEOLFRI9HQH]XHOD

%2;
%5,()127(210(7+2'2/2*<
7KH FRQVWUXFWLRQ RI WD[ UHYHQXH VHULHV WKDW DUH FRPSDUDEOH LQWHUQDWLRQDOO\ DQG RYHU WLPH LV DQ DUGXRXV DQG
FKDOOHQJLQJWDVNSDUWLFXODUO\IRU/DWLQ$PHULFD$PRQJWKHLVVXHVWKDWPXVWEHDGGUHVVHGDUHWKHOHYHORIJRYHUQPHQW
DQG FROOHFWLRQV V\VWHP WR EH XVHG IRU VRFLDO VHFXULW\ FRQWULEXWLRQV ,Q DGGLWLRQ LW LV LPSRUWDQW WR WDNH LQWR DFFRXQW WKH
REOLJDWLRQVWRWUDQVIHUDSRUWLRQRIZKDWLVFROOHFWHGWRRWKHUHQWLWLHVRUOHYHOVRIJRYHUQPHQWDVZHOODVQRQWD[DQGTXDVL
WD[UHYHQXHV&HWUiQJRORDQG*yPH]6DEDLQLS
7KH LQIRUPDWLRQ XVHG LQ WKLV UHSRUW LV GHULYHG SULPDULO\ IURP FHQWUDO JRYHUQPHQW GDWD 7KH UDWLRQDOH IRU WKLV LV WKH
JUHDWHUDYDLODELOLW\RIVXFKLQIRUPDWLRQDVZHOODVWKHIDFWWKDWLQERWKXQLWDU\DQGIHGHUDO6WDWHVPRVWRIWKHUHYHQXHLV
FROOHFWHG DW WKH FHQWUDO OHYHO ,Q PRUH GHFHQWUDOL]HG FRXQWULHV KRZHYHU FRYHUDJH KDV EHHQ H[SDQGHG WR LQFOXGH
LQIRUPDWLRQRQJHQHUDOJRYHUQPHQWZKLFKLQFOXGHVVXEQDWLRQDOJRYHUQPHQWV7KLVLVMXVWLILHGE\WKHUROHRILQWHUPHGLDWH
JRYHUQPHQWVVWDWHVDQGSURYLQFHVDQGRUORFDOJRYHUQPHQWVZKLFKKDYHGLIIHULQJGHJUHHVRIWD[DXWRQRP\DQGFROOHFW
VLJQLILFDQW UHYHQXHV ,Q %UD]LO IRU H[DPSOH WKHVH VXEQDWLRQDO JRYHUQPHQWV DFFRXQW IRU RI WRWDO FROOHFWLRQV 7KH
SUHVHQWVWXG\XVHVLQVWLWXWLRQDOFRYHUDJHDWWKHJHQHUDOJRYHUQPHQWOHYHOIRU$UJHQWLQDWKH3OXULQDWLRQDO6WDWHRI%ROLYLD
%UD]LO&KLOH&RORPELD&RVWD5LFD(FXDGRUDQG0H[LFR
&ROOHFWLRQV IRU WKH VRFLDO VHFXULW\ V\VWHP GHPDQG VSHFLDO DWWHQWLRQ 3XEOLF ILQDQFH VWDWLVWLFV VHSDUDWH WKHVH IXQGV
IURP WD[ FROOHFWLRQV VLQFH ³&RPSXOVRU\ VRFLDO VHFXULW\ FRQWULEXWLRQV GLIIHU IURP WD[HV LQ WKDW WKH SD\PHQWV HQWLWOH WKH
FRQWULEXWRUVDQGRWKHUEHQHILFLDULHVWRFHUWDLQVRFLDOEHQHILWVLIVSHFLILHGHYHQWVVKRXOGWDNHSODFHVXFKDVVLFNQHVVDQG
ROGDJH´,0)S7KXVXQOLNHWD[HVZKLFKDUHPDQGDWRU\WUDQVIHUVUHFHLYHGE\WKHJRYHUQPHQWDQGDUHQRW
OLQNHG ZLWK VSHFLILF VHUYLFHV SD\PHQWV WR IXQG VRFLDO VHFXULW\ SURJUDPPHV PXVW EH YLHZHG LQ FRQMXQFWLRQ ZLWK WKH
EHQHILWVWKH\FRQIHU
0RUHRYHU WKH ODVW \HDUV KDYH SURGXFHG SURIRXQG FKDQJHV LQ WKH VFRSH RI VRFLDOVHFXULW\ SURJUDPPHV LQ /DWLQ
$PHULFDDVZHOODVFKDQJHVLQWKH6WDWH¶VUROHDQGLQWKHVFKHPHIRUIXQGLQJWKHV\VWHPV*LYHQWKDWWKHFRXQWULHVKDYH
QRWIROORZHGDQ\VLQJOHFULWHULRQIRUIXQGLQJWKHLUVRFLDOVHFXULW\V\VWHPVWKHUHDUHVHULRXVSUREOHPVLQLQFOXGLQJVRFLDO
VHFXULW\ FRQWULEXWLRQV DV WD[ UHYHQXH ZKHQ PDNLQJ LQWHUQDWLRQDO FRPSDULVRQV :LWK UHJDUG WR SHQVLRQV IRU H[DPSOH
WKHUHDUHV\VWHPVLQZKLFKWKHUROHRIWKHSXEOLFVHFWRULVEHLQJUHSODFHGE\SULYDWHDGPLQLVWUDWRUVRIFDSLWDOL]DEOHIXQGV
3OXULQDWLRQDO6WDWHRI%ROLYLD&KLOH(O6DOYDGRU0H[LFR7KHUHDUHDOVRV\VWHPVLQZKLFKWKHSXEOLFDQGSULYDWHVHFWRUV
DUH SUHVHQW VLGH E\ VLGH HLWKHU EHFDXVH WKHVH DUH PL[HG V\VWHPV $UJHQWLQD 8UXJXD\ RU EHFDXVH WKH\ DUH SDUDOOHO
V\VWHPV &RORPELD3HUX 0HVD /DJR %UD]LO &RVWD 5LFD DQG 3DQDPD KDYH FRPSOHWHO\ SXEOLFV\VWHPV ZKLFK
KDYHVLJQLILFDQWVXFFHVVLQFROOHFWLQJVRFLDOVHFXULW\FRQWULEXWLRQV
-DQXDU\VDZWKHODXQFKRIDMRLQWLQLWLDWLYHLQYROYLQJ(&/$&WKH,QWHU$PHULFDQ&HQWUHRI7D[$GPLQLVWUDWLRQV
DQGWKH2(&'ZLWKWKHSULQFLSDODLPEHLQJWREXLOGDGDWDEDVHFRQWDLQLQJLQWHUQDWLRQDOO\FRPSDUDEOHWD[GDWDD
:LWKUHJDUGWRWD[FROOHFWLRQVWKHSUHVHQWSURMHFWVHHNVWRSURYLGHGDWDE\W\SHRIWD[DQGOHYHORIJRYHUQPHQW7KH
SULQFLSDO WDVN LQ GHVLJQLQJ WKH GDWDEDVH IRFXVHG RQ FRPSLOLQJ WD[ LQIRUPDWLRQ FDWHJRUL]LQJ HDFK SXEOLF UHYHQXH LWHP
DFFRUGLQJWRWKHW\SHRIWD[DQGFODVVLI\LQJEXGJHWLWHPVXVLQJDFRPPRQPHWKRGRORJ\VLPLODUWRWKDWXVHGLQWKH2(&'
SXEOLFDWLRQ5HYHQXH6WDWLVWLFV6SHFLDOHPSKDVLVZDVJLYHQWRDQDO\VLQJWKHOHJLVODWLRQDQGUHJXODWRU\IUDPHZRUNVRIWKH
WD[V\VWHPVLQWKHLQGLYLGXDOFRXQWULHVLQRUGHUWRGHWHUPLQHZKHWKHURUQRWDVSHFLILFFDWHJRU\RIUHYHQXHFRQVWLWXWHVWD[
UHYHQXHDQGLILWGRHVWRFODVVLI\LWLQWHUPVRIWKHFRUUHVSRQGLQJWD[EDVH
6RXUFH$XWKRU¶VHODERUDWLRQ
1RWH7D[UHYHQXHVLQQDWLRQDOFXUUHQF\DWFXUUHQWSULFHVDQGLQSHUFHQWDJHVRI*'3E\W\SHRIWD[IRUDUH
FRPSLOHG V\VWHPDWL]HG DQG GLVVHPLQDWHG E\ (&/$& DQG FDQ EH YLHZHG RQ WKH &(3$/67$7 ZHE SDJH
KWWSZZZFHSDORUJHVWDGLVWLFDVE\VHOHFWLQJ³6WDWLVWLFVDQG,QGLFDWRUV´±³(FRQRPLFV´±³3XEOLF6HFWRU´±³7D[5HYHQXHV´
D
&RXQWULHV LQFOXGHG LQ WKH LQLWLDO SURMHFW ZHUH $UJHQWLQD %UD]LO &KLOH &RORPELD &RVWD 5LFD WKH 'RPLQLFDQ 5HSXEOLF (O
6DOYDGRU*XDWHPDOD0H[LFR3HUX8UXJXD\DQGWKH%ROLYDULDQ5HSXEOLFRI9HQH]XHOD7KHSHULRGH[DPLQHGZDVWR
WKHSUHVHQW

$QDO\VLQJ WKH DYHUDJH WD[ EXUGHQV RI WKH UHJLRQ¶V FRXQWULHV IRU GLIIHUHQW WKUHH\HDU SHULRGV
EHWZHHQDQGVKRZVWKDWWKHJURZLQJWD[EXUGHQLQ/DWLQ$PHULFDKDVEHHQOHGSULQFLSDOO\E\
DVPDOOQXPEHURIFRXQWULHV%UD]LO$UJHQWLQD1LFDUDJXDWKH3OXULQDWLRQDO6WDWHRI%ROLYLD&RVWD5LFD
&RORPELD(FXDGRUDQGWKH'RPLQLFDQ5HSXEOLFZKLOHIRUWKHUHPDLQLQJFRXQWULHVWKHUHKDVQRWEHHQ
VLJQLILFDQWSURJUHVVLQDEVROXWHWHUPVLQLQFUHDVLQJWD[UHYHQXHVDVDVKDUHRI*'3VHHWDEOH,QWKLV
ODWWHUJURXSRIFRXQWULHVWKHDYHUDJHWD[EXUGHQKDVDFWXDOO\GHFOLQHGIURPWKHOHYHOVRIWKHV

7$%/(
3(5&(17$*(&+$1*(,17$;%85'(1,1/$7,1$0(5,&$
7KUHH\HDUDYHUDJHV

*URXS
%UD]LO
$UJHQWLQD
8UXJXD\
*URXS
&RVWD5LFD
&KLOH
1LFDUDJXD
3DQDPD
&RORPELD
3HUX
+RQGXUDV
*URXS
(O6DOYDGRU
3DUDJXD\
0H[LFR
'RPLQLFDQ5HSXEOLF
(FXDGRU
*XDWHPDOD
$YHUDJH*URXS
$YHUDJH*URXS
$YHUDJH*URXS
6LPSOHDYHUDJH/$
:HLJKWHGDYHUDJH/$
6RXUFH(&/$&
1RWH&RYHUDJHLVIRUFHQWUDOJRYHUQPHQWH[FHSWLQWKHFDVHVRI$UJHQWLQDWKH3OXULQDWLRQDO
6WDWH RI %ROLYLD %UD]LO &KLOH &RORPELD DQG &RVWD 5LFD ZKHUH ILJXUHV DUH IRU JHQHUDO
JRYHUQPHQWLQFOXGLQJWD[UHYHQXHVRIVXEQDWLRQDOJRYHUQPHQWV

7DEOHVKRZVWKDWWKRXJKWKHJHQHUDOO\SRVLWLYHWUHQGLQWD[EXUGHQZDVTXLWHVLPLODULQWKHODVW
WZRGHFDGHVLQWKHVDQGLQWKHPRVWUHFHQWGHFDGHWKHEHKDYLRXURIWKLVYDULDEOH
LVXQLTXHWRHDFKRIWKHFRXQWULHV2QRQHKDQGWKHJURZLQJWD[EXUGHQEHWZHHQWKHDQG
WULHQQLDVKRZVWKDWRQO\VRPHFRXQWULHV²%UD]LO*XDWHPDOD1LFDUDJXDWKH3OXULQDWLRQDO6WDWHRI
%ROLYLD&RORPELD3DUDJXD\DQGWKH'RPLQLFDQ5HSXEOLF²LQFUHDVHGWKHLUWD[EXUGHQVDVDSHUFHQWDJH
RI *'3 DERYH WKH UHJLRQDO DYHUDJH +RZHYHU RQO\ VRPH RI WKHVH FRXQWULHV PDLQWDLQHG DQ DERYH
DYHUDJH SDFH RI JURZWK GXULQJ WKH PRVW UHFHQW GHFDGH ZLWK 1LFDUDJXD DQG WKH 3OXULQDWLRQDO 6WDWH RI
%ROLYLDEHLQJQRWDEOHIRUWKHPDJQLWXGHRISHUFHQWDJHLQFUHDVH$WWKHVDPHWLPHRWKHUFRXQWULHVLQWKH
UHJLRQHPHUJHGDVOHDGHUVLQWKHDFFHOHUDWLQJFKDQJHLQWD[EXUGHQIRUH[DPSOH$UJHQWLQD&RVWD5LFD
DQG(FXDGRU

7KHFKDQJHLQWD[EXUGHQLQWKHUHJLRQ¶VFRXQWULHVKDVEHHQOLQNHGWRFKDQJHVLQSHUFDSLWD*'3
$IWHU WKH $VLDQ ILQDQFLDO FULVLV RI PDQ\ RI /DWLQ $PHULFD¶V FRXQWULHV H[SHULHQFHG UHFHVVLRQDU\
SHULRGVWKDWSURGXFHGPRGHUDWHJURZWKERWKLQSHUFDSLWD*'3DQGLQWD[EXUGHQ+RZHYHUVWURQJDQG
UDSLGHFRQRPLFJURZWKVLQFHGULYHQE\WKHULVLQJSULFHVIRUH[SRUWVRISULPDU\JRRGDFFHOHUDWHG
WKHJURZWKLQWD[UHYHQXHVLQQHDUO\DOORIWKHUHJLRQ¶VFRXQWULHV
*LYHQ WKHVH FRQWUDVWLQJ FLUFXPVWDQFHV WKH SULRULW\ DVVLJQHG WR WKH YDULRXV WDVNV DW KDQG ZLOO
GHSHQG IRU D JLYHQ FRXQWU\ RQ WKH OHYHO RI WD[ EXUGHQ ,Q FRXQWULHV ZKHUH FROOHFWLRQV UHPDLQ ORZ LQ
UHODWLYHWHUPVHIIRUWVVKRXOGEHGLUHFWHGDWVWUHQJWKHQLQJWKHILVFDOUHYHQXHVIURPWD[HV,QFDVHVZKHUH
FROOHFWLRQOHYHOVDUHDGHTXDWHWKHHPSKDVLVFRXOGUHDVRQDEO\EHSODFHGRQLPSURYLQJWKHTXDOLW\RIWKH
UHVRXUFHVREWDLQHGDQGRQDFKLHYLQJPRUHHTXLWDEOHGLVWULEXWLRQRIWKHWD[EXUGHQDVZHOODVRQUHGXFLQJ
LQHIILFLHQFLHVFDXVHGE\SRRUO\GHVLJQHGV\VWHPVDQGLPSURYLQJFRQWUROVDQGFRPSOLDQFH²WKHODVWRI
WKHVHLQYLHZRIWKHIDFWWKDWDVZLOOEHVHHQEHORZUDWHVRIWD[HYDVLRQFRQWLQXHWREHH[WUHPHO\KLJK
WKURXJKRXWPRVWRIWKHUHJLRQ
$ KHDYLHU RU OLJKWHU WD[ EXUGHQ GRHV QRW DOZD\V UHSUHVHQW EHWWHU RU ZRUVH FRQGLWLRQV LQ SXEOLF
ILQDQFH VLQFH UHYHQXHV IURP RWKHU VRXUFHV ²VXFK DVH[WUDFWLRQ RI QDWXUDO UHVRXUFHV DV LQ WKHFDVH RI
$UJHQWLQD WKH 3OXULQDWLRQDO 6WDWH RI %ROLYLD &KLOH &RORPELD (FXDGRU 0H[LFR 3HUX DQG WKH
%ROLYDULDQ 5HSXEOLF RI 9HQH]XHOD RU LQ WKH FDVH RI 3DQDPD IHHV FKDUJHG IRU XVH RI WKH 3DQDPD
&DQDO²PD\FRPHLQWRSOD\7RDOHVVHUH[WHQWELODWHUDODQGPXOWLODWHUDOGRQDWLRQVDOVRFRQWULEXWHWR
UDLVLQJ JRYHUQPHQW UHYHQXHV DV LQ WKH FDVHV RI +DLWL +RQGXUDV DQG 1LFDUDJXD $OWKRXJK WKHVH
UHVRXUFHVZRUNWRJHWKHUWRIXQGSXEOLFVSHQGLQJDQGVHUYLFHVWKH³WD[EDVHV´WKH\GUDZRQWHQGWREH
PRUHYRODWLOHWKDQWUDGLWLRQDOWD[EDVHVDQGLQWKHFDVHRIUHYHQXHVGHULYHGIURPILQLWHQRQUHQHZDEOH
UHVRXUFHVWKHUHDUHLQHYLWDEO\LVVXHVRIVXVWDLQDELOLW\DQGLQWHUJHQHUDWLRQDOHTXLW\
9HU\ORZWD[EXUGHQVWHQGWRSODFHVLJQLILFDQWFRQVWUDLQWVRQILVFDOSROLF\WKHUHE\UHGXFLQJWKH
FDSDFLW\WRSURYLGHSXEOLFVHUYLFHVRUOLPLWLQJWKHTXDOLW\RIWKHVHUYLFHVRIIHUHGLQEDVLFDUHDVVXFKDV
HGXFDWLRQKHDOWKVRFLDODVVLVWDQFHKRXVLQJDQGLQIUDVWUXFWXUH*LYHQWKDWWKHORZHULQFRPHSRSXODWLRQ
GHSHQGVPRUHKHDYLO\RQJRYHUQPHQWSROLFLHVDQGDFWLRQWKLVLVWKHSRSXODWLRQJURXSPRVWLPSDFWHGE\
WKHUHGXFWLRQLQSXEOLFVHUYLFHV
% 3ULQFLSDOFKDQJHVWRWKHWD[VWUXFWXUHV
7KHGHVLJQRIUHIRUPVWRWKHWD[VWUXFWXUHRYHUWKHODVWWZRGHFDGHVZDVEDVHGRQDQHIIRUWWRDFKLHYH
JUHDWHU ILVFDO VROYHQF\ ZLWK OLWWOH DWWHQWLRQ JLYHQ WR RWKHU NH\ WD[ SROLF\ REMHFWLYHV 2QH RI WKH PRVW
VLJQLILFDQW WD[ SROLF\ SKHQRPHQD LQ /DWLQ $PHULFDQ FRXQWULHV GXULQJ WKLV SHULRG KDV EHHQ WKH
VLJQLILFDQWO\LQFUHDVHGUROHRIJHQHUDOWD[HVRQJRRGVDQGVHUYLFHVYDOXHDGGHGWD[HVDQGRWKHUVLPLODU
WD[HV DV D SURSRUWLRQ RI DOO WD[ UHYHQXHV LQ WKH UHJLRQ )LJXUH VKRZV DQ DYHUDJH ULVH LQ WKH
UHODWLYHZHLJKWRIWKHVHWD[HVZLWKLQWKHWD[VWUXFWXUHDWWKHUHJLRQDOOHYHO$VFDQDOVREHVHHQQHDUO\
WKHHQWLUHLQFUHDVHLQWKHZHLJKWSHUFHQWDJHRIWD[HVRIWKLVW\SHRFFXUUHGGXULQJWKHVLQWKHZDNH
RIWD[UHIRUPVWKDWEURDGHQHGWD[EDVHVDQGLQFUHDVHGWKHOHJDOUDWHVRIWD[DWLRQ
,Q DGGLWLRQ WR WKH UHGXFWLRQ LQ LQFRPH WD[ UDWHV IRU EXVLQHVVHV WKH FROOHFWLRQ RI LQFRPH DQG
FDSLWDO JDLQV WD[HV DUH D IXUWKHU FDXVH RI WKH LQFUHDVH LQ WKH UHJLRQDO WD[ EXUGHQ GXULQJ WKH ODVW WZR
GHFDGHV$VSHUFHQWDJHRIDOOWD[UHYHQXHVWKHVHWD[HVLQFUHDVHGE\²IURPDQDYHUDJHLQFUHDVHRI
LQWKHWULHQQLXPWREHWZHHQDQG7KHODUJHVWULVHVRFFXUUHGLQWKH
ODVW GHFDGH GXH WR FHUWDLQ LQFUHDVHV LQ WD[ EDVHV WKDW UHO\ RQ WD[LQJ VHUYLFHV WKH LPSOHPHQWDWLRQ RI
GLVWRUWLRQDU\ WD[HV RU FRQWULEXWLRQV EHWWHU PRQLWRULQJ RI WKH XQLYHUVH RI WD[SD\HUV DQG LQ VRPH
FRXQWULHVJUHDWHUUHOLDQFHRQUHYHQXHVIURPSURGXFWLRQDQGIURPH[SRUWVRIJRRGV

),*85(
&+$1*(,10$,17$;(6$6$6+$5(2)7+(7<3,&$/7$;6758&785(,1/$7,1$0(5,&$
3HUFHQWDJHVRIDOOWD[UHYHQXHV

нϰϳй

нϮϰй

Ͳϲй

Ͳϯϳй

Ͳϱϱй

нϱй ͲϲϬй

*HQHUDOZR ,QFRPHDQG 6RFLDO6HFXULW\ 6SHFLILFZR ,QWHUQDWLRQDOWUDGH 3URSHUW\ 2WKHUWD[HV
JRRGVDQG FDSLWDOJDLQV JRRGVDQG
VHUYLFHV VHUYLFHV

1RWH 7KH SHUFHQWDJHV LQ UHG UHSUHVHQW UHODWLYH FKDQJHV LQ WKH SHUFHQWDJH RI WKH UHJLRQ¶V W\SLFDO WD[ VWUXFWXUH
UHSUHVHQWHGE\HDFKJURXSRIWD[HV

7$%/(
&+$1*(6,1/$7,1$0(5,&$¶67$;6758&785(
7KUHH\HDUDYHUDJHVDQGSHUFHQWDJHVRI*'3
/DWLQ$PHULFD *URXS *URXS *URXS

7\SHRIWD[

,QFRPHDQG

FDSLWDOJDLQV
3URSHUW\
*HQHUDOWD[
RQJRRGV

DQGVHUYLFHV
9$7
6SHFLILF
WD[HVRQ

JRRGVDQG
VHUYLFHV
,QWHUQDWLRQDO

WUDGH
2WKHUWD[HV
6RFLDO

6HFXULW\
7RWDOWD[

UHYHQXHV

$V WDEOH VKRZV WKH VWUHQJWKHQLQJ RI WKH WZR FDWHJRULHV RI WD[HV PHQWLRQHG DERYH KDV EHHQ D
FRPPRQ IHDWXUH RI WKH WD[ VWUXFWXUHV RI WKH WKUHH JURXSV RI FRXQWULHV FLWHG ZKLFK DUH FDWHJRUL]HG
DFFRUGLQJWRWKHLUDYHUDJHWD[EXUGHQIRU7KXVIRUH[DPSOHIRUJURXS²%UD]LO$UJHQWLQD
DQG 8UXJXD\² WKHVH WD[HV URVH IURP DQ DYHUDJH RI RI *'3 LQ WR RI *'3 LQ
$VDSHUFHQWDJHRI*'3WKHDYHUDJHWD[EXUGHQIRUWKHSHULRGUHSUHVHQWHGSULPDULO\E\WKH
9$7DQGLQFRPHWD[HVLQFUHDVHGE\LQWKHFDVHRIJURXSDQGE\IRUJURXS

7$%/(
&+$1*(,1/$7,1$0(5,&$¶67$;6758&785(
7KUHH\HDUDYHUDJHVDQGSHUFHQWDJHVRIWRWDOFROOHFWLRQV
/DWLQ$PHULFD *URXS *URXS *URXS

7\SHRIWD[

,QFRPHDQG
FDSLWDO
JDLQV
3URSHUW\
*HQHUDOWD[
RQJRRGV
DQG
VHUYLFHV
9$7
6SHFLILF
WD[HVRQ

JRRGVDQG
VHUYLFHV
,QWHUQDWLRQDO

WUDGH
2WKHUWD[HV
6RFLDO

6HFXULW\
7RWDOWD[

UHYHQXHV

$QDO\VLVRIWKHW\SLFDOWD[VWUXFWXUHVIRUHDFKJURXSKRZHYHULQWHUPVRIWRWDOVFROOHFWHGWDEOH
VKRZVWKDWWKHUHODWLYHPDJQLWXGHRIWKHVHWZRWD[HVLVJUHDWHULQJURXSVDQGWKDQLQJURXSODUJHO\
EHFDXVHRIWKHGRPLQDQWUROHRIVRFLDOVHFXULW\FRQWULEXWLRQVLQWKHWD[V\VWHPVRIWKHJURXSFRXQWULHV
0RUHRYHU DV D FRQVHTXHQFH RI LQFUHDVHG HFRQRPLF RSHQQHVV LQ WKH UHJLRQ WD[HV RQ IRUHLJQ
WUDGHIHOODVDSURSRUWLRQRIWRWDOUHYHQXHVLQPRVWRIWKHUHJLRQ¶VFRXQWULHV²IURPDQDYHUDJHRI
LQWKHWULHQQLXPWRLQ7KHGHFOLQHZDVVKDUSHVWLQWKHV7KLV
JHQHUDOWUHQGUHVXOWHGIURPFKDQJHVLQWKHWD[VWUXFWXUHVRIWKHFRXQWULHVLQWKHJURXSZLWKORZHUWD[
EXUGHQVDQGZKLOHIRUWKHJURXSFRXQWULHVWKHVKDUHRIWKLVW\SHRIWD[KDVUHPDLQHGDWDURXQG
RIWRWDOFROOHFWLRQV
6LPLODUO\GXHWRWKHVLPSOLILFDWLRQRIWKHUHJLRQ¶VWD[VFKHPHVWD[HVRQVSHFLILFFRQVXPSWLRQRI
JRRGV DQG VHUYLFHV VHOHFWLYH WD[HV DOVR ORVW JURXQG LQ WHUPV RI UHODWLYH ZHLJKW ZLWKLQ WKH UHJLRQ¶V
W\SLFDOWD[VWUXFWXUHIDOOLQJIURPLQWRLQ²DGHFOLQHRYHUWKHODVW
WZR GHFDGHV RI RI WRWDO FROOHFWLRQV +RZHYHU PRVW RI WKLV UHGXFWLRQ RFFXUUHG GXULQJ WKH ODVW
GHFDGHZLWKWKHZLGHVSUHDGLPSOHPHQWDWLRQRIJHQHUDOWD[HVRQFRQVXPSWLRQ²DWUHQGVHHQLQDOORIWKH
JURXSVRIFRXQWULHVH[DPLQHG

)RU WKH UHJLRQ DV D ZKROH VRFLDO VHFXULW\ FRQWULEXWLRQV UHSUHVHQW D VXEVWDQWLDO SHUFHQWDJH RI WD[
UHYHQXHVDQGWKHLUZHLJKWLQ/DWLQ$PHULFD¶VWD[VWUXFWXUHVDVDZKROHKDVUHPDLQHGUHODWLYHO\VWDEOHDW
DURXQGRIWKHWRWDO,QUHODWLRQWR*'3WKLVKDVPHDQWDQLQFUHDVHIURPWRRI*'3LQWKH
SHULRGVFRQVLGHUHGKHUH,QWKLVVHJPHQWWKHJURXSFRXQWULHVDUHQRWDEOHIRUWKHLUKHDYLHUWD[EXUGHQDV
GLVFXVVHG HDUOLHU 7KHVH FRXQWULHV FROOHFW XS WR RU WLPHV PRUH WKDQ GR WKH JURXS DQG JURXS
FRXQWULHVLQWHUPVRIWKHSHUFHQWDJHVRI*'3DQGXSWRWZLFHDVPXFKLQWHUPVRIWRWDODPRXQWVFROOHFWHG
/DVWO\ WD[HV RQ ZHDOWK ZHUH QHDUO\ FRQVWDQW LQ UHODWLYH WHUPV EHWZHHQ DQG
ZLWKRQO\DVOLJKWLQFUHDVHIURPWRRI*'3²DULVHLQWHUPVRIWKHLUZHLJKWLQWKH
DYHUDJH WD[ VFKHPH 7KXV LQ PRVW RI WKH UHJLRQ¶V FRXQWULHV WKH KLVWRULFDOO\ PHDJUH \LHOG IURP WKHVH
WD[HV LQ WHUPV RI WKHLU VKDUH RI RYHUDOO WD[ UHYHQXHV UHPDLQHG QHDUO\ FRQVWDQW ILJXUH :KDW OLWWOH
FKDQJH RFFXUUHG LV DWWULEXWDEOH DOPRVW HQWLUHO\ WR WKH JURXS FRXQWULHV ZKHUH WKHUH ZHUH VOLJKW
LQFUHDVHVLQWKHVHWD[HVDVDSHUFHQWDJHRI*'3$VDJHQHUDOPDWWHUWD[HVRQZHDOWKSOD\DQHJOLJLEOH
UROHLQWKHWD[V\VWHPVRI/DWLQ$PHULFDQFRXQWULHV

,,, &RQVWUDLQWVRQDFKLHYLQJ
WKHGHVLUHGREMHFWLYHVRI
WD[V\VWHPV
%H\RQGWKHLPSURYHPHQWVQRWHGUHJDUGLQJWKHOHYHORIWKHWD[EXUGHQWKH
UHJLRQ¶V WD[ V\VWHPV KDYH KDG SUREOHPV PHHWLQJ WKH REMHFWLYHV RI
DOORFDWLRQDOHIILFLHQF\GLVWULEXWLYHHTXLW\DQGHFRQRPLFVWDELOL]DWLRQ
7KHVH SUREOHPV DUH UHODWHG WR D VHULHV RI IDFWRUV H[DPLQHG LQ
JUHDWHUGHWDLOIXUWKHURQZKLFKVKDUHWKHIROORZLQJFKDUDFWHULVWLFV
• ,QVXIILFLHQW DQG YRODWLOH WD[ EXUGHQ ERWK LQ FRPSDULVRQ ZLWK
RWKHU UHJLRQV RI WKH ZRUOG ZLWK FRPSDUDEOH OHYHOV RI
GHYHORSPHQW DQG LQ UHODWLRQ WR WKH SRWHQWLDO IRU UHYHQXH JLYHQ
FXUUHQWLQFRPHOHYHOV
• 8QEDODQFHG WD[ VWUXFWXUH ELDVHG LQ IDYRU RI LQGLUHFW WD[HV
GLPLQLVKLQJWKHUHGLVWULEXWLYHHIIHFWRIWKHWD[V\VWHPPDNLQJLW
LQPDQ\RIWKHUHJLRQ¶VFRXQWULHVUHJUHVVLYHLQQDWXUH
• 5HGXFHGWD[EDVHVUHVXOWLQJIURPQXPHURXVWD[H[HPSWLRQVDQG
WD[UHODWHGH[SHQGLWXUHV
• +LJK OHYHO RI QRQFRPSOLDQFH DQG WD[ GHOLQTXHQF\ IXUWKHU
LQFUHDVLQJDQGGLVWRUWLQJWKHREVHUYHGUHVXOWV
$,QVXIILFLHQWXQHTXDODQGYRODWLOHWD[EXUGHQ
$OWKRXJK WKH DYHUDJH WD[ EXUGHQ LQ /DWLQ $PHULFD KDV VHHQ DQ XSZDUG
WUHQGLQWKHODVWWZRGHFDGHVPRVWRIWKHFRXQWULHVKDYHORZHUWD[EXUGHQV
WKDQ GR FRXQWULHV LQ RWKHU UHJLRQV RI WKH ZRUOG ZLWK VLPLODU OHYHOV RI
GHYHORSPHQW

),*85(
7$;%85'(1$1'6758&785(,1/$7,1$0(5,&$$6&203$5('
:,7+27+(5*528362)&28175,(6
3HUFHQWDJHVRI*'3DQGRIWRWDO
ϰϬ
ϯϱ͘ϱ
ϯϱ
ϯϬ Ϯϲ͘Ϭй
Ϯϱ Ϯϯ͘ϰ
ϭϲ͘ϵ ϮϮ͘ϴй ϭϳ͘ϳ

ϭϴ͘ϯ ϭϲ͘ϳ
WĞƌĐĞŶƚĂŐĞŽĨ'W
ϮϬ ϯϮ͘Ϭй
ϯ͘ϲй
ϭϳ͘ϯй ϴ͘ϵй ϲ͘ϵй
ϭϱ
ϰϴ͘ϵй ϱϭ͘Ϭй ϰϵ͘ϭй
ϲϳ͕Ϭй
ϭϬ ϱϯ͘ϯй
ϰϮ͘Ϭй
ϱ
Ϯϵ͘ϰй ϰϮ͘Ϯй ϰϮ͘ϭй Ϯϴ͘ϭй Ϯϵ͘ϰй
Ϭ
>ĂƚŝŶŵĞƌŝĐĂ DŝĚĚůĞĂƐƚ Θ ĂƐƚƐŝĂΘƚŚĞ ĂƐƚĞƌŶƵƌŽƉĞΘ K ^ƵďͲ^ĂŚĂƌŝĂŶ
EŽƌƚŚĨƌŝĐĂ WĂĐŝĨŝĐ ZƵƐƐŝĂ ĨƌŝĐĂ
ŝƌĞĐƚƚĂǆĞƐ /ŶĚŝƌĞĐƚƚĂǆĞƐ ^ŽĐŝĂů^ĞĐƵƌŝƚǇΘŽƚŚĞƌƐ

6RXUFH(&/$&/DWLQ$PHULFD*RYHUQPHQW)LQDQFH6WDWLVWLFV,0),QWHUQDWLRQDO)LQDQFLDO6WDWLVWLFV,0)DQG:RUOG
(FRQRPLF2XWORRN,0)
1RWH7KHSHUFHQWDJHVVKRZQUHSUHVHQWHDFKJURXSRIWD[HVDVDSHUFHQWDJHRIDOOWD[UHYHQXHDYHUDJHIRUHDFKUHJLRQ
'LUHFWWD[HVLQFOXGHLQFRPHDQGZHDOWKWD[HV,QGLUHFWWD[HVLQFOXGHWD[HVRQJRRGVDQGVHUYLFHVJHQHUDODQGVHOHFWLYH
DQGRQLQWHUQDWLRQDOWUDGH7KHUHPDLQGHUUHSUHVHQWVVRFLDOVHFXULW\FRQWULEXWLRQVDQGRWKHUUHODWLYHO\LQVLJQLILFDQWWD[HV

2QH PDQLIHVWDWLRQ RI /DWLQ $PHULFD¶V ORZ DYHUDJH WD[ EXUGHQ RI *'3 LQ LV WR
FRPSDUHLWZLWKRWKHUZRUOGUHJLRQV$VVHHQLQILJXUHWKHDYHUDJHWD[EXUGHQLQWKHUHJLRQ¶VFRXQWULHV
LVSUDFWLFDOO\KDOIWKDWRIWKH2(&'FRXQWULHVZKHUHLWDYHUDJHVWKRXJKVOLJKWO\DERYHOHYHOVLQ
RWKHUGHYHORSLQJUHJLRQVVXFKDV$IULFDWKH0LGGOH(DVWDQGWKH$VLD3DFLILFUHJLRQZKHUHWKHILJXUH
LVDURXQGRI*'3
7KLVVWDWLVWLFDOVRKLJKOLJKWVFHUWDLQFKDUDFWHULVWLFVSDUWLFXODUWR/DWLQ$PHULFD¶VWD[V\VWHPV)RU
H[DPSOHGHVSLWHWKHLQWHUUHJLRQDOGLIIHUHQFHVLQWKHWD[EXUGHQWKHFRPSRVLWLRQRIWKDWEXUGHQKDVEHHQ
KLJKO\KHWHURJHQHRXV7KHUDWLRRIGLUHFWWRLQGLUHFWWD[HVLQ/DWLQ$PHULFDLVLQOLQHZLWKYDOXHV
IRU(DVWHUQ(XURSHSOXVWKH5XVVLDQ)HGHUDWLRQDQG6XE6DKDUDQ$IULFD+RZHYHUWKHVHILJXUHVDUHLQ
VKDUSFRQWUDVWZLWKWKRVHRIRWKHUUHJLRQVVXFKDV$VLDRQDYHUDJHDQGHYHQPRUHSURQRXQFHG
WKH2(&'FRXQWULHVZKHUHWKHUDWLRRIGLUHFWWRLQGLUHFWWD[HVLV
7KLVVWDUNLPEDODQFHLQWKHUHJLRQ¶VWD[VWUXFWXUHLVHYHQPRUHSURQRXQFHGLIRQHFRQVLGHUVRQO\
WKH WZR PDLQ /DWLQ $PHULFDQ WD[HV WKH LQFRPH WD[ DQG WKH YDOXH DGGHG WD[ ZKLFK WRJHWKHU KDYH
DFFRXQWHG IRU DSSUR[LPDWHO\ RI DYHUDJH WD[ UHYHQXHV LQ UHFHQW \HDUV 7KH UDWLR RI LQFRPH WD[ WR
9$7LVIRU/DWLQ$PHULFDDQLQGLFDWRUWKDWPRVWOLNHO\KDVGHFOLQHGIXUWKHULQUHFHQW\HDUVJLYHQ
WKHLQFUHDVHLQHFRQRPLFDFWLYLW\SODFLQJLWEHORZWKHILJXUHVIRUWKHRWKHUUHJLRQVFRQVLGHUHGZKHUH
YDOXHVUDQJHIURP(DVWHUQ(XURSHWR2(&'
$ VHFRQG DQDO\WLFDO DSSURDFK ILJXUH FRQVLVWV RI D FURVVVHFWLRQDO UHJUHVVLRQ DQDO\VLV ZKLFK
H[DPLQHVIRUFRXQWULHVWKHUHODWLRQEHWZHHQWKHWD[EXUGHQDQGWKHORJDULWKPRIWKHSHUFDSLWD*'3
(&/$& ,Q FRXQWULHV WKDW DUH DERYH WKH UHJUHVVLRQ OLQH RI ZKLFK WKHUH DUH RQO\ IRXU LQ WKH
UHJLRQ %UD]LO $UJHQWLQD WKH 3OXULQDWLRQDO 6WDWH RI %ROLYLD DQG 1LFDUDJXD WKH WD[ EXUGHQ LV KLJK LQ
FRPSDULVRQZLWKSHUFDSLWD*'32QWKHRWKHUKDQGWKHUHPDLQLQJFRXQWULHVVKRZOHYHOVRIWD[EXUGHQ
FOHDUO\ ORZHU WKDQ ZRXOG EH H[SHFWHG EDVHG RQ WKHLU OHYHO RI GHYHORSPHQW 7KXV WKHUH LV PDUJLQ IRU

LQFUHDVLQJWKHWD[EXUGHQJLYHQWKDWSRWHQWLDOUHYHQXHVLQWKHUHJLRQ¶VFRXQWULHVLVFRQVLGHUDEO\KLJKHU
WKDQDFWXDOFROOHFWLRQV

),*85(
&203$5,621%(7:((17$;%85'(1$1'3(5&$3,7$*'3333
3HUFHQWDJHVRI*'3DQGORJDULWKPV

%U
7D[EXUGHQ LQSHUFHQWDJHVRI*'3
$U

8\
&U &O
1L %R

3H
+R 'R
3D 9H
&R (F
6Y
3\
*W 0[
+W

/RJ*'3SHUFDSLWD333
6RXUFH-3-LPpQH]*yPH]6DEDtQLDQG3RGHVWi

%2;
7$;())257,1/$7,1$0(5,&$
,QRUGHUWRIXQGGHYHORSPHQWFRXQWULHVPXVWLQFUHDVHWKHLUDELOLW\WRPRELOL]HGRPHVWLFUHVRXUFHV7KHFRXQWULHVRI
/DWLQ$PHULFDOLNHRWKHUGHYHORSLQJFRXQWULHVQHHGWRLQFUHDVHWKHLUVSHQGLQJRQLQIUDVWUXFWXUHHGXFDWLRQKHDOWKDQG
VHUYLFHVWRFLWHEXWDIHZDUHDV,QRUGHUIRUWKHFRXQWULHVWRVHWWD[SROLF\LWLVLPSRUWDQWWRGHWHUPLQHWD[HIIRUWVLQFH
WKLVVLJQDOVWKHGHJUHHWRZKLFKFRXQWULHVKDYHURRPWRLQFUHDVHUHYHQXHWKURXJKWD[DWLRQ
7D[ HIIRUW LV FXVWRPDULO\ GHILQHG DV WKH UDWLR EHWZHHQ DFWXDO FROOHFWLRQV DQG WD[ FDSDFLW\ 7D[ FDSDFLW\ LV WKH
PD[LPXPWD[UHYHQXHWKDWDFRXQWU\FDQREWDLQJLYHQLWVHFRQRPLFVRFLDOLQVWLWXWLRQDODQGGHPRJUDSKLFFKDUDFWHULVWLFV
7KHUH DUH IHZ VWXGLHV DQDO\VLQJDQG HVWLPDWLQJ WD[ HIIRUW LQ /DWLQ $PHULFD WKRXJK DQDO\WLFDO VWXGLHV WKDWIRFXV RQ
GHYHORSLQJFRXQWULHVPRUHJHQHUDOO\DQGWKDWWKHUHIRUHLQFOXGH/DWLQ$PHULFDFDQEHIRXQGD 0RVWRIWKHVHVWXGLHVXVH
FURVVVHFWLRQDOPHWKRGVDQGWKHLUH[SODQDWRU\ YDULDEOHVLQFOXGHIDFWRUVUHODWLQJWRVXSSO\OHYHORIGHYHORSPHQWWUDGH
DJULFXOWXUHRUPLQLQJDVDVKDUHRIWKHHFRQRP\OHYHORIIRUHLJQDLGHWF2WKHUPRUHUHFHQWVWXGLHVLQFRUSRUDWHGHPDQG
YDULDEOHV VXFK DV LQGLFDWRUV UHODWHG WR FRUUXSWLRQ SDUWLFLSDWLRQ DQG DFFRXQWDELOLW\ ZLWK DQ HPSKDVLV RQ WKH UROH RI
LQVWLWXWLRQVDQGJRYHUQDQFH
7KHILQGLQJVIURPWZRVWXGLHVIRFXVLQJRQ/DWLQ$PHULFDDUHJLYHQEHORZ7KHILUVW3LDQFDVWHOOLH[DPLQHVD
VDPSOH RI FRXQWULHV DQG FRQFOXGHV WKDW WKH PRVW LPSRUWDQW YDULDEOHV LQ H[SODLQLQJ GLIIHUHQFHV LQ WD[ HIIRUW DUH WKH
VKDUHV RI WKH HFRQRP\ UHSUHVHQWHG E\ WUDGH DQG DJULFXOWXUH 7KH VHFRQG VWXG\ 3HVVLQR DQG )HQRFKLHWWR
FRQVWUXFWV D VWRFKDVWLF WD[ IURQWLHU XVLQJ GDWD IURP FRXQWULHV ,WV ILQGLQJV FRUURERUDWH WKH VLJQLILFDQW DQG SRVLWLYH
UHODWLRQVKLSEHWZHHQWD[EXUGHQDQGVHYHUDOIDFWRUVOHYHORIGHYHORSPHQWSHUFDSLWD*'3WUDGHLPSRUWVDQGH[SRUWV
DV D SHUFHQWDJH RI *'3 DQG HGXFDWLRQ SXEOLF HGXFDWLRQDO VSHQGLQJ DV D SHUFHQWDJH RI *'3 $W WKH VDPH WLPH LW
SRLQWVWRDQHJDWLYHUHODWLRQVKLSEHWZHHQWD[EXUGHQDQGSULFHOHYHOVLQFRPHGLVWULEXWLRQ*LQLLQGH[HDVHRIFROOHFWLQJ
WD[HVYDOXHDGGHGRIWKHDJULFXOWXUDOVHFWRUDVDSHUFHQWDJHRI*'3DQGFRUUXSWLRQ
$VWKHWDEOHVKRZVWKHILQGLQJVRI3HVVLQRDQG)HQRFKLHWWRSRLQWWROHVVWD[HIIRUWLQWKHUHJLRQWKDQGRWKH
ILQGLQJV RI 3LDQFDVWHOOL 1HYHUWKHOHVV FRQVLGHULQJ HYHQ WKH PRVW RSWLPLVWLF ILQGLQJV RQO\ ILYH RI WKH UHJLRQ¶V
FRXQWULHVZRXOGEHFORVHWRWKHLUWD[FDSDFLW\ZLWKWKHPHGLDQIDOOLQJEHORZWKDWRIRWKHUUHJLRQV/LNHQHDUO\DOORIWKH
VWXGLHVPHQWLRQHGDERYHWKHVHDQDO\VHVGRFXPHQWDQGGHPRQVWUDWHWKDWWKHUHJLRQIHDWXUHVDORZOHYHORIWD[HIIRUWLQ
FRPSDULVRQZLWKRWKHUUHJLRQVDQGWKDWPDQ\RIWKHFRXQWULHVKDYHDPSOHURRPWRLQFUHDVHWKHLUWD[EXUGHQ
FRQWLQXHG

%R[FRQFOXGHG
3LDQFDVWHOOL 3HVVLQRDQG)HQRFKLHWWR
7D[HIIRUWE 7D[FDSDFLW\DE
KHWHURJHQHRXV
KHWHURJHQHRXV
7UXQFDWHG
7UXQFDWHG
(IIHFWLYH $GMXVWHG ,QGH[RI (IIHFWLYH
WUXQFDWHG
WUXQFDWHG
1RUPDO
1RUPDO
PRGHO
PRGHO
PRGHO
PRGHO
WD[UDWH WD[UDWH WD[HIIRUW WD[UDWH
D E DE D
$UJHQWLQD

%HOL]H
%UD]LO
&KLOH
&RORPELD
&RVWD5LFD
(FXDGRU
(O6DOYDGRU
*XDWHPDOD
+RQGXUDV
-DPDLFD
0H[LFR
1LFDUDJXD
3DQDPD
3DUDJXD\
3HUX
'RPLQLFDQ5HSXEOLF
7ULQLGDGDQG7REDJR
8UXJXD\
9HQH]XHOD%ROLYDULDQ

5HSXEOLFRI
/DWLQ$PHULFDDYHUDJH
(XURSH2(&'DYHUDJH
$IULFDDYHUDJH
$VLD0LGGOH(DVWDYHUDJH
6RXUFH$XWKRU¶VHODERUDWLRQEDVHGRQ3LDQFDVWHOOLDQG3HVVLQRDQG)HQRFKLHWWR

1RWH 7RWDOWD[UHYHQXH*'3 LQFOXGHVVRFLDOVHFXULW\FRQWULEXWLRQV
D
6HH DPRQJ RWKHUV /RW] - DQG ( 0RUUV ³0HDVXULQJ µ7D[ (IIRUW¶ LQ 'HYHORSLQJ &RXQWULHV´ 6WDII 3DSHUV
,QWHUQDWLRQDO 0RQHWDU\ )XQG 9RO SS :DVKLQJWRQ '& &KHOOLDK 5DMD - ³7UHQGV LQ 7D[DWLRQ LQ
'HYHORSLQJ &RXQWULHV´ 6WDII 3DSHUV ,QWHUQDWLRQDO 0RQHWDU\ )XQG 9RO SS ± :DVKLQJWRQ '& &KHOOLDK
5DMD-+HVVHO-%DDVDQG0DUJDUHW5.HOO\³7D[5DWLRVDQG7D[(IIRUWLQ'HYHORSLQJ&RXQWULHV±´
6WDIISDSHUV,QWHUQDWLRQDO0RQHWDU\)XQG9ROSS±:DVKLQJWRQ'&7DLW$ODQ$%DUU\-(LFKHQJUHHQ
DQG:LOIULG/0*UlW]³,QWHUQDWLRQDO&RPSDULVRQVRI7D[DWLRQIRU6HOHFWHG'HYHORSLQJ&RXQWULHV±´6WDII
3DSHUV,QWHUQDWLRQDO0RQHWDU\)XQG9ROSS±:DVKLQJWRQ'&3LDQFDVWHOOL0³0HDVXULQJWKHWD[
HIIRUWRIGHYHORSHGDQGGHYHORSLQJFRXQWULHV&URVVFRXQWU\SDQHOGDWDDQDO\VLV±´'LVFXVVLRQSDSHU,QVWLWXWR
GH 3HVTXLVD (FRQRPLFD $SOLFDGD ,3($ 5LR GH -DQHLUR 6HSWHPEHU %LUG 50 - 0DUWLQH]9D]TXH] DQG % 7RUJOHU
³6RFLHWDO,QVWLWXWLRQVDQG7D[(IIRUWLQ'HYHORSLQJ&RXQWULHV´,QWHUQDWLRQDO6WXGLHV3URJUDP:RUNLQJ3DSHU±
%LUG 50 - 0DUWLQH]9D]TXH] DQG % 7RUJOHU ³7D[ HIIRUW LQ GHYHORSLQJ FRXQWULHV DQG KLJK LQFRPH
FRXQWULHV7KHLPSDFWRIFRUUXSWLRQYRLFHDQGDFFRXQWDELOLW\´(FRQRPLF$QDO\VLVDQG3ROLF\9RO1R*XSWD$
³'HWHUPLQDQWV RI 7D[ 5HYHQXH (IIRUWV LQ 'HYHORSLQJ &RXQWULHV´ ,0):RUNLQJ 3DSHU DQG 3HVVLQR & DQG 5
)HQRFKLHWWR³'HWHUPLQLQJFRXQWULHV¶WD[HIIRUW´5HYLVWDGH(FRQRPtD3~EOLFD'HSDUWPHQW
RI)LQDQFHRI6SDLQ

% $QXQEDODQFHGVWUXFWXUHELDVHGWRZDUGVLQGLUHFWWD[HV
0DFURHFRQRPLFFKDQJHVLQUHFHQW\HDUVDORQJZLWKWD[SROLF\UHIRUPVKDYHOHGWRQXPHURXVFKDQJHVLQ
WD[VWUXFWXUHV7KHIROORZLQJGHVFULSWLRQVEULHIO\VXPPDUL]HVRPHRIWKHPRUHQRWDEOHFKDQJHV
• 'HFOLQLQJUHYHQXHVIURPWD[HVRQWUDGHDQGLQWHUQDWLRQDOWUDQVDFWLRQV$VDFRQVHTXHQFHRI
UHGXFHG WDULII SURWHFWLRQV DQG WKH HOLPLQDWLRQ RI H[SRUW WD[HV LQ QHDUO\ DOO WKH UHJLRQ¶V
FRXQWULHV WKHUH KDV EHHQ D YLVLEOH GHFOLQH LQ WD[HV RQ IRUHLJQ WUDGH DV D SHUFHQWDJH RI WRWDO
UHYHQXH
• 6LJQLILFDQW LQFUHDVHV LQ JHQHUDO WD[DWLRQ RI JRRGV DQG VHUYLFHV 7KH RQJRLQJ DQG FRQVWDQW
H[SDQVLRQRIUDWHVDQGRIWKHYDOXHDGGHGWD[EDVHKDVPDGHWKH9$7WKHSULQFLSDOVRXUFHRI
UHYHQXH LQ WKH UHJLRQ UHSODFLQJ WKH GHFOLQLQJ UHYHQXHV IURP IRUHLJQ WUDGH 7KH VSUHDG DQG
VWUHQJWKHQLQJRIWKH9$7FRQWLQXHGDWUHQGDOUHDG\LQHYLGHQFHLQWKHV5DWHVLQFUHDVHG
IURPLQWKHPLGHLJKWLHVWRDQDYHUDJHRILQILJXUH

),*85(
&+$1*(6,1/(*$/5$7(6)25,1&20(7$;$1'9$7,1/$7,1$0(5,&$V72
3HUFHQWDJHV

ϭϵϴϬƐͬϮϬϬϵ ǀĂƌŝĂƚŝŽŶсͲϰϰ͘ϵй
3HUFHQWDJHV

ϭϵϴϬƐͬϮϬϬϵǀĂƌŝĂƚŝŽŶсͲϯϳ͘ϰй

ϭϵϴϬƐͬϮϬϬϵ ǀĂƌŝĂƚŝŽŶсϯϰ͘ϵй

V
3HUVRQDO,QFRPH7D[3,70D[LPXPWD[UDWH

&RUSRUDWH,QFRPH7D[&,70D[LPXPWD[UDWH
9DOXH$GGHG 7D[ 9$7 *HQHUDO WD[UDWH

6RXUFH*yPH]6DEDLQL-&DQGRIILFLDOGDWDIURPWKHFRXQWULHV

• 5HGXFHG QXPEHU RI VHOHFWLYH WD[HV 7KH UHJLRQ¶V FRXQWULHV KDYH UHGXFHG WKH QXPEHU RI
VHOHFWLYH WD[HV OLPLWLQJ WKHPVHOYHV WR WD[LQJ WKH FRQVXPSWLRQ RI FHUWDLQ JRRGV DQG VHUYLFHV
ZLWK ORZ SULFH HODVWLFLWLHV VXFK DV WREDFFR DOFRKROLF EHYHUDJHV DQG VRIW GULQNV IXHOV DQG
WHOHFRPPXQLFDWLRQV ZKLOH DW WKH VDPH WLPH HOLPLQDWLQJ WD[HV RQ JRRGV ZLWK KLJK LQFRPH
HODVWLFLW\OX[XULHV
• 6LPSOLILFDWLRQ RI WD[HV RQ VPDOO ILUPV 7KH ODUJH VL]H RI WKH LQIRUPDO HFRQRP\ LQ WHUPV RI
ERWK ODERU DQG PLFURHQWHUSULVHV KDV OHG WR WKH XVH RI SUHVXPHGWD[ PHFKDQLVPV IRU VPDOO
WD[SD\HUV 7R IDFLOLWDWH FRPSOLDQFH ZLWK WD[ UHTXLUHPHQWV WKHUH KDV EHHQ D VKLIW IURP D WD[
V\VWHPEDVHGRQIRUPDODFFRXQWLQJWRRQHWKDWUHOLHVRQDVLQJOHWD[RQWKHSRVVLEOHLQFRPHRI
VPDOOILUPV7KHSUHVHQFHRIDODUJHQXPEHURIPLFURHQWHUSULVHVLQUHVSRQVHWRWKHGLIILFXOW\
RI REWDLQLQJ IRUPDO ZRUN KDV OHG PRVW RI WKH UHJLRQ¶V FRXQWULHV WR LQVWLWXWH WD[ SROLFLHV

GHVLJQHG WR DGGUHVV WKH GLIILFXOW\ RI PDLQWDLQLQJ FRQWURO RYHU WD[DWLRQ RI VPDOO ILUPV 7KXV
VRPH FRXQWULHV KDYH RSWHG IRU DOWHUQDWLYH V\VWHPV WR GHDO ZLWK WKLV JURXS RI WD[SD\HUV DV D
ZKROH([DPSOHVRIWKLVDUH%UD]LO¶V³6LPSOHV´V\VWHPDQG$UJHQWLQD¶V³0RQRWULEXWR´VLQJOH
WD[ 2WKHU FRXQWULHV KDYH FKRVHQ WR H[FOXGH IURP WD[DWLRQ WD[SD\HUV FRQVLGHUHG E\ WKH WD[
DGPLQLVWUDWLRQQRWWRPHULWWKHHIIRUWUHTXLUHGZKLOHLQ\HWRWKHUFDVHVRQHVHHVKLJKOHYHOVRI
QRQFRPSOLDQFH²FDVHVLQZKLFKFRXQWULHVKDYHVLPSO\RSWHGWROLYHZLWKWKHSUREOHP
• 6WUHQJWKHQLQJRIWKHFRUSRUDWHLQFRPHWD[LQWKHZDNHRISULYDWL]DWLRQSROLFLHVWKXVPDNLQJ
WD[DEOHWKHSURILWVRIPDQ\SXEOLFHQWHUSULVHVWD[DEOHDFFRPSDQLHGE\DQH[SDQVLRQRIWKHWD[
EDVHRIWKHVHIDVWJURZLQJVHFWRUVDVDFRQVHTXHQFHRILQFUHDVHGSULFHVIRUFRPPRGLWLHVDQG
QDWXUDOUHVRXUFHV$VDUHVXOWRIWKLVFRPELQDWLRQRIIDFWRUVEXVLQHVVHVERUHDJUHDWHUZHLJKW
IURP LPSRVLWLRQ RI WKH LQFRPH WD[ ZKLOH QDWXUDO RU SK\VLFDO SHUVRQV VKRXOGHUHG OHVV RI WKH
ORDGWKXVFUHDWLQJDELDVLQWKHDSSOLFDWLRQRIWKHLQFRPHWD[
• 'HFUHDVHGUROHIRUZDJHEDVHGFKDUJHVLQIXQGLQJVRFLDOVHFXULW\V\VWHPV7KHWRWDORUSDUWLDO
SULYDWL]DWLRQRIVRFLDOVHFXULW\V\VWHPVLQVRPHFRXQWULHVKDVNHSWVRFLDOVHFXULW\FRQWULEXWLRQV
FRQVWDQWDWDURXQGRIWRWDOWD[UHYHQXHV
• 5HGXFHG PD[LPXP PDUJLQDO SHUVRQDO LQFRPH WD[ UDWHV ,Q NHHSLQJ ZLWK WKH LQWHUQDWLRQDO
VLWXDWLRQLQFOXGLQJWKHJUDGXDOGHUHJXODWLRQRIFDSLWDOPRYHPHQWVWKH/DWLQ$PHULFDQUHJLRQ
DVDZKROHUHGXFHGLQFRPHWD[UDWHVIRUERWKQDWXUDOSHUVRQVDQGEXVLQHVVHVZKLOHQHJOHFWLQJ
WR VLPXOWDQHRXVO\ EURDGHQ WKH UHOHYDQW WD[ EDVHV %HWZHHQ WKH PLGV DQG WKH
DYHUDJH PD[LPXP PDUJLQDO UDWHV GHFOLQHG E\ IURP IRU EXVLQHVVHV DQG
IRUQDWXUDOSHUVRQVWRYDOXHVRIDURXQGIRUERWKJURXSVILJXUH7KHUHGXFWLRQLQWKH
PD[LPXPSHUVRQDOLQFRPHWD[UDWHVLQ/DWLQ$PHULFDKDVEHHQPXFKJUHDWHUWKDQWKHDYHUDJH
UHGXFWLRQLQ2(&'FRXQWULHVZKHUHSHUVRQDOWD[UDWHVKDYHUHPDLQHGDERYHWDEOH$W
WKHVDPHWLPHWKHLQFUHDVHLQWKHPLQLPXPUDWHVKDVEHHQUHODWLYHO\LQVLJQLILFDQW

7$%/(
/(*$/,1&20(7$;5$7(6$9(5$*(,1/$7,1$0(5,&$
$1'7+(2(&'
3HUFHQWDJHV
/DWLQ$PHULFD 2(&'
,QGLYLGXDOV

&RUSRUDWLRQV
6RXUFH$XWKRUVEDVHGRQGDWDIURP(&/$&DQG2(&'

$QXPEHURIWKHWUHQGVFLWHGDERYHKDYHXQGRXEWHGO\EHHQUHDFWLRQVWRWKHKLJKOHYHOVRIHYDVLRQ
IRUWKHYDULRXVWD[HV)RUH[DPSOHWKHVLJQLILFDQWLQFUHDVHLQLQGLUHFWWD[DWLRQWKURXJKWKHH[SDQVLRQRI
WKH YDOXH DGGHG WD[ EDVH DV ZHOO DV WKH LQFUHDVH LQ WKH UDWHV IRU WKH 9$7 LV WKH UHVXOW QRW RQO\ RI
LGHRORJ\EXWDOVRRIWKHJUHDWHUHDVHRIFROOHFWLRQDQGUHGXFHGRSSRUWXQLW\IRUHYDVLRQ
$ VLPLODU UDWLRQDOH FDQ EH DGYDQFHG ZLWK UHJDUG WR VLPSOLI\LQJ WKH WD[ V\VWHP ERWK LQ JHQHUDO
DQG VSHFLILFDOO\ IRU VPDOO EXVLQHVVHV ZKLFK DUH PRUH GLIILFXOW WR PRQLWRU DQG ZKHUH LQIRUPDOLW\ LV
PRUHFRPPRQDQGHYDVLRQPRUHSHUYDVLYH7KHUHGXFWLRQRIPD[LPXPPDUJLQDOLQFRPHWD[UDWHVVHHNV
WRGLVFRXUDJHWD[DYRLGDQFH²LQRWKHUZRUGVDEXVHRIWD[ODZV²JHQHUDOO\LQYROYLQJWD[SD\HUVZLWK
VLJQLILFDQWFDSLWDODQGWKHUHVRXUFHVWRKLUHFRQVXOWDQWVDQGRWKHUWD[SURIHVVLRQDOVWRKHOSUHGXFHWKHLU
WD[SD\PHQWV([WUDRUGLQDU\RUVSXULRXVWD[HVKDYHDOVREHHQXVHGDQGLQVRPHFDVHVH[SRUWWD[HVDQG
WD[HV RQ WKH H[SORLWDWLRQ RI QDWXUDO UHVRXUFHV KDYH EHHQ LQFUHDVHG VLQFH WKHVH DUH HDV\ WR FROOHFW DQG
KDUGHUWRHYDGH

&RQVHTXHQWO\LQDWUHQGFRQWUDU\WRWKDWLQGLFDWHGDERYHZLWKUHJDUGWRVLPSOLI\LQJWD[V\VWHPV
WKHUHKDVEHHQDQHPHUJHQFHRIH[WUDRUGLQDU\RUVSXULRXVWD[HVVXFKDVWD[HVRQEDQNGHELWVDQGFUHGLWV
WD[HV RQ ILQDQFLDO WUDQVDFWLRQV DQG RWKHU ³KHWHURGR[´ WD[HV GHVLJQHG WR HQVXUH VRPH PLQLPXP
FROOHFWLRQRIWKHSULQFLSDOWD[HV
$V*RQ]iOH]VWDWHVWKHLPSRUWDQFHDQGFXUUHQF\RIWKHVHWD[HVLQWKHUHJLRQ¶VWD[V\VWHPV
FDQEHVHHQLQUHFHQWWD[UHIRUPVZKLFKKDYHQRWRQO\UHWDLQHGWD[HVRIWKLVW\SH²RIWHQLQVWLWXWHGDV
WHPSRUDU\PHDVXUHV²EXWKDYHUHLQVWLWXWHGDQGUHILQHGWKHPERRVWLQJWKHPE\PHDQVRIUDWHLQFUHDVHV
RUE\H[SDQGLQJWKHEDVHDWWLPHVHYHQFUHDWLQJQHZKHWHURGR[WD[HV
7KH SUREOHP RI WD[ HYDVLRQ DQG WKH QDWXUH RI WKH WD[ VWUXFWXUHV LQ PRVW /DWLQ $PHULFDQ
FRXQWULHV ZKLFK DUH VWURQJO\ ELDVHG WRZDUGV LQGLUHFW WD[DWLRQ JLYH WKH YDULRXV WD[ V\VWHPV LQ WKH
UHJLRQ VFDQW UHGLVWULEXWLYH LPSDFW LQ IDFW LQ PDQ\ FDVHV WKH V\VWHPV DUH UHJUHVVLYH LQ FRPSDULVRQ
ZLWK PDUNHW GLVWULEXWLRQ RI LQFRPH &RQFRPLWDQWO\ UHGLVWULEXWLYH SROLF\ LV IRUFHG WR UHO\ DOPRVW
HQWLUHO\RQSXEOLFVSHQGLQJ
7KLVFRQWUDVWVVKDUSO\ZLWKWKHVLWXDWLRQLQWKHGHYHORSHGFRXQWULHVZKHUHWKHUHGLVWULEXWLYHHIIHFW
RI WUDQVIHUV LV IDU JUHDWHU WKDQ DQ\ VXFK HIIHFW IURP WD[HV WDEOH 7KH HVWLPDWHG DYHUDJH RI WKH
UHGLVWULEXWLYH LPSDFW RI WD[HV LQ WKH 2(&' LV WLPHV JUHDWHU WKDQ FRUUHVSRQGLQJHVWLPDWHV IRU /DWLQ
$PHULFDZKLOHWKLVUDWLRGURSVWRZLWKUHJDUGWRWKHLPSDFWRIUHGLVWULEXWLRQWKURXJKWUDQVIHUV

7$%/(
',675,%87,9(,03$&72)7$;32/,&<,1/$7,1$0(5,&$$1'7+(2(&'
*LQL&RHIILFLHQW 5HGLVWULEXWLRQWKURXJKILVFDOSROLF\
5HJLRQV %HIRUHILVFDO $IWHUILVFDO
7RWDO 7D[HV 7UDQVIHUV
SROLF\ SROLF\
/DWLQ$PHULFD
2(&'
6RXUFH*RxL/ySH]DQG6HUYpQ-HVXLWDQG0DKOHUDQG&XEHURDQG+ROODU
& 7D[GLVWRUWLRQVLQWKHLQFRPHWD[DQGWKHELDVWRZDUGV
FRUSRUDWHWD[DWLRQ
&KDQJHV LQ WKH UHJLRQ¶V WD[ VWUXFWXUHV KDYH OHG WR D KLJKO\ XQHTXDO UHODWLRQ EHWZHHQ GLUHFW DQG LQGLUHFW
WD[DWLRQ 7D[ SROLF\ KDV QRW RQO\ VWUHQJWKHQHG FRQVXPSWLRQ WD[DWLRQ EXW KDV DOVR WLOWHG WKH LQFRPH WD[
SULPDULO\ WRZDUGV WKH FRUSRUDWH VHFWRU ZLWK IDU OHVV HPSKDVLV RQ WKH LQFRPH RI SK\VLFDO SHUVRQV 2Q
DYHUDJHWKHLQFRPHWD[LQ/DWLQ$PHULFDQFRXQWULHVSURGXFHVUHYHQXHVHTXLYDOHQWWRDPHUHRI*'3
7KLVFRPHVSULPDULO\IURPWD[LQJIRUPDOZRUNHUVZKLOHZHDOWKWD[HVUHSUHVHQWWRRI*'3
7KXVDFKDUDFWHULVWLFIHDWXUHRIWD[DWLRQLQ/DWLQ$PHULFDLVWKHGLVWRUWHGVWUXFWXUHRIWKHLQFRPH
WD[UHO\LQJKHDYLO\RQFRUSRUDWHWD[HVDV\VWHPLQZKLFKWKHHIIHFWVRIWD[VKLIWLQJDQGWD[LQFLGHQFHDUH
XQFHUWDLQDVWKH\GHSHQGRQPDUNHWFRQGLWLRQV&RUSRUDWLRQVDFFRXQWIRUDQDYHUDJHRIRI*'3
UHSUHVHQWLQJRYHURIWKHWD[UHYHQXHJHQHUDWHGE\WKHLQFRPHWD[DQGLQPRVWRIWKHFRXQWULHVRI
WKHUHJLRQRYHUWZLFHWKHUHYHQXHIURPSK\VLFDOSHUVRQVWDEOH,QWKH2(&'FRXQWULHVRQWKHRWKHU
KDQGLQGLYLGXDOLQFRPHWD[UHYHQXHUHSUHVHQWVRIWKHWRWDOZLWKFRUSRUDWHLQFRPHWD[HVDFFRXQWLQJ
IRUWKHUHPDLQLQJ

7$%/(
6758&785(2),1&20(7$;5(9(18(,1/$7,1$0(5,&$%<&28175<
3HUFHQWDJHVRI*'3DQGDEVROXWH
&RUSRUDWLRQV ,QGLYLGXDOV 7RWDO &RUS,QGLY5DWLR

&RXQWU\\HDU
RI*'3 RI*'3 RI*'3
$UJHQWLQD
%ROLYLD3OXULQDWLRQDO6WDWH

RI
%UD]LO
&KLOH
'RPLQLFDQ5HSXEOLF
(FXDGRU
(O6DOYDGRU
*XDWHPDOD
+RQGXUDV
0H[LFR
3DQDPD
3HUX
8UXJXD\
/DWLQ$PHULFD
2(&'
6RXUFH(&/$&DQGRIILFLDOVRXUFHVLQHDFKFRXQWU\
1RWH 'DWD IURP RI WKH UHJLRQ¶V FRXQWULHV ZHUH DYHUDJHG VLQFH GHWDLOHG LQIRUPDWLRQ ZDV QRW DYDLODEOH IURP RWKHU
VRXUFHVFRQVXOWHG

0RVW RI WKH LQGLYLGXDO LQFRPH WD[ UHYHQXH FRPHV IURP LQFRPH RI IRUPDO ZRUNHUV ZKR DUH
HPSOR\HHVZLWKDVPDOOHUSHUFHQWDJHGHULYHGIURPSURIHVVLRQDOLQFRPHVILQDQFLDOUHQWVDQGFRUSRUDWH
SURILWV8QIRUWXQDWHO\DVWKHUHVXOWRIDYDULHW\RIIDFWRUVSUHYDOHQWLQWKHVHFRXQWULHVWKHUHLVOLPLWHG
RSSRUWXQLW\IRUFROOHFWLQJSHUVRQDOLQFRPHWD[HVLQVLJQLILFDQWDPRXQWV7KHVHIDFWRUVLQFOXGHOHYHOV
RI SRYHUW\ LQFUHDVHG LQFRPH FRQFHQWUDWLRQ DQG D KLJK GHJUHH RI LQIRUPDOLW\ LQ HFRQRPLF DFWLYLWLHV
6XFK FRQGLWLRQV OLPLW WKH DELOLW\ WR JHQHUDWH SXEOLF UHVRXUFHV DQG XQGHUOLQH WKH QHHG WR LPSOHPHQW
GLVWULEXWLYH SROLFLHV WR EUHDN WKH YLFLRXV FLUFOH RI ORZ WD[ FROOHFWLRQV ODFN RI WD[ OHJLWLPDF\ DQG
OLPLWHGVRFLDOLQYHVWPHQW
$ IXUWKHU HOHPHQW LQ WKLV HTXDWLRQ LV WKH IDFW WKDW FDSLWDO JDLQV UHFHLYH JHQHURXV SUHIHUHQWLDO
WUHDWPHQWLQWKH YDVW PDMRULW\RI WKHUHJLRQ¶VFRXQWULHVZKHUHWKHVHHDUQLQJVDUHHLWKHUWRWDOO\H[HPSW
IURPWD[DWLRQRUDUHVXEMHFWWRH[WUHPHO\ORZWD[UDWHVWKXVH[SODLQLQJWKHQHDUO\QRQH[LVWHQWWD[DWLRQ
RIQRQZDJHLQFRPH
*LYHQWKLVVHWRIIDFWRUVWKHQDUURZWD[EDVHQHFHVVDULO\FRQVLVWVRIWKHFRPSHQVDWLRQUHFHLYHGE\
ZDJH ZRUNHUV LQ WKH IRUPDO ODERXU PDUNHW ²D VPDOO SURSRUWLRQ RI /DWLQ $PHULFD¶V WRWDO YDOXH DGGHG
0RUHRYHUDODUJHSURSRUWLRQRIZDJHHDUQHUVUHFHLYHLQFRPHEHORZWKHWKUHVKROGIRUSD\LQJLQFRPHWD[
7KXV RQO\ D PLQRULW\ JURXS ²QR PRUH WKDQ RI WKH HFRQRPLFDOO\ DFWLYH SRSXODWLRQ² LV WD[HG
$GGLQJ WR WKLV VLWXDWLRQ LV D KLJK OHYHO RI QRQFRPSOLDQFH DQG HYDVLRQ RQ WKH SDUW RI LQGHSHQGHQW RU
RZQDFFRXQWZRUNHUV
:DJHZRUNHU FRPSHQVDWLRQ UHSUHVHQWV RQO\ D VPDOO SURSRUWLRQ RI /DWLQ $PHULFD¶V WRWDO YDOXH
DGGHGKHQFHWKHUHJLRQ¶VUHOLDQFHRQLQGLUHFWWD[HV8QGRXEWHGO\WKHIDLOXUHRIWKHSHUVRQDOLQFRPHWD[
WREHFRPHDQLPSRUWDQWVRXUFHRIUHYHQXHLVGXHWRWKHIDFWWKDWWKHUHLVOLWWOHRUQRWD[DWLRQRIQRQZDJH
LQFRPHZKLFKLVODUJHO\FRPSRVHGRIUHWXUQRQFDSLWDOUHQWVLQWHUHVWGLYLGHQGVDQGFDSLWDOJDLQV$VD

UHVXOWRIWKLVFRPELQDWLRQRIIDFWRUVWD[HVRQSHUVRQDOLQFRPHDQGFDSLWDOJDLQVJHQHUDWHDPHUHRI
*'3RQDYHUDJHIDUEHORZWKHDYHUDJHOHYHOLQ2(&'FRXQWULHVZKHUHWKHILJXUHH[FHHGVRI*'3
' 1DUURZWD[EDVHVIRUDOOWD[HV
$QDGGLWLRQDOHOHPHQWWKDWKDVLPSHGHGWKHDELOLW\RIWD[V\VWHPVWRDFKLHYHWKHLUREMHFWLYHVRIVROYHQF\
HIILFLHQF\DQGHTXLW\LVWKHQDUURZWD[EDVHVRQZKLFKWKHUHJLRQ¶VWD[V\VWHPVDUHEXLOW$VLQGLFDWHGLQ
WKH IRUHJRLQJ VHFWLRQ¶V DQDO\VLV RI WKH LQFRPH WD[ VWUXFWXUH D UDQJH RI IDFWRUV DFFRXQWV IRU WKH
QDUURZQHVV RI WKH WD[ EDVHV 7KH DQDO\VLV LQ WKLV VHFWLRQ ZLOO IRFXV RQ WKH LQFUHDVLQJ XVH RI WD[
H[HPSWLRQPHFKDQLVPV³WD[H[SHQGLWXUHV´LQWKHUHJLRQ
6RFDOOHG³WD[H[SHQGLWXUHV´DUHUHYHQXHVWKDWDVDUHVXOWRISUHIHUHQWLDOWD[WUHDWPHQWGHVLJQHGWR
IDYRXU RU VWLPXODWH FHUWDLQ VHFWRUV DFWLYLWLHV UHJLRQV RU HFRQRPLF DJHQWV WKH JRYHUQPHQW IDLOV WR
UHFHLYH'XULQJUHFHQWGHFDGHVWKHLPSOHPHQWDWLRQRIVXFKLQFHQWLYHVKDVHURGHGWKHWD[EDVHVRI/DWLQ
$PHULFD¶VPDLQWD[HV
7KHSURPRWLRQRIWD[H[HPSWLRQVDQGRWKHUWD[EHQHILWVEHJDQLQWKHVEDVHGRQWKHLGHDWKDW
WKHPRVWLPSRUWDQWGULYHURIGHYHORSPHQWZDVLQYHVWPHQW3XEOLFLQYHVWPHQWZDVIXUWKHUHGE\PHDQVRI
LQFUHDVHV LQ WKH WD[ EXUGHQ ZKLOH SULYDWH LQYHVWPHQW ZDV HQFRXUDJHG WKURXJK WD[ LQFHQWLYHV IRU
³QHFHVVDU\´RU³HVVHQWLDO´DFWLYLWLHV$WSUHVHQWWD[H[SHQGLWXUHLVEHLQJMXVWLILHGQRWRQO\E\HFRQRPLF
JURZWK DQG WKH FRQVHTXHQWUHGXFWLRQ LQXQHPSOR\PHQW EXW DOVRE\ WKH QHHG WRSURYLGH LQFHQWLYHV IRU
IRUHLJQFDSLWDOWRVHWWOHLQWKHUHJLRQ¶VFRXQWULHVDQGWRSURPRWHH[SRUWVRIH[SRUWDEOHJRRGV
7KHUHVXOWVREWDLQHGVKRZWKDWLQPDQ\FDVHVWKHVHLQVWUXPHQWVQRWRQO\KDYHIDLOHGWRLQFUHDVH
OHYHOV RI LQYHVWPHQW DQG HFRQRPLF DFWLYLW\ LQ WKH FRXQWULHV FRQFHUQHG EXW KDYH DOVR LQ VRPH FDVHV
HQFRXUDJHG FRUUXSWLRQ ,Q PDQ\ LQVWDQFHV WKH LQVWUXPHQWV KDYH EHHQ H[SORLWHG RSSRUWXQLVWLFDOO\ E\
EXVLQHVVHVZKLFKXVHGWKHPWRLQFUHDVHWKHLUSURILWDELOLW\E\UHGXFLQJWKHFRVWVRISD\LQJFHUWDLQWD[HV
:KLOH WKHVH LQFHQWLYHV KDYH JHQHUDOO\ VXFFHHGHG LQ PRGLI\LQJ WKH UHJLRQDO RU VHFWRUDO DOORFDWLRQ RI
LQYHVWPHQWZLWKLQWKHFRXQWU\WKH\KDYHQRWVXEVWDQWLDOO\DOWHUHGWKHUDWHRIGRPHVWLFLQYHVWPHQW
7D[H[SHQGLWXUHKDVDQHJDWLYHHIIHFWRQHTXLW\DVZHOODVRQHIILFLHQF\)RUHJRLQJSRWHQWLDOWD[
UHYHQXH OLPLWV WKH URRP IRU ILVFDO PDQRHXYULQJ DQG KHQFH IRU VRFLDO LQYHVWPHQW 0RUHRYHU JUDQWLQJ
EHQHILWVWRDVSHFLILFJURXSRIWD[SD\HUVRUDFWLYLWLHVKDVOHGWRDORVVRIKRUL]RQWDOHTXLW\,QWHUPVRI
HIILFLHQF\WD[H[SHQGLWXUHKDVFUHDWHGSUREOHPVLQWHUPVRILQWHUMXULVGLFWLRQDOWD[DXWKRULW\DQGKDVOHG
WRRWKHUGLVWRUWLRQVLQGHFLVLRQVDERXWLQGXVWULDOVLWLQJDQGSURGXFWLRQ

7$%/(
6(/(&7('&28175,(67$;(;3(1',785(
3HUFHQWDJHVRI*'3
&RXQWU\
$UJHQWLQD
%UD]LO
&KLOH
&RORPELD
*XDWHPDOD
0H[LFR
3HUX
6RXUFH/9LOOHOD$/HPJUXEHU0-RUUDWEDVHGRQRIILFLDOUHSRUWVIURPWKHFRXQWULHV

7DEOHVKRZVDFRPSLODWLRQRIILQGLQJVRQWD[H[SHQGLWXUHIRUVHOHFWHGFRXQWULHV-RUUDW
7KHVH ILQGLQJV KLJKOLJKW WKH VLJQLILFDQW ORVV RI UHYHQXH RYHU WZR SHUFHQWDJH SRLQWV RI *'3 LQ PRVW

FDVHV DV D UHVXOW RI WD[ H[SHQGLWXUH ,Q WHUPV RI WD[ H[SHQGLWXUH SDWWHUQV RYHU WLPH QR FOHDU WUHQG LV
GHWHFWDEOH LQ WKH FRXQWULHV H[DPLQHG ZLWK WKH H[FHSWLRQ RI %UD]LO ZKLFK KDV VHHQ PDMRU LQFUHDVHV LQ
UHFHQW\HDUVDQG$UJHQWLQDZKLFKKDVH[SHULHQFHGDVOLJKWEXWVXVWDLQHGGHFOLQH
-LPpQH]DQG3RGHVWiSRLQWRXWWKHLPSRUWDQFHRIWKHUHODWLRQEHWZHHQWD[H[SHQGLWXUHDQG
WD[ EXUGHQ LQ WKH UHJLRQ¶V FRXQWULHV DQGJURXSFRXQWULHV LQ WKUHH FDWHJRULHV L $UJHQWLQD %UD]LO DQG
3HUXZKHUHWD[H[SHQGLWXUHSOD\VDUHODWLYHO\PLQRUUROHDSSUR[LPDWHO\LL&KLOH&RORPELDDQG
(FXDGRUFDWHJRUL]HGDVPLGOHYHODQGLLL*XDWHPDODDQG0H[LFRZKHUHWKHILJXUHLVRYHU
0DMRU PHWKRGRORJLFDO GLIIHUHQFHV LQ HVWLPDWLQJ WKH DPRXQW RI WD[ H[SHQGLWXUH LQ WKH FRXQWULHV
LQYROYHGKRZHYHUOLPLWWKHDELOLW\WRPDNHPHDQLQJIXOFRPSDUDWLYHDQDO\VHVFDXWLRQPXVWWKHUHIRUHEH
H[HUFLVHG LQ DGYDQFLQJ DQ\ JHQHUDO FRQFOXVLRQV RQ WKH PDWWHU 7KHUH KDV EHHQ D JURZLQJ DZDUHQHVV
ZLWKLQ/DWLQ$PHULFDRIWKHQHHGWRGHYHORSPHWKRGVIRULGHQWLI\LQJDQGHVWLPDWLQJWD[H[SHQGLWXUHWKDW
DOORZIRULQWHUFRXQWU\FRPSDUDELOLW\ZLWKVXIILFLHQWGLVDJJUHJDWLRQE\W\SHRIDFWLYLW\UHJLRQOHYHORI
JRYHUQPHQW DQG LQFRPH GHFLOH VR WKDW WKH HIIHFWLYHQHVV RI WKH H[SHQGLWXUH FDQ EH DVVHVVHG DQG
LQFRUSRUDWHGLQWKHEXGJHWF\FOH
/DVWO\LWVKRXOGEHERUQHLQPLQGWKDWWD[H[SHQGLWXUHSURYLGHVPDMRURSSRUWXQLWLHVWRPDQLSXODWH
WKH WD[ V\VWHP DQG HQFRXUDJHV HYDVLRQ DQG DYRLGDQFH 6OHPURG DWWULEXWHV WKLV WR IRXU IDFWRUV
LWKHUHLVLQFUHDVHGXQFHUWDLQW\DERXWWKHFRUUHFWLQWHUSUHWDWLRQRIOHJDOUXOHVLLWKHJUHDWHUFRPSOH[LW\
RI UXOHV ZKLFK GHPDQGV PRUH ULJRURXV DXGLWLQJ GHFUHDVHV WKH WD[DWLRQ FDSDFLWLHV RI WKH WD[
DGPLQLVWUDWLRQLLLDVDUHVXOWRIWKHLQFUHDVHGFRPSOH[LW\RIWKHV\VWHPWD[SD\HUVWHQGWRIDLOWRKRQRXU
VRPHRIWKHLUWD[REOLJDWLRQVHLWKHURXWRILJQRUDQFHRULQRUGHUWRFRPSHQVDWHIRUWKHFRVWVLPSRVHGE\
WKHV\VWHPDQGLYWKHXVHRIWD[H[SHQGLWXUHVLQFUHDVHVWKHFRPSOH[LW\RIWKHWD[UXOHVFUHDWLQJPRUH
URRPIRUHYDVLRQDQGDYRLGDQFH-RUUDW

,Q IRU H[DPSOH &KLOH¶V WD[ H[SHQGLWXUHV ZHUH PRUH WKDQ GRXEOH WKRVH RI $UJHQWLQD 8QOLNH $UJHQWLQD KRZHYHU &KLOH¶V
HVWLPDWLRQSURFHVVWDNHVLQWRDFFRXQWYDULDQFHVUHVXOWLQJIURPWKHGLIIHUHQFHEHWZHHQWKHPDUJLQDOWD[UDWHSDLGE\FRUSRUDWLRQVDQG
WKHPD[LPXPPDUJLQDOUDWHIRUWKHVDPHWD[DSSO\LQJWRGLYLGHQGVGLVWULEXWHGWRLQGLYLGXDOV$EVHQWWKDWPHDVXUHWD[H[SHQGLWXUH
ZRXOG GURSE\ EHORZ WKH $UJHQWLQH OHYHO ,Q *XDWHPDOD ZKHUH WD[ H[SHQGLWXUH LVFDOFXODWHG DVWKH PLQLPXPQRQWD[DEOH
DPRXQW IRU LQFRPH WD[ DQ H[FHSWLRQ WR WKH JHQHUDOO\ DFFHSWHG UXOH WKHUH LV D VKDUS GURS LQ WKH HVWLPDWH IRU GXH WR
PHWKRGRORJLFDOFKDQJHVUDWKHUWKDQHOLPLQDWLRQRIEHQHILWV

,9(IIHFWVRIHYDVLRQRQ
WKHWD[VWUXFWXUH
7KHDQDO\VLVWKXVIDUKDVFRYHUHGWKHSULQFLSDOWUHQGVLQWD[DWLRQVHHQLQ
/DWLQ $PHULFD DQG WKH FRQVWUDLQWV RQ PDNLQJ WKH QHFHVVDU\ FKDQJHV DV
ZHOO DV DOWHUQDWLYH VFKHPHV WKDW WKH UHJLRQ¶V FRXQWULHV KDYH DGRSWHG LQ
UHFHQW\HDUV
7KHKLJKOHYHOVRIHYDVLRQIRXQGLQWKHLQGLYLGXDOFRXQWULHVUHTXLUH
GHWDLOHGDQDO\VLVVLQFHWKHLUQHJDWLYHHIIHFWVJREH\RQGWKHPHUHO\WHFKQLFDO
UHDOP,QDGGLWLRQWRUHVXOWLQJLQDFWXDOUHYHQXHVEHORZWKHSRWHQWLDOOHYHOV
ODFN RI FRPSOLDQFH FDQ ZRUN DJDLQVW HIIRUWV WR HQFRXUDJH UHVSRQVLEOH
LQGLYLGXDOWD[FRPSOLDQFHVLQFHWKHFRQFHSWRIUHVSRQVLEOHFRPSOLDQFHKDV
DVXEMHFWLYHHOHPHQWEDVHGRQDUHFLSURFDOUHODWLRQVKLSEHWZHHQWKHWD[SD\HU
DQG WKH WD[LQJ DXWKRULW\ WKH HQWLW\ UHVSRQVLEOH IRU DGPLQLVWHULQJ WKH
WD[DWLRQSURFHVV²LQVKRUWEHWZHHQWKHFLWL]HQVDQGWKH6WDWH
$ 7KHLPSRUWDQFHRIPHDVXULQJHYDVLRQRI
WKHSULQFLSDOWD[HV
(YDVLRQ KLQGHUV GHYHORSPHQW DQG EDODQFHG JURZWK DQG XQGHUPLQHV WKH
RYHUDOOVHQVHRIIDLUQHVVRQZKLFKWKHWD[V\VWHPVKRXOGEHEDVHG&DUUDVFR
$FFRUGLQJWR&DUUDVFRHIIRUWVWRHVWLPDWHHYDVLRQDUHLPSRUWDQWQRW
RQO\ EHFDXVH VXFK HVWLPDWHV DVVLVW LQ GHVLJQLQJ DQ HFRQRPLF V\VWHP WKDW
JXDUDQWHHVD PLQLPXPOHYHORIZHOOEHLQJWR LWVFLWL]HQVEXWDOVREHFDXVH
WKHGDWDREWDLQHGVHUYHDVDIXQGDPHQWDOLQSXWIRUWD[DGPLQLVWUDWLRQ
%\ UHGXFLQJ WKH DPRXQW RI WD[HV FROOHFWHG E\ WKH 6WDWH HYDVLRQ
UHGXFHVWKHDYDLODEOHILVFDOVSDFHJLYLQJWKH6WDWHIHZHUUHVRXUFHVWRFDUU\
RXW LWV FXVWRPDU\ IXQFWLRQV RI ILVFDO SROLF\ VWDELOL]DWLRQ SURYLVLRQ RI
SXEOLFJRRGVDQGLQFRPHUHGLVWULEXWLRQ

(YDVLRQDIIHFWVWKHSRSXODWLRQ¶VZHOOEHLQJLQWKDWLWFDQDOWHUWKHGLVWULEXWLYHLPSDFWVRXJKWE\
WD[ OHJLVODWLRQ WKXV DIIHFWLQJ ERWK KRUL]RQWDO HTXLW\ ³HTXDO WUHDWPHQW IRU WKRVH LQ VLPLODU
FLUFXPVWDQFHV´ DQG YHUWLFDO HTXLW\ ³DSSURSULDWHO\ GLVSDUDWH WUHDWPHQW IRU WKRVH LQ GLIIHULQJ
FLUFXPVWDQFHV´ :LWK UHJDUG WR KRUL]RQWDO HTXLW\ HYDVLRQ FDQ PHDQ WKDW LQGLYLGXDOV ZLWK WKH VDPH
FDSDFLW\WRSD\IDFHXQHTXDOWD[EXUGHQVVLQFHHYDGHUVHQGXSSD\LQJOHVVWD[WKDWWKRVHZKRPHHWWKHLU
WD[ REOLJDWLRQV ,Q WHUPV RI YHUWLFDO HTXLW\ SHRSOH ZLWK JUHDWHU FDSDFLW\ WR FRQWULEXWH WR WKH V\VWHP
JHQHUDOO\ KDYH PRUH RSSRUWXQLWLHV WR EHQHILW IURP SURIHVVLRQDO DGYLFH DQG WKXV GHYHORS VWUDWHJLHV WR
DYRLGWD[HVRUWRUHGXFHWKHULVNVRIQRQFRPSOLDQFH
$WD[V\VWHPZLWKKLJKOHYHOVRIHYDVLRQDOVRXQGHUPLQHVWKHLQWHQGHGLPSDFWRIWKHV\VWHPQRW
RQO\ ZLWK UHJDUG WR HTXLW\ EXW DOVR LQ WHUPV RI IRVWHULQJ VRFLDO FRKHVLRQ VLQFH HYDVLRQ FRUURGHV WKH
VRFLHW\¶V FRQILGHQFH LQ WKH 6WDWH DQG UHGXFHV WKH OLNHOLKRRG RI DFKLHYLQJ WKH ³ILVFDO FRYHQDQW´ VR
QHFHVVDU\LQWKHUHJLRQ,QWKLVUHVSHFWPDQ\RIWKHWD[SROLFLHVH[DPLQHGLQWKHIRUHJRLQJVHFWLRQWDNH
HYDVLRQDVDJLYHQLQDOORI/DWLQ$PHULFDDQGPRUHLPSRUWDQWVWLOOGHPRQVWUDWHWKHGLIILFXOWLHVWKDWWD[
DGPLQLVWUDWLRQVIDFHLQGHDOLQJZLWKWKHSUREOHP
7UDGLWLRQDOO\ WKH RUWKRGR[ VFKRROV RI WKRXJKW KDYH DWWULEXWHG WD[ FRPSOLDQFH WR WKH WD[SD\HU¶V
IHDU RI EHLQJ FDXJKW DQG SXQLVKHG E\ WKH DXWKRULWLHV $OOLQJKDP DQG 6DQGPR +RZHYHU WKHVH
H[SODQDWLRQVIDLOWRDFFRXQWIRUWKHSDUDGR[LFDOFDVHRIFRXQWULHVLQZKLFKZKLOHWKHOLNHOLKRRGRIDXGLWV
DQG VDQFWLRQV LV YHU\ ORZ FRPSOLDQFH OHYHOV DUH YHU\ KLJK 7KXV WD[ FRPSOLDQFH LV D SKHQRPHQRQ
ZKLFK WKRXJK ODUJHO\ GHSHQGHQW RQ WKH WD[LQJ FDSDFLW\ RI WKH 6WDWH LV DOVR LQIOXHQFHG E\ QXPHURXV
RWKHUIDFWRUVLQFOXGLQJVXEMHFWLYHRQHV
,W LV ZRUWK QRWLQJ WKDW LPSURYLQJ WD[ DGPLQLVWUDWLRQ DQG VWUHQJWKHQLQJ WKH PHFKDQLVPV IRU
PRQLWRULQJDQGHQIRUFLQJFRPSOLDQFHDUHQRWLQWKHPVHOYHVVXIILFLHQWVROXWLRQVWRVROYHWKHSUREOHPRI
WD[ HYDVLRQ WD[ DGPLQLVWUDWLRQ PXVW DOVR WDNH LQWR DFFRXQW KRZ DWWLWXGHV DIIHFW LQGLYLGXDO EHKDYLRXU
6SHFLILFDOO\LWLVLPSRUWDQWWRGHWHUPLQHZKHWKHUWKHUHLVDFRUUHODWLRQEHWZHHQWD[PRUDOHDQGOHYHOVRI
WD[FRPSOLDQFH7RUJOHU
7D[ DGPLQLVWUDWLRQ VKRXOG WDNH D OHDGLQJ UROH LQ PDNLQJ FLWL]HQV DZDUH RI WKHLU VRFLDO
UHVSRQVLELOLW\WRSD\WD[HVHVWDEOLVKHGE\WKH6WDWH7KHOHJLWLPDF\RIWKH6WDWHDQGRILWVLQVWLWXWLRQVLV
YLWDOLQGHWHUPLQLQJLQGLYLGXDOV¶DFFHSWDQFHRIWKHQHHGWRKRQRXUWKHLUWD[REOLJDWLRQV8QOHVVVRFLHWLHV
VXFFHHG LQ HVWDEOLVKLQJ WKH REOLJDWLRQ WR SD\ WD[HV DV DQ DFFHSWHG UHDOLW\ KLJK WD[ PRUDOH WKH
IXQFWLRQLQJ RI WKH 6WDWH EHFRPHV VXEMHFW WR D KLJK GHJUHH RI YRODWLOLW\ DQG LW LV IRUFHG WR UHO\ RQ WKH
JRRGZLOORIWKRVHZKRKRQRXUWKHLUWD[REOLJDWLRQV%HUJPDQ
7KH PRVW UHFHQW LQIRUPDWLRQ IURP WKH /DWLQREDUyPHWUR VXUYH\ VKRZV WKDW WKH FRPELQDWLRQ RI
FRQILGHQFHLQ6WDWHVSHQGLQJDQGDZLOOLQJQHVVWRSD\PRUHWD[HVKDVOLWWOHVXSSRUWZLWKLQWKHVRFLHWLHV7KLV
³KRVWLOLW\WRWD[DWLRQ´LVDSUREOHPWKDWPXVWEHDGGUHVVHGWKURXJKJUHDWHUWUDQVSDUHQF\LQWKHXVHRIWD[HV
DVZHOODVWKURXJK³SDOSDEOH´SURJUHVVLQXVLQJWD[HVWRDGYDQFHSHRSOH¶VZHOOEHLQJ(&/$&
)HZRIWKHUHJLRQ¶VFRXQWULHVPHDVXUHHYDVLRQRQDFRQVLVWHQWDQGSHULRGLFEDVLV7KLVPDNHVLW
GLIILFXOW WR PRQLWRU WKH VLWXDWLRQ DQG SURYLGHV VFDQW LQSXW IRU HVWDEOLVKLQJ JRDOV WR UHGXFH QRQ
FRPSOLDQFHDQGWRDVVHVVWKHHIILFDF\DQGHIILFLHQF\RIWD[DGPLQLVWUDWLRQV7KHIHZLQVWDQFHVLQZKLFK
SHULRGLF PHDVXUHPHQWV DUH PDGH DUH JHQHUDOO\ OLPLWHG WR WKH 9$7 6XFK LV WKH FDVH LQ &KLOH IRU
H[DPSOH ZKHUH WKH WD[ DGPLQLVWUDWLRQ PHDVXUHV HYDVLRQ RI WKH 9$7 RQ DQ DQQXDO EDVLV DQG VHWV
DPELWLRXV JRDOV IRU UHGXFLQJ QRQFRPSOLDQFH 1RWHZRUWK\ LV WKH FDVH RI 0H[LFR ZKHUH D ODZ ZDV
SDVVHGLQUHTXLULQJWKHSXEOLFDWLRQRIVWXGLHVRIWD[HYDVLRQIRUERWKGLUHFWDQGLQGLUHFWWD[HV7KH
QXPHURXV VWXGLHV SXEOLVKHG E\ 0H[LFR VLQFH WKHQ KDYH SURYLGHG VLJQLILFDQW LQSXW IRU PHDVXULQJ DQG
PRQLWRULQJHYDVLRQ

%2;
(;,67,1*0(7+2'62)0($685,1*(9$6,21
7KHUH DUH PDQ\ PHWKRGV IRU FDOFXODWLQJ DQG HVWLPDWLQJ HYDVLRQ $PRQJ VSHFLILF DSSURDFKHV 7DQ]L DQG 6KRPH
HPSKDVL]H WKH XVH RI QDWLRQDO DFFRXQWV GLUHFWFRQWUROVPHWKRGV EDVHG RQ VXUYH\V RI KRXVHKROG EXGJHWV DQG
GLUHFW WD[SD\HU VXUYH\V 7KH 2(&' FODVVLILHV WKH PHWKRGV IRU PHDVXULQJ HYDVLRQ DV WKRVH EDVHG RQ DXGLWV
WKRVHEDVHGRQWD[SD\HUV¶WD[VWDWHPHQWVLQGLUHFWPHWKRGVEDVHGRQFURVVUHIHUHQFLQJGLIIHUHQWVRXUFHVRILQIRUPDWLRQ
VXUYH\EDVHG PHWKRGV GLUHFW REVHUYDWLRQ PHWKRGV EDVHG RQ DQDO\WLFDO PRGHOV DQG PHWKRGV EDVHG RQ ODERUDWRU\
H[SHULPHQWV
-RUUDWDQG3RGHVWiFODVVLI\WKHGLIIHUHQWPHWKRGVLQWZRPDMRUJURXSV)LUVWDUHWKHFRPSUHKHQVLYHV\VWHPV
PDFUR PHDVXUHPHQWV DQG LQGLUHFW DSSURDFKHV 7KHVH LQFOXGH PHWKRGV EDVHG RQ HFRQRPLF DJJUHJDWHV QDWLRQDO
DFFRXQWV PHWKRGV XVLQJ LQIRUPDWLRQ IURP KRXVHKROG VXUYH\V DQG WKRVH OLQNLQJ UHYHQXH FROOHFWLRQV ZLWK WKH XVH RI
VSHFLILFSK\VLFDOLQSXWVIRUSURGXFLQJDJRRGRUVHUYLFH6HFRQGDUHWKHSDUWLDOV\VWHPVPLFURPHDVXUHPHQWVDQGGLUHFW
DSSURDFKHV 7KHVH HQWDLO VSHFLDO DXGLW SURJUDPV RU WDUJHWHG LQVSHFWLRQV %DVHG RQ PHDVXULQJ HYDVLRQ E\ ZKDW LV
GHHPHGWREHDUHSUHVHQWDWLYHVDPSOHWKH\GUDZLQIHUHQFHVFRQFHUQLQJWKHEHKDYLRXURIDJLYHQJURXSRIWD[SD\HUV
7KH PRVW FRPPRQ PHWKRGV LQFOXGH HVWLPDWLQJ SRWHQWLDO WD[ UHYHQXH EDVHG RQ QDWLRQDO DFFRXQWV 7KLV FRQVLVWV RI
XVLQJGDWDRQQDWLRQDODFFRXQWVWRHVWLPDWHSRWHQWLDOUHYHQXHVIURPDJLYHQWD[DQGWKHQFRPSDULQJWKDWILJXUHZLWKWKH
DFWXDODPRXQWVFROOHFWHG7KHJDSEHWZHHQWKHWZRILJXUHVLVFRQVLGHUHGWRUHSUHVHQWWKHYDOXHRIHYDGHGWD[HV7KLV
PHWKRG LV XVHIXOIRU TXDQWLI\LQJ HYDVLRQ IRU IODWUDWHWD[HV ZKHUH WKH WD[ EDVH KDV VRPH UHODWLRQWR DPDFURHFRQRPLF
DJJUHJDWH 7KXV LW LV WKH PHWKRG PRVW FRPPRQO\ XVHG WR HVWLPDWH HYDVLRQ RI WKH YDOXH DGGHG WD[ DQG WKH FRUSRUDWH
LQFRPH WD[ $GYDQWDJHV FRPPRQO\ FLWHG IRU WKLV PHWKRG DUH HDVH RI FDOFXODWLRQ ORZ FRVW DQG WKH DELOLW\ WR PHDVXUH
HYDVLRQIRUDQQXDOVHULHVWKXVSHUPLWWLQJDQDO\VLVRIFKDQJHVRYHUDJLYHQWLPHSHULRG7KHOLPLWDWLRQPRVWRIWHQFLWHGLV
WKHIDFWWKDWWKHPHWKRG¶VDFFXUDF\LVGHSHQGHQWRQWKHUHOLDELOLW\RIWKHGDWDVRXUFH
)RU FDOFXODWLQJ HYDVLRQ RI WKH SHUVRQDO LQFRPH WD[ KRZHYHU WKH PHWKRGV PRVW FRPPRQO\ XVHG DUH WKRVH WKDW
HVWLPDWH SRWHQWLDO UHYHQXH RQ WKH EDVLV RI KRXVHKROG VXUYH\V %HFDXVH RI WKH SURJUHVVLYH QDWXUH RI WKHVH WD[HV LW LV
PRUH DSSURSULDWH WR XVH KRXVHKROG VXUYH\V IRU ZKLFK LW LV SRVVLEOH WR DSSO\ GLIIHUHQW UDWHV WR GLIIHUHQW JURXSV RI
LQGLYLGXDOV 7KH PHWKRG FRQVLVWV RI FDOFXODWLQJ WKH WD[ REOLJDWLRQ RI HDFK LQGLYLGXDO VXUYH\HG DQG DV D IXQFWLRQ RI
DQQXDOL]HGGHFODUHGLQFRPHGHWHUPLQLQJZKHWKHUWKHFRUUHVSRQGLQJUDWHKDVEHHQDSSOLHG7KHDPRXQWVFROOHFWHGDUH
WKHQJURXSHGDFFRUGLQJWRLQFRPHSHUFHQWLOHVDQGFRPSDUHGZLWKWKHDFWXDOUHYHQXHVREWDLQHGE\WKHWD[DGPLQLVWUDWLRQ
LQWKRVHLQFRPHSHUFHQWLOHV7KHSULQFLSDODGYDQWDJHVRIWKLVPHWKRGLQFOXGHVLPSOLFLW\DQGORZFRVWZKLOHDFRPPRQO\
FLWHGOLPLWDWLRQLVWKHIDFWWKDWWKRVHVXUYH\HGIUHTXHQWO\RPLWLQIRUPDWLRQRUXQGHUGHFODUHLQFRPH
:LWKUHJDUGWRWKH9$7(VFREDUDQG&DUUDVFRHPSKDVL]HWKHXVHRIWKH9$7SURGXFWLYLW\LQGH[DVD
SRVVLEOHLQGLFDWRURIWKHFKDQJLQJOHYHORIWD[HYDVLRQRYHUWLPH7KLVLQGH[LVXVXDOO\GHILQHGDVWKH9$7UHYHQXHDVD
SHUFHQWDJHRI*'3GLYLGHGE\WKH9$7UDWH7KHKLJKHUWKHLQGH[WKHJUHDWHUWKHWD[¶V\LHOGVLJQDOOLQJDKLJKGHJUHHRI
WD[FRPSOLDQFHDQGDEURDGWD[EDVH$OWKRXJKLWLVQRWXVHIXOIRUTXDQWLI\LQJHYDVLRQLWSURYLGHVDORZFRVWDQDO\VLVRI
FKDQJHVLQWKHOHYHORIHYDVLRQRYHUDGHILQHGSHULRG
2WKHUPRUHGLUHFWDSSURDFKHVLQFOXGHIL[HGSRLQWVDPSOLQJPHWKRGV7KLVLQYROYHVDXGLWLQJDVDPSOHRIWD[SD\HUV
DQGSURYLGHVWKHWD[DGPLQLVWUDWLRQVSHFLILFLQIRUPDWLRQRQWKHUDWHRIHYDVLRQ$OWKRXJKLWVSULQFLSDODGYDQWDJHLVWKDWLW
FDQGUDZRQDOOW\SHVRIVWDWLVWLFDOWHFKQLTXHVLWVHIIHFWLYHQHVVGHSHQGVWRDFRQVLGHUDEOHH[WHQWRQWKHH[SHULHQFHRI
WKRVH SHUIRUPLQJ WKH DXGLWV +RZHYHU LW LV GLIILFXOW WR GUDZ FRQFOXVLRQV RQ WKH UHVW RI WKH SRSXODWLRQ EDVHG RQ WKHVH
ILQGLQJV2QHRIWKHUHDVRQVFRPPRQO\FLWHGIRUWKHELDVLQHYDVLRQILJXUHVLVWKHIDFWWKDWWD[DGPLQLVWUDWLRQVQRUPDOO\
DXGLWWKRVHWD[SD\HUVGHHPHGPRVWOLNHO\WREHHYDGLQJWD[HV
% /HYHOVRI9$7DQGLQFRPHWD[HYDVLRQLQ/DWLQ$PHULFD
2QHRIWKHFRQVWUDLQWVLQDQDO\VLQJHYDVLRQLQWKHUHJLRQLVWKHVFDUFLW\RIVWXGLHVRQHYDVLRQHPSOR\LQJ
D FRPPRQ PHWKRGRORJ\ WKXV PDNLQJ FRPSDULVRQ EHWZHHQ FRXQWULHV GLIILFXOW $OWKRXJK LW LV HDVLHU WR
ILQG FRPSDULVRQV EDVHG RQ VWXGLHV RI WKH 9$7 VLQFH VXFK VWXGLHV VKDUH D FRPPRQ PHWKRGRORJ\
FRPSDULQJHYDVLRQRIWKHLQFRPHWD[SRVHVJUHDWHUGLIILFXOWLHV
%HORZDUHGDWDRQHYDVLRQRIWKHLQFRPHWD[IURPDFRPSDUDWLYHVWXG\VXSSRUWHGE\(&/$&7KH
VWXG\ PDGH HVWLPDWHV IRU VHYHQ FRXQWULHV XVLQJ D FRPPRQ PHWKRGRORJ\ WKXV DOORZLQJ FRPSDULVRQV
EHWZHHQWKHFRXQWULHVDQGSURYLGLQJDPHWKRGWKDQFDQEHXVHGLQRWKHUVWXGLHV7KHILQGLQJVRQHYDVLRQ
RI WKH 9$7 DUH WDNHQ IURP GLIIHUHQW VWXGLHV DQG ZHUH FRPSLOHG E\ *yPH] 6DEDLQL LQ D
VXEVHTXHQWZRUN

7$%/(
&203$5,6212)5$7(62)9$7$1',1&20(7$;(9$6,21
3HUFHQWDJHV
9DOXH$GGHG7D[ ,QFRPH7D[
3DtVHV (VWLPDWHG (VWLPDWHG(YDVLRQ5DWH

<HDU <HDU
(YDVLRQ5DWH 7RWDO ,QGLYLGXDOV &RUSRUDWLRQV
$UJHQWLQD
%ROLYLD3OXULQDWLRQDO
6WDWHRI
&KLOH
&RVWD5LFD
&RORPELD
(FXDGRU
(O6DOYDGRU
*XDWHPDOD
0H[LFR
1LFDUDJXD
3DQDPD
3HUX
'RPLQLFDQ5HSXEOLF
8UXJXD\
6RXUFH*yPH]6DEDLQL-LPpQH]DQG3RGHVWiDQG*yPH]6DEDLQL

$YDLODEOH HVWLPDWHV RI WD[ HYDVLRQ VKRZ WKDW HYDVLRQ LV IDU PRUH H[WHQVLYH LQ WKH FDVH RI WKH
LQFRPHWD[²ERWKSHUVRQDODQGFRUSRUDWH²WKDQIRUWKHYDOXHDGGHGWD[GHVSLWHWKHIDFWWKDWWKHWZR
DUHVXEVWDQWLDOO\LQWHUUHODWHG$VVKRZQLQWDEOHZKLOHHYDVLRQUDWHVIRUWKH9$7FDOFXODWHGIRUWKH
/DWLQ$PHULFDQFRXQWULHVUDQJHIURP&KLOHWR1LFDUDJXDDYHUDJLQJDURXQGUDWHV
RI QRQFRPSOLDQFH IRU WKH LQFRPH WD[ UDQJH IURP 0H[LFR DQG &KLOH WR
(FXDGRUIRUDQDYHUDJHRI(YDVLRQRIWKHFRUSRUDWHLQFRPHWD[LVPRUHH[WHQVLYHLQPRVWRI
WKHFRXQWULHVWKDQHYDVLRQRIWD[HVRQLQFRPHRISK\VLFDOSHUVRQV
$VPHQWLRQHGDERYHERWK&KLOHDQG0H[LFRPDNHRIILFLDOHVWLPDWHVRIWD[HYDVLRQ,Q&KLOHWKH
'HSDUWPHQW RI 5HVHDUFK DW WKH ,QWHUQDO 5HYHQXH 6HUYLFH SXEOLVKHV D VHULHV RI HVWLPDWHV RQ WKH 9$7
FRYHULQJWKH\HDUVWR7KHPHWKRGHPSOR\HGFRQVLVWVRIXVLQJVHFWRUDOLQWHUUHODWLRQVGHULYHG
IURP WKH LQSXWRXWSXW PDWUL[ WR HVWLPDWH ZKDW IUDFWLRQ RI WUDQVDFWLRQV VKRXOG EH FRQVLGHUHG DV WKH
SRWHQWLDOEDVHDFFRUGLQJWRWKHWD[ODZ7KHHVWLPDWHLVEDVHGRQDJJUHJDWHFRQVXPSWLRQILJXUHVOLQNLQJ
WKH SRWHQWLDO 9$7 EDVH WR WKUHH IDFWRUV SULYDWH FRQVXPSWLRQ LQWHUPHGLDWH FRQVXPSWLRQ E\ H[HPSW
VHFWRUVDQGLQYHVWPHQWE\H[HPSWVHFWRUV7KHVWXG\DOVRSXEOLVKHVDQHVWLPDWHRIWKHVRFDOOHG³9$7
SURGXFWLYLW\FRQVXPSWLRQLQGH[´SURSRVLQJWKDWVLQFHWKLVLVDWD[SDLGE\WKHILQDOFRQVXPHUWKHWD[
EDVHIRUWKH9$7VKRXOGEHPRUHFORVHO\DOLJQHGZLWKWKDWPDFURHFRQRPLFDJJUHJDWHWKDQZRXOGEHD
FDOFXODWLRQEDVHGRQSURGXFWLYLW\*'3
)LJXUHVKRZVWKHILQGLQJVVXJJHVWLQJHYLGHQFHRIDUHODWLRQVKLSEHWZHHQJHQHUDOGRZQDQGXS
F\FOHVRIWKHSURGXFWLYLW\FRQVXPSWLRQLQGH[DQGFKDQJHVLQWKHUDWHRIHYDVLRQ

),*85(
5$7(2)9$7(9$6,21$1'9$7352'8&7,9,7<&2168037,21,1'(;
%DVHOLQH
ϭϭϱ ϮϬй

ϭϭϬ ϭϲй

ϭϬϱ ϭϮй

ϭϬϬ ϴй

ϵϱ ϰй

ϵϬ Ϭй
ϮϬϬϯ ϮϬϬϰ ϮϬϬϱ ϮϬϬϲ ϮϬϬϳ;ƉͿ ϮϬϬϴ;ƉͿ ϮϬϬϵ;ƉͿ

ŽŶƐƵŵƉƚŝŽŶͲƉƌŽĚƵĐƚŝǀŝƚǇ/ŶĚĞǆŽĨsd;ĂƐĞϭϬϬсϮϬϬϯͿ
ǀĂƐŝŽŶƌĂƚĞŝŶsd
6RXUFH,QWHUQDO5HYHQXH6HUYLFHRI&KLOH

,QWKHFDVHRI0H[LFRDVWXG\SXEOLVKHGLQE\WKH,QVWLWXWR7HFQROyJLFRGH0RQWHUUH\DWWKH
UHTXHVWRIWKH7D[$GPLQLVWUDWLRQ6HUYLFHHVWLPDWHVWD[HYDVLRQIRUGLIIHUHQWW\SHVRIWD[HVIRU
)RU QHDUO\ DOO W\SHV RI WD[HV WKH PHWKRGRORJ\ XVHV LQIRUPDWLRQ IURP WKH 6\VWHP RI 1DWLRQDO $FFRXQWV
VXSSOHPHQWHGE\VHFRQGDU\LQIRUPDWLRQIURPYDULRXVVXUYH\VFHQVXVHVDQGWKHLQSXWRXWSXWPDWUL[
)LJXUH VKRZV WKH KLJK OHYHO RI LQFRPH WD[ HYDVLRQ SULQFLSDOO\ ZLWK UHJDUG WR LQFRPH IURP
UHQWDOV 5(3(&26 VPDOO WD[SD\HU UHJLPHV DQG QRQ5(3(&26 DQG ORZHU DQG GHFOLQLQJ UDWHV RI
HYDVLRQ RI WKH 9$7 DQG RI WKH LQFRPH WD[ RQ HPSOR\HG SK\VLFDO SHUVRQV 7KH FRQVROLGDWHG UDWH KDV
IDOOHQUHPDUNDEO\LQWKHSHULRGH[DPLQHGIURPLQWRLQZLWKWKHGHFOLQHGXH
SULPDULO\WRDGURSLQLQFRPHWD[HYDVLRQE\MXULGLFDOSHUVRQV

),*85(
7$;(9$6,21,10(;,&2
(YDVLRQUDWHV
ϭϬϬ
ϴϬ
ϲϬ
ϰϬ
ϮϬ
Ϭ
ϮϬϬϬ ϮϬϬϭ ϮϬϬϮ ϮϬϬϯ ϮϬϬϰ ϮϬϬϱ ϮϬϬϲ ϮϬϬϳ ϮϬϬϴ
sd EŽŶͲŽŝů^ƉĞĐŝĂůdĂǆ ŽŶWƌŽĚƵĐƚŝŽŶĂŶĚ ^ĞƌǀŝĐĞ

/ŶĐŽŵĞƚĂǆͲ ZĞŶƚĂů ŝŶĐŽŵĞ /ŶĐŽŵĞƚĂǆŝŶĚŝǀŝĚƵĂůƐ Ͳ tĂŐĞ ǁŝƚŚŚŽůĚŝŶŐ
/ŶĐŽŵĞƚĂǆͲ ŽƌƉŽƌĂƚĞ /ŶĐŽŵĞƚĂǆͲ ^ŵĂůů ƚĂǆƉĂǇĞƌ ƌĞŐŝŵĞ
/ŶĐŽŵĞƚĂǆͲ /ŶĚŝǀŝĚƵĂůƐ Ͳ ŶŽŶƐŵĂůů ƚĂǆƉĂǇĞƌƐ ƐǇƐƚĞŵ ŽŶƐŽůŝĚĂƚĞĚ

6RXUFH)XHQWHV&DVWUR

(YDVLRQLQ0H[LFRDVDSHUFHQWDJHRI*'3KDVGHFOLQHGFRQVLGHUDEO\IURPRI*'3LQ
WRRI*'3LQILJXUH7KRXJKWKH9$7HYDVLRQUDWHLVDPRQJWKHORZHVWRIDOOWKHWD[HVLWLV
IDLUO\VLJQLILFDQWLQ*'3WHUPVUHSUHVHQWLQJDSSUR[LPDWHO\RI*'3WKURXJKRXWWKHSHULRGVWXGLHG

),*85(
7$;(9$6,21,10(;,&2
$VDSHUFHQWDJHRI*'3

9$7 1RQRLO6SHFLDO7D[ RQ3URGXFWLRQDQG 6HUYLFH
,QFRPHWD[ 5HQWDOLQFRPH ,QFRPHWD[LQGLYLGXDOV :DJHZLWKKROGLQJ
,QFRPHWD[ &RUSRUDWH ,QFRPHWD[ 6PDOOWD[SD\HUUHJLPH5(3(&26
,QFRPHWD[ ,QGLYLGXDOV QRQ VPDOOWD[SD\HUVV\VWHP

6RXUFH)XHQWHV&DVWUR

$QXPEHURIFRQFOXVLRQVFDQEHGUDZQIURPWKHH[LVWLQJVWXGLHVRQWD[HYDVLRQLQWKHUHJLRQ)LUVW
UDWHV RI HYDVLRQ DUH KLJK RYHUDOO IRU ERWK WKH LQFRPH WD[ DQG WKH 9$7 WKRXJK WKHUH DUH GLIIHUHQFHV
EHWZHHQ FRXQWULHV ([FHSW IRU WKH 9$7 HYDVLRQ UDWH LQ &KLOH DOO ILJXUHV UHSUHVHQW DW OHDVW RI WKH
UHYHQXHSRWHQWLDO6HFRQGDFFRUGLQJWRWKHGDWDLQFRPHWD[HYDVLRQLVJUHDWHUWKDQ9$7HYDVLRQ7KHUDWH
RIHYDVLRQRIWKH9$7DYHUDJHVLQWKHUHJLRQDVFRPSDUHGZLWKIRUWKHLQFRPHWD[7KLUG
FRUSRUDWLRQVHYDGHPRUHLQSHUFHQWDJHWHUPVWKDQGRSK\VLFDOSHUVRQV(YDVLRQRIWKHLQFRPHWD[DPRQJ
MXULGLFDOSHUVRQVLVKLJKHUWKDQWKHUDWHIRUSK\VLFDOSHUVRQVYHUVXV
$W WKH FRXQWU\ OHYHO *XDWHPDOD LV DQ H[FHSWLRQ LQ WKDW HYDVLRQ RI WKH LQFRPH WD[ E\ SK\VLFDO
SHUVRQV LV JUHDWHU WKDQ HYDVLRQ E\ MXULGLFDO SHUVRQV *yPH] 6DEDLQL -LPpQH] DQG 3RGHVWi
FRQVLGHU WKLV DQ DW\SLFDO ILQGLQJ DQG SURSRVH WZR H[SODQDWLRQV 7KH ILUVW LV WKDW WKHUH PD\ EH DQ
RYHUHVWLPDWLRQRIHYDVLRQE\MXULGLFDOSHUVRQVZKREHFDXVHWKH\KDYHPRUHDELOLW\WRXVHOHJDOPHDQVWR
UHSRUW JUHDWHU FRVWV DQG ORZHU SURILWV DYRLG PRUH WD[HV WKXV UHSUHVHQWLQJ D SRWHQWLDOO\ LPSRUWDQW
FRPSRQHQW LQ WKH ILQGLQJV 7KH VHFRQG K\SRWKHVLV LV WKDW HYDVLRQ E\ QDWXUDO SHUVRQV PD\ EH
XQGHUHVWLPDWHG VLQFH WKH ODFN RI LQIRUPDWLRQ RQ XQGHUVWDWHPHQW RI QRQODERXU HDUQLQJV UHSRUWHG LQ
KRXVHKROGVXUYH\VPDNHVLWLPSRVVLEOHWRPDNHWKHDSSURSULDWHDGMXVWPHQWDQGEHFDXVHWKHLQFRPHWD[
RQSK\VLFDOSHUVRQVLQWKHUHJLRQLVHVVHQWLDOO\DWD[RQODERXUFDSWXUHGDWWKHVRXUFHDQGWKHUHIRUHPRUH
GLIILFXOWWRHYDGH/DVWO\LQOLQHZLWKWKHDERYHDUJXPHQWDFFRUGLQJWRWKHVWXG\FRQGXFWHGLQ0H[LFR
E\)XHQWHV&DVWURHYDVLRQDPRQJLQGLYLGXDOVLVORZHULQWKHFDVHRIHPSOR\HHV¶LQFRPHVLQFH
SDUW RI WKHLU ZDJHV LV ZLWKKHOG 7KHVH IHDWXUHV RI WKH HYDVLRQ SKHQRPHQRQ KDYH LPSOLFDWLRQV IRU WKH
UHJLRQ¶VWD[VWUXFWXUH)RUH[DPSOHWKHORZHUHYDVLRQRIWKH9$7DQGWKHJUHDWHUHDVHRIPRQLWRULQJWKLV
W\SHRIWD[UHYHQXHKDYHIDFLOLWDWHGDQGSURPRWHGHPSKDVLVRQWKLVWD[ZLWKLQWKHUHJLRQ

9 $OWHUQDWLYHVFKRVHQWRLQFUHDVH
WKHWD[EXUGHQLQWKHUHJLRQ¶V
FRXQWULHV
$ 7D[HVRQILQDQFLDOWUDQVDFWLRQV
,Q UHFHQW GHFDGHV WKH JURZLQJ WD[ EXUGHQ KDV EHHQ LQVXIILFLHQW WR ILQDQFH
SXEOLF VSHQGLQJ QHHGV SDUWLFXODUO\ IRU VRFLDO VSHQGLQJ WKXV OHDGLQJ WR
SHUVLVWLQJSUREOHPVZLWKVROYHQF\DQGOHDYLQJOLWWOHODWLWXGHIRUILVFDOSROLF\
,QDWWHPSWLQJWRGHDOZLWKWKHVHFLUFXPVWDQFHV/DWLQ$PHULFDQWD[
SROLF\ KDV WULHG WR ILOO WKH JDS LQ WKH WD[ EXUGHQ E\ FUHDWLQJ XQRUWKRGR[
WD[HV WKDW JHQHUDWH VLJQLILFDQW UHYHQXH DUH HDV\ WR DGPLQLVWHU DQG DUH
GLIILFXOWWRHYDGH*LYHQWKHDGYDQWDJHVRIVXFKWD[HVDQGWKHFRQVHTXHQW
LQFUHDVHVLQUHYHQXHVUHODWLYHO\OLWWOHLPSRUWDQFHKDVEHHQDWWDFKHGWRWKH
UHVXOWLQJ GLVWRUWLRQDU\ HIIHFWV DQG WKH LPSDFW RI WKHVH WD[HV RQ WKH
HIILFLHQF\RIWKHWD[V\VWHP
6RPHRIWKHVHWD[HVKDYHEHHQGHVLJQHGWRWD[JURVVDVVHWVRIILUPV
EXWWKHPRVWFRPPRQO\XVHGW\SHVKDYHEHHQWD[HVRQILQDQFLDODFWLYLWLHV
LQYROYLQJ GHELWV DQGRU FUHGLWV LQ EDQN DFFRXQWV DQG LQ RWKHU ILQDQFLDO
LQVWLWXWLRQV
7D[HV RQ ILQDQFLDO DFWLYLWLHV DGRSWHG XQGHU GLIIHUHQW QDPHV E\
GLIIHUHQWFRXQWULHVKDYHJURZQVLJQLILFDQWO\LQWKHODVWWZRGHFDGHVDVVHHQ
LQ WDEOH ZKLFK VKRZV WKDW LQ WKH\ ZHUH XVHG LQ RQO\ RQH $VLDQ
FRXQWU\ZKLOHWKH\ZHUHXVHGE\DWRWDORIFRXQWULHVLQUHSODFLQJ
PRUH WUDGLWLRQDO WD[HV &RHOKR ,Q /DWLQ $PHULFD WKH FDVHV RI
$UJHQWLQD%UD]LO&RORPELDDQG3HUXDUHFLWHGDVWKHPRVWVLJQLILFDQW

7$%/(
180%(52)&28175,(6:,7+7$;(621),1$1&,$/75$16$&7,216
,1/$7,1$0(5,&$$1'7+($6,$3$&,),&5(*,21

<HDU /DWLQ$PHULFD $VLD3DFLILF 7RWDO

6RXUFH$XWKRUVEDVHGRQ&RHOKR

7KHDUJXPHQWVIRUXVLQJWKHWD[RQILQDQFLDOWUDQVDFWLRQVDVDQ³HDV\´VRXUFHRIUHYHQXHDUHLLW
FDQEHSXWLQSODFHUHODWLYHO\TXLFNO\VLQFHLWLVEDVHGRQZLWKKROGLQJE\ILQDQFLDOLQWHUPHGLDULHVDQG
UHTXLUHVOLWWOHSUHSDUDWRU\ZRUNDQGQRFRRSHUDWLRQIURPWKHWD[SD\HUDQGLLDORZWD[UDWHFDQSURGXFH
VLJQLILFDQWUHYHQXHVLQFHEDQNGHELWVDUHDPXOWLSOHRI*'3SDUWLFXODUO\LIWKHUDWHLVORZDQGWKHWD[LV
QRWSHUPDQHQW
7KLV W\SH RI WD[ LV FXUUHQWO\ XVHG LQ VL[ RI WKH UHJLRQ¶V FRXQWULHV DQG DFFRUGLQJ WR WKH WD[
LQIRUPDWLRQ DQDO\VHG FDQ EH FODVVLILHG LQ WZR JURXSV *RQ]iOH] L WD[HV RQ ILQDQFLDO GHELW
WUDQVDFWLRQV DV LQ &RORPELD WKH 'RPLQLFDQ 5HSXEOLF DQG WKH %ROLYDULDQ 5HSXEOLF RI 9HQH]XHOD DQG
LLWD[HVRQGHELWVDQGFUHGLWVLQFKHFNLQJDFFRXQWVDQGRWKHUILQDQFLDOV\VWHPWUDQVDFWLRQVDVLQ$UJHQWLQD
WKH3OXULQDWLRQDO6WDWHRI%ROLYLD%UD]LODQG3HUX0RUHRYHULQRUGHUWRSUHYHQWPDQRHXYUHVWRDYRLGWKH
WD[ $UJHQWLQD %UD]LO 3HUX DQG WKH %ROLYDULDQ 5HSXEOLF RI 9HQH]XHOD DOVR WD[ PRYHPHQWV RI IXQGV
FRQVWLWXWLQJRUJDQL]HGIRUPVRISD\PHQWQRWFRQGXFWHGWKURXJKILQDQFLDOLQVWLWXWLRQV
7D[UHYHQXHVFROOHFWHGWKURXJKWKHWD[RQILQDQFLDOWUDQVDFWLRQVKDYHFRQWULEXWHGVLJQLILFDQWO\WR
RYHUDOO UHYHQXHV $V VKRZQ LQ WDEOH WKHVH UHYHQXHV DPRXQWHG WR RYHU RI DOO WD[ UHYHQXHV LQ
$UJHQWLQDDQGPRUHWKDQLQWKH%ROLYDULDQ5HSXEOLFRI9HQH]XHOD%UD]LODQG&RORPELD
$VDPHFKDQLVPIRUJHQHUDWLQJWD[UHYHQXHKRZHYHUWKHWD[KDVDQHJDWLYHHIIHFWRQHFRQRPLF
HIILFLHQF\ LQ WZR UHVSHFWV L RQ WKH SURGXFWLRQ VLGH LW VHUYHV DV DQ LQFHQWLYH WR YHUWLFDO LQWHJUDWLRQ
HQFRXUDJLQJLQWUDILUPWUDQVDFWLRQVLQRUGHUWRDYRLGSD\LQJWKHWD[DQGLLRQWKHFRQVXPSWLRQVLGHLW
LQFUHDVHVWKHUHODWLYHSULFHRIJRRGVWKDWLQYROYHPXOWLSOHVWDJHVRISURGXFWLRQ²LQRWKHUZRUGVJRRGV
WKDW DUH LQWHQVLYH LQ WKHLU XVH RI LQWHUPHGLDWH JRRGV RU WKDW UHTXLUH JUHDWHU WXUQRYHU RI ILQDQFLDO
UHVRXUFHV)XUWKHUPRUHVLQFHWKLVWD[FDQDOVREHVHHQDVDWD[RQOLTXLGLW\DQGILQDQFLDOLQWHUPHGLDWLRQ
LW UHGXFHV DQ HFRQRP\¶V G\QDPLVP ,Q DGGLWLRQ ZKHQ LW LV XVHG IRU ORQJ SHULRGV LWV SURGXFWLYLW\
GHFUHDVHV GXH WR WKH IDFW WKDW WKH WD[ EDVH WHQGV WR FRQWUDFW DV RSSRUWXQLWLHV IRU ILQDQFLDO
GLVLQWHUPHGLDWLRQDQGPHFKDQLVPVIRUHYDVLRQHPHUJH

7$%/(
5(9(18(6)5207$;(621),1$1&,$/75$16$&7,216
3HUFHQWDJHVRI*'3DQGRIWRWDOUHYHQXH
7D[UHYHQXH
&RXQWU\ <HDU 3HUFHQWDJH 3HUFHQWDJH
RI*'3 RIWRWDO
$UJHQWLQDD

DE
%UD]LO
F
&RORPELD
3HUX
6RXUFH$XWKRUVEDVHGRQ&RHOKR
D
&HQWUDOJRYHUQPHQWRQO\
E
7KH SURYLVLRQDO WD[ RQ ILQDQFLDO PRYHPHQWV &30) ZDV UHLQVWLWXWHG LQ DIWHU
KDYLQJEHHQUHVFLQGHGRQ-DQXDU\
F
$ JUDGXDO UDWH UHGXFWLRQ LQ WKH WD[ RQ ILQDQFLDO WUDQVDFWLRQV ZDV UHFHQWO\ LQWURGXFHG
ZLWKDFRPSOHWHSKDVHRXWE\
% 0LQLPXPVRUVXEVWLWXWHWD[HVWRUHSODFHWKHLQFRPHWD[
7KH VWUDWHJ\ RI DGRSWLQJ WD[HV WKDW DUH WKH HDVLHVW WR LPSOHPHQW DQG PRQLWRU WKDW HQFRXQWHU OHDVW
WD[SD\HU UHVLVWDQFH WKDW DUH KDUGHVW WR HYDGH DQG WKDW KDYH WKH ORZHVW HQIRUFHPHQW FRVWV DOVR OHG WR
IXUWKHUUHIRUPVWRWKHFRUSRUDWHLQFRPHWD[
7KLV LQFOXGHG WKH XVH RI WD[HV WKDW DFW DV D ³IORRU´ DQG DUH EDVHG RQ WKH YDOXH RI D FRPSDQ\¶V
DVVHWVRURQLWVJURVVVDOHVRUUHFHLSWV7KLVW\SHRIWD[HVWDEOLVKHVDPLQLPXPDPRXQWWREHSDLGWKXV
ZKHQWKHWD[RZHG²FDOFXODWHGEDVHGRQQHWSURILWV²LVKLJKHUWKDQWKH³IORRU´WKHWD[SD\HUDGGVDQ
DGGLWLRQDODPRXQWWRWKHPLQLPXPILJXUHLILQVWHDGWKHFDOFXODWLRQUHVXOWVLQDILJXUHEHORZWKH³IORRU´
WKHDPRXQWRIWD[RZHGLVWKHPLQLPXPILJXUHFDOFXODWHGRQWKHEDVLVRIWKHFRPSDQ\¶VDVVHWVRUJURVV
VDOHV,QPRVWFRXQWULHVLQWKHUHJLRQZKHUHWKLVW\SHRIWD[LVXVHGFRUSRUDWHDVVHWVFRQVWLWXWHWKHWD[
EDVHWDEOH
&OHDUO\WKHVHDOWHUQDWLYHVWDNHOLWWOHDFFRXQWRIWKHHFRQRPLFFRQVHTXHQFHVUHSUHVHQWLQJPHUHO\
DQ LPSOLFLW UHFRJQLWLRQ RI WKH LQHIIHFWLYHQHVV RI WD[ DGPLQLVWUDWLRQV LQ HQIRUFHPHQW ZLWK UHJDUG WR WKH
WUDGLWLRQDOWD[HV

7$%/(
0,1,08062568%67,787(6)257+(,1&20(7$;,1/$7,1$0(5,&$
&RXQWU\

$5* RIJURVVDVVHWV RIJURVVDVVHWV RIJURVVDVVHWV RIJURVVDVVHWV RIJURVVDVVHWVD
%2/ <HV 1R 1R 1R 1R
%5$ 1R 1R 1R 1R 1R
&+/ 1R 1R 1R 1R 1R
RIQHWZHDOWK
RIQHWZHDOWK RIQHWZHDOWK RIQHWZHDOWK RIQHWZHDOWK
RURIJURVV
FRQVWLWXWHVWKH FRQVWLWXWHVWKH FRQVWLWXWHVWKH FRQVWLWXWHVWKH
&2/ ZHDOWKFRQVWLWXWHV
PLQLPXPWD[DEOH PLQLPXPWD[DEOH PLQLPXPWD[DEOH PLQLPXPWD[DEOH
WKHPLQLPXP
LQFRPH LQFRPH LQFRPH LQFRPHD
WD[DEOHLQFRPH
FRQWLQXHG

7DEOHFRQFOXGHG
&RXQWU\

RI
&5, RIDVVHWV RIDVVHWV 1R 1R
IL[HGDVVHWV
RIQHW RIQHW RIQHW RIQHW RIQHW
(&8
ZHDOWK ZHDOWK ZHDOWK ZHDOWK ZHDOWKE
6/9 RIDVVHWV 1R 1R 1R 1R
5HVFLQGHG
SUHYLRXVO\DQG
WD[RQRI
UHSODFHGE\D
QHWDVVHWVRU
WD[RQ WD[RQ WD[RQRIQHW
*70 RIDVVHWV RIJURVVLQFRPH
UHDOHVWDWHF UHDOHVWDWH DVVHWVRURI
ZKLFKHYHULVJUHDWHU
JURVVLQFRPH
VROLGDULW\WD[
ZKLFKHYHULV
JUHDWHU
+1' 1R 1R RIDVVHWV RIDVVHWV RIDVVHWV
RIJURVV RIWD[DEOH
0(; RIDVVHWVD RIDVVHWV RIDVVHWV
DVVHWVD LQFRPHFDVKIORZD
RIQHW WD[RQUHDO WD[RQUHDO

1,& RIDVVHWV RIJURVVLQFRPH
ZHDOWK HVWDWH HVWDWH
$OWHUQDWHFDOFXODWLRQ
RIQHWZHDOWK
RIWD[RI
RQQHW
ZKLFKHYHULVJUHDWHU
WD[DEOHLQFRPHLI
EHWZHHQQHWWD[DEOH
3$1 RIQHWZHDOWKG RIQHWZHDOWK RIQHWZHDOWK OHVVWKDQ
LQFRPHRURI
RIWD[DEOHLQFRPH
JURVVWD[DEOH
RIJURVV
LQFRPHRI
LQFRPH
JURVVLQFRPH
35< 1R 1R 1R 1R 1R
3(5 RIQHWZHDOWK RIQHWZHDOWK 5HVFLQGHG RIQHWDVVHWV RIQHWDVVHWVH
'20 1R 1R 1R RIDVVHWV RIDVVHWV
RIQHW RIQHW RIQHW

85< RIQHWZHDOWK 5HVFLQGHG
ZHDOWK ZHDOWK ZHDOWK
9(1 1R 1R RIDVVHWVD 1R 1R
6RXUFH $XWKRUV EDVHG RQ GDWD IURP 2 &HWUiQJROR DQG -& *yPH] 6DEDLQL IRU WR DQG ,QWHUQDWLRQDO
%XUHDXRI)LVFDO'RFXPHQWDWLRQIRU
D
0LQLPXPWD[RQSURILWRIMXULGLFDOSHUVRQVDSSOLFDEOHDVDFUHGLWDJDLQVWWD[RQSURILWV
E
&RQVLVWVRIRIDVVHWVDVDGYDQFHSD\PHQWRIWD[RQSURILWV
F
7KHEDVHFRQVLVWHGRIUHDOHVWDWHKRZHYHUWKHWD[ZDVQRWFRQFHLYHGDVDWD[RQSURSHUW\EXWUDWKHUDVDQDGGLWLRQDOWD[
RQFRUSRUDWHSURILWV
G
7KLVWD[WRRNWKHIRUPRIDOLFHQVHWRGREXVLQHVVZLWKWKHPD[LPXPDPRXQWVHWDWEDOERDV\HDU
H
$OWKRXJK WKH 7HPSRUDU\ 1HW $VVHW 7D[ ,7$1 LV QRW D SHUPDQHQW PLQLPXP WD[ LW GRHV DSSO\ GXULQJ WKH FXUUHQW ILVFDO
\HDUZLWKRYHUSD\PHQWVUHIXQGDEOHDVWD[FUHGLWV

& 7KHUROHRIUHYHQXHVIURPWD[HVRQQDWXUDOUHVRXUFHV
$WKLUGSRLQWUHJDUGLQJWKHDOWHUQDWLYHVDGRSWHGE\YDULRXVFRXQWULHV¶HIIRUWVWRLPSURYHWKHWD[EXUGHQ
FRQFHUQV WKH LPSRUWDQFH ZLWKLQ WKH UHJLRQ RI UHYHQXHV IURP WKH SURGXFWLRQ DQG H[SRUW RI JRRGV WKDW
UHO\RQLQWHQVLYHXVHRIQDWXUDOUHVRXUFHV,QWKHVHFRXQWULHVWKHDGGLWLRQDOUHYHQXHV²ERWKWD[UHYHQXHV
DQGRWKHUV²IURPWKHVHVRXUFHVKDYHPDGHLWSRVVLEOHWRPHHWSXEOLFVSHQGLQJQHHGVZLWKRXWFUHDWLQJ
JUHDWHUEXUGHQRQWKHWD[VWUXFWXUHDQGKDYHJLYHQULVHWRDFHUWDLQ³WD[OD]LQHVV´WKDWRIWHQOHDGVWRD
IDLOXUHWRLPSOHPHQWQHHGHGUHIRUPVWRWD[OHYHOVDQGWRWKHVWUXFWXUHRIWKHWD[V\VWHP
/DWLQ$PHULFDLVDPDMRUSURGXFHURISULPDU\JRRGVERWKPLQHUDODQGDJULFXOWXUDO7KHUHYHQXHV
IURP WKH H[SORLWDWLRQ RI SULPDU\ SURGXFWV LQ DOO RI WKH FRXQWULHV WKDW VSHFLDOL]H LQ WKHVH JRRGV KDV
LQFUHDVHGDVDSHUFHQWDJHRI*'3VLQFHWKHWULHQQLXPDQGSDUWLFXODUO\VLQFHWKHHDUO\\HDUV
RIWKHGHFDGHZKHQDOORIWKHFRXQWULHVXQGHUFRQVLGHUDWLRQKDGPLQLPDOILVFDOUHYHQXHIURPWKHVH
VRXUFHV 9HQH]XHOD GHVSLWH D GHFOLQH LQ UHYHQXHV GXULQJ WKH V LV DQ H[FHSWLRQ DQG FRQWLQXHV WR
OHDG /DWLQ $PHULFD ZLWK WKH KLJKHVW ILVFDO UHYHQXHV DV D SHUFHQWDJH RI *'3 IURP WKH
H[SORLWDWLRQRIQDWXUDOUHVRXUFHVILJXUH

),*85(
),6&$/5(9(18()52035,0$5<352'8&76
3HUFHQWDJHVRI*'3

$UJHQWLQD %ROLYLD &KLOH &RORPELD (FXDGRU 0H[LFR 3HUX 9HQH]XHOD


,Q FRXQWULHV ZLWK PDMRU QRQUHQHZDEOH QDWXUDO UHVRXUFHV JDV SHWUROHXP PLQHUDOV WKH PRVW
GLUHFW PHWKRG XVHG WR REWDLQ ILVFDO UHVRXUFHV IURP WKH H[SRUW RI SULPDU\ SURGXFWV KDV EHHQ WKURXJK
SDUWLFLSDWLRQLQWKHLUH[SORLWDWLRQHLWKHUWKURXJKSXEOLFHQWHUSULVHVRUE\KDYLQJRZQHUVKLSSRVLWLRQVLQ
WKHILUPVLQYROYHG*RYHUQPHQWVKDYHYDULRXVDGGLWLRQDOPHFKDQLVPVVXFKDVOHY\LQJUR\DOWLHVXVXDOO\
EDVHG RQ SURGXFWLRQ WKXV HQVXULQJ D FHUWDLQ PLQLPXP \LHOG IURP WKH UHVRXUFHV ,Q PDQ\ FDVHV WKH
WUDGLWLRQDO LQFRPH WD[ LV DSSOLHG ZLWK GLIIHUHQWLDO UDWHV IRU ILUPV LQYROYHG LQ H[SORLWLQJ QRQUHQHZDEOH
UHVRXUFHV7KHWDEOHEHORZVKRZVVRPHRIWKHUHYHQXHLQVWUXPHQWVXVHGE\WKHUHJLRQ¶VFRXQWULHV

7$%/(
)($785(62)7+(7$;5(*,0(65(/$7('721215(1(:$%/(352'8&76
&RXQWU\DQG ,QFRPHWD[ 7D[RQSURILWV 3XEOLFVHFWRU

5R\DOWLHVUDWHV 2WKHUWD[HV
SURGXFW UDWHV UDWHV SDUWLFLSDWLRQ
$UJHQWLQD :LWKKROGLQJRQ
JUDLQV H[SRUWV

3URYLQFLDOWD[
%ROLYLD 'HSDUWPHQWDO 'LUHFWWD[RQ 7D[RQFRUSRUDWH 6SHFLDOWD[RQ <HVD

3OXULQDWLRQDO UR\DOWLHV K\GURFDUERQV SURILWV,8( K\GURFDUERQVDQG
6WDWHRI &RPSHQVDWRU\ ,'+RQ DQG WKHLUGHULYDWLYHV
K\GURFDUERQV QDWLRQDO SURGXFWLRQRI IRUUHPLWWDQFHV ,(+'
UR\DOWLHV K\GURFDUERQV DEURDG 7D[RQPDUNHWLQJ
1DWLRQDOUR\DOWLHV 6XUWD[RQ 6SHFLDOWD[IL[HG
1DWLRQDO H[WUDRUGLQDU\ PDUJLQ
7UHDVXU\ SURILWV 6XSSOHPHQWDU\
PLQLQJWD[,&0
&KLOHFRSSHU 7D[RQFDWHJRU\ $GGLWLRQDOWD[RQ 6SHFLILFWD[RQ <HV

LQFRPHRQ UHPLWWDQFHRI PLQLQJDFWLYLW\LI
SURILWVUHFHLYHG SURILWVDQG DQQXDOVDOHV!
RUDFFUXHG RQ DQG
UHPLWWDQFHRI PHWULFWRQV
7HPSRUDULO\LQ LQWHUHVW RIILQHFRSSHU
ZDNHRI )RUSXEOLF SURJUHVVLYHUDWH
HDUWKTXDNH HQWHUSULVHV UDQJHVIURP
VSHFLDOWD[ WR
DQG RQSURILWV

&RORPELDRLO 7D[RQH[SRUWHG 7UDQVSRUW <HV

SURILWV 2LOSLSHOLQHV
(FXDGRURLO VLQFH 3URILWV 7D[RQ <HV

SUHYLRXVO\ GLVWULEXWHG H[WUDRUGLQDU\SURILWV
3URILWVUHLQYHVWHG IRUFRPSDQLHVZLWK
LQPDFKLQHU\DQG FRQWUDFWVZLWK
QHZHTXLSPHQW 6WDWH

0H[LFRRLO ,QFRPHWD[ 6SHFLDOWD[RQ <HV

6LQJOHUDWHWD[ SURGXFWLRQDQG
RQFRUSRUDWLRQV VHUYLFHV,(36

7D[RQ3(0(;
LQFRPH
3HUX 7D[RQFRUSRUDWH

RLO SURILWVLQ
SUDFWLFHD
UR\DOW\RQ
SURGXFWLRQ
7ULQLGDGDQG RQ 7D[RQSURILWV

7REDJRRLO RQVKRUHVDOHV RISURILWV
DQGRQ IURPRLO
RIIVKRUHVDOHV SURGXFWLRQ
$GGLWLRQDOWD[RQ 8QHPSOR\PHQW
VDOHVRIFUXGH WD[RISURILWV
UDWHYDULHVZLWK IURPRLO
SULFHRIRLO SURGXFWLRQ
FRQWLQXHG

7DEOHFRQFOXGHG
&RXQWU\DQG ,QFRPHWD[ 7D[RQSURILWV 3XEOLFVHFWRU

5R\DOWLHVUDWHV 2WKHUWD[HV
SURGXFW UDWHV UDWHV SDUWLFLSDWLRQ
9HQH]XHOD 7D[RQRLOSURILWV 1R 7D[RQ <HV
%ROLYDULDQ ,6/5 H[WUDRUGLQDU\
5HSXEOLFRI PDUNHWSULFHVLQWKH
RLO LQWHUQDWLRQDO
K\GURFDUERQV
PDUNHW
,IRLOSULFHVH[FHHG
86RQ
WKHGLIIHUHQFH
,IRLOSULFHVDUH
EHWZHHQ86
DQG86
$ERYH86

6RXUFH%URVLRDQG-LPpQH]XSGDWHGIURPYDULRXVRIILFLDOVRXUFHV

D
6XSUHPH'HFUHHRI0D\QDWLRQDOL]DWLRQRIK\GURFDUERQV

7KHUDSLGULVHLQLQWHUQDWLRQDOSULFHVIRUFRPPRGLWLHVGXULQJWKHODVWGHFDGHOHGJRYHUQPHQWVWR
VWUHQJWKHQWD[DWLRQLQRUGHUWRREWDLQJUHDWHUUHYHQXHV)RUH[DPSOHWKH3OXULQDWLRQDO6WDWHRI%ROLYLD
&KLOH DQG WKH %ROLYDULDQ 5HSXEOLF RI 9HQH]XHOD HVWDEOLVKHG QHZ WD[HV RQ WKH VDOH RI WKHVH SURGXFWV
$UJHQWLQDWDNLQJDGYDQWDJHRIWKHLQFUHDVHGSURILWDELOLW\RIVHFWRUVH[SRUWLQJQDWXUDOSURGXFWVRZLQJWR
WKHFXUUHQF\GHYDOXDWLRQWKDWIROORZHGDGRSWLRQRIWKHFRQYHUWLELOLW\UHJLPHGHFLGHGWRJHQHUDWHILVFDO
UHVRXUFHVE\LPSRVLQJH[SRUWWD[HVRQSULPDU\SURGXFWV
7KLVSKHQRPHQRQKDVDOORZHGVRPHRIWKHFRXQWULHVWRVXEVWDQWLDOO\LQFUHDVHSXEOLFUHYHQXHVLQ
WKHODVWGHFDGHZLWKRXWLPSOHPHQWLQJWD[UHIRUPVZKLFKDUHDOZD\VSROLWLFDOO\FRVWO\1RWZLWKVWDQGLQJ
WKHFRQVHTXHQWZLQGIDOOLQDYDLODEOHUHVRXUFHVWKLVW\SHRIILVFDOUHYHQXHPXVWEHYLHZHGLQOLJKWRIWKH
IROORZLQJIDFWRUVLZKHUHWKHWD[DWLRQLQYROYHVQRQUHQHZDEOHUHVRXUFHVFRQVLGHUDWLRQPXVWEHJLYHQ
WRZKDWPHDVXUHVZLOOEHWDNHQRQFHWKHVHUHVRXUFHVDUHH[KDXVWHGVLQFHWKHUHVXOWLQJUHYHQXHYDFXXP
ZLOOUHTXLUHHLWKHUDVKDUSDGMXVWPHQWLQVSHQGLQJOHYHOVRUDQLQFUHDVHLQRWKHUWD[HVLLFRXQWULHVPXVW
GHDO ZLWK WKH YRODWLOLW\ LQ SXEOLF UHYHQXHV WKDW UHVXOWV IURP F\FOLF YDULDWLRQV LQ WKH H[SRUW SULFHV IRU
SULPDU\JRRGV
7KH ILUVW RI WKHVH WZR IDFWRUV UDLVHV TXHVWLRQV DERXW LQWHUJHQHUDWLRQDO HTXLW\ VLQFH WKH UHYHQXH
FDXVHG E\ UHGXFHG WD[ UHYHQXHV ZLOO LPSDFW WKH VXFFHHGLQJ JHQHUDWLRQ HLWKHU WKURXJK ORZHU VSHQGLQJ
FDSDFLW\ RU KLJKHU WD[HV ,Q WHUPV RI WKH VHFRQG IDFWRU WKH VLJQLILFDQW IOXFWXDWLRQ LQ WD[ UHYHQXHV
UHVXOWLQJ IURP FKDQJHV LQ WKH SULFHV RI SULPDU\ JRRGV MHRSDUGL]HV WKH VRXQGQHVV RI WKH WD[ V\VWHP
PDNLQJLWHYHQPRUHGLIILFXOWIRUFRXQWULHVWRGHWHUPLQHWKHPRVWDSSURSULDWHWD[VWUXFWXUH
,Q RUGHU WR UHGXFH IOXFWXDWLRQV LQ UHYHQXHV DQG SURYLGH JRYHUQPHQWV ZLWK D FRQWLQXRXV IORZ RI
UHVRXUFHV VRPH RI WKH UHJLRQ¶V FRXQWULHV KDYH HVWDEOLVKHG VWDELOL]DWLRQ IXQGV DV LQ WKH FDVH RI &KLOH
ZLWKLWVVXUSOXVHVIURPFRSSHUH[SRUWVDQG&RORPELD(FXDGRU0H[LFRDQGWKH%ROLYDULDQ5HSXEOLFRI
9HQH]XHODZKLFKUHO\KHDYLO\RQRLOSURILWV

9,7KHUROHRIWD[DGPLQLVWUDWLRQV
DQGVWUDWHJLHVLQFRPEDWLQJ
HYDVLRQLQ/DWLQ$PHULFD
7D[ HYDVLRQ LQ /DWLQ $PHULFDQ FRXQWULHV LV D ZLGHVSUHDG SKHQRPHQRQ

7KHPDJQLWXGHRIWKHSUREOHPGLVWRUWVWKHREMHFWLYHVVRXJKWE\WD[UXOHV
DQG FDOOV LQWR TXHVWLRQ WKH GHVLJQ RI WKH UHIRUPV WR EH DGRSWHG 7KH
ILQGLQJV RI VWXGLHV RI WKH LQFRPH WD[ LQ VHYHQ /DWLQ $PHULFDQ FRXQWULHV
(&/$& DV ZHOO DV RWKHU GDWD RQ WKH 9$7 OHDYH OLWWOH GRXEW DV WR WKH
VFRSHRIWKHSUREOHP
,Q DQDO\VLQJ WKH HYDVLRQ SKHQRPHQRQ D FRPSUHKHQVLYH DSSURDFK
PXVW EH DGRSWHG RQH WKDW WDNHV DFFRXQW RI WKH GHVLJQRI WKH WD[ V\VWHP
WKH HIILFLHQF\ RI WKH WD[FROOHFWLRQ DJHQFLHV LQ HQVXULQJ WD[SD\HU
FRPSOLDQFHWKHIXQGDPHQWDOUROHRIWKHMXGLFLDU\LQH[DFWLQJDSSURSULDWH
SXQLVKPHQWVIRUHYDGHUVDQGWKH6WDWH¶VUHVSRQVLELOLW\WRLWVFLWL]HQV
$OWKRXJK WD[ SROLF\ LV WKH UHVSRQVLELOLW\ RI WKH PLQLVWULHV RI
ILQDQFHWKHUHLVEURDGUHFRJQLWLRQWKDWWRDFKLHYHWKHGHVLUHGREMHFWLYHVLW
LV QHFHVVDU\ WR KDYH DQ HIILFLHQW WD[ DGPLQLVWUDWLRQ DQG WKDW WKH UHVXOWV
WKDW FDQ EH REWDLQHG GHSHQG RQ WKH WD[ DGPLQLVWUDWLRQ¶V FDSDFLW\ WR
LPSOHPHQWWKHQHFHVVDU\PHDVXUHV
$VZDVSRLQWHGRXWLQWKHSUHFHGLQJVHFWLRQVWD[UHIRUPPHDVXUHV
KDYH UHOLHG KHDYLO\ RQ ZLGHVSUHDG XVH RI WKH 9$7 VLPSOLILFDWLRQ RI WD[
V\VWHPV WDULII UHGXFWLRQ DQG WR D OHVVHU H[WHQW VWUHQJWKHQLQJ RI WKH
LQFRPH WD[ SDUWLFXODUO\ LQ WKH UHJLRQ¶V ODUJHU FRXQWULHV +RZHYHU LQ
DGGLWLRQ WR WKHVH PHDVXUHV ZKLFK KDYH EHHQ LQ SODFH VLQFH WKH V
FRXQWULHV KDYH FRQWLQXHG WR XVH WD[ DGPLQLVWUDWLRQ DQG PDQDJHPHQW
SUDFWLFHV ZKLFK KDYH SURGXFHG YDU\LQJ UHVXOWV ²LQ VRPH FDVHV
VLJQLILFDQWLQRWKHUVQHJOLJLEOH

7R GHWHUPLQH WKH UHODWLYH VXFFHVV RI YDULRXV UHIRUPV DQG HYHQ PRUH LPSRUWDQWO\ WR SURSHUO\
DVVHVVWKHIXQFWLRQLQJRIWD[FROOHFWLRQDJHQFLHVLQHDFKFRXQWU\WKHUHKDVEHHQLQFUHDVHGLQWHUHVWLQWKH
ODVWVHYHUDO\HDUVLQXVLQJEHQFKPDUNLQJWHFKQLTXHVWRHVWDEOLVKERWKTXDQWLWDWLYHDQGTXDOLWDWLYHIUDPHV
RI UHIHUHQFH LQ RUGHU WR SURYLGH D EDVLV IRU DGRSWLQJ PRGHUQ SUDFWLFHV ZLGHO\ FRQVLGHUHG WR EH PRUH
HIIHFWLYHDQGHIILFLHQW7KHVHDQDO\WLFDODSSURDFKHVZKLFKDUHGHVFULEHGLQ%R[SURYLGHDEDFNJURXQG
IRUH[SORULQJWKHYDULRXVGLPHQVLRQVRIWD[DGPLQLVWUDWLRQLQWKHFRXQWULHVRIWKHUHJLRQ
%H\RQG LQFUHDVLQJ DFWXDO WD[ FROOHFWLRQV DV UHTXLUHG E\ ODZ H[SHULHQFH LQ YDULRXV FRXQWULHV
VKRZVWKDWVWUHQJWKHQLQJWD[DGPLQLVWUDWLRQVSURYLGHVWKHIROORZLQJEHQHILWV
• ,PSURYHG\LHOGIURPWKHYDULRXVWD[HV
• 0RUHHTXLWDEOHGLVWULEXWLRQRIWKHWD[EXUGHQ
• (QKDQFHGDELOLW\WRLPSOHPHQWQHZDQGPRUHVRSKLVWLFDWHGWD[UHIRUPV
• 5HGXFHGFRPSOLDQFHFRVWVIRUERWKWKHDGPLQLVWUDWLRQDQGWD[SD\HUV
• ,QFUHDVH LQ WKH QXPEHU RI UHJLVWHUHG WD[SD\HUV DV D SHUFHQWDJH RI WKH XQLYHUVH RI SRWHQWLDO
WD[SD\HUV
• ,PSURYHGKDQGOLQJRIGHOLQTXHQWFDVHV
• %HWWHUWD[SD\HUVHUYLFHVEDVHGRQYLHZLQJWD[SD\HUVDVFOLHQWV
• ,QFUHDVHGWUDQVSDUHQF\DQGLQWHJULW\RIWD[DGPLQLVWUDWLRQRSHUDWLRQV
• 5HGXFHGWD[IUDXGDQGHYDVLRQ
5HDOL]LQJ WKHVH EHQHILWV UHTXLUHV WKDW WKHUH EH SROLWLFDO FRPPLWPHQW WR UHIRUPLQJ WKH V\VWHP
VXIILFLHQW IXQGV DQG VWURQJ KXPDQ UHVRXUFHV OHDGHUVKLS D ZLOOLQJQHVV WR DEDQGRQ ROG DGPLQLVWUDWLYH
SUDFWLFHVDQGWKHHVWDEOLVKPHQWRIDIRUPDOSURJUDPWKDWVHWVUHDOLVWLFJRDOVFRVWVDQGWLPHIUDPHVZKLOH
HQVXULQJWKHGXUDELOLW\DQGFRQWLQXLW\RIIXWXUHPHDVXUHV

%2;
(9$/8$7,1*7$;$'0,1,675$7,216',))(5(17$3352$&+(6
(FRQRPLVWVDQGJRYHUQPHQWVKDYHEHFRPHLQFUHDVLQJO\LQWHUHVWHGLQHVWDEOLVKLQJDIUDPHRIUHIHUHQFHIRUHYDOXDWLQJ
DQGFRPSDULQJWKHSHUIRUPDQFHRIWD[FROOHFWLRQDJHQFLHVLH EHQFKPDUNLQJ$OWKRXJKWKLVDSSURDFKKDVUHFRJQL]HG
OLPLWDWLRQV²PRVWQRWDEO\LWVLQDELOLW\WRRIIHUFOHDUH[SODQDWLRQVRIWKHXQGHUO\LQJSUREOHPVLQWD[DGPLQLVWUDWLRQDQGWR
SURYLGHLGHDOVROXWLRQV²WKHDQDO\WLFDOWHFKQLTXHLQYROYHGPDNHVLWSRVVLEOHWRLGHQWLI\DUHDVZKHUHWKHDGRSWLRQRIEHVW
SUDFWLFHV KDV D OLNHOLKRRG RI SURGXFLQJ LPSURYHPHQWV WKURXJK HLWKHU LPLWDWLRQ RU DGDSWDWLRQ EDVHG RQ H[SHULHQFHV LQ
RWKHUFRXQWULHVWKDWKDYHVXFFHVVIXOO\LPSOHPHQWHGVXFKPHDVXUHVWRDFKLHYHFRPPRQO\DFFHSWHGVWUDWHJLFJRDOV
,QWKHOLWHUDWXUHDQGLQSUDFWLFHWKUHHEURDGEHQFKPDUNLQJWHFKQLTXHVDUHXVHGWRDVVHVVWD[DGPLQLVWUDWLRQ)LUVWLV
WKH TXDQWLWDWLYH WHFKQLTXH ZKLFKXVHV QXPHULFDO LQGLFDWRUV WRPHDVXUH WKH UHODWLYH VXFFHVV RI WD[ FROOHFWLRQ DJHQFLHV
EDVHGRQWKHLUHIIHFWLYHQHVVLQLPSOHPHQWLQJDFROOHFWLRQSURFHVVFRQVLVWHQWZLWKWKHFRXQWU\¶VIRUPDOWD[V\VWHPLHWKH
WD[EXUGHQHVWDEOLVKHGE\OHJLVODWLRQ7KLVPHWKRGDOVRHYDOXDWHVDQDJHQF\¶VHIILFLHQF\LHLWVUDWLRQDOXVHRIDYDLODEOH
UHVRXUFHV DW PLQLPXP SRVVLEOH FRVW 7KRXJK WKLV DSSURDFK LV QRW ZLWKRXW LWV GLIILFXOWLHV LW KDV JDLQHG PRPHQWXP ,Q
UHFHQWWLPHVWKHUHKDVEHHQDWUHQGWRZDUGVJUHDWHUVKDULQJRILQIRUPDWLRQDPRQJWKHYDULRXVQDWLRQDODJHQFLHVLQYROYHG
LQ WD[ FROOHFWLRQ LQ RUGHU WRPHHW WKH FKDOOHQJHV RIPRQLWRULQJ DQG LQVSHFWLRQ LQ DQ LQFUHDVLQJO\ JOREDOL]HG ZRUOG ²DQ
HIIRUWZKLFKWKRXJKVKRZLQJSURJUHVVOHDYHVFRQVLGHUDEOHURRPIRULPSURYHPHQWLQWKHGHYHORSLQJFRXQWULHV
6HFRQG LV DQ HYDOXDWLRQ RI WD[ DGPLQLVWUDWLRQV EDVHG RQ D TXDOLWDWLYH DSSURDFK LQ ZKLFK WKH H[LVWHQFH RI FHUWDLQ
FKDUDFWHULVWLFVLQPRGHUQWD[V\VWHPVFDQEHVHHQDVLQWKHPVHOYHVSRVLWLYH-XVWDVLQOLJKWRIFXUUHQWWUHQGVKDYLQJLQ
SODFHDXQLWGHYRWHGH[FOXVLYHO\WRODUJHWD[SD\HUVFDQEHGHVLUDEOHIRUWD[DGPLQLVWUDWLRQVDTXDOLWDWLYHDQDO\VLVFDQDOVR
EHXVHIXO+RZHYHULWVXIIHUVIURPDKLJKGHJUHHRIVXEMHFWLYLW\LQUHJDUGWRHVWDEOLVKLQJSDUDPHWHUVIRUFRPSDULVRQ
,QDGGLWLRQWRRSHUDWLRQDOSUDFWLFHVWKHSHUIRUPDQFHRIWD[DGPLQLVWUDWLRQVUHIOHFWVLQUHDOLW\DYDULHW\RIXQGHUO\LQJ
GHWHUPLQLQJ IDFWRUV VXFK DV WKHSXEOLFVHFWRU FRQWH[W LQ ZKLFK WKH DJHQF\ RSHUDWHV WKHPDFURHFRQRPLFVLWXDWLRQ WKH
SROLWLFDODQGUHJXODWRU\VWUXFWXUHV8VLQJDVLPSOHDVVHVVPHQWRITXDQWLWDWLYHLQGLFDWRUVRUDVXEMHFWLYHXQGHUVWDQGLQJRI
FHUWDLQLQVWLWXWLRQDOIHDWXUHVRIDWD[DGPLQLVWUDWLRQWRPDNHFRPSDULVRQVDWWKHLQWHUQDWLRQDOOHYHORUWRDWWHPSWWRLGHQWLI\
³OHDGHUV´ LQ UHODWLRQ WR DQ HVWDEOLVKHG QRUP KDV LWV OLPLWDWLRQV LW LVXQDEOH WR GHWHFWVSHFLILF SUREOHPV DW DQ\ SDUWLFXODU
DJHQF\GXHWRWKHIDFWWKDWLWIDLOVWRFRQVLGHUWKHEURDGHUFRQWH[W
FRQWLQXHG

%R[FRQFOXGHG
,Q WKLV UHJDUG 9i]TXH]&DUR DQG %LUG SURSRVH WKH SRVVLELOLW\ RI EHQFKPDUNLQJ XVLQJ D V\VWHPLF DSSURDFK
GHVLJQHGWRLGHQWLI\SUDFWLFHVDQGWUHQGVWKDWGLVWLQJXLVKWKHZRUOG¶VPRVWDGYDQFHGWD[DGPLQLVWUDWLRQVLHWKHLUDELOLW\WR
HQVXUH D KLJK OHYHO RI WD[ FRPSOLDQFH DW ORZ RSHUDWLRQDO FRVW DQG WKHQ XVLQJ DYDLODEOH TXDQWLWDWLYH DQG TXDOLWDWLYH
DQDO\VHVWDNLQJGXHDFFRXQWRIWKHVSHFLILFFRQWH[WDQGQDWLRQDOUHDOLWLHVRIWKHWD[V\VWHPEHLQJFRQVLGHUHG,QVKRUW
WKHFXUUHQWWUHQGVLQWD[DGPLQLVWUDWLRQDVHYLGHQFHGLQPDQ\GHYHORSHGFRXQWULHVSURYLGHDPXOWLGLPHQVLRQDOIUDPHRI
UHIHUHQFHIRUH[DPLQLQJDEURDGUDQJHRIWD[DGPLQLVWUDWLRQV
$V WKH DERYH VWXG\ SRLQWV RXW LQ RUGHU IRU FRXQWULHV WR LPSURYH WKHLU WD[ DGPLQLVWUDWLRQV WKHUH QHHG WR ILUVW EH
FKDQJHVLQWKHXQGHUO\LQJVRFLDOSROLWLFDODQGHFRQRPLFHQYLURQPHQW±SUHUHTXLVLWHVWRLPSOHPHQWLQJUHDOFKDQJHVLQWD[
DGPLQLVWUDWLRQ+RZHYHULWLVDOVRWUXHWKDWLQWKHVHVLWXDWLRQVWKHDELOLW\WREULQJDERXWFKDQJHGHSHQGVRQKRZWKHWD[
V\VWHPLVGHVLJQHGDQGLPSOHPHQWHG
,QGHHGDV\VWHPLFDSSURDFKWRDVVHVVLQJWD[DGPLQLVWUDWLRQVUHTXLUHVWKDWIXOOFRQVLGHUDWLRQEHJLYHQWRDQHQWLUHVHW
RIIDFWRUVWKHDJHQFLHV¶RSHUDWLRQDODQGLQVWLWXWLRQDOFKDUDFWHULVWLFVWKHLUFRQWULEXWLRQWRWKHWD[V\VWHPV¶HIILFLHQF\DQG
HTXLW\WKHUHODWLRQVKLSRIWKHWD[SD\HUVWRWKH6WDWHWKHLQIOXHQFHH[HUWHGE\SROLWLFDODQGHFRQRPLFIRUFHVDQGDERYH
DOOWKHOLQNEHWZHHQWKHVHYDULRXVIDFWRUVZKLFKLQFRPELQDWLRQGHWHUPLQHWKHUHVXOWVREWDLQHG
6RXUFH9i]TXH]&DURDQG%LUG³%HQFKPDUNLQJ7D[$GPLQLVWUDWLRQVLQ'HYHORSLQJ&RXQWULHV$6\VWHPLF$SSURDFK´

([SHULHQFHZLWKWD[UHIRUPLQ/DWLQ$PHULFDLQWKHODVWWZHQW\ \HDUVVKRZVWKDWFKDQJHVLQWD[
SROLF\FDQDFKLHYHWKHKRSHGIRUUHVXOWVRQO\ZKHQVXIILFLHQWDQGSDUDOOHODWWHQWLRQKDVDOVREHHQJLYHQ
WR LPSOHPHQWLQJ DQ HIILFLHQW WD[ DGPLQLVWUDWLRQ ,W LV HTXDOO\ FOHDU WKDW PRVW RI WKH IDLOHG DWWHPSWV DW
UHIRUPDUHDWWULEXWDEOHWRDODFNRIFRRUGLQDWLRQEHWZHHQWKHVHWZRHOHPHQWV
7KLV SRVHV D GLIILFXOW SUREOHP ZKLOH UHIRUPV FDQ EH DSSURYHG ZLWK UHODWLYH GLVSDWFK E\
OHJLVODWXUHV LPSURYLQJ WKH HIILFLHQF\ DQG HIIHFWLYHQHVV RI WD[ DGPLQLVWUDWLRQV ²DQG UHDOL]LQJ WKH
FRQVHTXHQWJDLQV²LVDIDUORQJHUSURFHVV
$QXPEHURI/DWLQ$PHULFDQFRXQWULHVLQSDVWGHFDGHVKDYHDSSURDFKHGWD[UHIRUPLQDKLJKO\
ELDVHGZD\ZLWKRXWJLYLQJSURSHUFRQVLGHUDWLRQWRWKHLQWULQVLFZHDNQHVVHVRIWKHLUWD[DGPLQLVWUDWLRQV
$VDUHVXOWWKH\KDYHDVVLJQHGORZHUSULRULW\DQGGHYRWHGOHVVDWWHQWLRQWRWD[SROLF\REMHFWLYHVUHODWHG
WRGLVWULEXWLYHHTXLW\DQGORQJWHUPHIILFLHQF\DQGJURZWK
7D[ DGPLQLVWUDWLRQ SOD\V D FUXFLDO UROH LQ GHWHUPLQLQJ ZKHWKHU D WD[ V\VWHP LV ³HIIHFWLYH´ ZHOO
EH\RQGWKHTXHVWLRQRIWKHOHJDOO\HVWDEOLVKHGWD[SROLF\+RZHYHUWKHVHWZR³IDFHVRIWKHVDPHFRLQ´
DUH PRVW RIWHQ VKDSHG E\ GLIIHULQJ REMHFWLYHV ZLWKRXW FRRUGLQDWLRQ EHWZHHQ WKH WZR LW EHFRPHV
GLIILFXOWDWEHVWWRDFKLHYHWKHPXOWLSOHREMHFWLYHVFLWHGDERYH,WLVDZLGHO\UHFRJQL]HGUHDOLW\WKDWWKH
EHVWWD[SROLF\LQWKHZRUOGLVRIOLWWOHXVHLILWFDQQRWEHLPSOHPHQWHGHIIHFWLYHO\0RUHRYHUHYHQWKH
EHVW WD[ DGPLQLVWUDWLRQ LQ WKH ZRUOG EHFRPHV LQHIIHFWLYH XQOHVV WKHUH LV D KLJK GHJUHH RI WD[ PRUDOH
DPRQJ WKH FLWL]HQV LH D PLQGVHW WKDW FDXVHV WD[SD\HUV WR PHHW WKHLU REOLJDWLRQV LQGHSHQGHQW RI
JRYHUQPHQWFRQWUROVRUVDQFWLRQVIRUQRQFRPSOLDQFH
$ &KDQJHVLQHIIRUWVWRFRPEDWHYDVLRQ
$OLVWLQJRIWKHPRVWFRPPRQDQGPRVWIUHTXHQWO\FLWHGHOHPHQWVLQWKHVWUDWHJLHVWRFRPEDWWD[HYDVLRQ
RYHUWKHSDVWGHFDGHV²LQWHUPVRIERWKWD[SROLFLHVDQGWD[DGPLQLVWUDWLRQ²ZRXOGLQFOXGHWKHIROORZLQJ
)LUVWZLWKUHJDUGWRWD[VWUXFWXUHVWKHHPSKDVLVKDVEHHQDERYHDOORQUHSODFLQJLQHIILFLHQWWD[HV
WKDWDUHGLIILFXOWWRPRQLWRUHJ³FDVFDGLQJ´VDOHVWD[HVZLWKWD[HVVXFKDV9$7ZKLFKDUHGHWHUPLQHG
E\WKHGHELWVPLQXVFUHGLWVPHWKRGDQGDUHPRVWHDVLO\FRQWUROOHGWKURXJKELOOLQJV\VWHPV
7KH9$7WKDWKDVEHHQLPSOHPHQWHGLQWKHUHJLRQUHOLHVRQDEURDGEDVHUHGXFHVH[HPSWLRQVWRD
PLQLPXP DQG H[FOXGHV VPDOO SOD\HUV E\ PHDQV RI VXEVWLWXWH UHJLPHV ²DOO DV D PHDQV GUDZLQJ RQ
9$7¶VSRWHQWLDODVDFHQWUDOVRXUFHRIWD[UHYHQXHVIRUIXQGLQJWKH6WDWH
6HFRQG ORZSURGXFLQJ WD[HV ZKHWKHU IRU JRRGV VHUYLFHV RU VSHFLILF DFWLYLWLHV KDYH EHHQ
HOLPLQDWHG7KLVZDVGRQHWRVLPSOLI\WD[V\VWHPVDQGHOLPLQDWHFRVWVWRWKHJRYHUQPHQWIRFXVLQJWKH
VFDQWKXPDQDQGFDSLWDOUHVRXUFHVRIWD[DGPLQLVWUDWLRQVRQWKHWD[HVWKDWSURGXFHWKHPRVWUHYHQXH

7KLUG WKHUH KDV EHHQ DQ DWWHPSW ²DOEHLW QRW KLJKO\ VXFFHVVIXO² WR OLPLW H[HPSWLRQV DQG
SUHIHUHQWLDO WUHDWPHQWV LQ DOO H[LVWLQJ WD[HV 6XFK SUHIHUHQWLDO PHFKDQLVPV FRPSURPLVH UHYHQXH DQG
XQGHUPLQHVRXQGJRYHUQPHQWPDQDJHPHQW'HVSLWHWKHJRRGLQWHQWLRQVKRZHYHUWKHVHSURYLVLRQVDUH
GLIILFXOWWRHOLPLQDWHVLQFHWKH\SULPDULO\DIIHFWSRZHUIXOJURXSVZKLFKILJKWDQ\DWWHPSWWRGHSULYH
WKHPRIWKHLUSULYLOHJHVGHVSLWHWKHIDFWWKDWWKH\JHQHUDWHQRVRFLDOEHQHILWWRFRXQWHUEDODQFHWKHORVV
LQUHYHQXH
)RXUWK WKHUH KDV EHHQ DQ HPSKDVLV RQ HQVXULQJ WKDW WD[ ODZV UHJXODWLRQV DQG UXOHV DUH VLPSOH
DFFHVVLEOH DQG ZLGHO\ NQRZQ WR WKH SRLQW WKDW WD[ DGPLQLVWUDWLRQV RIWHQ GHFLGHG QRW WR UHTXLUH
LQIRUPDWLRQIURPWD[SD\HUVLWFRQVLGHUVWREHDQLQHIILFLHQWVRXUFHRIUHYHQXH
&RXQWULHV KDYH DGRSWHG D IXUWKHU PHDVXUH WR ³GHFRPSUHVV´ WKH LPPHGLDWH ZRUNORDG RI WKH WD[
DGPLQLVWUDWLRQVZKLFKKDVJURZQDVDUHVXOWRIWKHZLGHVSUHDGXVHRIWKH9$7DQGWKHH[LVWHQFHRID
ODUJH LQIRUPDO VHFWRU ZLWKLQ WKH HFRQRP\ 7KLV LQYROYHV HVWDEOLVKLQJ VSHFLDO WUHDWPHQW IRU VPDOO
WD[SD\HUV ZKHWKHU SK\VLFDO SHUVRQV RU ILUPV VXFK WKDW WKH\ DUH H[FOXGHG IURP WKH JHQHUDO UXOHV IRU
FDOFXODWLQJWKH9$7DQGRULQFRPHWD[,QWKHVHFDVHVSUHVXPSWLYHPHWKRGVDUHXVHGWRGHWHUPLQHWD[HV
DQGRUORZHUUDWHVDUHDSSOLHG
2QWKLVLVVXH*RQ]iOH]VWDWHVWKDW³LQPRVWRIWKHFRXQWULHVWKHSULQFLSDOSXUSRVHRIGHVLJQLQJ
VSHFLDO WD[ UHJLPHV IRU VPDOO WD[SD\HUV KDV QRW EHHQ WR LQFUHDVH UHYHQXH EXW UDWKHU WR VROYH WKH WD[
DGPLQLVWUDWLRQ SUREOHP RI EULQJLQJ D ODUJH VHFWRU RI ZKDW DUH HFRQRPLFDOO\ UHODWLYHO\ XQLPSRUWDQW
WD[SD\HUV LQWR WKH IRUPDO HFRQRPLF V\VWHP DQG WR EH DEOH WR HIILFLHQWO\ PRQLWRU WKLV ODUJH VHJPHQW RI
WD[SD\HUV´
7KHVHVSHFLDOUHJLPHVKDYHEHHQLPSOHPHQWHGSULPDULO\ DVDPHDQVRIDGGUHVVLQJWKHIDFWWKDWWD[
DGPLQLVWUDWLRQVKDYHKDGPLQLPDOLIDQ\FRQWURORYHUWKLVVHFWRU7KXVRXWRIFRXQWULHVLQWKHUHJLRQ
KDYHDGRSWHGVRPHW\SHRIVLPSOLILHGWD[DWLRQV\VWHPWRGHDOZLWKWKHSUREOHPDVVKRZQLQWDEOH

7$%/(
63(&,$/5(*,0(6)2560$//7$;3$<(56,1/$7,1$0(5,&$
&RXQWU\ 1DPHRIUHJLPH <HDUEHJXQ 0DMRUIHDWXUHV
$UJHQWLQD 6LPSOLILHG5HJLPHIRU6PDOO 5HSODFHVQDWLRQDOWD[HVWD[HVRQHDUQLQJV

7D[SD\HUV³0RQRWULEXWR´ DQG9$7DQGSHQVLRQFRQWULEXWLRQV
%ROLYLD 6LPSOLILHG7D[5HJLPH576 576 5HSODFHVWKH9$7WKHFRUSRUDWHSURILWVWD[

3OXULQDWLRQDO ,QWHJUDWHG7D[5HJLPH67, 67, DQGWKHWD[RQWUDQVDFWLRQV
6WDWHRI 8QLILHG$JULFXOWXUDO5HJLPH5$8 5$8
%UD]LO ,QWHJUDWHG6\VWHPIRUWKH3D\PHQWRI 5HSODFHVDOOIHGHUDOWD[HV,53-,3,,(

7D[HVDQG&RQWULEXWLRQV6,03/(6 ,QFRPHWD[,75&30)DQGVRFLDOVHFXULW\
FRQWULEXWLRQV3,63$6(3&2),16&6//
HWF
&KLOH 6LPSOLILHG,QFRPH7D[5HJLPH 7KH6LPSOLILHG5HJLPHDQG3UHVXPHG,QFRPH

PLQLQJWUDGHLQGXVWU\DQGILVKLQJ 5HJLPHUHSODFHRQO\WKHLQFRPHWD[
3UHVXPHGLQFRPHUHJLPH
DJULFXOWXUH
6LPSOLILHG7D[5HJLPHIRU6PDOO 7KH6LPSOLILHG7D[5HJLPHDQGWKH5HJLPH
7D[SD\HUV &KDQJLQJWKH5HJXODWLRQVUHJDUGLQJZKLFK
5HJLPH&KDQJLQJWKH5HJXODWLRQV 3HUVRQVDUH6XEMHFWWRWKH9DOXH$GGHG7D[
UHJDUGLQJZKLFK3HUVRQVDUH6XEMHFW UHSODFHRQO\WKH9$7
WRWKH9DOXH$GGHG7D[
&RORPELD 6LPSOLILHG5HJLPH 5HSODFHVWKH9$7
FRQWLQXHG

*RQ]iOH]'³5HJtPHQHVHVSHFLDOHVGHWULEXWDFLyQSDUDSHTXHxRVFRQWULEX\HQWHVHQ$PpULFD/DWLQD´,'%

7DEOHFRQFOXGHG
&RXQWU\ 1DPHRIUHJLPH <HDUEHJXQ 0DMRUIHDWXUHV
&RVWD5LFD 6LPSOLILHG7D[5HJLPH 5HSODFHVWKH*HQHUDO6DOHV7D[D9$7W\SH

WD[DQGWKH,QFRPH7D[
(FXDGRU 6LPSOLILHG5HJLPH5,6( 5HSODFHVWKH9$7DQGWKH,QFRPH7D[
(O6DOYDGRU 1RQH 1$ 1$
*XDWHPDOD 6LPSOLILHG7D[5HJLPHIRU6PDOO 5HSODFHVWKH9$7DQG,QFRPH7D[

7D[SD\HUV
+RQGXUDV 6LPSOLILHG6DOHV7D[5HJLPH 5HSODFHVWKH6DOHV7D[
0H[LFR 6PDOO7D[SD\HUV5HJLPH 5HSODFHVWKH9$7,QFRPH7D[DQG6LQJOH

5(3(&26 5DWH&RUSRUDWH7D[,(78
,QWHUPHGLDWH5HJLPH
6LPSOLILHG5HJLPHDJULFXOWXUH
ILVKLQJDQGURDGWUDQVSRUWDWLRQ
1LFDUDJXD 6SHFLDO$GPLQLVWUDWLYH(VWLPDWH 5HSODFHVWKH9DOXH$GGHG7D[DQG,QFRPH

5HJLPHIRU)L[HG5DWH7D[SD\HUV 7D[
3DQDPD 1RQH 1$ 1$

3DUDJXD\ ,QFRPH7D[IRU6PDOO7D[SD\HUV 5HSODFHVWKH,QFRPH7D[
,53&
3HUX 6LPSOLILHG6LQJOH5HJLPH586 7KH586UHSODFHVWKH*HQHUDO6DOHV7D[D
6SHFLDO,QFRPH5HJLPH5(5 9$7W\SHWD[DQGWKH,QFRPH7D[

7KH5(5UHSODFHVRQO\WKH,QFRPH7D[
'RPLQLFDQ 6LPSOH(VWLPDWH5HJLPH5(6 5HSODFHVWKH,QFRPH7D[
5HSXEOLF
8UXJXD\ 6PDOO(QWHUSULVH7D[,3(IRU ,3(LQ 7KH,3(UHSODFHVWKH,QGXVWU\DQG7UDGH
60(V DQG6LQJOH ,QFRPH7D[,5,&DQGWKH9$7
6LQJOH7D[IRULQGLYLGXDOV 7D[LQ
7KH0RQRWULEXWRUHSODFHVDOOQDWLRQDOWD[HVLQ
IRUFHH[FHSWWKRVHRQLPSRUWVDQGWKRVHRQ
SHQVLRQFRQWULEXWLRQVWRWKH%DQFRGH
3UHYLVLyQ6RFLDO
9HQH]XHOD 1RQH 1$ 1$

%ROLYDULDQ
5HSXEOLFRI
6RXUFH$XWKRUVEDVHGRQ*RQ]iOH]'DQGRWKHUV(852VRFL$/

7KHVHVLPSOLILHGV\VWHPVKRZHYHUSURGXFHORZUHYHQXHFROOHFWLRQV²LQVRPHFDVHVUHYHQXHV
ORZHUWKDQWKHDFWXDOFRVWRIFROOHFWLRQ7KHDYHUDJHUHYHQXHIURPWKHVHUHJLPHVLQWKH/DWLQ$PHULFDQ
FRXQWULHVLVFXUUHQWO\DURXQGRIDOOWD[UHYHQXHV$FFRUGLQJWR*RQ]iOH]WKHH[WUHPHFDVHV
DUH %ROLYLD 3OXULQDWLRQDO 6WDWH RI ZKLFK FROOHFWV OHVV WKDQ LQ VSLWH RI KDYLQJ WKUHH VSHFLDO
UHJLPHVDQG%UD]LOZKHUHWKH6,03/(6V\VWHPSURGXFHVRIWRWDOUHYHQXH3HUXZLWKIURP
WKHQHZ586DQGIURPWKH5(5UDQNVEHORZWKHDYHUDJHLQFRQWUDVWWR$UJHQWLQD¶VDQG
&RVWD5LFD¶VERWKRIZKLFKDUHDERYHWKHDYHUDJH
6RPHRIWKHIDFWRUVDFFRXQWLQJIRUWKHVHORZUHYHQXHOHYHOVDUHLQFOXVLRQRIVPDOOWD[SD\HUVRI
PLQLPDO HFRQRPLF VLJQLILFDQFH DSSOLFDWLRQ LQ FHUWDLQ FRXQWULHV RI WKH ³IL[HG UDWH´ WR ORZLQFRPH

WD[SD\HUVZLWKKLJKQRQFRPSOLDQFHUDWHVDQGKLJKHYDVLRQOHYHOVLQFRXQWULHVXVLQJLQFRPHEDVHG
WD[UHJLPHV
*LYHQWKHVHFRQGLWLRQVRIILFLDOVZKRDUHUHTXLUHGWRPHHWVSHFLILFFROOHFWLRQWDUJHWVXQGHUSUH
HVWDEOLVKHG DQQXDO PDQDJHPHQW SODQV SUHIHU WR GHGLFDWH WKHLU VFDUFH KXPDQ UHVRXUFHV WR WKH
HFRQRPLFDOO\PRUHVLJQLILFDQWWD[SD\HUVZKHUHWKHUHLVJUHDWHUSRWHQWLDOWD[UHYHQXHVLQFHWKLVERRVWV
WKHLUSHUIRUPDQFHUDWLQJVDFFRUGLQJWRWKHPDQDJHPHQWSODQFULWHULD
2QHKLJKO\LPSRUWDQWLVVXHVLVWKHOHJLVODWLYHGHILQLWLRQRIZKLFKWD[SD\HUVDUHFRQVLGHUHG³VPDOO´
DQG WKHUHIRUH HOLJLEOH IRU VSHFLDO WD[ WUHDWPHQW $OWKRXJK WKH ODZV LQ WKH UHJLRQ¶V FRXQWULHV KDYH
KLVWRULFDOO\EDVHGWKLVFODVVLILFDWLRQRQJURVVLQFRPHRQO\LQRUGHUWRDYRLG³ILVFDOGZDUILVP´LHWKH
SKHQRPHQRQ RI ³ELJ ILVK´ IUDXGXOHQWO\ SDVVLQJ IRU ³VPDOO IU\´ LQ RUGHU WR WDNH DGYDQWDJH RI WKH
VLPSOLILHGUHJLPHVPRVWFRXQWULHVORRNEH\RQGVDOHVILJXUHVRUJURVVLQFRPHDQGFRQVLGHUSK\VLFDOVL]H
DQG RWKHU SDUDPHWHUV WKDW FDQ HDVLO\ EH YHULILHG RQ VLWH E\ LQVSHFWRUV VXUIDFH DUHD RFFXSLHG E\ WKH
DFWLYLW\ HOHFWULFDO HQHUJ\ FRQVXPHG PD[LPXP VDOHV SULFH RI D SURGXFW YDOXH RI DVVHWV QXPEHU RI
HPSOR\HHV QXPEHU RI ORFDWLRQV RU IDFLOLWLHV XVHG DFUHDJH QXPEHU RI VKLSV RU YHKLFOHV YDOXH RI
LQYHQWRU\YDOXHRISXUFKDVHVPDGHWHOHSKRQHXVDJHHWF*RQ]iOH]
7KHPDLQSUREOHPZLWKWKHXVHRIWKHVHVSHFLDOUHJLPHVLVWKHWD[DGPLQLVWUDWLRQV¶ODFNRIFRQWURO
RU DW EHVW PLQLPDO FRQWURO XQGHU WKHVH VFHQDULRV 7KLV LV SDUWO\ EHFDXVH VPDOO WD[SD\HUV LQ /DWLQ
$PHULFD KDYH IRUPHG DVVRFLDWLRQV RU EXVLQHVV JURXSV WR DFWLYHO\ UHVLVW LQVSHFWLRQV 7KLV UHVLVWDQFH
²ZKLFK PD\ WDNH WKH IRUP RI ³WD[ UHEHOOLRQV´ LQ ZKLFK ORQJVWDQGLQJ HVWDEOLVKPHQWV VKXW GRZQ
GHPRQVWUDWLRQV DUH ODXQFKHG VWUHHWV DQG KLJKZD\V DUH EORFNHG HWF² KDV IRUFHG JRYHUQPHQWV WR
VXVSHQGPHDVXUHVDOUHDG\LQSODFH
% 5HFHQWVWUDWHJLHVDGRSWHGE\WD[DJHQFLHVWRDGGUHVV
WKHQHZHFRQRPLFSDUDGLJPV
7KHUHIRUPVWKDWZHUHDIHDWXUHRIWKHUHJLRQ¶VHFRQRPLHVIURPWKH PLGVWRWKHPLGVKDYH
KDGSURIRXQGFRQVHTXHQFHVPDNLQJLWPRUHH[SHQVLYHIRUWKHUHJLRQ¶VWD[DGPLQLVWUDWLRQVWRFDUU\RXW
WKHLUVWUDWHJLHV+HQFHWKHQHHGWRVWUHQJWKHQDQGPRGHUQL]HWD[DGPLQLVWUDWLRQLQPDQ\RIWKHFRXQWULHV
LQRUGHUWRJHQHUDWHKLJKHUWD[EXUGHQV
1HDUO\DOORIWKHWD[DGPLQLVWUDWLRQVLQWKHUHJLRQKDYHLPSOHPHQWHGVWUDWHJLHVWRFRQWUROHYDVLRQ
DQGLPSURYHYROXQWDU\FRPSOLDQFH7KHDSSURDFKHVIRFXVRQFHUWDLQFRPPRQHOHPHQWVFUHDWLQJVHPL
DXWRQRPRXV UHYHQXH FROOHFWLRQ HQWLWLHV LQFRUSRUDWLQJ PRUH VNLOOHG KXPDQ UHVRXUFHV IRUPLQJ ³ODUJH
WD[SD\HUXQLWV´VSHFLDOL]HGLQGHDOLQJZLWKODUJHILUPVDQGODUJHLQGLYLGXDOWD[SD\HUVDQGPDNLQJXVHRI
QHZFRPSXWHUWHFKQRORJLHV
)DFHGZLWKDQHZHFRQRPLFDQGWD[HQYLURQPHQWZLWKGHFOLQHVLQUHYHQXHIURPIRUHLJQWUDGHDQG
LQFUHDVHG HPSKDVLV RQ WD[LQJ YDOXH DGGHG WD[ DGPLQLVWUDWLRQV PRYHG IURP D WD[ DQG REMHFWEDVHG
DSSURDFK WR D ³IXQFWLRQDO´ RU ³VXEMHFWLYH´ DSSURDFK IRFXVLQJ RQ LVVXHV RI PDQDJHPHQW WHFKQLFDO
DVSHFWV OHJLVODWLRQ LQVSHFWLRQ FROOHFWLRQ DQG LQIRUPDWLRQ WHFKQRORJLHV LQ DWWHPSWV WR HQVXUH WKDW DOO
WD[SD\HUV DUH FRYHUHG E\ OLQNLQJ HDFK SRWHQWLDO WD[SD\HU ZLWK D VSHFLILF DJHQF\ UHVSRQVLEOH IRU
FROOHFWLQJWKHWD[HV
7KLVV\VWHPOLQNVWD[SD\HUV¶LQFRPHWD[REOLJDWLRQVZLWKWKHLU9$7REOLJDWLRQVZKLFKLQWXUQDUH
OLQNHGZLWKDQ\LPSRUWVPDGHE\WKHWD[SD\HUDVZHOODVZLWKDQ\RWKHUWD[IRUZKLFKWKHWD[SD\HUPD\
EHOHJDOO\OLDEOHVXFKDVHPSOR\PHQWUHODWHGWD[HV

$PRQJWKHSUHVXPSWLYHWHFKQLTXHVXVHGWKH³IL[HGUDWH´UHJLPHLVEDVHGRQWKHSD\PHQWRIDVHWDPRXQWWKDWWKHODZHVWDEOLVKHVE\
FDWHJRU\DQGWKHWD[SD\HUVWRZKLFKWKLVDSSOLHVDUHJHQHUDOO\UHTXLUHGWRSD\RQDPRQWKO\EDVLV

$ORQJZLWKWKHSROLF\RI VHJPHQWLQJWD[SD\HUVEDVHGRQWKHLUUHODWLYH LPSRUWDQFHDVVRXUFHVRI

WD[ UHYHQXH WKHUH KDV EHHQ DQ LQFUHDVLQJ HPSKDVLV RQ GLIIHUHQWLDO WUHDWPHQW RI ODUJH WD[SD\HUV DV D
PHDQVRIEROVWHULQJWKHUHVRXUFHVDYDLODEOHWRWD[DGPLQLVWUDWLRQVDQGPD[LPL]LQJUHYHQXHV
$FFRUGLQJ WR W\SLFDO LQFRPH GLVWULEXWLRQ ILJXUHV IRU ILUPV WKRVH SD\LQJ WKH PRVW WD[HV OHVV
WKDQRIWKHWRWDOQXPEHUQRUPDOO\DFFRXQWIRURYHURIRYHUDOOUHYHQXHZKLOHPLGOHYHOILUPV
FRQVWLWXWLQJEHWZHHQDQGRIWKHWRWDOQXPEHUJHQHUDOO\DFFRXQWIRUEHWZHHQDQG
RIWKHWRWDO
(VWDEOLVKLQJ HQWLWLHV WR RYHUVHH ODUJH WD[SD\HUV LQYROYLQJ D VHSDUDWH RIILFH VWDIIHG ZLWK
VSHFLDOL]HG XQLWV WR GHDO ZLWK WKH PRVW FULWLFDO VHFWRUV LV D NH\ VWHS WRZDUGV LPSOHPHQWLQJ ULVN
DVVHVVPHQWWHFKQLTXHVDQGSURYLGLQJIRUDPRUHGHILQLWLYHVHJPHQWDWLRQRIWKHWD[SD\LQJSRSXODWLRQ
'HVSLWHWKLVVW\OL]HGIDFWRIFRQFHQWUDWHGUHYHQXHWKHUHVXOWVRIWKHDSSURDFKPXVWEHLQWHUSUHWHG
FDXWLRXVO\ VLQFH WKH ODUJHVW ILUPV DUH XVHG DV ZLWKKROGLQJ DJHQWV VRPH RI WKH WD[ SD\PHQWV RQ WKHLU
ERRNVDUHLQHIIHFWDGYDQFHSD\PHQWVRIWD[HVRZHGE\VPDOOHUILUPV
$UJHQWLQD DQG RWKHU FRXQWULHV LQ WKH UHJLRQ KDYH DGYDQFHG VXEVWDQWLDOO\ LQ DSSO\LQJ FROOHFWLRQ
FULWHULD EDVHG RQ HVWDEOLVKLQJ NH\ QRGHV ZLWKLQ WKH RYHUDOO V\VWHP 7KH UHVXOW LV D V\VWHP RI 9$7
SUHSD\PHQWVLQZKLFKODUJHILUPVDUHUHTXLUHGWRZLWKKROGWKHWD[IURPVPDOOHUILUPVEHWKHODWWHULQSXW
SURYLGHUVRUHQGSURGXFWSXUFKDVHUV
7KHUH DUH VLPLODU V\VWHPV IRU LQFRPH WD[ ZLWKKROGLQJ EDVHG RQ DPRXQW RI LPSRUWV 7KHVH DUH
GHVLJQHGWRFDSWXUHWKHWD[DWWKHSRLQWVLQWKHHFRQRPLFSURFHVVZKHUHWKHUHLVOHDVWHYDVLRQRUZKHUH
WKHRSSRUWXQLWLHVIRUFRQWURODUHJUHDWHVW²IRUH[DPSOHLQFXVWRPVRSHUDWLRQV6LQFHLPSRUWVDUHKLJKO\
FRQFHQWUDWHG LQ D VPDOO QXPEHU RI WD[SD\HUV WKLV LV WKH IRFXV RI WKHVH PRQLWRULQJ HIIRUWV SDUWLFXODUO\
ZLWKUHJDUGWRWKH9$7
$IXUWKHUPDMRU ODQGPDUNLQPRGHUQL]LQJWKHUHJLRQ¶V WD[DGPLQLVWUDWLRQVKDVEHHQWKHGULYHWR
LQWHJUDWHDOODJHQFLHVUHVSRQVLEOHIRUWD[FROOHFWLRQVGRPHVWLFWD[HVFXVWRPVVRFLDOVHFXULW\ZLWKLQD
VLQJOHFHQWUDOLVHGXQLWIROORZLQJWKH6SDQLVKPRGHO
$ORQJZLWKWKLVLQVWLWXWLRQDOXQLILFDWLRQSURFHVVWKHUHKDYHEHHQLQLWLDWLYHVWRPDNHWKHDJHQFLHV
VHOIJRYHUQLQJ RU DXWRQRPRXV LQ PDQ\ FDVHV ZLWK DQ RSHUDWLRQDO EXGJHW OLQNHG WR WKH DPRXQW RI
UHYHQXHWKH\JHQHUDWH
7DEOHRXWOLQHVWKLVVLWXDWLRQDVVHHQLQWKHFRXQWULHVRI/DWLQ$PHULFD7RGDWHRQO\RIWKH
FRXQWULHV FRYHUHG LQ WKLV UHSRUW KDYH DFKLHYHG FRPSOHWH LQWHJUDWLRQ RI WKHLU WD[ DGPLQLVWUDWLRQV ZKLOH
RWKHUFRXQWULHVKDYHWRYDU\LQJGHJUHHVDFKLHYHGSDUWLDOLQWHJUDWLRQFRPELQLQJLQWHUQDOWD[FROOHFWLRQV
ZLWKFROOHFWLRQRIFXVWRPVWD[HV
$FKLHYHPHQWV LQ WKLV ILHOG DUH VWLOO EHLQJ HYDOXDWHG SDUWLFXODUO\ LQ OLJKW RI WKH IDFW WKDW WKH
LQVWLWXWLRQDOSURFHVVHVIRUXQLI\LQJWKHYDULRXVDGPLQLVWUDWLYHHQWLWLHVDUHLQYDU\LQJVWDJHV7KXVVRPH
FRXQWULHV KDYH RSWHG IRU SK\VLFDO LQWHJUDWLRQ FRPELQLQJ D UDQJH RI IXQFWLRQV LQ RQH EXLOGLQJ ZKLOH
RWKHUVKDYHUHOLHGRQYLUWXDOLQWHJUDWLRQLQZKLFKLQIRUPDWLRQV\VWHPVDQGGDWDEDVHVRIWKHGLIIHUHQWWD[
FROOHFWLRQDJHQFLHVKDYHEHHQPHUJHG=DPEUDQR

,QWHUQDWLRQDO 7D[ 'LDORJXH 6HFRQG *OREDO &RQIHUHQFH RQ 7D[DWLRQ RI 6PDOO DQG 0HGLXP (QWHUSULVHV S 2FWREHU
%XHQRV$LUHV

&(3$/6HULH0DFURHFRQRPtDGHOGHVDUUROOR1[
7$%/(
6758&785(2)/$7,1$0(5,&$17$;$'0,1,675$7,216
6RFLDO6HFXULW\
&RXQWU\ ,QVWLWXWLRQ $FURQ\P 'HJUHHRIDXWRQRP\ 'RPHVWLFWD[HV &XVWRPVWD[HV
&RQWULEXWLRQV
$UJHQWLQD )HGHUDO $),3 6HOIJRYHUQLQJ <HV <HV <HV

$GPLQLVWUDWLRQRI
3XEOLF5HYHQXH
%ROLYLD 1DWLRQDO7D[6HUYLFH 6,1 6HOIJRYHUQLQJ <HV 1R 1R
3OXULQDWLRQDO 2YHUVHHQE\WKH1DWLRQDO
6WDWHRI &XVWRPV6HUYLFHRI%ROLYLD
3OXULQDWLRQDO6WDWHRI
%UD]LO )HGHUDO6HFUHWDULDWRI 5)% 'LYLVLRQRIWKH0LQLVWU\ <HV <HV <HV

5HYHQXH RI)LQDQFH H[FHSWIRUFROOHFWLRQRI H[FHSWIRUSD\UROODQG
GHEWVZKLFKLVWKH LQGHSHQGHQWZRUNHUV
UHVSRQVLELOLW\RIWKH1DWLRQDO KDQGOHGE\,166
7UHDVXU\¶V2IILFHRIWKH
$WWRUQH\*HQHUDO
&KLOH ,QWHUQDO5HYHQXH 6,, 'LYLVLRQRIWKH0LQLVWU\ <HV 1R <HV

6HUYLFH RI)LQDQFH H[FHSWIRUFROOHFWLRQRI RYHUVHHQE\WKH1DWLRQDO

GHEWVZKLFKLVWKH &XVWRPV6HUYLFH
UHVSRQVLELOLW\RIWKH1DWLRQDO
7UHDVXU\
&RORPELD 1DWLRQDO'LUHFWRUDWH ',$1 $XWRQRPRXVGLYLVLRQRI <HV <HV 1R

RI7D[HVDQG WKH0LQLVWU\RI)LQDQFH RYHUVHHQE\WKH6RFLDO
7D[VWUXFWXUHDQGWD[HYDVLRQLQ/DWLQ$PHULFD
&XVWRPV DQG3XEOLF&UHGLW 6HFXULW\,QVWLWXWH
&RVWD5LFD *HQHUDO7D[ '*7 'LYLVLRQRIWKH9LFH <HV 1R 1R

'LUHFWRUDWH 0LQLVWU\RI5HYHQXH H[FHSWIRUFROOHFWLRQRI RYHUVHHQE\WKH*HQHUDO RYHUVHHQE\WKH
ZLWKLQWKH0LQLVWU\RI GHEWVZKLFKLVWKH 'LUHFWRUDWHRI&XVWRPV 1DWLRQDO7UHDVXU\
)LQDQFH UHVSRQVLELOLW\RIWKH-XGLFLDO
&ROOHFWLRQV2IILFH'*+
(FXDGRU ,QWHUQDO5HYHQXH 65, $XWRQRPRXVHQWLW\ <HV 1R 1R

6HUYLFH RYHUVHHQE\WKH RYHUVHHQE\RWKHU
(FXDGRULDQ&XVWRPV HQWLWLHVVXFKDV,(66
&RUSRUDWLRQ ,66)$DQG,6632/
FRQWLQXHG

7DEOHFRQWLQXHG
6RFLDO6HFXULW\
&RQWULEXWLRQV
(O6DOYDGRU *HQHUDO'LUHFWRUDWH '*,, 'LYLVLRQRIWKH0LQLVWU\ <HV 1R 1R

RI,QWHUQDO7D[HV RI)LQDQFH H[FHSWIRUFROOHFWLRQRI RYHUVHHQE\WKH*HQHUDO RYHUVHHQE\WKH
GHEWVZKLFKLVWKH 'LUHFWRUDWHRI&XVWRPV 6DOYDGRUDQ6RFLDO
UHVSRQVLELOLW\RIWKH*HQHUDO 6HFXULW\,QVWLWXWH
'LUHFWRUDWHRIWKH7UHDVXU\
*XDWHPDOD 6XSHULQWHQGHQF\RI 6$7 $XWRQRPRXVHQWLW\ <HV <HV 1R

7D[$GPLQLVWUDWLRQ RYHUVHHQE\WKH
*XDWHPDODQ6RFLDO
6HFXULW\,QVWLWXWH
+RQGXUDV ([HFXWLYH'LUHFWRUDWH '(, $XWRQRPRXV <HV <HV 1R

RI5HYHQXHV GHFRQFHQWUDWHGGLYLVLRQ RYHUVHHQE\WKH
RIWKH6HFUHWDULDWRI +RQGXUDQ6RFLDO
)LQDQFH6(),1 6HFXULW\,QVWLWXWH
0H[LFR 7D[$GPLQLVWUDWLRQ 6$7 $XWRQRPRXV <HV <HV 1R

6HUYLFH GHFRQFHQWUDWHGGLYLVLRQ RYHUVHHQE\WKH

RIWKH6HFUHWDULDWRI 0H[LFDQ6RFLDO6HFXULW\
)LQDQFHDQG3XEOLF ,QVWLWXWHDQG,6667(
&UHGLW6+&3
1LFDUDJXD *HQHUDO'LUHFWRUDWH '*, $XWRQRPRXV <HV 1R 1R

RI5HYHQXH GHFRQFHQWUDWHGGLYLVLRQ RYHUVHHQE\WKH*HQHUDO RYHUVHHQE\WKH
RIWKH6HFUHWDULDWRI 'LUHFWRUDWHRI&XVWRPV 1LFDUDJXDQ6RFLDO
)LQDQFH0+&3 6HUYLFHV 6HFXULW\,QVWLWXWH
3DQDPD *HQHUDO'LUHFWRUDWH '*, 'LYLVLRQRIWKH0LQLVWU\ <HV 1R 1R

RI5HYHQXH RI(FRQRP\DQG 1DWLRQDO&XVWRPV RYHUVHHQE\WKH6RFLDO
)LQDQFH $XWKRULW\UHVSRQVLEOH 6HFXULW\$GPLQLVWUDWLRQ
3DUDJXD\ 8QGHU6HFUHWDULDWRI 6(7 'LYLVLRQRIWKH0LQLVWU\ <HV 1R 1R

6WDWHIRU7D[DWLRQ RI)LQDQFH0+ H[FHSWIRUFROOHFWLRQRI RYHUVHHQE\WKH1DWLRQDO RYHUVHHQE\WKH6RFLDO
GHEWVZKLFKLVWKH 'LUHFWRUDWHRI&XVWRPV :HOIDUH,QVWLWXWH
UHVSRQVLELOLW\RIWKH7UHDVXU\
&RXQVHODWWKH0LQLVWU\RI
)LQDQFH
FRQWLQXHG

7DEOHFRQFOXGHG
6RFLDO6HFXULW\
&RQWULEXWLRQV
3HUX 1DWLRQDO 681$7 $XWRQRPRXV <HV <HV <HV

6XSHULQWHQGHQF\RI GHFRQFHQWUDWHGGLYLVLRQ
7D[$GPLQLVWUDWLRQ RIWKH0LQLVWU\RI
(FRQRP\DQG)LQDQFH
0()
'RPLQLFDQ *HQHUDO'LUHFWRUDWH '*,, $XWRQRPRXV <HV 1R 1R
5HSXEOLF RI,QWHUQDO7D[HV GHFRQFHQWUDWHGGLYLVLRQ RYHUVHHQE\WKH*HQHUDO RYHUVHHQE\WKH6RFLDO
RIWKH0LQLVWU\RI 'LUHFWRUDWHRI&XVWRPV 6HFXULW\7UHDVXU\
)LQDQFH0+
8UXJXD\ *HQHUDO'LUHFWRUDWH '*, 'LYLVLRQRIWKH0LQLVWU\ <HV 1R 1R

RI5HYHQXHV RI(FRQRP\DQG RYHUVHHQE\WKH1DWLRQDO RYHUVHHQE\WKH6RFLDO
)LQDQFH 'LUHFWRUDWHRI&XVWRPV :HOIDUH%DQN
9HQH]XHOD ,QWHJUDWHG1DWLRQDO 6(1,$7 $XWRQRPRXV <HV <HV 1R

%ROLYDULDQ &XVWRPVDQG7D[ GHFRQFHQWUDWHGGLYLVLRQ H[FHSWIRUWKH RYHUVHHQE\WKH
5HSXEOLFRI $GPLQLVWUDWLRQ RIWKH0LQLVWU\RIWKH 7HOHFRPPXQLFDWLRQV7D[ 9HQH]XHODQ6RFLDO

6HUYLFH 3HRSOH¶V'HSDUWPHQWRI 6HFXULW\,QVWLWXWH

3ODQQLQJDQG)LQDQFH
0333)
6RXUFH$XWKRUVEDVHGRQWKHUHSRUW³7ULEXWDFLyQ\$GPLQLVWUDFLyQ7ULEXWDULD±$PpULFD/DWLQD´&,$7

7KH WUHQG WRZDUGV DQ LQWHJUDWLRQ RI IXQFWLRQV LV DOVR HYLGHQW LQ UHSUHVHQWDWLYH 2(&' FRXQWULHV
WKRXJKZLWKDVLPLODUUDQJHIURPRQHFRXQWU\WRDQRWKHULQWKHGHJUHHRILQWHJUDWLRQDQGLQVWLWXWLRQDO
XQLILFDWLRQZLWKUHJDUGWRWD[DGPLQLVWUDWLRQVDVVKRZQLQWDEOH

7$%/(
6758&785(2)7$;$'0,1,675$7,216,1620(2(&'&28175,(6
'HJUHHRI 'RPHVWLF 6RFLDO6HFXULW\

&RXQWU\ ,QVWLWXWLRQ $FURQ\P &XVWRPVWD[HV
DXWRQRP\ WD[HV &RQWULEXWLRQV
*HUPDQ\ )HGHUDO )&72 'LYLVLRQRIWKH <HV 1R 1R

&HQWUDO7D[ 0LQLVWU\RI IHGHUDO RYHUVHHQE\
2IILFH )LQDQFH WD[HVRQO\ WKH*HUPDQ
&XVWRPV
$GPLQLVWUDWLRQ
&DQDGD &DQDGD &5$ $XWRQRPRXV <HV 1R <HV
5HYHQXH GLYLVLRQRIWKH RYHUVHHQE\
$JHQF\ 'HSDUWPHQWRI WKH&DQDGLDQ
)LQDQFH %RUGHU6HUYLFHV
$JHQF\&%6$
6SDLQ 6WDWH$JHQF\ $($7 $XWRQRPRXV <HV <HV 1R
IRU7D[ GLYLVLRQRIWKH RYHUVHHQE\
$GPLQLVWUDWLRQ 0LQLVWU\RI WKH*HQHUDO
(FRQRP\DQG 6RFLDO6HFXULW\
)LQDQFH0(+ 7UHDVXU\
8QLWHG ,QWHUQDO ,56 $XWRQRPRXV <HV 1R <HV
6WDWHV 5HYHQXH GLYLVLRQRIWKH H[FHSWIRU RYHUVHHQE\
6HUYLFH 7UHDVXU\ DOFRKRODQG WKH8QLWHG
'HSDUWPHQW WREDFFR 6WDWHV&XVWRPV
WD[HV DQG%RUGHU
3URWHFWLRQ
6HUYLFH
)UDQFH *HQHUDO '*),3 $XWRQRPRXV <HV 1R 1R
'LUHFWRUDWHRI GHFHQWUDOL]HG RYHUVHHQE\ RYHUVHHQE\
3XEOLF GLYLVLRQRIWKH WKH*HQHUDO WKH6RFLDO
)LQDQFH 0LQLVWU\RI 'LUHFWRUDWHRI 6HFXULW\
%XGJHW3XEOLF &XVWRPVDQG $GPLQLVWUDWLRQ
$FFRXQWVDQG ,QGLUHFW7D[HV
6WDWH5HIRUP
,WDO\ ,WDOLDQ $( $XWRQRPRXV <HV 1R <HV
5HYHQXH GHFHQWUDOL]HG RYHUVHHQE\
$JHQF\ GLYLVLRQRIWKH WKH&XVWRPV
0LQLVWU\RI $JHQF\
(FRQRP\DQG
)LQDQFH
1HWKHUODQGV 1HWKHUODQGV '*% 'LYLVLRQRIWKH <HV <HV 1R
7D[DQG 0LQLVWU\RI RYHUVHHQE\
&XVWRPV )LQDQFH WKH6RFLDO
$GPLQLVWUDWLRQ 6HFXULW\%DQN
3RUWXJDO *HQHUDO '*&, 'LYLVLRQRIWKH <HV 1R 1R
'LUHFWRUDWHRI 0LQLVWU\RI RYHUVHHQE\ RYHUVHHQE\
7D[HV )LQDQFHDQG WKH*HQHUDO WKH6RFLDO
3XEOLF 'LUHFWRUDWHRI 6HFXULW\
$GPLQLVWUDWLRQ &XVWRPVDQG ,QVWLWXWH
6SHFLDO7D[HV
8QLWHG +HU0DMHVW\µV +05& $XWRQRPRXV <HV <HV <HV
.LQJGRP 5HYHQXH GHFHQWUDOL]HG
&XVWRPV GLYLVLRQRI+HU
0DMHVW\
V
7UHDVXU\
6RXUFH $XWKRUV EDVHG RQ &,$7 DQG RQ WKH UHSRUW 7D[ $GPLQLVWUDWLRQ LQ 2(&' DQG 6HOHFWHG 1RQ2(&'
&RXQWULHV&RPSDUDWLYH,QIRUPDWLRQ6HULHV2(&'

$ILQDOHOHPHQWWKDWFDQEHVHHQLQWKHHYROYLQJVWUDWHJLHVIRUWD[DGPLQLVWUDWLRQLVWKHWHQGHQF\WR
WUDQVIHUPDQ\RIWKHFROOHFWLRQUHVSRQVLELOLWLHVWRILQDQFLDOLQVWLWXWLRQVPDNLQJWKHVHLQWRDQH[WHQVLYH
QHWZRUNRIHQWLWLHVIRUUHFHLYLQJWD[SD\PHQWVHLWKHUDWWKHLUSK\VLFDORIILFHVRURQOLQH
7KLVVWUDWHJ\KDVHQWDLOHGPDMRUHIIRUWVWRPRGHUQL]HGDWDSURFHVVLQJDQGLQIRUPDWLRQV\VWHPVLQ
DOO RI WKH UHJLRQ¶V FRXQWULHV )XUWKHUPRUH LW KDV IRFXVHG RQ SXUVXLQJ GHOLQTXHQW WD[SD\HUV ZKR DUH
UHJLVWHUHGLQWKHDGPLQLVWUDWLRQV¶GDWDEDVHVZLWKDUHVXOWLQJLQFUHDVHLQYROXQWDU\FRPSOLDQFH$QXPEHU
RI WKH UHJLRQ¶V FRXQWULHV LQFOXGLQJ $UJHQWLQD &KLOH DQG %UD]LO KDYH PDGH IXUWKHU SURJUHVV LQ UHFHQW
\HDUVE\SURYLGLQJIRURQOLQHILOLQJRIGLJLWDOLQFRPHWD[DQG9$7DIILGDYLWV
& &XUUHQWFKDOOHQJHVIDFLQJWD[DGPLQLVWUDWLRQV
7KUHHHOHPHQWVLQDGGLWLRQWRWKRVHGLVFXVVHGDERYHDUHDOUHDG\LQSOD\LQPDQ\FDVHVDQGDUHDPRQJ
WKHPRVWVLJQLILFDQWFKDOOHQJHVIDFLQJWKHUHJLRQ¶VWD[DGPLQLVWUDWLRQV
2QHLVWKHLQFUHDVLQJLQFRUSRUDWLRQRI1,&7VQHZLQIRUPDWLRQDQGFRPPXQLFDWLRQWHFKQRORJLHV
ZKLFK UHGXFHV FRVWV E\ PDNLQJ PRUH HIILFLHQW XVH RI WD[SD\HU GDWDEDVHV DQG E\ VWUHDPOLQLQJ WKH
KDQGOLQJ RI LQGLYLGXDO FDVHV 7HFKQRORJLFDO GHYHORSPHQWV RI WKLV W\SH FUHDWH QHZ RSSRUWXQLWLHV IRU
FRPPXQLFDWLQJZLWKDQGUHDFKLQJWD[SD\HUV
7KH VHFRQG HOHPHQW LV D FKDQJH RI DSSURDFK RU LQVWLWXWLRQDO SKLORVRSK\ ZLWK UHJDUG WR WKH
UHODWLRQVKLSEHWZHHQWD[DXWKRULWLHVDQGWD[SD\HUV²DVKLIWIURPWKHWUDGLWLRQDODGYHUVDULDOUHODWLRQVKLS
WR RQH WKDW YLHZV WKH WD[SD\HUV DV ³FOLHQWV´ ZKR GHVHUYH WR EH VHUYHG EDVHG RQ WKHLU QHHGV DQG
PRWLYDWLRQVDQGZKRDUHWREHSURYLGHGQHZVHUYLFHVDQGZD\VRILQWHUDFWLQJ
7KLUGLVWKHIDFWWKDWWD[ERUGHUVKDYHH[SDQGHGLQUHFHQWGHFDGHVDVDUHVXOWRIJOREDOL]DWLRQDQG
PRUH RSHQ PDUNHWV IRU JRRGV FDSLWDO DQG ODERXU 7KLV KDV FUHDWHG WKH QHHG WR REWDLQ LQIRUPDWLRQ RQ
WD[SD\HUVIURPEH\RQGQDWLRQDOERUGHUVDQGKDVOHGWRDJUHHPHQWVEHWZHHQFRXQWULHVWRSUHYHQWGRXEOH
WD[DWLRQDVZHOOWRIDFLOLWDWHWKHVKDULQJRILQIRUPDWLRQDWERWKWKHUHJLRQDODQGLQWHUQDWLRQDOOHYHO
0RVW ²LQGHHG QHDUO\ DOO² GRXEOHWD[DWLRQ DJUHHPHQWV KDYH IROORZHG WKH 2(&' PRGHO DQG
LQFOXGH VWDQGDUGV IRU LQIRUPDWLRQ H[FKDQJH DQG PXWXDO FRRSHUDWLRQ EHWZHHQ VLJQDWRU\ FRXQWULHV 7KLV
IHDWXUHLVSLYRWDOWRDQ\VWUDWHJ\DWWHPSWLQJWRFXUWDLOWD[KDYHQV
$VVKRZQLQWDEOHKRZHYHUWKHFRXQWULHVRI/DWLQ$PHULFDDUHDWYDU\LQJVWDJHVZLWKUHVSHFW
WR LPSOHPHQWLQJ WD[ KDUPRQL]DWLRQ LQVWUXPHQWV RI WKLV W\SH 7KH FRXQWULHV WKDW FXUUHQWO\ KDYH WKH
JUHDWHVWQXPEHURIGRXEOHWD[DWLRQDJUHHPHQWVDUHDOVRWKHFRXQWULHVZLWKWKHUHJLRQ¶VKLJKHVWOHYHOVRI
*'3DVZHOODVEHLQJWKHODUJHVWH[SRUWHUVRIJRRGVDQGVHUYLFHVLQWHUPVRIERWKYROXPHDQGPRQHWDU\
YDOXH6RPHRIWKHVHVXFKDV0H[LFRDQG&KLOHDUH2(&'PHPEHUV
$VHFRQGJURXSRIFRXQWULHVZKLFKLQFOXGHVPHPEHUVRIWKH$QGHDQ&RPPXQLW\RI1DWLRQVKDV
PDGHHQFRXUDJLQJSURJUHVVLQUHFHQW\HDUVRQDUDQJHRILVVXHVLQYROYLQJLQWHUQDWLRQDODVSHFWVRIWD[DWLRQ
,W LV DPRQJ WKH &HQWUDO $PHULFDQ FRXQWULHV WKDW WKHUH KDV EHHQ WKH ORZHVW OHYHO RI DFFHSWDQFH DQG
LPSOHPHQWDWLRQ RI VXFK DJUHHPHQWV WKHUH FRQWLQXHV WR EH D ODFN RI FRQVHQVXV RQ KRZ WR PRYH WRZDUGV
DGRSWLQJWKHPHDVXUHVDOUHDG\LQSODFHLQGHYHORSHGFRXQWULHVZLWKUHVSHFWWRLQWHUQDWLRQDOWD[LVVXHV

7$%/(
'28%/(7$;$7,21$*5((0(176,17+(&28175,(62)/$7,1$0(5,&$
$JUHHPHQWVLQIRUFHZLWK 7RWDOQXPEHURI
&RXQWU\ &RXQWULHVLQ 2(&' 2WKHUFRXQWULHV DJUHHPHQWVLQ
WKHUHJLRQ FRXQWULHVD EORFVE IRUFH
0H[LFR

F
FRQWLQXHG

7DEOHFRQFOXGHG
$JUHHPHQWVLQIRUFHZLWK 7RWDOQXPEHURI
&RXQWU\ &RXQWULHVLQ 2(&' 2WKHUFRXQWULHV DJUHHPHQWVLQ
WKHUHJLRQ FRXQWULHVD EORFVE IRUFH
%UD]LO

&KLOH
$UJHQWLQD
F
(FXDGRU
F
F
3HUX
&RORPELDF
8UXJXD\
3DUDJXD\
&RVWD5LFD
(O6DOYDGRU
3DQDPD
'RPLQLFDQ5HSXEOLF
*XDWHPDOD
+RQGXUDV
1LFDUDJXD
7RWDO/DWLQ$PHULFD
6RXUFH$XWKRUVEDVHGRQ&,$7
D
)RUSUDFWLFDOSXUSRVHV0H[LFRDQG&KLOHDUHFRQVLGHUHGFRXQWULHVRIWKHUHJLRQDOWKRXJKWKH\DUHDOVR2(&'PHPEHUV
E
&KLQD5XVVLDQ)HGHUDWLRQDQG0DOD\VLDDPRQJRWKHUVDUHLQFOXGHG
F
)RU HDFK RI WKH $QGHDQ &RPPXQLW\ &$1 QDWLRQV WKH PXOWLODWHUDO DJUHHPHQW LQ IRUFH VLQFH ZDV FRXQWHG DV
LQGLYLGXDODJUHHPHQWVIRUHDFKRIWKHFRXQWULHV

$PRQJWKHRXWFRPHVRIWKH2(&'¶V)RUXPRQ7D[$GPLQLVWUDWLRQKHOGLQ,VWDQEXOLQ6HSWHPEHU
ZKLFKLQFOXGHGUHSUHVHQWDWLYHVIURPFRXQWULHVZDVUHQHZHGVXSSRUWIRUVWUDWHJLHVGHVLJQHGWR
LPSURYH WD[ FRPSOLDQFH WKURXJKQHZ IRUPV RI FRRSHUDWLRQ DPRQJ WKH FRXQWULHV 7KHREMHFWLYH RI WKLV
HIIRUW KDV EHHQ WR H[SDQG PRQLWRULQJ RI RIIVKRUH ILQDQFLDO PRYHPHQWV DQG LGHQWLI\ WD[SD\HUV ZKR DUH
XVLQJ WKHVH PHFKDQLVPV WR FRQFHDO DVVHWV $ VHFRQG UHFRPPHQGDWLRQ WKDW HPHUJHG IURP WKH PHHWLQJ
ZDVWKDWRIHQFRXUDJLQJFRRUGLQDWHGDFWLRQWRVWUHQJWKHQFRPSOLDQFHDWWKH LQWHUQDWLRQDOOHYHOWKURXJK
MRLQWDXGLWVZKLFKZRXOGUHGXFHFRVWVIRUWD[SD\HUVDQGWD[DGPLQLVWUDWLRQVDOLNH2(&'
7KH UHFKDQQHOOLQJ RI SURILWV IURP PXOWLQDWLRQDO ILUPV LV D JURZLQJ DQG LQFUHDVLQJO\ LPSRUWDQW
FRQFHUQ LQ DOO RI WKH FRXQWULHV 7KLV LV UHIOHFWHG QRW RQO\ LQ WKH LPSHUDWLYH RI HVWDEOLVKLQJ OHJDO
SURYLVLRQV RQ WUDQVIHU SULFHV EXW DOVR LQ RWKHU NH\ DUHDV VXFK DV UHJXODWLRQV RQ XQGHUFDSLWDOL]DWLRQ
WUHDWPHQW RI UHQWV IURP WD[ KDYHQV H[SDQVLRQ RI LQIRUPDWLRQVKDULQJ DJUHHPHQWV PRGLILFDWLRQ RI
MXULVGLFWLRQDOSULQFLSOHVIRUWD[LQJLQFRPHHOLPLQDWLRQRIVHFXULWLHVPDUNHWDQGILQDQFLDOFRQILGHQWLDOLW\
LQ FDVHV ZKHUH VHFUHF\ SURYLVLRQV DUH LQ IRUFH DQG D VHW RI RWKHU SURYLVLRQV WKDW DGGUHVV WKH HVVHQWLDO
LVVXHVRILQWHUQDWLRQDOUHQWV
7KLV SKHQRPHQRQ ZKLFK KDV JDLQHG VLJQLILFDQFH LQ WKH ODVW VHYHUDO GHFDGHV DIIHFWLQJ ERWK
GHYHORSLQJDQGGHYHORSHGFRXQWULHVZDVILUVWDGGUHVVHGLQWKURXJKOHJLVODWLRQLQ/DWLQ$PHULFDQ
FRXQWULHVLQYROYLQJVSHFLILFSURYLVLRQVJRYHUQLQJWUDQVIHUSULFHV

,WLVDNQRZQIDFWWKDWWKHPXOWLQDWLRQDOILUPVKDYHDFFRXQWLQJPHFKDQLVPVWRFKDQQHOSURILWVIURPWKHLUFHQWUDOILUPWRWKHLUIRUHLJQ
VXEVLGLDULHVYLD³WUDQVIHUSULFHV´LQRUGHUWRGHFODUHWKHSURILWVLQMXULVGLFWLRQVZLWKORZHUFRUSRUDWHLQFRPHWD[HV

7KH LQFRPH WD[ VWUXFWXUHV RI PDQ\ /DWLQ $PHULFDQ FRXQWULHV IRU ERWK LQGLYLGXDOV DQG
FRUSRUDWLRQV VWLOO IROORZ ZKDW LV QRZ DQ REVROHWH VFKHPH EDVHG RQ FORVHG HFRQRPLHV 7RGD\¶V
HFRQRPLHV KDYH H[WHQVLYH PRYHPHQWV RI FDSLWDO DQG JRRGV KRZHYHU WKH ODZV QHHGHG WR H[HUFLVH WKH
SURSHU FRQWUROV DUH LQDGHTXDWH ([FHSW IRU WKH UHJLRQ¶V ODUJHVW FRXQWULHV WKHUH KDV EHHQ QR HIIRUW WR
HVWDEOLVK OHJDO SURYLVLRQV WR ³VFUHHQ´ SRWHQWLDO WD[ EDVHV LQ OLJKW RI FXUUHQW HFRQRPLF FLUFXPVWDQFHV
SDUWLFXODUO\ZLWKUHJDUGWRWKHFRUSRUDWHLQFRPHWD[WKRXJKGHYHORSHGFRXQWULHVKDYHEHHQGRLQJVRIRU
DORQJWLPH
$V RI RQO\ ILYH FRXQWULHV KDG H[SOLFLWO\ DGRSWHG VXFK OHJDO SURYLVLRQV 0H[LFR %UD]LO
&KLOH $UJHQWLQD DQG 9HQH]XHOD %ROLYDULDQ 5HSXEOLF RI EHWZHHQ DQG DQRWKHU VL[
FRXQWULHVMRLQHGWKHUDQNV&RORPELDLQDQG(FXDGRU8UXJXD\(O6DOYDGRUDQG3DQDPDLQ
7KH 'RPLQLFDQ 5HSXEOLF WKRXJK LW KDV SDVVHG OHJLVODWLRQ LQ WKLV DUHD KDV QRW \HW HVWDEOLVKHG
FRUUHVSRQGLQJUHJXODWLRQVWKXVLWVOHJLVODWLRQUHPDLQVZLWKRXWSUDFWLFDOHIIHFW$ULDV
,Q WHUPV RI WKH WUHDWPHQW RI LQWHUQDWLRQDO UHQWV DQG WKH WHFKQLFDO DVVLVWDQFH WKDW LQWHUQDWLRQDO
FRRSHUDWLRQ FDQ SURYLGH WKH UHJLRQ¶V FRXQWULHV WR DGGUHVV WKH LVVXH D UHFHQW SURMHFW RI WKH ,QWHU
$PHULFDQ'HYHORSPHQW%DQN,'%LVQRWHZRUWK\7KH,'%ZLWKDVVLVWDQFHIURP6SDQLVK&RRSHUDWLRQ
LV SURYLGLQJ VXSSRUW RYHU DWKUHH\HDU SHULRG WR WKH &HQWUDO $PHULFDQ FRXQWULHV DQG WR WKH'RPLQLFDQ
5HSXEOLF WR VWUHQJWKHQ WKH FDSDFLW\ RI WKHLU WD[ DGPLQLVWUDWLRQV WR GHDO ZLWK WKLV LVVXH 7KH SULQFLSDO
SUREOHP WKDW KDV HPHUJHG LQ DWWHPSWLQJ WR LPSOHPHQW WKH UHOHYDQW UHIRUPV LV WKH DEVHQFH RI WD[
DGPLQLVWUDWLRQVWUXFWXUHVFDSDEOHRIHIIHFWLYHO\PHHWLQJWKHQHHGVRIPRGHUQGD\WD[SROLF\
6RPHRIWKHPRVWREYLRXVREVWDFOHVLQVXFKDQHIIRUWDUHWKHODFNRIVSHFLDOL]HGXQLWVWRUHFRUG
PRQLWRU DGPLQLVWHU DQG VXSHUYLVH WKH WD[ LPSOLFDWLRQV RI RSHUDWLRQV LQYROYLQJ IORZV RI IRUHLJQ GLUHFW
LQYHVWPHQWWKHVFDUFLW\RISHUVRQQHOWUDLQHGWRFDUU\RXWFULWLFDOWDVNVWKHDEVHQFHRIOHJDOLQVWUXPHQWV
QHFHVVDU\ IRU DQ LQWHUQDWLRQDO WD[ SROLF\ WKDW LV FRPSDWLEOH ZLWK DQ RSHQ HFRQRP\ DQG LQVXIILFLHQW
LQWHJUDWLRQDQGFRRUGLQDWLRQEHWZHHQGLIIHUHQWFRXQWULHV¶WD[DGPLQLVWUDWLRQV
0RUHRYHULQGLYLGXDOFRXQWULHVKDYHVSHFLILFSUREOHPVWKDWKLQGHUDWWHPSWVWRUHDFKLQWHUQDWLRQDO
WD[DJUHHPHQWV*XDWHPDODDQG&RVWD5LFDIRUH[DPSOHDUHRQWKH2(&'OLVWRIQRQFROODERUDWLQJQRQ
WUDQVSDUHQWFRXQWULHVZKLOH(O6DOYDGRUDQGWKH'RPLQLFDQ5HSXEOLFKDYHWHFKQLFDODQGDGPLQLVWUDWLYH
GHILFLHQFLHVWKDWSUHYHQWWKHPIURPDGRSWLQJWKHSURFHGXUHVUHTXLUHGWRLPSOHPHQWSROLFLHVFRPSDWLEOH
ZLWKGRXEOHWD[DWLRQDJUHHPHQWV
)DFHG ZLWK WKLV FKDOOHQJLQJ VLWXDWLRQ LW KDV EHHQ SURSRVHG WKDW XQLWV EH FUHDWHG VSHFLILFDOO\ WR
GHDOZLWKLQWHUQDWLRQDO WD[DWLRQDQGWRDGGUHVVWKHGHILFLHQFLHVLQWD[SROLF\DQGWD[DGPLQLVWUDWLRQLQ
WKHUHJLRQEURXJKWDERXWE\WUDGHOLEHUDOLVDWLRQDQGVXEUHJLRQDOHFRQRPLFLQWHJUDWLRQ
7KH SURSRVDO LV WR FUHDWH DQ ,QWHUQDWLRQDO 7D[DWLRQ 8QLW ,78 IRU HDFK FRXQWU\ WR FHQWUDOLVH
LPSOHPHQWDQGGHYHORSWKHFRPSHWHQFLHVQHHGHGWRDGGUHVVLQWHUQDWLRQDOWD[DWLRQLVVXHVLQFRRUGLQDWLRQ
ZLWK WKH RWKHU ,78V WKXV HQDEOLQJ WKHP WR DGGUHVV WKH UHJLRQ¶V LQWHUQDWLRQDO WD[DWLRQ LVVXHV LQ D
FRPSUHKHQVLYHIDVKLRQ
7KH,78VZRXOGEHDVVLJQHGVSHFLILFDFWLYLWLHVVXFKDVVWXG\LQJDQGGHVLJQLQJLQWHUQDWLRQDOWD[
SROLF\LQWKH&HQWUDO$PHULFDQFRXQWULHVLPSURYLQJWKHKDQGOLQJDQGFROOHFWLRQRIQRQUHVLGHQWWD[HV
DQGFUHDWLQJDQGLPSOHPHQWLQJDWD[LQVSHFWLRQSROLF\VSHFLILFWRLQWHUQDWLRQDOWD[DWLRQZLWKHPSKDVLV
RQ WUDQVIHU SULFHV DQG LQIRUPDWLRQ H[FKDQJH 7KH H[SHFWDWLRQ LV WKDW WKLV ZRXOG VLJQLILFDQWO\ LPSURYH
IRUHLJQ LQYHVWRUV¶ SHUFHSWLRQ RI WKH GLIIHUHQW WD[ DGPLQLVWUDWLRQV DQG WKHUHE\ HQVXUH WKDW IRUHLJQ
LQYHVWPHQW IORZV WR WKH FRXQWULHV FRQWLQXH DQG JURZ ZKLOH DW WKH VDPH WLPH LQFUHDVLQJ WD[ UHYHQXHV
SULPDULO\WKURXJKYROXQWDU\FRPSOLDQFHDQGLQVSHFWLRQPHDVXUHV

9,,(YDOXDWLQJWKHSHUIRUPDQFH
RIWD[DGPLQLVWUDWLRQVLQ
/DWLQ$PHULFDZKDWGRZH
FXUUHQWO\NQRZ"
$V D UHFHQW ,0) GRFXPHQW VWDWHG ³,PSURYLQJ UHYHQXH DGPLQLVWUDWLRQ LV

HVVHQWLDO IRU HQKDQFHG DQG IDLUHU UHYHQXH PRELOL]DWLRQ DQG IRU ZLGHU
JRYHUQDQFHLPSURYHPHQWWKRXJKVXFFHVVLVKDUGWRHYDOXDWH,0)
7KHSUHVHQWVHFWLRQZLOOH[DPLQHWKHFULWHULDWKDWVKRXOGEHFRQVLGHUHG
LQ DVVHVVLQJ WKH SURJUHVV RI WKH UHJLRQ¶V WD[ DGPLQLVWUDWLRQV DV ZHOO LQ
DWWHPSWV WR TXDQWLI\ WKH UHOHYDQW SDUDPHWHUV 7KHUH LV DW SUHVHQW D
FRQVSLFXRXVDEVHQFHRILQIRUPDWLRQWKDWFRXOGDVVLVWLQPDNLQJLQWHUFRXQWU\
FRPSDULVRQV²LQIRUPDWLRQIRUSXEOLFXVHDWOHDVWWKRXJKRQHZRXOGKRSH
WKDWWKDWVXFKLQIRUPDWLRQLVDYDLODEOHZLWKLQWKHDJHQFLHVWKHPVHOYHV
6LQFH WKH 2(&' KDV PDGH QRWDEOH SURJUHVV LQ WKLV DUHD RQ
EHKDOI RI LWV PHPEHU FRXQWULHV DV ZHOO DV IRU FHUWDLQ QRQ2(&'
FRXQWULHV WKURXJK WKH )RUXP RQ 7D[ $GPLQLVWUDWLRQ 7KH 2(&' KDV
DGYRFDWHGIRUHIIRUWVWRFROOHFWLQIRUPDWLRQDQGDQDO\VHFHQWUDOIHDWXUHVRI
WD[DGPLQLVWUDWLRQDVDPHDQVRIJHQHUDWLQJFRPSDUDEOHVWDWLVWLFDOGDWDIRU
DGLYHUVHJURXSRIFRXQWULHVXVLQJDFRPPRQPHWKRGRORJ\

7KHPRVWUHFHQWUHSRUWLV³7D[$GPLQLVWUDWLRQLQ2(&'DQG6HOHFWHG1RQ2(&'&RXQWULHV&RPSDUDWLYH,QIRUPDWLRQ6HULHV´
&HQWUHIRU7D[3ROLF\DQG$GPLQLVWUDWLRQ2(&'3DULV

7KLV SURMHFW LV WKH ILUVW V\VWHPDWLF DWWHPSW WR FRQGXFW D FRPSDUDWLYH VWXG\ RI WKH WD[
DGPLQLVWUDWLRQV RI GLIIHUHQW FRXQWULHV E\ GHYHORSLQJ TXDQWLWDWLYH DQG TXDOLWDWLYH LQGLFDWRUV ZLWK WKH
XOWLPDWH SXUSRVH RI LGHQWLI\LQJ WKHLU VWUHQJWKV DQG ZHDNQHVVHV DQG LPSOHPHQWLQJ LPSURYHPHQWV EDVHG
RQVXFFHVVIXOFDVHV
&XUUHQWO\WKHDQQXDOUHSRUWVVSRQVRUHGE\WKH2(&'GUDZRQLQIRUPDWLRQIURPWKHDQQXDOUHSRUWV
RI WKH WD[ FROOHFWLRQ DJHQFLHV WKHPVHOYHV DV ZHOO DV IURP VSHFLDOLVHG SULYDWH LQVWLWXWLRQV VXFK DV WKH
,QWHUQDWLRQDO%XUHDXRI)LVFDO'RFXPHQWDWLRQ,%)'DQGPDMRUSXEOLFDWLRQVRQLQWHUQDWLRQDOWD[DWLRQ
)ROORZLQJ WKH PHWKRGRORJLFDO SUHPLVHV HVWDEOLVKHG E\ 2(&' WKH ,QWHUQDWLRQDO 7D[ 'LDORJXH
UHFHQWO\ LVVXHG WKH UHSRUW ³5HYHQXH $GPLQLVWUDWLRQ LQ 6XE6DKDUDQ $IULFD´ ZKLFK SURYLGHV D
VXEVWDQWLDOERG\RIFRPSDUDEOHVWDWLVWLFVEDVHGRQVXUYH\VFRQGXFWHGE\WD[FROOHFWLRQDJHQFLHVRIPRUH
WKDQ $IULFDQ FRXQWULHV 7KH GLPHQVLRQV FRYHUHG E\ WKLV FRPSDUDWLYH VWXG\ LQFOXGH LQVWLWXWLRQDO
DUUDQJHPHQWVWKHGLVWULEXWLRQRIUHVSRQVLELOLWLHVGHJUHHVRIIXQFWLRQDODXWRQRP\EXGJHWPDQDJHPHQW
FDSDFLWLHVUHODWLYHFRVWVKXPDQUHVRXUFHVXWLOL]HGLQWHUQDOJRYHUQPHQWVWUXFWXUHDQGHOHPHQWVUHODWLQJ
WRWD[SD\HUV¶ULJKWVDQGVHUYLFHV
$QRWKHUVWXG\XVHIXODVDIUDPHRIUHIHUHQFHIRUWKHFRPSDUDWLYHDQDO\VLVRIWD[DGPLQLVWUDWLRQV
LV WKDW SXEOLVKHG LQ E\ WKH LQWHUQDWLRQDO FRQVXOWLQJ ILUP 0F.LQVH\ 7KDW VWXG\ H[SORUHV WKH WD[
DGPLQLVWUDWLRQVRIFRXQWULHVLQUHJDUGWRGLUHFWWD[DWLRQRQO\DQGSRLQWVWRFRQVLGHUDEOHYDULDELOLW\LQ
FDUU\LQJRXWWKHIRXUEDVLFIXQFWLRQVRIWKHVHRUJDQL]DWLRQVSURFHVVLQJRIWD[SD\HUV¶VZRUQVWDWHPHQWV
LQVSHFWLRQFROOHFWLRQRIWD[UHYHQXHVDQGWD[SD\HUVHUYLFHV'RKUPDQQDQG3LQVKDZ
7KH0F.LQVH\VWXG\VXJJHVWVWKDWWKHUHLVDSRLQWRILQIOHFWLRQLQWKHFXUYHZKHUH\LHOGVGHFUHDVH
DQGSDVWZKLFKDQ\DWWHPSWWRLQFUHDVHWKHHIIHFWLYHQHVVRIWD[DGPLQLVWUDWLRQZRXOGUHGXFHHIILFLHQF\
,Q RWKHU ZRUGV DV D UHYHQXH FROOHFWLRQ DJHQF\ DSSURDFKHV LWV WRWDO UHYHQXH SRWHQWLDO DQG HYDVLRQ
DSSURDFKHV ]HUR WKH PDUJLQDO FRVW RI FROOHFWLQJ D JLYHQ DPRXQW RI D SDUWLFXODU W\SH RI WD[ UHYHQXH
LQFUHDVHV7KHHVWLPDWHVVXJJHVWWKDWWKHSRWHQWLDOJDLQVIURPLQFUHDVLQJHIILFDF\LHLQFUHDVLQJUHYHQXH
E\UHGXFLQJHYDVLRQDUHIDUJUHDWHUWKDQWKHEHQHILWVRILPSURYHGHIILFLHQF\WKDWLVUHGXFLQJWKHFRVWRI
FROOHFWLQJ +RZHYHU WKH GDWD SUHVHQWHG UHYHDO WKDW WKHUH LV DPSOH RSSRUWXQLW\ WR VLPXOWDQHRXVO\
LQFUHDVHHIILFLHQF\DQGHIIHFWLYHQHVVZLWKRXWPDNLQJVDFULILFHVRQHLWKHUIURQW
,QUHJDUGWR/DWLQ$PHULFDQWD[DGPLQLVWUDWLRQVWKLVW\SHRIFRPSDUDWLYHLQWHUFRXQWU\UHVHDUFK
XVLQJFRPPRQPHWKRGRORJLHVLVVWLOOLQLWVHDUO\VWDJHV7ZRREYLRXVDQGEDVLFFRQGLWLRQVDUHUHTXLUHG
IRUVXFFHVVLQWKLVDUHDILUVWLQVWLWXWLRQDOFDSDFLW\WRWDFNOHWKHGLIILFXOWMRERIFROOHFWLQJSURFHVVLQJDQG
PRQLWRULQJVWDWLVWLFDOLQIRUPDWLRQIURPWKHFRXQWULHVEHLQJVWXGLHGVHFRQGDQGHYHQPRUHHVVHQWLDOD
ZLOOLQJQHVVRQWKHSDUWRIWKHWD[DGPLQLVWUDWLRQVWRSURYLGHWKHUHOHYDQWLQIRUPDWLRQ²WKXVFRQWULEXWLQJ
WRLQVWLWXWLRQDOWUDQVSDUHQF\DQGHQVXULQJWKHUHOLDELOLW\RIDQ\FRQFOXVLRQVUHDFKHG
2Q WKH SRVLWLYH IURQW LV WKH IDFW WKDW DV RI $SULO WKH ,QWHU$PHULFDQ 7D[ $GPLQLVWUDWLRQ
&HQWUH &,$7 DORQJ ZLWK ,'% DQG WKH &HQWUDO $PHULFD 3DQDPD 'RPLQLFDQ 5HSXEOLF 7HFKQLFDO
$VVLVWDQFH&HQWUH&$37$&'5DUHFRQGXFWLQJDSURMHFWRQWKH³6WDWHRI7D[$GPLQLVWUDWLRQLQ/DWLQ
$PHULFD´ ZLWK WKH DLP RI FUHDWLQJ D NQRZOHGJH EDVH RQ WKH FRXQWULHV¶ WD[ DGPLQLVWUDWLRQV 7KH
LQIRUPDWLRQ ZLOO EH EDVHG RQ VXUYH\V UHFHQWO\ VHQW WR /DWLQ $PHULFD¶V WD[ FROOHFWLRQ DJHQFLHV IURP
ZKLFK UHVSRQVHV ZLOO EH SURFHVVHG DQG XVHG WR HVWDEOLVK TXDQWLWDWLYH LQGLFDWRUV WR JXLGH FRPSDUDWLYH
LQWUDUHJLRQDODQDO\VHV7KHKRSHLVWKDWWKLVHIIRUWZLOOSURGXFHFRQFUHWHUHVXOWVE\WKHHQGRI
(IIRUWVDUHDOVRXQGHUZD\WRLGHQWLI\QHZQHHGVIRUWHFKQLFDODVVLVWDQFHLQWD[DGPLQLVWUDWLRQLQ
RUGHUWRHVWDEOLVKDWOHDVWDPLQLPXPGHJUHHRIKDUPRQL]DWLRQDQGLQVWLWXWLRQDOEDODQFH$SXEOLFDWLRQRQ
WKHVWDWHRI/DWLQ$PHULFDQDQG&DULEEHDQWD[DGPLQLVWUDWLRQVLVH[SHFWHGWREHLQFOXGHGLQWKHUHSRUW
'HYHORSPHQWLQWKH$PHULFDV',$DQGLQ,'%VXSSRUWDQGPRGHUQL]DWLRQSURMHFWV,WLVDOVRH[SHFWHG

7KH,QWHUQDWLRQDO7D['LDORJXH,7'LVDQDJUHHPHQWIRUFROODERUDWLRQEHWZHHQWKH:RUOG%DQN,'%(XURSHDQ&RPPLVVLRQ,0)
2(&'DQGWKH8QLWHG.LQJGRP¶V'HSDUWPHQWIRU,QWHUQDWLRQDO'HYHORSPHQWGHVLJQHGWRHQFRXUDJHDQGIDFLOLWDWHWKHGLVFXVVLRQRI
WD[LVVXHVDPRQJRIILFLDOVRIQDWLRQDOWD[DGPLQLVWUDWLRQVDQGLQWHUQDWLRQDORUJDQL]DWLRQV

WKDWLQ2FWREHULQIRUPDWLRQZLOOEHDYDLODEOHWKDWFDQVHUYHDVDEDVLVIRUFRPSDUDWLYHGRFXPHQWV
WREHSUHSDUHGE\WKHHQGRIWKH\HDU
$ &ULWHULDIRUFRPSDUDWLYHHYDOXDWLRQRIWD[DGPLQLVWUDWLRQV
,QFRQGXFWLQJDVVHVVPHQWVRIWD[V\VWHPVDVWUDWHJ\FRPPRQO\XVHGLVWRFRPSDUHDSDUWLFXODUFDVHZLWK
ZKDWFDQEHREVHUYHGDWWKHUHJLRQDORULQWHUQDWLRQDOOHYHOLQRUGHUWRJDLQSHUVSHFWLYHRQWKHVLWXDWLRQ
EHLQJ DQDO\VHG :LWK WKH DSSURSULDWH PHWKRGRORJLFDO VDIHJXDUGV SROLF\ UHFRPPHQGDWLRQV FDQ WKHQ EH
GHYHORSHG %DVHG RQ DVVXPSWLRQV DERXW WKH FRQVWDQF\ RI PDFURHFRQRPLF FRQGLWLRQV LW WKHQ EHFRPHV
SRVVLEOHIRUDJLYHQFRXQWU\WRUHSOLFDWHSRVLWLYHUHVXOWVDFKLHYHGLQRWKHUFRXQWULHV
,Q WKH FDVH RI WD[ DGPLQLVWUDWLRQV GHYHORSLQJ SHUIRUPDQFH LQGLFDWRUV FRQWLQXHV WR EH D PDMRU
FKDOOHQJHUHTXLULQJHIIRUWVEH\RQGWKHXVXDOWDVNVRILQVSHFWLRQWD[FROOHFWLRQDQGWD[SD\HUVHUYLFHV,I
UHOLDEOHFRPSDULVRQVDUHWREHSRVVLEOHWKHUHPXVWDOVREHDJUHHPHQWRQDFRPPRQPHWKRGRORJ\DQGRQ
RQJRLQJDQGWUDQVSDUHQWH[FKDQJHRIVWDWLVWLFDOLQIRUPDWLRQEHWZHHQFRXQWULHV
&XUUHQWO\LQWHUFRXQWU\FRPSDULVRQVRIWD[DGPLQLVWUDWLRQVDUHEDVHGRQFULWHULDRIHIILFDF\DQG
HIILFLHQF\LQWD[FROOHFWLRQV
,Q WKLV FRQWH[W HIILFDF\ UHIHUV WR WKH WD[FROOHFWLRQ DJHQF\¶V PDQDJHPHQW FDSDFLW\ LQ PDWWHUV
ZLWKLQLWVPDQGDWHHJLGHQWLI\LQJDQGUHJLVWHULQJWD[SD\HUVPRQLWRULQJFRPSOLDQFHZLWKEDVLFLQFRPH
GHFODUDWLRQ REOLJDWLRQV WLPHO\ SD\PHQW RI WD[HV LQVSHFWLRQ FROOHFWLRQ RI WD[ GHEWV RYHUVHHLQJ OHJDO
SURFHGXUHVDQGSURYLGLQJWD[SD\HUVHUYLFHV
:KHQWKHUHOHYDQWLQIRUPDWLRQLVDYDLODEOHHYDVLRQUDWHVRUWKH³FRPSOLDQFHJDS´DUHDOVRXVHG
DV D PDMRU LQGLFDWRU RI FROOHFWLRQ HIILFDF\ 7KLV LV EHFDXVH WKH HYDVLRQ UDWH UHODWHV GLUHFWO\ WR WZR
GLIIHUHQW IDFWRUV L WKH WD[ DGPLQLVWUDWLRQ¶V DELOLW\ WR SURYLGH LQIRUPDWLRQ DQG KLJKTXDOLW\ VHUYLFHV WR
WD[SD\HUV WKXV HQDEOLQJ WKHP WR PHHW WKHLU WD[ REOLJDWLRQV DQG LL WKH DGPLQLVWUDWLRQ¶V FDSDFLW\ WR
HIIHFWLYHO\PRQLWRUFRPSOLDQFH
(IILFLHQF\LQWKLVFRQWH[WJHQHUDOO\UHIHUVWRWKHWD[DGPLQLVWUDWLRQ¶VXVHRIUHVRXUFHVDQGWRWKH
FRVWVLWLQFXUV7KHPRUHHIIHFWLYHO\DYDLODEOHILQDQFLDOUHVRXUFHVDUHXVHG²LHWKHPRUHIDYRXUDEOHWKH
FRVWEHQHILW UDWLR WKH UHODWLRQ EHWZHHQ RSHUDWLQJ FRVWV DQG LQYHVWPHQW RQ RQH KDQG DQG UHYHQXH
JHQHUDWLRQRQWKHRWKHU²WKHPRUHHIILFLHQWWKHDGPLQLVWUDWLRQLV
1RWZLWKVWDQGLQJWKHDERYHGHILQLWLRQVWKHWHUP³FROOHFWLRQHIILFLHQF\´FDQDOVREHXVHGWRUHIHU
WR WKH OHYHOV RI UHYHQXH REWDLQHG IURP D VHULHV RI DFWLRQV WKDW D FROOHFWLRQ DJHQF\ WDNHV WR HQFRXUDJH
WD[SD\HUVWRFRPSO\ZLWKWKHWD[ODZV7KHVHLQFOXGHVHUYLFHVSURYLGHGWRWD[SD\HUVUHJLVWHULQJSHRSOH
RQ WKH WD[ UROOV SURYLGLQJ DVVLVWDQFH LQ FRPSOHWLQJ WD[ IRUPV FDUU\LQJ RXW LQVSHFWLRQV FRQGXFWLQJ
FROOHFWLRQDFWLYLWLHVDQGSURWHFWLQJWKH*RYHUQPHQW¶VLQWHUHVWV6DPDQLHJR%UHDFKDQGRWKHUV
7KHUH LV WKHUHIRUH D JURZLQJ WUHQG WRZDUGV GHYHORSLQJ TXDQWLWDWLYH LQGLFDWRUV IRU PDNLQJ LQWHU
FRXQWU\ FRPSDUDWLYH DQDO\VHV LQ RUGHU WR DVVHVV WKH HIILFDF\ DQG HIILFLHQF\ RI FRXQWULHV¶ UHVSHFWLYH
FROOHFWLRQV SURFHVVHV DORQJ ZLWK FRPSDULVRQV RI WKH RWKHU LPSRUWDQW DVSHFWV RI WD[ DGPLQLVWUDWLRQ
GHWDLOHGEHORZ
,QGLFDWRUVUHODWHGWRHIILFLHQF\FRVWRIFROOHFWLQJUHYHQXH
2QHRI WKH YDULDEOHV XVHGPRVW IUHTXHQWO\ E\ HFRQRPLVWV IRU FRPSDULQJ WD[ DGPLQLVWUDWLRQV LV ZKDW LV
JHQHUDOO\ WHUPHG ³FRVW RI FROOHFWLRQ´ 7KLV LQGLFDWRU JHQHUDOO\ XVHG DV DQ RYHUDOO PHDVXUH RI DQ
DJHQF\¶V HIILFLHQF\ UHVXOWV IURP FRPSDULQJ D WD[ DGPLQLVWUDWLRQ¶V WRWDO VSHQGLQJ ZLWK WKH UHYHQXH LW
JHQHUDWHVLQDJLYHQSHULRGRIWLPH

&RVW RI FROOHFWLRQ FRXOG DOVR EH WKRXJKW RI DV D PHDVXUH RI WKH HIILFDF\ RI WKH WD[ DGPLQLVWUDWLRQ %XW ZKLOH WKLV LQGLFDWRU WDNHV
DFFRXQWRIWD[UHYHQXHVFROOHFWHGDQGQRWWKRVHWKDWVKRXOGEHFROOHFWHGXQGHUWKHODZWKHHOHYDWHGOHYHOVRIHYDVLRQLQPRVWRIWKH
UHJLRQ¶VFRXQWULHVSODFHVVHYHUHOLPLWVRQLWVH[SODQDWRU\YDOXHLQPDNLQJLQWHUQDWLRQDOFRPSDULVRQV

7KLVLQGLFDWRUKDVFHUWDLQOLPLWDWLRQVKRZHYHU$OWKRXJKDGHVFHQGLQJFXUYHZRXOGEHHYLGHQFHRID
UHGXFWLRQLQUHODWLYHFRVWVRURIDQLQFUHDVHLQHIILFLHQF\FRPSDULVRQVEHWZHHQFRXQWULHVKDYHVKRZQWKDW
FRVW RI FROOHFWLRQ DOVR GHSHQGV RQ D QXPEHU RI IDFWRUV WKDW KDYH QR FOHDU UHODWLRQ WR RYHUDOO HIILFDF\ RU
HIILFLHQF\ $PRQJ WKHVH DGGLWLRQDO YDULDEOHV DUH L WD[ UDWHV DQG VWUXFWXUHV LL VFRSH DQG QDWXUH RI WKH
WD[HVRYHUVHHQE\QDWLRQDOWD[DGPLQLVWUDWLRQVLLLFROOHFWLRQRIVRFLDOVHFXULW\FRQWULEXWLRQVLYUDQJHRI
IXQFWLRQVFDUULHGRXWE\WKHHQWLWLHVEHLQJH[DPLQHGYPHDVXUHPHQWPHWKRGRORJ\DQGDFFRXQWLQJFULWHULD
HPSOR\HGDQGYLVWDJHRILQVWLWXWLRQDOGHYHORSPHQWRIWKHDJHQF\DWLVVXH
%HDULQJ LQ PLQG WKH DERYH FDYHDWV D UHFHQW HVWLPDWH VSRQVRUHG E\ &,$7 VKRZV WKDW LQ
EDVHG RQ LQIRUPDWLRQ UHJDUGLQJ EXGJHW H[HFXWLRQ DQG UHYHQXH FROOHFWLRQ LQ D UHSUHVHQWDWLYH VDPSOH RI
/DWLQ $PHULFDQ WD[ DGPLQLVWUDWLRQV PRQHWDU\ XQLWV RXW RI HYHU\ XQLWV FROOHFWHG E\ WKHVH
HQWLWLHV ZDV VSHQW RQ RSHUDWLQJ FRVWV 7KH ORZHVW FRVWV ZHUH IRXQG DW 0H[LFR¶V 7D[ $GPLQLVWUDWLRQ
6HUYLFH 6$7 &RORPELD¶V 'LUHFWRUDWH RI 1DWLRQDO 7D[HV DQG &XVWRPV ',$1 DQG %UD]LO¶V )HGHUDO
6HFUHWDULDWRI5HYHQXH5)%ILJXUH3HFKR

),*85(
&2672)&2//(&7,21$6$3523257,212)7$;5(9(18(6,16(/(&7('
/$7,1$0(5,&$1$1'2(&'&28175,(6
3HUPRQHWDU\XQLWVFROOHFWHG

$YJ /$

$YJ2(&'

0H[LFR
&RVWD5LFD
,WDO\
3RUWXJDO
(FXDGRU
&DQDGD
86$
&RORPELD
)UDQFH
%UD]LO
&KLOH
'RPLQLFDQ5HS
*HUPDQ\
1HWKHUODQGV
3HUX
(O6DOYDGRU
*XDWHPDOD
$UJHQWLQD
6SDLQ
8UXJXD\
3DUDJXD\
8QLWHG.LQJGRP

6RXUFH $XWKRUV EDVHG RQ &,$7 GDWD IRU /DWLQ $PHULFD DQG GDWD IURP 7D[ $GPLQLVWUDWLRQ LQ 2(&' DQG 6HOHFWHG 1RQ
2(&'&RXQWULHV&RPSDUDWLYH,QIRUPDWLRQ6HULHV2(&'
+RZHYHU WKH IROORZLQJ IDFWRUV UHODWHG WR WKH FRQVWUXFWLRQ RI WKH UDWLRV PXVW EH WDNHQ LQWR
DFFRXQWZKHQGUDZLQJDQ\FRQFOXVLRQVEDVHGRQLQWHUQDWLRQDOFRPSDULVRQV
• 7KHVFRSHRIDFWLYLWLHVYDULHVIURPRQHWD[DGPLQLVWUDWLRQVWRDQRWKHU$VGHVFULEHGLQWDEOH
PRVWFROOHFWRQO\LQWHUQDOWD[HVDOWKRXJKWKHUHDUHFDVHVRILQVWLWXWLRQDOLQWHJUDWLRQDV
SHU WKH 6SDQLVK PRGHO LQ ZKLFK WD[ DGPLQLVWUDWLRQV DOVR RYHUVHH FXVWRPV WD[HV HJ
0H[LFR &RORPELD DQG *XDWHPDOD DV ZHOO DV FDVHV ZKHUH WKHUH LV FRPSOHWH LQWHJUDWLRQ
LQFOXGLQJ FRYHUDJH RI VRFLDO VHFXULW\ FRQWULEXWLRQV HJ %UD]LO¶V 5)% 3HUX¶V 1DWLRQDO

2(&'RSFLW

6XSHULQWHQGHQF\ RI 7D[ $GPLQLVWUDWLRQ 681$7 DQG $UJHQWLQD¶V )HGHUDO $GPLQLVWUDWLRQ

RI3XEOLF5HYHQXHV$),3
• 7KXV WKH WRWDO VSHQGLQJ RI WKH LQVWLWXWLRQV EHLQJ FRPSDUHG LV QRW UHDGLO\ DWWULEXWDEOH WR
LGHQWLFDO IXQFWLRQV )RU H[DPSOH VRPH WD[ DGPLQLVWUDWLRQV VXFK DV %UD]LO¶V 5)% (O
6DOYDGRU¶V *HQHUDO 'LUHFWRUDWH RI ,QWHUQDO 7D[HV '*,, &KLOH¶V ,QWHUQDO 5HYHQXH 6HUYLFH
6,, DQG 3DUDJXD\¶V 8QGHU 6HFUHWDULDW RI 6WDWH IRU 7D[DWLRQ 6(7 DUH QRW DXWKRUL]HG WR
FROOHFWWD[GHEWV
• ,Q DGGLWLRQ WKH UHYHQXH GDWD PXVW EH SXUJHG E\ GLVFRXQWLQJ WD[ UHYHQXHV QRW DWWULEXWDEOH WR
WKHDFWLRQVRIWKHWD[DGPLQLVWUDWLRQVEHLQJVWXGLHG7KXVIRUH[DPSOHLQ(FXDGRU8UXJXD\
3DUDJXD\DQGWKH'RPLQLFDQ5HSXEOLFWKHUHYHQXHIURPFXVWRPVWD[HVDQGJHQHUDORUVSHFLILF
WD[HVRQLPSRUWVKDYHEHHQGLVFRXQWHGVLQFHWKH\DUHKDQGOHGE\FXVWRPVDJHQFLHV
• ,Q VRPH FRXQWULHV ZLWK IHGHUDO V\VWHPV LW PD\ EH LPSRUWDQW WR DQDO\]H WKH SHUIRUPDQFH RI
HDFK WD[ DGPLQLVWUDWLRQ IURP D YHUWLFDO SHUVSHFWLYH LQ RUGHU WR GHWHUPLQH ZKLFK WD[LQJ
DXWKRULWLHV DUH DVVLJQHG WR WKH VXEQDWLRQDO OHYHOV RI JRYHUQPHQW DV LQ WKH FDVHV RI %UD]LO
$UJHQWLQDDQG&RORPELD
• /DVWO\WKHUHPD\EHPDMRUGLIIHUHQFHVLQWKHFRVWVWUXFWXUHRIUHVSHFWLYHWD[DGPLQLVWUDWLRQVLQ
WKH YDULRXV FRXQWULHV $OWKRXJK SD\UROO WHQGV WR EH WKH SUHGRPLQDQW H[SHQGLWXUH LWHP
SXEOLFLW\ DQG LQIRUPDWLRQ GLVVHPLQDWLRQ FRVWV LQYHVWPHQW LQ WHFKQRORJ\ DQG EXLOGLQJV DQG
FRVWVRIRSHUDWLRQDOSURFHVVHVVXFKDVFRDFWLYHFROOHFWLRQPXVWDOVREHWDNHQLQWRDFFRXQW
7KXV LQWHUQDWLRQDO FRPSDULVRQV RI UHYHQXHFROOHFWLRQ FRVWV WKRXJK D XVHIXO LQGLFDWRU IRU
JRYHUQPHQWV LQ DQDO\VLQJ ZD\V WR LPSURYH WKH HIILFLHQF\ RI SXEOLF VSHQGLQJ VKRXOG EH FDOFXODWHG
FDUHIXOO\ WDNLQJ DFFRXQW RI WKH SDUWLFXODULWLHV RI WKH WD[ DGPLQLVWUDWLRQV LQYROYHG 2QO\ WKHQ LV LW
SRVVLEOHWRGUDZREMHFWLYHFRQFOXVLRQVUHJDUGLQJWKHRYHUDOOHIILFLHQF\RIWKHLQVWLWXWLRQFRQFHUQHG
)LJXUH KLJKOLJKWV WKH IDFWWKDW GHVSLWH ZKDW KDV EHHQGHWDLOHG DERYH WKH LQGLFDWRU IRU FRVW RI
FROOHFWLRQGURSSHGQRWLFHDEO\IRUDYHUDJLQJIRUQLQH2(&'PHPEHUFRXQWULHV7KLVVXJJHVWV
WKDWWKHUHLVURRPIRURSWLPL]LQJSXEOLFVSHQGLQJE\UHGXFLQJUHDOFRVWVLQVRPHRI/DWLQ$PHULFD¶VWD[
DGPLQLVWUDWLRQV
,Q WHUPV RI KRZ WKLV LQGLFDWRU KDV EHKDYHG LQ WKH ODVW VHYHUDO \HDUV WKH UHFHQW 2(&' UHSRUW
LQGLFDWHVDGHFOLQLQJFXUYHIRUWKHYDVWPDMRULW\RIWKHWD[DGPLQLVWUDWLRQVLQWKH\HDUVOHDGLQJXS
WR PRVW OLNHO\ DV D UHVXOW RI WKH IDYRXUDEOH PDFURHFRQRPLF HQYLURQPHQW FKDUDFWHUL]HG E\
ULVLQJWD[UHYHQXHVDQGGHFOLQLQJFRVWV6LQFHPLGDQGSDUWLFXODUO\LQKRZHYHUWKHLQGLFDWRU
KDVULVHQLQDQXPEHURIFRXQWULHVSDUDOOHOLQJWKHIDOOLQUHYHQXHVFDXVHGE\WKHJOREDOILQDQFLDOFULVLV
$WWHPSWV WR PDNH LQWHUFRXQWU\ FRPSDULVRQV RI WKH FRVW RI FROOHFWLQJ UHYHQXH LQ /DWLQ $PHULFD
IRU WKH ODVW IHZ \HDUV DUH KLQGHUHG E\ WKH VFDUFLW\ RI LQIRUPDWLRQ 1HYHUWKHOHVV WKH GDWD FRPSLOHG LQ
WDEOHSURYLGHDQLGHDRIWKHGLYHUVLW\ZLWKLQWKHUHJLRQZLWKUHJDUGWRFKDQJHVLQWRWDOFRVWIRUHDFK
FRXQWU\¶V WD[ DGPLQLVWUDWLRQ DOWKRXJK WUHQGV LQ &KLOH DQG 0H[LFR DUH VLPLODU WR WKRVH RI WKH 2(&'
FRXQWULHVZLWKDGHFOLQHLQFRVWVDWOHDVWXSXQWLO

7$%/(
&+$1*,1*&2672)&2//(&7,1*5(9(18($6$3523257,21
2)7$;5(9(18(6,16(/(&7('/$7,1$0(5,&$&28175,(6
%DVHOLQH

$UJHQWLQD
%UD]LO QD QD QD QD QD
&KLOH
FRQWLQXHG

7DEOHFRQFOXGHG

0H[LFR

2(&'
6RXUFH $XWKRUV EDVHG RQ GDWD IURP 7D[ $GPLQLVWUDWLRQ LQ 2(&' DQG 6HOHFWHG 1RQ2(&'

7KHUHODWLYHPDJQLWXGHRIDQGWUHQGVLQDGPLQLVWUDWLYHH[SHQVHVRIWD[FROOHFWLRQDJHQFLHVDVD
SURSRUWLRQ RI QDWLRQDO *'3 FRQVWLWXWH DQRWKHU LPSRUWDQW LQGLFDWRU &RPSDULVRQV EDVHG RQ WKLV
LQGLFDWRU VLGHVWHS WKH LPSDFW RI FKDQJHV LQ WKH OHJDO WD[ EXUGHQ DV ZHOO DV RWKHU HFRQRPLF IDFWRUV
LQKHUHQWLQWKHFRVWRIFROOHFWLRQUDWLR+RZHYHUWKLVLQGLFDWRUDQGLWVWUHQGVPD\EHDIIHFWHGE\RWKHU
H[RJHQRXVIDFWRUVVXFKDVLQYHVWPHQWLQWHFKQRORJ\DQGFRVWVDVVRFLDWHGZLWKLPSOHPHQWLQJQHZWD[HV
²IDFWRUVWKDWPXVWDOVREHFRQVLGHUHG
7DEOHVKRZVHVWLPDWHGGDWDIRUDZLGHUDQJHRI/DWLQ$PHULFDQDQG2(&'FRXQWULHVIRU
UHYHDOLQJFRQVLGHUDEOHLQWHUFRXQWU\GLIIHUHQFHV

7$%/(
727$/63(1',1*2)7$;$'0,1,675$7,216,16(/(&7('
/$7,1$0(5,&$1$1'2(&'&28175,(6
3HUFHQWDJHVRI*'3
/DWLQ$PHULFDQFRXQWULHV &RVWV*'3UDWLR 2(&'FRXQWULHV &RVWV*'3UDWLR

$UJHQWLQD *HUPDQ\
%ROLYLD3OXULQDWLRQDO6WDWHRI $XVWUDOLD
%UD]LO %HOJLXP
&KLOH &DQDGD
&RORPELD 'HQPDUN
&RVWD5LFD 6SDLQ
(FXDGRU 8QLWHG6WDWHV
(O6DOYDGRU )UDQFH
*XDWHPDOD ,WDO\
+RQGXUDV -DSDQ
0H[LFR 1HWKHUODQGV
1LFDUDJXD 3RUWXJDO
3HUX 8QLWHG.LQJGRP
'RPLQLFDQ5HSXEOLF &]HFK5HSXEOLF
8UXJXD\ 6ZHGHQ
$YHUDJH/$FRXQWULHV $YHUDJH2(&'FRXQWULHV
6RXUFH$XWKRUVEDVHGRQGDWDIURP&,$7IRU/DWLQ$PHULFDDQGGDWDIURP7D[$GPLQLVWUDWLRQLQ2(&'DQG6HOHFWHG1RQ

2(&'&RXQWULHV&RPSDUDWLYH,QIRUPDWLRQ6HULHV2(&'

,W LV SRVVLEOH WR FRPSXWH WZR UDWHV IRU WKH FRVW RI FROOHFWLRQ DV D SHUFHQWDJH RI *'3 2QH FRQVLGHUV WKH WRWDO FRVWV RI HDFK WD[
DGPLQLVWUDWLRQ ZKLOH WKH RWKHU FRQVLGHUV RQO\ WKH RSHUDWLRQDO FRVWV PRVW FORVHO\ DVVRFLDWHG ZLWK WKH WDVNV RI FROOHFWLRQ DQG
LQVSHFWLRQ2(&',WLVWKHUHIRUHWREHH[SHFWHGWKDWLIWRWDOVSHQGLQJUDWKHUWKDQRSHUDWLRQDOFRVWVRQO\LVFRQVLGHUHGWKH
UDWLRV ZLOO EH KLJKHU IRU WKRVH FRXQWULHV WKDW KDYH PDGH ODUJH LQYHVWPHQWV GXULQJ D JLYHQ SHULRG DQG VPDOOHU IRU WKRVH WKDW DUH
EHQHILWLQJIURPUHGXFHGFRVWVUHVXOWLQJIURPHDUOLHULQYHVWPHQWVLQWHFKQRORJ\DQGRWKHUSUHYLRXVDFWLRQV

'LVUHJDUGLQJWKHRXWOLHUVD]RQHRIFRQFHQWUDWLRQFDQEHVHHQZLWKFRVWUDWLRVEHWZHHQ
DQG RI *'3 DQG UHJLRQDO DYHUDJHV RI IRU /DWLQ $PHULFD DQG IRU WKH 2(&'
*LYHQ WKH SDUWLFXODULWLHV RI HDFK WD[ DGPLQLVWUDWLRQ LQWHUFRXQWU\ FRPSDULVRQV IRU WKLV LQGLFDWRU
VKRXOG EH LQWHUSUHWHG FDXWLRXVO\ 1HYHUWKHOHVV WKH LQGLFDWRU FDQ EH XVHIXO LQ VLJQDOOLQJ VLJQLILFDQW
GHYLDWLRQV LQ HLWKHU GLUHFWLRQ IURP WKH UHJLRQDO DYHUDJHV HYHQ ZKHUH WKHUH DUH UHDVRQDEOH
H[SODQDWLRQVIRUWKHH[FHSWLRQV
,Q VKRUW LW LV LPSRUWDQW WR UHDOL]H WKDW DOWKRXJK ³ORZHU FRVWV RI FROOHFWLRQ´ FDQ EH HYLGHQFH RI
ORZHU UHODWLYH FRVWV JUHDWHU HIILFLHQF\ DQGRU LPSURYHPHQWV LQ WD[ FRPSOLDQFH JUHDWHU HIILFDF\ WKH
HIIHFW WKDW FHUWDLQ H[RJHQRXV IDFWRUV H[HUW RQ WKHVH SHUIRUPDQFH LQGLFDWRUV UHTXLUHV WKDW WKHVH
LQWHUQDWLRQDOFRPSDULVRQVEHXVHGDQGLQWHUSUHWHGZLWKFDUHOHVWRQHGUDZHUURQHRXVFRQFOXVLRQV
,QGLFDWRUVRIFROOHFWLRQHIILFDF\
$VH[SODLQHGDERYHHYDOXDWLRQVRIWD[DGPLQLVWUDWLRQSHUIRUPDQFHJHQHUDOO\XVHWKHWD[HYDVLRQUDWH
DV DQ RYHUDOO LQGLFDWRU RI HIILFDF\ 7KLV UHIOHFWV WKH IDFW WKDW WKH EDVLF IXQFWLRQ RI WD[FROOHFWLRQ
DJHQFLHVLVWRREWDLQWKHJUHDWHVWSRVVLEOHUHYHQXHLQRUGHUWRFRPHDVFORVHDVSRVVLEOHWRWKHLGHDO
WDUJHWVHWE\WKHWD[ODZ
,QWKLVUHVSHFWDOWKRXJKHVWLPDWHVDUHRIWHQEDVHGRQGLIIHUHQWPHWKRGVDQGDUHFDOFXODWHGIRURQO\
FHUWDLQ WD[HV VXFK DV WKH 9$7 WKH GDWD SUHVHQWHG LQ WKH VHFRQG VHFWLRQ RI WKLV UHSRUW KLJKOLJKW WKH
VHULRXVSUREOHPVWKDWPDQ\WD[DGPLQLVWUDWLRQVIDFHLQUHJDUGWRWKHPRQLWRULQJDQGLQVSHFWLRQQHHGHGWR
DFKLHYHDKLJKGHJUHHRIFRPSOLDQFH
+RZHYHU WKH HIILFDF\ RI D WD[ DGPLQLVWUDWLRQ FDQ DOVR EH PHDVXUHG E\ GHVLJQLQJ LQGLFDWRUV
UHODWHGWRWKHRSHUDWLRQDOSURFHVVHVLQYROYLQJERWKFROOHFWLRQDQGLQVSHFWLRQ
2QHH[DPSOHRIWKLVLVWKHKDQGOLQJRIFUHGLWUHLPEXUVHPHQWVLQFHUWDLQWD[FDVHV²PRVWQRWDEO\
WKH9$7DQGWKHLQFRPHWD[7KHDGPLQLVWUDWLYHSURFHVVHVLQYROYHGDUHLPSRUWDQWLQWHUPVRIWKHKXPDQ
UHVRXUFHV UHTXLUHG $V ZLOO EHFRPH FOHDU LQ WKH IROORZLQJ VHFWLRQ LQ PDQ\ FDVHV WKHVH WDVNV DUH VR
UHVRXUFHLQWHQVLYHWKDWWKHDPRXQWRIUHYHQXHJHQHUDWHGFDQQRWEHMXVWLILHGE\WKHFRVWVLQYROYHG
$QRWKHULQGLFDWRUIRUZKLFKHVWLPDWHVDUHFRQWURYHUVLDOLVWKHUHODWLRQEHWZHHQUHYHQXHREWDLQHGIURP
VSHFLILF LQVSHFWLRQ DFWLYLWLHV DQG WRWDO WD[ UHYHQXHV 7KH XWLOLW\ RI WKLV HIILFDF\ LQGLFDWRU WHQGV WR EH
GRZQSOD\HGVLQFHWKHUHLVDODFNRIFRQVHQVXVRQZKDWPHWKRGRORJ\VKRXOGEHXVHGWRGHWHUPLQHWKHYDOXHV
7DEOHVKRZVWKHYDOXHVRIWZRLQGLFDWRUVUHODWHGWRWKHHIILFDF\RIWD[DGPLQLVWUDWLRQFDOFXODWHG
IRUDJURXSRI2(&'FRXQWULHV&RQVLGHUDEOHGLIIHUHQFHVFDQEHVHHQIURPRQHFDVHWRDQRWKHU

7$%/(
,1',&$72562)7+(&2//(&7,21()),&$&<2)7$;$'0,1,675$7,216
,12(&'&28175,(6
3HUFHQWDJHV
7D[UHLPEXUVHPHQWVDVD 3HUFHQWDJHRIUHYHQXH
&RXQWU\ SHUFHQWDJHRIWRWDOJURVV GHULYHGIURPLQVSHFWLRQDVD
UHYHQXHFROOHFWHG SHUFHQWDJHRIWRWDOUHYHQXH
$UJHQWLQD QD

$XVWULD
%HOJLXP
&DQDGD
)LQODQG
5HSXEOLFRI.RUHD
/X[HPERXUJ
FRQWLQXHG

7DEOHFRQFOXGHG
7D[UHLPEXUVHPHQWVDVD 3HUFHQWDJHRIUHYHQXH
&RXQWU\ SHUFHQWDJHRIWRWDOJURVV GHULYHGIURPLQVSHFWLRQDVD
UHYHQXHFROOHFWHG SHUFHQWDJHRIWRWDOUHYHQXH
0H[LFR

1HZ=HDODQG
6SDLQ
6ZHGHQ
8QLWHG6WDWHV
$YHUDJH
6RXUFH$XWKRUVEDVHGRQGDWDIURP7D[$GPLQLVWUDWLRQLQ2(&'DQG6HOHFWHG1RQ2(&'

8QIRUWXQDWHO\ WKHUH DUH QR FRQVROLGDWHG VWDWLVWLFV IRU WKHVH YDULDEOHV IRU /DWLQ $PHULFDQ
FRXQWULHV 7KHUH DUH QRQHWKHOHVV LQGLFHV ZKLFK ZLWK VXIILFLHQW FRRUGLQDWLRQ DQG FROODERUDWLRQ DPRQJ
DOORIWKHUHJLRQ¶VFRXQWULHVFRXOGVHUYHDVDEDVLVIRUHVWDEOLVKLQJPDQDJHPHQWSODQVDVLQWKHFDVHRI
$),3ZLWKVWUDWHJLFREMHFWLYHVDQGLQGLFDWRUVWRPHDVXUHUHVXOWV,WZRXOGEHLQWHUHVWLQJIRUH[DPSOH
WR REWDLQ GHWDLOHG LQIRUPDWLRQ IRU HDFK QDWLRQDO WD[FROOHFWLRQ DJHQF\ RQ WKH GHJUHH RI YROXQWDU\
FRPSOLDQFH LQ WHUPV RI ERWK WKH VXEPLVVLRQ RI VZRUQ WD[ VWDWHPHQWV DQG WKH WLPHO\ SD\PHQW RI WD[
REOLJDWLRQVDVZHOODVVWDWLVWLFDOLQIRUPDWLRQRQWKHVSHFLILFLQVSHFWLRQDQGFRDFWLYHFROOHFWLRQDFWLRQV
XVHG$),3
,QGLFDWRUVRIKXPDQUHVRXUFHVHPSOR\HG
,Q DGGLWLRQ WR WKH ILQDQFLDO UHVRXUFHV DQG FDSLWDO UHTXLUHG WR FDUU\ RXW WKHLU DVVLJQHG WDVNV WD[
DGPLQLVWUDWLRQVQHHGDQDGGLWLRQDODQGLQGLVSHQVDEOHHOHPHQWLQRUGHUWRPHHWWKHLUVWUDWHJLFREMHFWLYHV
FRPSHWHQW SHUVRQQHO WR FRQGXFW WKHLU DVVLJQHG WDVNV DQG IXQFWLRQV LQ WKH PRVW HIIHFWLYH PDQQHU DQG
ZLWKWKHORZHVWFRVWSRVVLEOH
,QWKLVUHJDUGWKHUHDUHPDMRUGLIIHUHQFHVEHWZHHQWKHYDULRXV/DWLQ$PHULFDQWD[DGPLQLVWUDWLRQV
LQWHUPVRIWKHUHODWLRQEHWZHHQQXPEHURISHUVRQVUHJXODUO\HPSOR\HGDQGWKHDPRXQWRIWD[UHYHQXH
WKH\ FROOHFW DV D SHUFHQWDJH RI *'3 $UJHQWLQD %UD]LO DQG 0H[LFR IRU H[DPSOH HDFK KDYH RYHU
HPSOR\HHVZKLOHPRVWRIWKHUHJLRQ¶VRWKHUFRXQWULHVZLWKWKHH[FHSWLRQRI3HUXDQG&RORPELD
KDYHQRPRUHWKDQHDFK
)LJXUH VKRZV WKH UHJLRQ¶V FRXQWULHV UDQNHG DFFRUGLQJ WR WKH WD[ UHYHQXH FROOHFWHG E\ WKHLU
UHVSHFWLYH DJHQFLHV FRQVLGHULQJ RQO\ WKH UHYHQXH IRU ZKLFK WKH\ DUH UHVSRQVLEOH XQGHU FXUUHQW
OHJLVODWLRQ$VWKHILJXUHGHPRQVWUDWHVWKHQXPEHURISHRSOHHPSOR\HGDWDQLQVWLWXWLRQGRHVQRWDSSHDU
WREHFRUUHODWHGZLWKWKHDPRXQWRIUHYHQXHFROOHFWHGZKLFKLVLQVWHDGLQIOXHQFHGE\RWKHUVIDFWRUVVXFK
DVWKHQXPEHURIWD[SD\HUVDQGWKHLUJHRJUDSKLFDOGLVSHUVLRQDFURVVDQDWLRQ¶VWHUULWRU\
:KHQ WKH QXPEHU RI HPSOR\HHV SHU WD[ EXUGHQ DV D SHUFHQWDJH RI *'3 LV FDOFXODWHG KRZHYHU
DQGFRPSDUHGZLWKUHSUHVHQWDWLYH2(&'FRXQWULHVILJXUHLWLVFOHDUWKDWWKHDYHUDJHYDOXHVIRUWKLV
LQGLFDWRU YDU\ JUHDWO\ LQ /DWLQ $PHULFD RQH SHUFHQWDJH SRLQW RI WD[ EXUGHQ LV JHQHUDWHG E\
HPSOR\HHV ZKLOH LQ WKH 2(&' FRXQWULHV HPSOR\HHV DUH UHTXLUHG WR DFKLHYH WKH VDPH UHVXOW
0H[LFRLVDQH[FHSWLRQLQ/DWLQ$PHULFDLQWKDWLWVUDWLRLVPXFKKLJKHUWKDQWKHUHJLRQDODYHUDJHDQG
KLJKHUWKDQPDQ\2(&'FRXQWULHVZKLOHLWVWD[EXUGHQIDOOVZHOOVKRUWRILWVSRWHQWLDODQGLVIDUIURP
LQWHUQDWLRQDODYHUDJHVFRQVLGHULQJWKHFRXQWU\¶VOHYHORIGHYHORSPHQW

),*85(
180%(52)(03/2<((6$1'7$;%85'(1&2//(&7('%<7+(7$;
$'0,1,675$7,2162)/$7,1$0(5,&$1&28175,(6

7D[DGPLQLVWUDWLRQRIILFLDOV
7D[LQFRPHLQRI*'3

&RORPELD
&KLOH
&RVWD5LFD
*XDWHPDOD
3HUX
$UJHQWLQD
3OXU6WDWHRI
8UXJXD\
3DQDPD
1LFDUDJXD
(FXDGRU
3DUDJXD\
%UD]LO
+RQGXUDV
'RPLQLFDQ5HS
(O6DOYDGRU
%ROLYLD
1XPEHURIRIILFLDOV 7D[EXUGHQ

6RXUFH$XWKRUVEDVHGRQGDWDIURP(&/$&DQG&,$7
1RWH)RUPRVWRIWKHFRXQWULHVRQO\LQWHUQDOWD[UHYHQXHVLQUHODWLRQWR*'3²ZKLFKDUHRYHUVHHQH[FOXVLYHO\E\
WKH WD[ DGPLQLVWUDWLRQV² DUH WDNHQ LQWR DFFRXQW H[FHSW LQ WKH FDVHV RI &RORPELD *XDWHPDOD +RQGXUDV DQG
0H[LFRZKHUHFXVWRPVUHYHQXHVDUHLQFOXGHGDQGIRU$UJHQWLQD%UD]LODQG3HUXZKHUHLQDGGLWLRQWRFXVWRPV
GXWLHVVRFLDOVHFXULW\FRQWULEXWLRQVDUHLQFOXGHG

),*85(
180%(52)(03/2<((63(53(5&(17$*(32,172)7$;%85'(1&2//(&7('
%<7$;$'0,1,675$7,216,1/$7,1$0(5,&$1$1'2(&'&28175,(6

$YHUDJH 2(&'

$YHUDJH /$

)UDQFH
86$
&RORPELD
&KLOH
&RVWD5LFD
*XDWHPDOD
0H[LFR
3HUX
$UJHQWLQD
6SDLQ
,WDO\
%ROLYLD3OXU6WDWHRI
8UXJXD\
1LFDUDJXD
&DQDGD
(FXDGRU
3RUWXJDO
3DQDPD
3DUDJXD\
*HUPDQ\
1HWKHUODQGV
8QLWHG.LQJGRP
'RPLQLFDQ5HS
%UD]LO
+RQGXUDV
(O6DOYDGRU

6RXUFH$XWKRUVEDVHGRQGDWDIURP&,$7DQG2(&'
$QRWKHUGLPHQVLRQWKDWFDQEHDQDO\VHGTXDQWLWDWLYHO\E\FRQVWUXFWLQJLQGLFDWRUVLVWKHUHODWLYH
XVHRIVWDIIE\HDFKWD[DGPLQLVWUDWLRQLQUHODWLRQWRWKHQXPEHURIWD[SD\HUVLQDJLYHQWD[V\VWHP7KH

SUREOHP LQ DSSO\LQJ WKLV DSSURDFK WR /DWLQ $PHULFDQ FRXQWULHV LV WKH GLVSHUVLRQ RU ODFN RI LQIRUPDWLR
²DQGZKHQDYDLODEOHWKHODFNRIFRPSDUDELOLW\²RQWKHQXPEHURIWD[SD\HUV
*LYHQ WKHVH OLPLWDWLRQV DQG GHVSLWH WKH RQJRLQJ SUREOHPV RI XQHPSOR\PHQW DQG WD[ HYDVLRQ LQ
PDQ\ /DWLQ $PHULFDQ FRXQWULHV RQH FDQ DVVXPH WKDW WKH HFRQRPLFDOO\ DFWLYH SRSXODWLRQ ($3 LV D
UHDVRQDEOHDSSUR[LPDWLRQRIWKHSRWHQWLDOWD[EDVHLQDQ\WD[V\VWHPLQZKLFKWKHZRUNIRUFHLVWD[HG
7RWDO SRSXODWLRQ ILJXUHV FDQ DOVR EH XVHG DV D FRPPRQ GHQRPLQDWRU IRU LQWHUFRXQWU\ FRPSDULVRQV
WKRXJK DGGHG FDXWLRQ PXVW EH WDNHQ ZKHQ GUDZLQJ DQ\ FRQFOXVLRQV VLQFH WKH UHVXOWV PD\ GHSHQG RQ
PDQ\IDFWRUVXQUHODWHGWRWD[LVVXHV
$VWDEOHVKRZVWKHUHDUHRQDYHUDJHVLJQLILFDQWO\PRUHHFRQRPLFDOO\DFWLYHSHUVRQVSHUWD[
DGPLQLVWUDWLRQ HPSOR\HH LQ /DWLQ $PHULFDQ FRXQWULHV WKDQ LQ WKH VHOHFWHG 2(&' FRXQWULHV ,Q RWKHU
ZRUGV HDFK /DWLQ $PHULFDQ WD[ DGPLQLVWUDWLRQ HPSOR\HH LV UHVSRQVLEOH IRU PRUH PHPEHUV RI WKH
ZRUNIRUFHRQDYHUDJHWKDQDUHWKHFRUUHVSRQGLQJHPSOR\HHVLQGHYHORSHGFRXQWULHV
7KXVZKLOHWKHUHLVDQDYHUDJHRIRQHWD[DGPLQLVWUDWLRQHPSOR\HHSHUHFRQRPLFDOO\DFWLYH
SHUVRQVDQGSHULQKDELWDQWVLQQLQH2(&'FRXQWULHVWKHFRUUHVSRQGLQJILJXUHIRU/DWLQ$PHULFD
LVRQHHPSOR\HHSHUHFRQRPLFDOO\DFWLYHSHUVRQVDQGSHULQKDELWDQWV

7$%/(
,1',&$72562)86(2)3(56211(/,17$;$'0,1,675$7,216
2)/$7,1$0(5,&$1$1'2(&'&28175,(6
(FRQRPLFDOO\DFWLYH 1XPEHURILQKDELWDQWVSHU
&RXQWU\ SRSXODWLRQ($3SHUWD[ WD[DGPLQLVWUDWLRQ
DGPLQLVWUDWLRQHPSOR\HH HPSOR\HH
$UJHQWLQD

%UD]LO
&KLOH
&RORPELD
&RVWD5LFD
(FXDGRU
(O6DOYDGRU
*XDWHPDOD
+RQGXUDV
0H[LFR
1LFDUDJXD
3DQDPD
3DUDJXD\
3HUX
'RPLQLFDQ5HSXEOLF
8UXJXD\
$YHUDJH/$FRXQWULHV
*HUPDQ\
&DQDGD
6SDLQ
FRQWLQXHG

7DEOHFRQFOXGHG
(FRQRPLFDOO\DFWLYH 1XPEHURILQKDELWDQWVSHU
&RXQWU\ SRSXODWLRQ($3SHUWD[ WD[DGPLQLVWUDWLRQ
DGPLQLVWUDWLRQHPSOR\HH HPSOR\HH
8QLWHG6WDWHV
)UDQFH
,WDO\
1HWKHUODQGV
3RUWXJDO
8QLWHG.LQJGRP
$YHUDJH2(&'FRXQWULHV
6RXUFH$XWKRUVEDVHGRQGDWDIURP(&/$&SRSXODWLRQDQGODERUIRUFH&,$7DQG2(&'

,Q WHUPV RI WKH W\SHV RI LQGLFDWRUV GLVFXVVHG DERYH WKH GLIIHUHQFHV PXVW EH YLHZHG LQ UHODWLYH
WHUPV DQG WKH SUDFWLFDO FRQVWUDLQWV PXVW EH WDNHQ LQWR DFFRXQW XVLQJ FDXWLRQ LQ GUDZLQJ DQ\ GHWDLOHG
FRQFOXVLRQVEDVHGRQLQWHUFRXQWU\FRPSDULVRQV
2QRQHKDQGLWPLJKWEHWKRXJKWWKDWORZHUHPSOR\HHSRSXODWLRQUDWLRVZKHWKHUWRWDOSRSXODWLRQ
RU($3ZRXOGFRQWULEXWHWRPRUHHIIHFWLYHLQVSHFWLRQDQGWD[SD\HUVHUYLFHVDQGZRXOGWKXVUHGXFHWD[
HYDVLRQ+RZHYHUWKHFOHDUO\YLVLEOHYDULDELOLW\EHWZHHQWD[DGPLQLVWUDWLRQVLQWKLVUHVSHFWUHODWHVWRD
FRPELQDWLRQ RI RWKHU IDFWRUV $ SURSHU XQGHUVWDQGLQJ WKHUHIRUH UHTXLUHV D FDUHIXO DQDO\VLV RI HDFK
LQGLYLGXDOFDVH
1RWZLWKVWDQGLQJ WKH LPSRUWDQFH DVVLJQHG WR GHYHORSLQJ PHDVXUHV DQG LQGLFDWRUV WR IDFLOLWDWH
FRPSDUDWLYH HYDOXDWLRQV RI WD[ DGPLQLVWUDWLRQ DW WKH LQWHUQDWLRQDO OHYHO WKH H[HUFLVH ZLOO QHFHVVDULO\
LQYROYH IRU HDFK WD[FROOHFWLRQ DJHQF\ D ³FRQFHSWXDO WULDG´ L WKH DYDLODELOLW\ DQG PDQDJHPHQW RI
WHFKQLFDOLQVWUXPHQWVWRHQVXUHHIILFDF\LLWKHDYDLODELOLW\DQGXVHRIVNLOOHGKXPDQUHVRXUFHVWRFDUU\
RXWWKHDVVLJQHGIXQFWLRQVDQGLLLWKHDYDLODELOLW\RIDQGFDSDFLW\WRPDQDJHYLWDOILQDQFLDOUHVRXUFHV
VRDVWRHQVXUHWKDWVWUDWHJLFREMHFWLYHVDUHDFKLHYHGZLWKWKHOHDVWSRVVLEOHFRVW
7KH WDVN RI GHYHORSLQJ LQGLFDWRUV DQG VWDWLVWLFV WR PDNH FRPSDUDWLYH HYDOXDWLRQV RI /DWLQ
$PHULFDQ WD[ DGPLQLVWUDWLRQV LV D SHUIHFWO\ IHDVLEOH DOEHLW DUGXRXV XQGHUWDNLQJ ²GLIILFXOW JLYHQ WKH
DEVHQFH RI DGHTXDWH UHOHYDQW LQIRUPDWLRQ FRYHULQJ LQGLYLGXDO FRXQWULHV DQG WLPH SHULRGV 7KLV W\SH RI
LQIRUPDWLRQ ZKLFK LV DYDLODEOH LQ GHYHORSHG FRXQWULHV LV HVVHQWLDO LQ GUDZLQJ FRQFOXVLRQV FRQFHUQLQJ
FKDQJHVRYHUDJLYHQSHULRGRIWLPH
7KHUHODWLRQEHWZHHQWKHLQGLFDWRUVSUHVHQWHGLQWKLVUHSRUWDQGWKHHVWLPDWHGOHYHOVRIHYDVLRQLV
FRPSOH[ 7KHUH FXUUHQWO\ DUH QR KRPRJHQHRXV VWDWLVWLFV UHJDUGLQJ OHYHOV RI QRQFRPSOLDQFH DW WKH
UHJLRQDOOHYHORQO\ILJXUHVIRULQGLYLGXDOFRXQWULHVDUHDYDLODEOHDQGWKHVHDUHJHQHUDOO\OLPLWHGWRWKH
9$7ZLWKIDUOHVVLQIRUPDWLRQDYDLODEOHRQLQFRPHWD[HV²WKHDUHDLQZKLFKWKHUHDUHSUHVXPHGWREH
KLJKHUOHYHOVRIHYDVLRQ
0RUHRYHUHYDVLRQPHDVXUHGDVWKHJDSEHWZHHQSRWHQWLDOUHYHQXHDQGDFWXDOUHYHQXHGHSHQGVQRW
RQO\RQWKHWD[DGPLQLVWUDWLRQ¶VHIILFLHQF\DQGHIILFDF\LQLQVSHFWLRQPRQLWRULQJDQGWD[SD\HUHGXFDWLRQ
EXWDOVRRQDVSHFWVRIWD[SROLF\VXFKDVWKHGHILQLWLRQRIWKHWD[EDVHUDWHVDSSOLHGDQGWD[H[HPSWLRQV
/DVWO\ DV H[SODLQHG DERYH HYDOXDWLQJ WD[ DGPLQLVWUDWLRQV DV D VWHS WRZDUGV DFKLHYLQJ JUHDWHU
HIILFLHQF\DQGHIILFDF\DQGEHWWHUHQIRUFHPHQWRIHVWDEOLVKHGWD[ODZVLVDSUHUHTXLVLWHWRIRUPXODWLQJ
WKHRSWLPDOSROLF\DSSURDFKDQGGHWHUPLQLQJWKHUHVRXUFHVWKDWDUHWREHHPSOR\HGDQGWKHUHVXOWVWREH
VRXJKW+RZHYHU HYDVLRQ DOVR LQYROYHV VXEMHFWLYH REVWDFOHV WR WD[SD\HU FRPSOLDQFH ²D VHW RI IDFWRUV
FRPPRQO\ JURXSHG XQGHU WKH WHUP ³WD[ PRUDOH´ ,W LV LQ WKLV DUHD WKDW WKH TXHVWLRQ RI YROXQWDU\
FRPSOLDQFHDVVXPHVPDMRULPSRUWDQFHDVSDUWRIWKHILVFDOSDFWEHWZHHQWKH6WDWHDQGLWVFLWL]HQV7KH
HIIRUWVRIWD[FROOHFWLRQDJHQFLHVVKRXOGWKHUHIRUHUHIOHFWWKHVHWZRFRPSOHPHQWDU\SXUSRVHV

% $SSURDFKHVWRPRGHUQL]LQJWD[DGPLQLVWUDWLRQVLQWKHUHJLRQ
&KRRVLQJWKHULJKWFRXUVH
,Q WKH ODVW VHYHUDO \HDUV WKH GLUHFWRUV RI WD[FROOHFWLRQ DJHQFLHV KDYH EHHQ JLYHQ JUHDWHU DXWRQRP\
UHVSRQVLELOLW\DQGIOH[LELOLW\LQVHOHFWLQJDQDSSURDFKIRFXVLQJRQUHVXOWVDQGRQHVWDEOLVKLQJDZRUNDEOH
EXGJHWEXWZLWKDSDUDOOHOH[SHFWDWLRQRILQFUHDVHGDFFRXQWDELOLW\IRUSHUIRUPDQFH
,Q WKLV UHVSHFW WKH UHSRUW ³)LVFDO %OXHSULQWV RQ 7D[ DQG &XVWRPV $GPLQLVWUDWLRQ´ E\ WKH
(XURSHDQ&RPPLVVLRQ7D[DWLRQDQG&XVWRPV8QLRQVKLJKOLJKWVVL[VWUDWHJLFREMHFWLYHVIRUWD[
DGPLQLVWUDWLRQVLQDGGLWLRQWRSURYLGLQJLQGLFDWRUVIRUHDFK7KHREMHFWLYHVDUHWR
• *XDUDQWHHDGHTXDWHDXWRQRP\IRUWKHWD[DGPLQLVWUDWLRQ
∗ ,VWKHDXWRQRP\RIWKHWD[DGPLQLVWUDWLRQJXDUDQWHHGE\ODZ"
∗ $UH WKHUH OHJDO SURYLVLRQV FRYHULQJ WKH UHSRUWV UHTXLUHG IURP WKH KHDG RI WKH WD[
DGPLQLVWUDWLRQ"
∗ ,V WKH DXWRQRP\ RI WKH WD[ DGPLQLVWUDWLRQ UHIOHFWHG LQ LWV RUJDQL]DWLRQDO VWUXFWXUH DQG
RSHUDWLRQDOUHVSRQVLELOLWLHV"
∗ 'RHV WKH WD[ DGPLQLVWUDWLRQ KDYH VXIILFLHQW IUHHGRP WR GHVLJQ DQG LPSOHPHQW LWV RZQ
SROLFLHV"
∗ ,VWKHUHDFOHDUGHVFULSWLRQRIWKHUHVSRQVLELOLWLHVRIWKHUHOHYDQWFHQWUDOUHJLRQDODQGORFDO
HQWLWLHV"
• (QVXUHWKDWWKHREOLJDWLRQVRIWKHWD[DGPLQLVWUDWLRQDUHFOHDUO\UHIOHFWHGLQLWVPLVVLRQYLVLRQ
DQGREMHFWLYHV
∗ $UHWKHWDVNVRIWKHWD[DGPLQLVWUDWLRQDOLJQHGZLWKLWVPLVVLRQDQGYLVLRQ"
∗ 'RHVWKHWD[DGPLQLVWUDWLRQGHYHORSVWUDWHJLHVZLWKREMHFWLYHVEHQFKPDUNVDQGRSHUDWLRQDO
SODQV"
∗ $UH WD[SD\HUV DQG VWDNHKROGHUV DV ZHOO DV HPSOR\HHV IDPLOLDU ZLWK WKH WD[
DGPLQLVWUDWLRQ¶VPLVVLRQ"
• 3URYLGHWKHWD[DGPLQLVWUDWLRQLWVRZQRUJDQL]DWLRQDOVWUXFWXUHDQGWKHFRPSHWHQFLHVLWQHHGV
WRIXQFWLRQHIIHFWLYHO\DQGHIILFLHQWO\
∗ 'RHVWKHVWUXFWXUHRIWKHWD[DGPLQLVWUDWLRQSHUPLWLWWRFDUU\RXWLWVWDVNVDQGREOLJDWLRQV
HIIHFWLYHO\"
∗ 'RHV WKH WD[ DGPLQLVWUDWLRQ¶V RUJDQL]DWLRQDO VWUXFWXUH DOORZ IRU GHFHQWUDOL]LQJ
UHVSRQVLELOLWLHVVRWKDWGHFLVLRQVRQWD[SD\HUVDUHPDGHDWWKHPRVWDSSURSULDWHOHYHO"
• 3URYLGH WKH UHVRXUFHV WKDW WKH WD[ DGPLQLVWUDWLRQ QHHGV WR LPSOHPHQW DQG PDQDJH WKH WD[
V\VWHP
∗ 'RHV WKH WD[ DGPLQLVWUDWLRQ KDYH WKH UHVRXUFHV DQG IXQGV QHFHVVDU\ WR HQVXUH
LPSOHPHQWDWLRQRILWVSROLF\DQGWRSHUIRUPLWVGXWLHV"
∗ 'RWKHWD[DGPLQLVWUDWLRQ¶VUHVRXUFHVGHULYHIURPDEXGJHWWKDWLVWKHUHVXOWRIDGLDORJXH
DVWRWKHVSHFLILFSHUIRUPDQFHJRDOVRIWKHDJHQF\"
∗ ,VWKHWD[DGPLQLVWUDWLRQ¶VILQDQFLDOSODQQLQJEDVHGRQDPXOWL\HDUEXGJHWWKDWIDFLOLWDWHV
WKHLPSOHPHQWDWLRQRILWVVWUDWHJ\DQGSURYLGHVIRUWKHFDUU\LQJIRUZDUGVXUSOXVIXQGV"

• 3URYLGH WKH UHYHQXH FROOHFWLRQ DJHQF\ ZLWK D VWDEOH OHJDO IUDPHZRUN WR HQVXUH SURSHU
DGPLQLVWUDWLRQDQGH[HFXWLRQRIWD[REOLJDWLRQV
∗ ,V WKH WD[ DGPLQLVWUDWLRQ FRPSHWHQW WR GHYHORS OHJLVODWLRQ UHODWLQJ WR HYDOXDWLRQ WD[
FROOHFWLRQDQGWD[HQIRUFHPHQW"
∗ 'RHV WKH ODZ JLYH WKH WD[ DGPLQLVWUDWLRQ VXIILFLHQW SRZHU WR HIIHFWLYHO\ PHHW DOO RI LWV
UHVSRQVLELOLWLHV"
• +ROG WKH WD[ DGPLQLVWUDWLRQ DFFRXQWDEOH IRU LWV RSHUDWLRQV DQG HQVXUH WKDW LW LV VXEMHFW WR
RQJRLQJPRQLWRULQJDQGHYDOXDWLRQ
∗ 'RHVWKHWD[DGPLQLVWUDWLRQKDYHDQLQWHUQDODXGLWV\VWHP"
∗ 'RHVDQLQGHSHQGHQWH[WHUQDOLQVWLWXWLRQDXGLWWKHRSHUDWLRQVRIWKHWD[DGPLQLVWUDWLRQDQG
HYDOXDWHLWVSHUIRUPDQFH"
6RPH RI WKH UHJLRQ¶V WD[ DGPLQLVWUDWLRQV KDYH LQGHHG PDGH SURJUHVV LQ WKH LQVWLWXWLRQDO UHDOP
ZLWK UHJDUG WR LVVXHV VXFK DV FUHDWLQJ PDQDJHPHQW SODQV HVWDEOLVKLQJ REMHFWLYHV DQG FRQGXFWLQJ
RQJRLQJSHUIRUPDQFHHYDOXDWLRQV
$UJHQWLQD¶V$),3IRUH[DPSOHIRUPXODWHVDQQXDOPDQDJHPHQWSODQVWKDWVHWRYHUDOOSHUIRUPDQFH
JRDOV DQG VWUDWHJLF REMHFWLYHV ZKLFK VHUYH DV SDUDPHWHUV IRU WKH IXQFWLRQLQJ RI WKH DJHQF\ 7KH
JXLGHOLQHVFDOOIRUPRQLWRULQJWD[FRPSOLDQFHSURYLGLQJWD[SD\HUVHUYLFHVHQVXULQJLQVWLWXWLRQDOTXDOLW\
DQGWUDQVSDUHQF\DQGLQWHUDFWLQJZLWKFLWL]HQVDVZHOODVRWKHUGRPHVWLFDQGIRUHLJQHQWLWLHVERWKSXEOLF
DQGSULYDWH
(DFK ILVFDO \HDU HVWLPDWHV IRU D GHWDLOHG VHW RI PRUH WKDQ TXDQWLWDWLYH LQGLFDWRUV DUH PDGH
7KHVH UHODWH WR WKH SDUDPHWHUV WKDW DUH WR EH PRQLWRUHG DQG PHDVXUH WUDQVSDUHQF\ DV ZHOO DV
SUHGLFWDELOLW\ DQG KHOS SURYLGH D EHWWHU XQGHUVWDQGLQJ RI WKH WUHQGV RFFXUULQJ ZLWK WKH FRXQWU\¶V WD[
DGPLQLVWUDWLRQ
,Q0H[LFR6$7DOVRIUDPHVLWVDFWLYLWLHVZLWKLQWKHFRQWH[WRIDVHWRITXDQWLWDWLYHJRDOVZKLFK
DUH SXEOLVKHG E\ WKH 6HFUHWDULDW RI )LQDQFH DQG 3XEOLF &UHGLW 6+&3 LQ LWV 4XDUWHUO\ 5HSRUW RQ WKH
(FRQRPLF6LWXDWLRQ3XEOLF)LQDQFHVDQG3XEOLF'HEW7KLVLQFOXGHVWHQLQGLFDWRUVWKDWPHDVXUHGLIIHUHQW
DVSHFWVRIVWUDWHJLFHIILFLHQF\DQGHIILFDF\DVZHOODVDVVHVVLQJWKHTXDOLW\RILQVWLWXWLRQDOPDQDJHPHQW
DQGWD[SD\HUVHUYLFHV6DPDQLHJR%UHDFKDQGRWKHUV
7KHVHPHWKRGVDUHLPSRUWDQWHOHPHQWVLQHIIHFWLYH WD[DGPLQLVWUDWLRQV ,QWKH PHGLXP WHUPH[SDQGHG
XVHRIWKHVHLQVWLWXWLRQDOPDQDJHPHQWWRROVLQDOORIWKHFRXQWULHV¶WD[FROOHFWLRQDJHQFLHVFRXOGKHOSLQ
FUHDWLQJ D VL]HDEOH DQG UHODWLYHO\ KRPRJHQHRXV ERG\ RI VWDWLVWLFDO LQIRUPDWLRQ WKXV LQFUHDVLQJ
WUDQVSDUHQF\DQGIDFLOLWDWLQJLQWHUFRXQWU\FRPSDULVRQVXVLQJVSHFLILFSHUIRUPDQFHLQGLFDWRUV

6HHIRUH[DPSOH$),3³3ODQGH*HVWLyQ´DWZZZDILSJRYDU

9,,, 6XPPDU\DQGFRQFOXVLRQV
• 7KH ODVW \HDUV KDYH VHHQ SURIRXQG VRFLDO HFRQRPLF DQG
LQVWLWXWLRQDOFKDQJHVLQ/DWLQ$PHULFDZLWKFRQVHTXHQWHIIHFWV
RQ WKH FRXQWULHV¶ WD[ SROLFLHV 7D[ EXUGHQ KDV LQFUHDVHG
VXEVWDQWLDOO\ GULYHQ E\ HFRQRPLF JURZWK LQFUHDVHG
PDFURHFRQRPLF VWDELOLW\ KLJKHU FRPPRGLW\ SULFHV DQG WKH
LPSDFWIURPWD[UHIRUPVDGRSWHGLQWKHHDUO\V
• 7KRVH UHIRUPV IRFXVHG SULPDULO\ RQ JHQHUDWLQJ LQFUHDVHG WD[
UHYHQXHV LQ RUGHU WR PHHW WKH JURZLQJ GHPDQG IRU SXEOLF
VSHQGLQJ E\ VWUHQJWKHQLQJ WKH 9$7 DV WKH SUHGRPLQDQW WD[
ZLWKLQ /DWLQ $PHULFD¶V WD[ V\VWHPV +RZHYHU WKH PDUNHG
HPSKDVLV RQ LQGLUHFW WD[DWLRQ WKH QDUURZ GLUHFWWD[ EDVHV DQG
WKH FXUUHQW VWDWH RI WD[ DGPLQLVWUDWLRQ KDYH OLPLWHG FRXQWULHV¶
DELOLW\ WR DGRSW RWKHU LPSRUWDQW SROLF\ REMHFWLYHV UHODWHG WR
HTXLW\DQGVWDELOL]DWLRQ
• 7KH DYHUDJH WD[ EXUGHQ LQ /DWLQ $PHULFD LQFOXGLQJ VRFLDO
VHFXULW\ FRQWULEXWLRQV KDV LQFUHDVHG VWHDGLO\ RYHU WKH ODVW WZR
GHFDGHV,QDEVROXWHWHUPVWKHLQFUHDVHZDVQHDUO\RI*'3
ZKLOHLWKDVJURZQFRPSDUHGWRWKHDYHUDJH
• $WWKHVDPHWLPHDQXPEHURIFRXQWULHVKDYHPDQDJHGWRREWDLQ
UHYHQXHIURPRWKHUVRXUFHVVXFKDVQDWXUDOUHVRXUFHH[WUDFWLRQ
$UJHQWLQD 3OXULQDWLRQDO 6WDWH RI %ROLYLD &KLOH &RORPELD
(FXDGRU 0H[LFR 3HUX DQG WKH %ROLYDULDQ 5HSXEOLF RI
9HQH]XHOD UHYHQXH IURP XVH RI WKH 3DQDPD &DQDO 3DQDPD
DQG WR D OHVVHU H[WHQW ELODWHUDO DQG PXOWLODWHUDO GRQDWLRQV WKDW
KHOS UDLVH JRYHUQPHQWV¶ UHYHQXHV +DLWL +RQGXUDV DQG
1LFDUDJXD $OWKRXJK WKHVH UHVRXUFHV ILQDQFH SXEOLF VSHQGLQJ
DQG VHUYLFHV WKHLU ³WD[ EDVHV´ WHQG WR EH PRUH YRODWLOH WKDQ
WUDGLWLRQDORQHV

0RUHRYHU ZKHQ WKH UHYHQXH LV GHULYHG IURP QRQUHQHZDEOH ILQLWH QDWXUDO UHVRXUFHV WKH
LVVXHVRIILVFDOVXVWDLQDELOLW\DQGLQWHUJHQHUDWLRQDOHTXLW\FRPHLQWRSOD\
• %H\RQG LPSURYLQJ WD[ FROOHFWLRQV WKURXJK FKDQJHV LQ WKH WD[ VWUXFWXUH WKH UHJLRQ¶V WD[
V\VWHPVKDYHKDGGLIILFXOW\LQPDNLQJDGYDQFHVLQVROYHQF\HIILFLHQF\DQGHTXLW\RZLQJWRD
QXPEHU RI SUREOHPV L WD[ EXUGHQV EHORZ SRWHQWLDO OHYHOV DQG VXEMHFW WR KLJK YRODWLOLW\ LL
XQEDODQFHGWD[VWUXFWXUHVELDVHGWRZDUGVLQGLUHFWWD[HVLLLQDUURZWD[EDVHVGXHWRQXPHURXV
H[HPSWLRQVFKHPHVDQGWD[SULYLOHJHVDQGLYKLJKUDWHVRIHYDVLRQZKLFKDIIHFWQRWRQO\WKH
DPRXQWRIUHYHQXHREWDLQHGEXWDOVRWKHGLVWULEXWLYHHTXLW\DQGHFRQRPLFHIILFLHQF\RIWKHWD[
V\VWHPVLQWKHUHJLRQ¶VFRXQWULHV
• 2QHRIWKHFRQVWUDLQWVLQDQDO\]LQJWD[HYDVLRQLQWKHUHJLRQLVWKHVFDUFLW\RIGHWDLOHGVWXGLHV
RQ WKH SKHQRPHQRQ SDUWLFXODUO\ ZLWK UHJDUG WR GLUHFW WD[HV DQG WKH ODFN RI D FRPPRQ
PHWKRGRORJ\WKDWZRXOGDOORZIRULQWHUFRXQWU\FRPSDULVRQV$OWKRXJKUHVHDUFKRQWKH9$7
KDV SURJUHVVHG GXH WR WKH GHYHORSPHQW RI D FRPPRQ PHWKRGRORJ\ WKHUH UHPDLQ VHULRXV
GLIILFXOWLHVDQGOLPLWDWLRQVLQDWWHPSWLQJWRFRPSDUHGDWDRQLQFRPHWD[HYDVLRQ
• $QDO\VLV RI H[LVWLQJ VWXGLHVRI HYDVLRQ LQ WKH UHJLRQ QRQHWKHOHVV PDNH SRVVLEOH D QXPEHU RI
FRQFOXVLRQV )LUVW HYDVLRQ UDWHV IRU ERWK WKH LQFRPH WD[ DQG WKH 9$7 ²QRWZLWKVWDQGLQJ
VKDUSGLVSDULWLHVDQGDIHZH[FHSWLRQDOFDVHV²DUHJHQHUDOO\KLJKUHSUHVHQWLQJDWOHDVWRI
SRWHQWLDOUHYHQXH6HFRQGLQFRPHWD[HYDVLRQLVPRUHZLGHVSUHDGWKDQ9$7HYDVLRQ7KHUDWH
RIHYDVLRQRIWKH9$7DYHUDJHVLQWKHUHJLRQDVFRPSDUHGZLWKIRULQFRPHWD[
HYDVLRQ 7KLUG WKHUH LV PRUH HYDVLRQ E\ FRUSRUDWLRQV WKDQ E\ SK\VLFDO SHUVRQV 7KH UDWH RI
HYDVLRQRIWKHLQFRPHWD[E\MXULGLFDOSHUVRQVLVSHUFHQWDJHSRLQWVKLJKHUWKDQHYDVLRQUDWHV
IRUSK\VLFDOSHUVRQVYHUVXV2QHRIWKHPDLQUHDVRQVIRUWKLVLVWKHUROHWKDWZDJHV
DQGVDODULHVSOD\LQWKHLQGLYLGXDOLQFRPHWD[ZKHUHHDUQLQJVDUHVXEMHFWWRZLWKKROGLQJDWWKH
LQFRPHVRXUFH
• *LYHQWKHYDVWLPSRUWDQFHRIWD[HYDVLRQLQ/DWLQ$PHULFDWKHSKHQRPHQRQPXVWEHDQDO\]HG
IURP DQ RYHUDOO SHUVSHFWLYH WKLV QHFHVVDULO\ LQFOXGHV FRQVLGHULQJ WD[V\VWHP GHVLJQ WKH
HIILFLHQF\ RI WD[ DGPLQLVWUDWLRQV LQ HQIRUFLQJ WD[ REOLJDWLRQV WKH IXQGDPHQWDO UROH RI WKH
MXGLFLDO EUDQFK LQ DSSURSULDWHO\ SXQLVKLQJ HYDGHUV RQFH LGHQWLILHG DQG WKH 6WDWH¶V
UHVSRQVLELOLW\WRLWVFLWL]HQV
• %H\RQG WKH FKDQJHV LQ WD[ VWUXFWXUH DOUHDG\ FLWHG WKH FRXQWULHV KDYH DGRSWHG D VHULHV RI
SUDFWLFHVLQWD[DGPLQLVWUDWLRQDQGPDQDJHPHQWRYHUWKHODVWVHYHUDO\HDUV7KLVKDVSURGXFHG
D QXPEHU RI DGYDQFHV ²LQ VRPH FDVHV KLJKO\ VLJQLILFDQW LQ RWKHUV FOHDUO\ ODFNOXVWHU DQG
GLVDSSRLQWLQJ
• 2QHFRQFOXVLRQWKDWFDQEHGUDZQIURPWKHH[SHULHQFHRIYDULRXVFRXQWULHVLVWKDWWKHEHQHILWV
RILPSURYLQJWD[DGPLQLVWUDWLRQFDQRQO\EHUHDOL]HGLIVHYHUDOFRQGLWLRQVSUHYDLODSROLWLFDO
FRPPLWPHQWWRWKHUHIRUPVLPSOHPHQWHGDGHTXDWHKXPDQUHVRXUFHVZLWKVWURQJOHDGHUVKLSVD
ZLOOLQJQHVV WR DEDQGRQ ROGDGPLQLVWUDWLYH SUDFWLFHV DQG HVWDEOLVK D IRUPDO SODQ ZLWK GHILQHG
JRDOVDQGFRVWVDQGUHDOLVWLFWLPHIUDPHVDQGODVWO\PHDVXUHVWRHQVXUHWKDWWKHDSSURDFKHVWR
EHDGRSWHGLQWKHIXWXUHZLOOKDYHFRQWLQXLW\DQGGXUDELOLW\
• 7D[ DGPLQLVWUDWLRQ VWUDWHJLHV WR FRQWURO HYDVLRQ DQG LPSURYH YROXQWDU\ FRPSOLDQFH KDYH
FHQWHUHG RQ FHUWDLQ FRPPRQ HOHPHQWV IRXQG LQ QHDUO\ DOO FRXQWULHV RI WKH UHJLRQ 7KLV
LQYROYHV VKLIWLQJ IURP D WD[ DQG REMHFWEDVHG DSSURDFK WR D ³IXQFWLRQDO´ RU ³VXEMHFWLYH´
DSSURDFK IRFXVLQJ RQ LVVXHV RI PDQDJHPHQW WHFKQLFDO DVSHFWV OHJLVODWLRQ LQVSHFWLRQ
FROOHFWLRQ DQG LQIRUPDWLRQ WHFKQRORJLHV ZLWK WKH JRDO EHLQJ WR DFKLHYH IXOO FRYHUDJH RI DOO
WD[SD\HUVE\LGHQWLI\LQJOLQNVWKDWWD[SD\HUVKDYHZLWKWKHUHYHQXHFROOHFWLRQDJHQFLHV
• 2QH PDMRU ODQGPDUN LQ WKH PRGHUQL]DWLRQ RI WD[ DGPLQLVWUDWLRQV KDV EHHQ WKH GULYH WR
LQWHJUDWHDOOUHYHQXHFROOHFWLRQHQWLWLHVIRUGRPHVWLFWD[HVFXVWRPVWD[HVDQGVRFLDOVHFXULW\
ZLWKLQ D VLQJOH FHQWUDOL]HG DJHQF\ 7KLV LQVWLWXWLRQDO XQLILFDWLRQ KDV LQ VRPH FDVHV LQFOXGHG
LQLWLDWLYHVWRJUDQWWKHDJHQFLHVVHOIJRYHUQLQJRUDXWRQRPRXVVWDWXVSURYLGLQJWKHPLQPDQ\

FDVHVZLWKDQRSHUDWLRQDOEXGJHWOLQNHGWRWKHDPRXQWRIUHYHQXHWKH\JHQHUDWH7KHUHVXOWV
DFKLHYHG WKURXJK WKLV DSSURDFK DUH VWLOO EHLQJ DVVHVVHG SDUWLFXODUO\ VLQFH WKH LQVWLWXWLRQDO
SURFHVV LQYROYHG LQ DGPLQLVWUDWLYH XQLILFDWLRQ LV DW YDU\LQJ VWDJHV LQ WKH GLIIHUHQW FRXQWULHV
²UDQJLQJ IURP SK\VLFDO LQWHJUDWLRQ YDULRXV IXQFWLRQV ZLWKLQ D VLQJOH EXLOGLQJ WR ³YLUWXDO´
LQWHJUDWLRQLQZKLFKWKHWD[FROOHFWLRQDJHQFLHVPHUJHWKHLULQIRUPDWLRQV\VWHPV
• $V WD[ DGPLQLVWUDWLRQV LPSOHPHQW LPSURYHPHQWV WR DGGUHVV VRPH RI WKH DERYHPHQWLRQHG
SUREOHPV WKHUH ZLOO EH LQFUHDVHG RSSRUWXQLWLHV WR RUFKHVWUDWH WD[ UHIRUPV WKDW HQFRXUDJH
FRQYHUJHQFHZLWKLQWKHUHJLRQ6XFKHIIRUWVZLOOFUHDWHDPRUHHIILFLHQWHTXLWDEOHHIIHFWLYHO\
DGPLQLVWHUHGDQGFUHGLEOHVRFLDOO\OHJLWLPDWHWD[VWUXFWXUH7KLVLQWXUQZLOOOHDGQRWRQO\WR
LQFUHDVHG UHYHQXHV EXW DOVR WR WD[ V\VWHPV RI KLJKHU TXDOLW\ 2QH LPSRUWDQW VWHS LQ WKLV
GLUHFWLRQLVWRV\VWHPDWLFDOO\GHYHORSDQGSXEOLVKLQGLFDWRUVWRPHDVXUHWKHSHUIRUPDQFHRIWD[
DGPLQLVWUDWLRQV PDNLQJ VXFK LQIRUPDWLRQ ZLGHO\ DYDLODEOH DQG WKXV HQKDQFLQJ WUDQVSDUHQF\
ZKLOH DW WKH VDPH WLPH SURYLGLQJ D EDVLV IRU PDNLQJ FRPSDUDWLYH DQDO\VHV RI WKH DJHQFLHV¶
SHUIRUPDQFH
• 2QHRIWKHPRVWZLGHO\XVHGYDULDEOHVIRUFRPSDULQJWD[DGPLQLVWUDWLRQVLVZKDWLVJHQHUDOO\
NQRZQ DV ³FRVW RI FROOHFWLRQ´ 7KLV LQGLFDWRU XVXDOO\ XVHG DV DQ RYHUDOO PHDVXUH RI WKH
HIILFLHQF\RIWD[FROOHFWLRQDJHQFLHVFRPSDUHVDWD[DGPLQLVWUDWLRQ¶VWRWDOVSHQGLQJZLWKWKH
UHYHQXHLWJHQHUDWHVLQDJLYHQSHULRGRIWLPH,QDVVHVVLQJSHUIRUPDQFHWD[HYDVLRQUDWHVDUH
FRPPRQO\XVHGDVDQRYHUDOOLQGLFDWRURIHIILFDF\8QGHUO\LQJWKLVDSSURDFKLVWKHSULQFLSOH
WKDW WKH EDVLF IXQFWLRQ RI WD[FROOHFWLRQ HQWLWLHV LV WR REWDLQ WKH JUHDWHVW SRVVLEOH UHYHQXH
DSSURDFKLQJDVFORVHO\DVSRVVLEOHWKHOHYHOHVWDEOLVKHGE\WKHWD[ODZ+RZHYHUWKHHIILFDF\
RI WKH WD[ DGPLQLVWUDWLRQ FDQ DOVR EH DVVHVVHG E\ GHYHORSLQJ LQGLFDWRUV WKDW PHDVXUH WKH
RSHUDWLRQDOSURFHVVHVLQYROYHGLQWD[FROOHFWLRQLQFOXGLQJLQVSHFWLRQDFWLYLWLHV
• (IIRUWV WR DGRSW PHDVXUHV DQG LQGLFDWRUV WKDW IDFLOLWDWH FRPSDUDWLYH HYDOXDWLRQ RI WD[
DGPLQLVWUDWLRQV DW WKH LQWHUQDWLRQDO OHYHO ZLOO EH EDVHG RQ D ³FRQFHSWXDO WULDG´ RI IDFWRUV DW
HDFK DJHQF\ L WKH DYDLODELOLW\ DQG PDQDJHPHQW RI WHFKQLFDO LQVWUXPHQWV WR HQVXUH HIILFDF\
LLWKHDYDLODELOLW\DQGXVHRIVNLOOHGKXPDQUHVRXUFHVWRFDUU\RXWWKHDVVLJQHGIXQFWLRQVDQG
LLL WKH DYDLODELOLW\ RI DQG FDSDFLW\ WR PDQDJH YLWDO ILQDQFLDO UHVRXUFHV VR DV WR HQVXUH WKDW
VWUDWHJLFREMHFWLYHVDUHDFKLHYHGDWWKHOHDVWSRVVLEOHFRVW
• ,Q DFFRUGLQJ WR LQIRUPDWLRQ IURP D UHSUHVHQWDWLYH VDPSOH RI /DWLQ $PHULFDQ WD[
DGPLQLVWUDWLRQVEDVHGRQEXGJHWVH[HFXWHGDQGDFWXDOUHYHQXHVFROOHFWHGPRQHWDU\XQLWV
ZHUH VSHQW RQ RSHUDWLRQV IRU HYHU\ PRQHWDU\ XQLWV FROOHFWHG ZLWK WKH RSHUDWLRQV RI
0H[LFR¶V 6$7 &RORPELD¶V ',$1 DQG %UD]LO¶V 5)% KDYLQJ WKH ORZHVW FRVWV :KHQ WKLV
LQIRUPDWLRQLVFRPSDUHGZLWKILJXUHVIURPDQXPEHURIGHYHORSHG2(&'FRXQWULHVWKHFRVW
RIFROOHFWLRQ LQGLFDWRU LV QRWLFHDEO\ ORZHU LQ WKH ODWWHU JURXS ZKHUH WKH DYHUDJH IRU QLQH
PHPEHUFRXQWULHVLVVXJJHVWLQJWKDWLQFHUWDLQ/DWLQ$PHULFDQWD[DGPLQLVWUDWLRQVWKHUH
LVURRPIRURSWLPL]LQJSXEOLFVSHQGLQJE\UHGXFLQJFRVWV
• 7KHQRWDEOHODFNRILQIRUPDWLRQDYDLODEOHRQWKH/DWLQ$PHULFDQFRXQWULHVPDNHVLWGLIILFXOWWR
FRPSDUH FKDQJHV LQ FROOHFWLRQ FRVWV DW WKH UHJLRQDO OHYHO RYHU WKH ODVW IHZ \HDUV +RZHYHU
GDWD FRPSLOHG WR GDWH SURYLGH DQ LGHD RI WKH ZLGH UDQJH ZLWKLQ WKH UHJLRQ ZLWK UHVSHFW WR
FKDQJHVLQWRWDOWD[DGPLQLVWUDWLRQFRVWVIRUWKHYDULRXVFRXQWULHVDOWKRXJK&KLOHDQG0H[LFR
VKRZDGHFUHDVHLQFRVWVVLPLODUWRWKDWVHHQLQWKH2(&'DWOHDVWXSXQWLO
• 7KHPDJQLWXGHRIDGPLQLVWUDWLYHVSHQGLQJDWWD[FROOHFWLRQDJHQFLHVDVDSHUFHQWDJHRIWKHLU
FRXQWULHV¶ *'3 VHUYHV DV DQRWKHU XVHIXO LQGLFDWRU 'LVUHJDUGLQJ WKH RXWOLHUV D ]RQH RI
FRQFHQWUDWLRQ FDQ EH VHHQ ZLWK FRVW UDWLRV EHWZHHQ DQG RI *'3 DQG UHJLRQDO
DYHUDJHVRIIRU/DWLQ$PHULFDDQGIRUWKH2(&'*LYHQWKHSDUWLFXODULWLHVRI
HDFK WD[ DGPLQLVWUDWLRQ LQWHUFRXQWU\ FRPSDULVRQV IRU WKLV LQGLFDWRU VKRXOG EH LQWHUSUHWHG
FDXWLRXVO\ 1HYHUWKHOHVV WKH LQGLFDWRU FDQ EH XVHIXO LQ VLJQDOLQJ VLJQLILFDQW GHYLDWLRQV LQ
HLWKHUGLUHFWLRQIURPWKHUHJLRQDODYHUDJHV

• ,QDGGLWLRQWRWKHILQDQFLDOUHVRXUFHVDQGFDSLWDOUHTXLUHGWRFDUU\RXWWKHLUDVVLJQHGWDVNVWD[
DGPLQLVWUDWLRQVQHHGDQDGGLWLRQDODQGLQGLVSHQVDEOHHOHPHQW LQRUGHUWR PHHWWKHLU VWUDWHJLF
REMHFWLYHV FRPSHWHQW SHUVRQQHO WR FRQGXFW WKHLU DVVLJQHG WDVNV DQG IXQFWLRQV LQ WKH PRVW
HIIHFWLYHPDQQHUDQGZLWKWKHORZHVWSRVVLEOHFRVW,QWKLVUHJDUGWKHUHDUHPDMRUGLIIHUHQFHV
EHWZHHQ WKH GLIIHUHQW /DWLQ $PHULFDQ WD[ DGPLQLVWUDWLRQV LQ WHUPV RI WKH UHODWLRQ EHWZHHQ
QXPEHURISHUVRQVUHJXODUO\HPSOR\HGDQGDPRXQWRIUHYHQXHWKH\FROOHFWDVDSHUFHQWDJHRI
*'3$UJHQWLQD %UD]LO DQG 0H[LFR IRU H[DPSOH HDFK KDYH RYHU HPSOR\HHV ZKLOH
PRVWRIWKHUHJLRQ¶VRWKHUFRXQWULHVZLWKWKHH[FHSWLRQRI3HUXDQG&RORPELDKDYHQRPRUH
WKDQHDFK
• 7KHILQGLQJVVKRZWKDWZKHQWKHQXPEHURIHPSOR\HHVSHUSHUFHQWDJHSRLQWRIWD[EXUGHQDV
D SHUFHQWDJH RI *'3 LV FDOFXODWHG DQG FRPSDUHG ZLWK UHSUHVHQWDWLYH 2(&' FRXQWULHV WKH
LQGLFDWRU¶V DYHUDJH YDOXHV DUH YHU\ GLIIHUHQW LQ /DWLQ $PHULFD JHQHUDWLQJ RQH SHUFHQWDJH
SRLQWRIWD[EXUGHQUHTXLUHVHPSOR\HHVZKLOHWKHQXPEHUUHTXLUHGLQWKH2(&'LV
0H[LFR LV DQ H[FHSWLRQDO FDVH ZLWKLQ /DWLQ $PHULFD ZLWK D UDWLR IDU DERYH WKH UHJLRQDO
DYHUDJHDQGDERYHPDQ\RIWKH2(&'FRXQWULHV+RZHYHULWVWD[EXUGHQLVZHOOEHORZLWV
SRWHQWLDO DQG LV IDU IURP LQWHUQDWLRQDO DYHUDJHV FRQVLGHULQJ WKH FRXQWU\¶V OHYHO RI
GHYHORSPHQW
• /DVWO\ WKHUH DUH RQ DYHUDJH VLJQLILFDQWO\ PRUH HFRQRPLFDOO\ DFWLYH SHUVRQV SHU WD[
DGPLQLVWUDWLRQHPSOR\HHLQ/DWLQ$PHULFDQFRXQWULHVWKDQLQWKHVHOHFWHG2(&'FRXQWULHV,Q
RWKHU ZRUGV HDFK /DWLQ $PHULFDQ WD[ DGPLQLVWUDWLRQ HPSOR\HH LV UHVSRQVLEOH IRU PRUH
PHPEHUVRIWKHZRUNIRUFHRQDYHUDJHWKDQDUHWKHFRUUHVSRQGLQJHPSOR\HHVLQWKHGHYHORSHG
FRXQWULHV 7KXV ZKLOH WKH DYHUDJH IRU QLQH 2(&' FRXQWULHV LV RQH WD[ DGPLQLVWUDWLRQ
HPSOR\HH SHU HFRQRPLFDOO\ DFWLYH SHUVRQV DQG SHU LQKDELWDQWV WKH DYHUDJH IRU
/DWLQ$PHULFDLVRQHWD[DGPLQLVWUDWLRQHPSOR\HHSHUHFRQRPLFDOO\DFWLYHSHUVRQVDQG
SHULQKDELWDQWV
• 7KHUH LV D GLVWLQFW UHODWLRQ EHWZHHQ OHYHOV RI WD[ HYDVLRQ DQG FXUUHQW WD[ VWUXFWXUHV LQ /DWLQ
$PHULFDQ FRXQWULHV DQG WD[ DGPLQLVWUDWLRQ LV SDUWLFXODUO\ LPSRUWDQW LQ FRPSOHPHQWLQJ WD[
SROLF\LQWHUPVRIHQVXULQJVXIILFLHQWUHYHQXHWRPHHWFLWL]HQV¶GHPDQGV2QO\E\HVWDEOLVKLQJ
DKLJKOHYHORIWD[FRPSOLDQFHZLOOLWEHSRVVLEOHWRLPSOHPHQWUHIRUPVWRLPSURYHWKHEDODQFH
EHWZHHQ GLUHFW DQG LQGLUHFW WD[HV DQG WKXV LQ IRFXVLQJ RQ WD[ V\VWHPV HPSKDVL]H QRW RQO\
UHYHQXHWDUJHWVEXWDOVRWKHREMHFWLYHVRIHIILFLHQF\DQGGLVWULEXWLYHHTXLW\

%LEOLRJUDSK\
$),3$GPLQLVWUDGRUD)HGHUDOGH,QJUHVRV3~EOLFRV³3ODQGHJHVWLyQ

´%XHQRV$LUHV>RQOLQH@ZZZDILSJRYDU
$OOLQJKDP0*DQG$6DQGPR³,QFRPH7D[(YDVLRQD7KHRUHWLFDO
$QDO\VLV´-RXUQDORI3XEOLF(FRQRPLFV1RSS
$ULDV(VWHEDQ,³(VWXGLR&RPSDUDGRVREUHOD6LWXDFLyQ$FWXDOGHODV
/HJLVODFLRQHV GH 3UHFLRV GH 7UDQVIHUHQFLD HQ /DWLQRDPpULFD $VSHFWRV
/HJDOHV \ $GPLQLVWUDWLYRV´ 'RFXPHQWR GH 7UDEDMR 1R ,QWHU
$PHULFDQ&HQWUHIRU7D[$GPLQLVWUDWRUV&,$7$XJXVW
%HUJPDQ 0 ³7D[ 5HIRUPV DQG 7D[ &RPSOLDQFH 7KH 'LYHUJHQW
3DWKVRI&KLOHDQG$UJHQWLQD´-RXUQDORI/DWLQ$PHULFDQ6WXGLHV1R
&DPEULGJH8QLYHUVLW\3UHVV
³7D[ (YDVLRQ 7KH 5XOH RI /DZ LQ /DWLQ $PHULFD´
3HQQV\OYDQLD6WDWH8QLYHUVLW\3UHVV8QLYHUVLW\3DUN3HQQV\OYDQLD
%LUG50³7D[DWLRQLQ/DWLQ$PHULFD5HIOHFWLRQVRQ6XVWDLQDELOLW\
DQG WKH %DODQFH EHWZHHQ (TXLW\ DQG (IILFLHQF\´ ,73 3DSHU 1R
5RWPDQ6FKRRORI0DQDJHPHQW8QLYHUVLW\RI7RURQWR
%LUG50DQG-9i]TXH]&DUR³%HQFKPDUNLQJ7D[$GPLQLVWUDWLRQV
LQ 'HYHORSLQJ &RXQWULHV $ 6\VWHPLF $SSURDFK´ H-RXUQDO RI 7D[
5HVHDUFKYRO1RSS$7$;8QLYHUVLW\RI1HZ6RXWK:DOHV
&DUUDVFR &0 ³,QVWUXPHQWRV \ WpFQLFDV SDUD OD PHGLFLyQ GH OD
HYDVLyQ´ 7HPiWLFD 7ULEXWDULD VHULHV 1R ,QWHU$PHULFDQ &HQWUH IRU
7D[$GPLQLVWUDWRUV&,$7
&HWUiQJROR2\-&*yPH]6DEDLQL³7ULEXWDFLyQHQ$PpULFD/DWLQD
HQ EXVFD GH XQD QXHYD DJHQGD GH UHIRUPDV´ 6DQWLDJR &KLOH (FRQRPLF
&RPPLVVLRQIRU/DWLQ$PHULFDDQGWKH&DULEEHDQ(&/$&'HFHPEHU
³/D WULEXWDFLyQ GLUHFWD HQ $PpULFD /DWLQD \ ORV GHVDItRV D OD
LPSRVLFLyQ GLUHFWD HQ $PpULFD /DWLQD´ 0DFURHFRQRPtD GHO GHVDUUROOR
VHULHV1R/&/36DQWLDJR&KLOH(FRQRPLF&RPPLVVLRQIRU
/DWLQ$PHULFDDQGWKH&DULEEHDQ(&/$&'HFHPEHU

&,$7 ,QWHU$PHULFDQ &HQWUH IRU 7D[ $GPLQLVWUDWRUV ³7ULEXWDFLyQ \ $GPLQLVWUDFLyQ 7ULEXWDULD ±
$PpULFD/DWLQD±´'RFXPHQWRGH7UDEDMR1R6HULHV&RPSDUDWLYDV0DUFK
&RHOKR,³7D[LQJ%DQN7UDQVDFWLRQV±7KH([SHULHQFHLQ/DWLQ$PHULFDDQG(OVHZKHUH´UG,7'
&RQIHUHQFH%HLMLQJ
&XEHUR 5 DQG , 9ODGNRYD +ROODU ³(TXLW\ DQG )LVFDO 3ROLF\ 7KH ,QFRPH 'LVWULEXWLRQ (IIHFWV RI
7D[DWLRQDQG6RFLDO6SHQGLQJLQ&HQWUDO$PHULFD´,0):RUNLQJ3DSHU1R
'H &HVDUH & DQG -) /D]R 0DUWtQ ³,PSXHVWRV D ORV 3DWULPRQLRV HQ $PpULFD /DWLQD´
0DFURHFRQRPtDGHOGHVDUUROORVHULHV1R/&/36DQWLDJR&KLOH(FRQRPLF&RPPLVVLRQIRU
/DWLQ$PHULFDDQGWKH&DULEEHDQ(&/$&
'RKUPDQQ7DQG*3LQVKDZ³7KH5RDGWR,PSURYHG&RPSOLDQFH´0F.LQVH\ &RPSDQ\6HSWHPEHU
(&/$& (FRQRPLF &RPPLVVLRQ IRU /DWLQ $PHULFD DQG WKH &DULEEHDQ 7LPH IRU HTXDOLW\ FORVLQJ
JDSVRSHQLQJWUDLOV/&*6(66DQWLDJR&KLOH
(VFREDU &DOGHUyQ 5 ³/D PHGLFLyQ \ FRQWURO GH OD HURVLyQ GH ODV EDVHV WULEXWDULDV ORV JDVWRV
WULEXWDULRV \ OD HYDVLyQ WULEXWDULD´ 7HPiWLFD 7ULEXWDULD VHULHV 1R ,QWHU$PHULFDQ &HQWUH IRU 7D[
$GPLQLVWUDWRUV&,$7
(XURSHDQ&RPPLVVLRQ¶V'LUHFWRUDWH*HQHUDOIRU7D[DWLRQDQG&XVWRPV8QLRQ³)LVFDO%OXHSULQWV$
SDWKWRDUREXVWPRGHUQDQGHIILFLHQWWD[´,WDO\
)XHQWHV &DVWUR +- ³(YDVLyQ JOREDO GH LPSXHVWRV ,PSXHVWR 6REUH OD 5HQWD ,PSXHVWR DO 9DORU
$JUHJDGRH,PSXHVWR(VSHFLDOVREUH3URGXFFLyQ\6HUYLFLRQR3HWUROHUR´7HFQROyJLFRGH0RQWHUUH\
*yPH] 6DEDLQL -& ³&RKHVLyQ VRFLDO HTXLGDG \ WULEXWDFLyQ $QiOLVLV \ SHUVSHFWLYDV SDUD $PpULFD
/DWLQD´ 3ROtWLFDV VRFLDOHV VHULHV 1R /&/3 6DQWLDJR &KLOH (FRQRPLF &RPPLVVLRQ IRU
/DWLQ$PHULFDDQGWKH&DULEEHDQ(&/$&'HFHPEHU
³(OUROGHODSROtWLFDWULEXWDULDSDUDHOIRUWDOHFLPLHQWRGHO(VWDGRHQ$PpULFD/DWLQD´/DSROtWLFD
ILVFDO SDUD HO DILDQ]DPLHQWR GH ODV GHPRFUDFLDV HQ $PpULFD /DWLQD 3URMHFW 'RFXPHQWV 1R
/&:6DQWLDJR&KLOH
*yPH]6DEDLQL-&DQG50DUWQHU³7D[DWLRQ6WUXFWXUHDQG0DLQ3ROLF\,VVXHV´7D[6\VWHPVDQG
7D[ 5HIRUPV LQ /DWLQ $PHULFD / %HUQDUGL $ %DUUHL[ $ 0DUHQ]L DQG 3 3URIHWD HGV 5RXWOHGJH
,QWHUQDWLRQDO6WXGLHVLQ0RQH\DQG%DQNLQJ2[RQ(QJODQG
*yPH] 6DEDLQL -& DQG - 2¶)DUUHOO ³/D HFRQRPtD SROtWLFD GH OD SROtWLFD WULEXWDULD HQ $PpULFD
/DWLQD´ SDSHU SUHVHQWHG DW WKH ;;, 5HJLRQDO 6HPLQDU RQ )LVFDO 3ROLF\ 6DQWLDJR &KLOH (FRQRPLF
&RPPLVVLRQIRU/DWLQ$PHULFDDQGWKH&DULEEHDQ(&/$&-DQXDU\
*yPH] 6DEDLQL -& -3 -LPpQH] DQG $ 3RGHVWi ³7ULEXWDFLyQ HYDVLyQ \ HTXLGDG HQ $PpULFD
/DWLQD´(YDVLyQ\HTXLGDGHQ$PpULFD/DWLQD-3-LPpQH]-&*yPH]6DEDtQL\$3RGHVWi&RPS
3URMHFW'RFXPHQW1R/&:6DQWLDJR&KLOH(&/$&*7=
*RQ]iOH]'³5HJtPHQHVHVSHFLDOHVGHWULEXWDFLyQSDUDSHTXHxRVFRQWULEX\HQWHVHQ$PpULFD/DWLQD´
,QWHU$PHULFDQ'HYHORSPHQW%DQN,'%
³/DSROtWLFDWULEXWDULDKHWHURGR[DHQORVSDtVHVGH$PpULFD/DWLQD´*HVWLyQS~EOLFDVHULHV1R
/&/3 6DQWLDJR &KLOH (FRQRPLF &RPPLVVLRQ IRU /DWLQ $PHULFD DQG WKH &DULEEHDQ
(&/$&
*RQ]iOH]'&0DUWLQROLDQG-/3HGUD]D³6LVWHPDVWULEXWDULRVGH$PpULFD/DWLQD6LWXDFLyQDFWXDO
UHIRUPDV\SROtWLFDVSDUDSURPRYHUODFRKHVLyQVRFLDO´0DGULG3UR\HFWR(852VRFL$/6HFWRU)LVFDOLGDG
,QVWLWXWRGH(VWXGLRV)LVFDOHV
*RxL(-+/ySH]DQG/6HUYpQ³)LVFDO5HGLVWULEXWLRQDQG,QFRPH,QHTXDOLW\LQ/DWLQ$PHULFD´
3ROLF\5HVHDUFK:RUNLQJ3DSHU1R:RUOG%DQN
,%)',QWHUQDWLRQDO%XUHDXRI)LVFDO'RFXPHQWDWLRQ*OREDO&RUSRUDWH7D[+DQGERRN,%)'
*OREDO7D[6HULHV$PVWHUGDP
,0),QWHUQDWLRQDO0RQHWDU\)XQG*RYHUQPHQW)LQDQFH6WDWLVWLFV0DQXDO:DVKLQJWRQ'&
³0RYLOL]DFLyQGHLQJUHVRVHQORVSDtVHVHQGHVDUUROOR´*RYHUQPHQW)LQDQFH'HSDUWPHQW0DUFK
,7',QWHUQDWLRQDO7D['LDORJXH³7ULEXWDFLyQGHODSHTXHxD\PHGLDQDHPSUHVD´SDSHUSUHVHQWHGDW
WKHVHFRQGJOREDOFRQIHUHQFHRQWD[DWLRQRIVPDOODQGPHGLXPHQWHUSULVHV%XHQRV$LUHV2FWREHU
³5HYHQXH $GPLQLVWUDWLRQ LQ 6XE6DKDUDQ $IULFD´ ,7' &RPSDUDWLYH ,QIRUPDWLRQ VHULHV 1R
>RQOLQH@ZZZLWGZHERUJ
-HVXLW ' DQG 9 0DKOHU 6WDWH 5HGLVWULEXWLRQ LQ &RPSDUDWLYH 3HUVSHFWLYH $ &URVV1DWLRQDO
$QDO\VLVRIWKH'HYHORSHG&RXQWULHV/X[HPERXUJ,QFRPH6WXG\:RUNLQJ3DSHU1R
-LPpQH]-3DQG$3RGHVWi³,QYHUVLyQLQFHQWLYRVILVFDOHV\JDVWRVWULEXWDULRVHQ$PpULFD/DWLQD´
0DFURHFRQRPtDGHOGHVDUUROORVHULHV1R/&/36DQWLDJR&KLOH(FRQRPLF&RPPLVVLRQIRU
/DWLQ$PHULFDDQGWKH&DULEEHDQ(&/$&0DUFK

-RUUDW 0 ³0HWRGRORJtD SDUD 0HGLU HO ,PSDFWR )LVFDO GH ORV *DVWRV 7ULEXWDULRV 6XEQDFLRQDOHV HQ
&RORPELD´ZRUNLQJGRFXPHQW,QWHU$PHULFDQ'HYHORSPHQW%DQN,'%-XQH
-RUUDW0DQG$3RGHVWi³$QiOLVLVFRPSDUDWLYRGHODVPHWRGRORJtDVHPSOHDGDVSDUDODHVWLPDFLyQ
GHODHYDVLyQHQHOLPSXHVWRDODUHQWD´(YDVLyQ\HTXLGDGHQ$PpULFD/DWLQD-3-LPpQH]-&*yPH]
6DEDLQLDQG$3RGHVWiFRPSV3URMHFW'RFXPHQW1R/&:6DQWLDJR&KLOH(&/$&*7=
2(&' 2UJDQL]DWLRQ IRU (FRQRPLF &RRSHUDWLRQ DQG 'HYHORSPHQW ³&RPSOLDQFH 0HDVXUHPHQW ±
3UDFWLFH1RWH´&HQWUHIRU7D[3ROLF\DQG$GPLQLVWUDWILRQ0D\
³,VWDQEXO&RPPXQLTXp´6L[WK0HHWLQJRIWKH2(&')RUXPRQ7D[$GPLQLVWUDWLRQ&HQWUHIRU
7D[3ROLF\DQG$GPLQLVWUDWLRQ&73$6HSWHPEHU
³7D[$GPLQLVWUDWLRQLQ2(&'DQG6HOHFWHG1RQ2(&'&RXQWULHV&RPSDUDWLYH,QIRUPDWLRQ6HULHV
´)RUXPRQ7D[$GPLQLVWUDWLRQ&HQWUHIRU7D[3ROLF\DQG$GPLQLVWUDWLRQ&73$3DULV0DUFK
3HFKR 7ULJXHURV 0 ³7ULEXWDFLyQ \ $GPLQLVWUDFLyQ 7ULEXWDULD HQ ORV SDtVHV PLHPEURV GHO &,$7´
'RFXPHQWRGHWUDEDMR1R,QWHU$PHULFDQ&HQWUHIRU7D[$GPLQLVWUDWRUV&,$76HSWHPEHU
³&RVWR GH UHFDXGDFLyQ HQ $PpULFD /DWLQD´ ,QWHU$PHULFDQ &HQWUH IRU 7D[ $GPLQLVWUDWRUV
&,$7>RQOLQH@ZZZFLDWRUJEORJ
6DPDQLHJR%UHDFK5DQGRWKHUV³(ILFLHQFLDUHFDXGDWRULD'HILQLFLyQHVWLPDFLyQHLQFLGHQFLDHQOD
HYDVLyQ´ 0H[LFR &LW\ &HQWUR GH (FRQRPtD $SOLFDGD \ 3ROtWLFDV 3~EOLFDV $XWRQRPRXV 7HFKQRORJLFDO
,QVWLWXWHRI0H[LFR,7$0
7DQ]L9³7D[6\VWHPVDQG7D[5HIRUPVLQ/DWLQ$PHULFD´7D[6\VWHPVDQG7D[5HIRUPVLQ/DWLQ
$PHULFD / %HUQDUGL $ %DUUHL[ $ 0DUHQ]L DQG 3 3URIHWD HGV 5RXWOHGJH ,QWHUQDWLRQDO 6WXGLHV LQ
0RQH\DQG%DQNLQJ2[RQ(QJODQG
7DQ]L9DQG36KRPH³7D[(YDVLRQ&DXVHV(VWLPDWLRQ0HWKRGVDQG3HQDOWLHVDIRFXVRQ/DWLQ
$PHULFD´ 3ROtWLFDILVFDOVHULHV1R6DQWLDJR&KLOH (FRQRPLF &RPPLVVLRQ IRU/DWLQ $PHULFDDQG
WKH&DULEEHDQ(&/$&
7RUJOHU%³7D[0RUDOHLQ/DWLQ$PHULFD´3XEOLF&KRLFHYRO1R
9LOOHOD/$/HPJUXEHUDQG0-RUUDW/RVSUHVXSXHVWRVGHJDVWRVWULEXWDULRV&RQFHSWRV\GHVDItRVGH
LPSOHPHQWDFLyQZRUNLQJGRFXPHQW1R,'%:3,QWHU$PHULFDQ'HYHORSPHQW%DQN'HFHPEHU
=DPEUDQR 5 ³/D IXVLyQ GH IXQFLRQHV OD IXVLyQ GH VLVWHPDV´ ,QWHU$PHULFDQ &HQWUH IRU 7D[
$GPLQLVWUDWRUV&,$7>RQOLQH@ZZZFLDWRUJEORJ


6HULH

PDFURHFRQRPtDGHOGHVDUUROOR

,VVXHVSXEOLVKHG
$FRPSOHWHOLVWDQGSGIILOHVDUHDYDLODEOHVLQ
ZZZFHSDORUJSXEOLFDFLRQHV
7D[ VWUXFWXUH DQG WD[ HYDVLRQ LQ /DWLQ $PHULFD -XDQ &DUORV *yPH] 6DEDLQL DQG -XDQ 3DEOR -LPpQH]
/&/
&RPPRGLWLHV FKRTXHV H[WHUQRV H FUHVFLPHQWR UHIOH[}HV VREUH D $PpULFD /DWLQD 5LFDUGR GH 0HGHLURV &DUQHLUR
/&/
)UDJLOLGDGH[WHUQDRGHVLQGXVWULDOL]DFLyQ¢&XiOHVODSULQFLSDODPHQD]DGH$PpULFD/DWLQDHQODSUy[LPDGpFDGD"
5REHUWR)UHQNHO\0DUWtQ5DSHWWL/&/
'HVDItRV H LPSOLFDQFLDV ILVFDOHV GH OD LQYHUVLyQ HQ LQIUDHVWUXFWXUD EDMD HQ FDUERQR 0DUWLQD &KLGLDN \ 9HUyQLFD
*XWPDQ/&/
/DLQWHJUDFLyQDORV PHUFDGRV ILQDQFLHURVLQWHUQDFLRQDOHVFRQVHFXHQFLDVSDUDODHVWDELOLGDGPDFURHFRQyPLFD \HO
FUHFLPLHQWR5REHUWR=DKOHU/&/
(YDOXDQGRODHTXLGDGYHUWLFDO\KRUL]RQWDOHQHOLPSXHVWRDOYDORUDJUHJDGR\HOLPSXHVWRDODUHQWDHOLPSDFWRGH
UHIRUPDVWULEXWDULDVSRWHQFLDOHV/RVFDVRVGHO(FXDGRU*XDWHPDOD\HO3DUDJXD\0LFKHO-RUUDWW/&/
0DFURHFRQRPLFFKDOOHQJHVRIILVFDOGHFHQWUDOL]DWLRQLQ/DWLQ$PHULFDLQWKHDIWHUPDWKRIWKHJOREDOILQDQFLDOFULVLV
7HUHVD7HU0LQDVVLDQ\-XDQ3DEOR-LPpQH]/&/
(O ILQDQFLDPLHQWR GH ORV JRELHUQRV VXEQDFLRQDOHV HQ $PpULFD /DWLQD XQ DQiOLVLV GH FDVRV -XDQ &DUORV *yPH]
6DEDLQL\-XDQ3DEOR-LPpQH]/&/
/D FDOLGDG GHO HPSOHR HQ $PpULFD /DWLQD -UJHQ :HOOHU \ &ODXGLD 5RHWKOLVEHUJHU /&/ 3 1 GH YHQWD
6,,*86
7UD\HFWRULDV ODERUDOHV GH ORV MyYHQHV HQ $UJHQWLQD ¢'LILFXOWDGHV HQ HO PHUFDGR GH WUDEDMR R FDUUHUD ODERUDO
DVFHQGHQWH"5R[DQD0DXUL]LR/&/31GHYHQWD6,,*86
/DWLQ67,1*6 LQGLFDGRUHV GH FUHFLPLHQWR D FRUWR SOD]R GH ORV SDtVHV GH $PpULFD /DWLQD 0i[LPR &DPDFKR \
*DEULHO3HUH]4XLUyV/&/31GHYHQWD6,,*86
/RV PHUFDGRV ILQDQFLHURV HQ $PpULFD /DWLQD \ HO ILQDQFLDPLHQWR GH OD LQYHUVLyQ KHFKRV HVWLOL]DGRV \ SURSXHVWDV
SDUDXQDHVWUDWHJLDGHGHVDUUROOR6DQGUD0DQXHOLWR\/XLV)HOLSH-LPpQH]/&/31GHYHQWD6,,*
86
(VWLPDFLyQGHOFUHFLPLHQWRSRWHQFLDOGH$PpULFD/DWLQD&ODXGLR$UDYHQD/&/31GHYHQWD6,,*
86

• 5HDGHUVZLVKLQJWRREWDLQWKHOLVWHGLVVXHVFDQGRVRE\ZULWLQJWR'LVWULEXWLRQ8QLW(&/$&&DVLOOD'6DQWLDJR&KLOH)D[
(PDLOSXEOLFDWLRQV#FHSDORUJ

1DPH
$FWLYLW\

$GGUHVV
3RVWDOFRGHFLW\FRXQWU\

7HO)D[(PDLO

Tax Structure and Tax Evasion in Latin America

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Tax Structure and Tax Evasion in Latin America

Uploaded by

Copyright:

Available Formats

6(5,(

),*85( &203$5,621%(7:((17$;%85'(1$1'3(5&$3,7$*'3 333 

       

  

  

/DWLQ$PHULFD *URXS *URXS *URXS

/DWLQ$PHULFD *URXS *URXS *URXS

ϭϲ͘ϵ ϮϮ͘ϴй ϭϳ͘ϳ

ŝƌĞĐƚƚĂǆĞƐ /ŶĚŝƌĞĐƚƚĂǆĞƐ ^ŽĐŝĂů^ĞĐƵƌŝƚǇΘŽƚŚĞƌƐ

$UJHQWLQD        

6RXUFH$XWKRU¶VHODERUDWLRQEDVHGRQ3LDQFDVWHOOL  DQG3HVVLQRDQG)HQRFKLHWWR  

        

3HUVRQDO,QFRPH7D[ 3,7 0D[LPXPWD[UDWH

,QGLYLGXDOV  

/DWLQ$PHULFD     

2(&'     

6RXUFH*RxL/ySH]DQG6HUYpQ  -HVXLWDQG0DKOHU  DQG&XEHURDQG+ROODU  

&RUSRUDWLRQV ,QGLYLGXDOV 7RWDO &RUS,QGLY5DWLR

6RXUFH/9LOOHOD$/HPJUXEHU0-RUUDW  EDVHGRQRIILFLDOUHSRUWVIURPWKHFRXQWULHV

3DtVHV (VWLPDWHG (VWLPDWHG(YDVLRQ5DWH

6RXUFH*yPH]6DEDLQL-LPpQH]DQG3RGHVWi  DQG*yPH]6DEDLQL  

sd EŽŶͲŽŝů^ƉĞĐŝĂůdĂǆ ŽŶWƌŽĚƵĐƚŝŽŶĂŶĚ ^ĞƌǀŝĐĞ

  

9$7 1RQRLO6SHFLDO7D[ RQ3URGXFWLRQDQG 6HUYLFH

,QFRPHWD[ 5HQWDOLQFRPH ,QFRPHWD[LQGLYLGXDOV :DJHZLWKKROGLQJ

,QFRPHWD[ &RUSRUDWH ,QFRPHWD[ 6PDOOWD[SD\HUUHJLPH 5(3(&26

,QFRPHWD[ ,QGLYLGXDOV QRQ VPDOOWD[SD\HUVV\VWHP

<HDU /DWLQ$PHULFD $VLD3DFLILF 7RWDO

$UJHQWLQDD   

&RXQWU\     

&RXQWU\     

6/9 RIDVVHWV 1R 1R 1R 1R

+1' 1R 1R RIDVVHWV RIDVVHWV RIDVVHWV

RIQHW WD[RQUHDO WD[RQUHDO

35< 1R 1R 1R 1R 1R

3(5 RIQHWZHDOWK RIQHWZHDOWK 5HVFLQGHG RIQHWDVVHWV RIQHWDVVHWVH

'20 1R 1R 1R RIDVVHWV RIDVVHWV

RIQHW RIQHW RIQHW

9(1 1R 1R RIDVVHWVD 1R 1R

  

&RXQWU\DQG ,QFRPHWD[ 7D[RQSURILWV 3XEOLFVHFWRU

%ROLYLD 'HSDUWPHQWDO 'LUHFWWD[RQ 7D[RQFRUSRUDWH 6SHFLDOWD[RQ <HVD

&KLOH FRSSHU 7D[RQFDWHJRU\ $GGLWLRQDOWD[RQ 6SHFLILFWD[RQ <HV

&RORPELD RLO   7D[RQH[SRUWHG 7UDQVSRUW <HV

(FXDGRU RLO  VLQFH  3URILWV 7D[RQ <HV

0H[LFR RLO ,QFRPHWD[  6SHFLDOWD[RQ <HV

3HUX   7D[RQFRUSRUDWH

7ULQLGDGDQG RQ 7D[RQSURILWV

&RXQWU\DQG ,QFRPHWD[ 7D[RQSURILWV 3XEOLFVHFWRU

6RXUFH%URVLRDQG-LPpQH]  XSGDWHGIURPYDULRXVRIILFLDOVRXUFHV

7D[ HYDVLRQ LQ /DWLQ $PHULFDQ FRXQWULHV LV D ZLGHVSUHDG SKHQRPHQRQ

6RXUFH9i]TXH]&DURDQG%LUG  ³%HQFKPDUNLQJ7D[$GPLQLVWUDWLRQVLQ'HYHORSLQJ&RXQWULHV$6\VWHPLF$SSURDFK´

&RXQWU\ 1DPHRIUHJLPH <HDUEHJXQ 0DMRUIHDWXUHV

$UJHQWLQD 6LPSOLILHG5HJLPHIRU6PDOO  5HSODFHVQDWLRQDOWD[HV WD[HVRQHDUQLQJV

%ROLYLD 6LPSOLILHG7D[5HJLPH 576 576 5HSODFHVWKH9$7WKHFRUSRUDWHSURILWVWD[

%UD]LO ,QWHJUDWHG6\VWHPIRUWKH3D\PHQWRI  5HSODFHVDOOIHGHUDOWD[HV ,53-,3,,(

&KLOH  6LPSOLILHG,QFRPH7D[5HJLPH  7KH6LPSOLILHG5HJLPHDQG3UHVXPHG,QFRPH

&RORPELD 6LPSOLILHG5HJLPH  5HSODFHVWKH9$7

&RXQWU\ 1DPHRIUHJLPH <HDUEHJXQ 0DMRUIHDWXUHV

&RVWD5LFD 6LPSOLILHG7D[5HJLPH  5HSODFHVWKH*HQHUDO6DOHV7D[ D9$7W\SH

(FXDGRU 6LPSOLILHG5HJLPH 5,6(  5HSODFHVWKH9$7DQGWKH,QFRPH7D[

(O6DOYDGRU 1RQH 1$ 1$

*XDWHPDOD 6LPSOLILHG7D[5HJLPHIRU6PDOO  5HSODFHVWKH9$7DQG,QFRPH7D[

),85( &203$5,621%(7:((17$;%85'(1$1'3(5&$3,7$'3333

/DWLQ$PHULFD URXS URXS *URXS

/DWLQ$PHULFD URXS URXS *URXS

ŝƌĞĐƚƚĂǆĞƐ /ŶĚŝƌĞĐƚƚĂǆĞƐ ^ŽĐŝĂů^ĞĐƵƌŝƚǇΘŽƚŚĞƌƐ

$UJHQWLQD

6RXUFH$XWKRU¶VHODERUDWLRQEDVHGRQ3LDQFDVWHOOLDQG3HVVLQRDQG)HQRFKLHWWR

3HUVRQDO,QFRPH7D[3,70D[LPXPWD[UDWH

,QGLYLGXDOV

/DWLQ$PHULFD

2(&'

6RXUFH*RxL/ySH]DQG6HUYpQ-HVXLWDQG0DKOHUDQG&XEHURDQG+ROODU

&RUSRUDWLRQV ,QGLYLGXDOV 7RWDO &RUS,QGLY5DWLR

6RXUFH/9LOOHOD$/HPJUXEHU0-RUUDWEDVHGRQRIILFLDOUHSRUWVIURPWKHFRXQWULHV

6RXUFHyPH]6DEDLQL-LPpQH]DQG3RGHVWiDQGyPH]6DEDLQL

9$7 1RQRLO6SHFLDO7D[ RQ3URGXFWLRQDQG 6HUYLFH

,QFRPHWD[ 5HQWDOLQFRPH ,QFRPHWD[LQGLYLGXDOV :DJHZLWKKROGLQJ

,QFRPHWD[ &RUSRUDWH ,QFRPHWD[ 6PDOOWD[SD\HUUHJLPH5(3(&26

,QFRPHWD[ ,QGLYLGXDOV QRQ VPDOOWD[SD\HUVV\VWHP

<HDU /DWLQ$PHULFD $VLD3DFLILF 7RWDO

$UJHQWLQDD

&RXQWU\

&RXQWU\

6/9 RIDVVHWV 1R 1R 1R 1R

+1' 1R 1R RIDVVHWV RIDVVHWV RIDVVHWV

RIQHW WD[RQUHDO WD[RQUHDO

3(5 RIQHWZHDOWK RIQHWZHDOWK 5HVFLQGHG RIQHWDVVHWV RIQHWDVVHWVH

'20 1R 1R 1R RIDVVHWV RIDVVHWV

RIQHW RIQHW RIQHW

9(1 1R 1R RIDVVHWVD 1R 1R

&KLOHFRSSHU 7D[RQFDWHJRU\ $GGLWLRQDOWD[RQ 6SHFLILFWD[RQ <HV

&RORPELDRLO 7D[RQH[SRUWHG 7UDQVSRUW <HV

(FXDGRURLO VLQFH 3URILWV 7D[RQ <HV

0H[LFRRLO ,QFRPHWD[ 6SHFLDOWD[RQ <HV

3HUX 7D[RQFRUSRUDWH

7ULQLGDGDQG RQ 7D[RQSURILWV

6RXUFH%URVLRDQG-LPpQH]XSGDWHGIURPYDULRXVRIILFLDOVRXUFHV

7D[ HYDVLRQ LQ /DWLQ $PHULFDQ FRXQWULHV LV D ZLGHVSUHDG SKHQRPHQRQ

6RXUFH9i]TXH]&DURDQG%LUG³%HQFKPDUNLQJ7D[$GPLQLVWUDWLRQVLQ'HYHORSLQJ&RXQWULHV$6\VWHPLF$SSURDFK´

$UJHQWLQD 6LPSOLILHG5HJLPHIRU6PDOO 5HSODFHVQDWLRQDOWD[HVWD[HVRQHDUQLQJV

%ROLYLD 6LPSOLILHG7D[5HJLPH576 576 5HSODFHVWKH9$7WKHFRUSRUDWHSURILWVWD[

%UD]LO ,QWHJUDWHG6\VWHPIRUWKH3D\PHQWRI 5HSODFHVDOOIHGHUDOWD[HV,53-,3,,(

&KLOH 6LPSOLILHG,QFRPH7D[5HJLPH 7KH6LPSOLILHG5HJLPHDQG3UHVXPHG,QFRPH

&RORPELD 6LPSOLILHG5HJLPH 5HSODFHVWKH9$7

&RVWD5LFD 6LPSOLILHG7D[5HJLPH 5HSODFHVWKH*HQHUDO6DOHV7D[D9$7W\SH

(FXDGRU 6LPSOLILHG5HJLPH5,6( 5HSODFHVWKH9$7DQGWKH,QFRPH7D[

(O6DOYDGRU 1RQH 1$ 1$

*XDWHPDOD 6LPSOLILHG7D[5HJLPHIRU6PDOO 5HSODFHVWKH9$7DQG,QFRPH7D[

0H[LFR 6PDOO7D[SD\HUV5HJLPH 5HSODFHVWKH9$7,QFRPH7D[DQG6LQJOH

1LFDUDJXD 6SHFLDO$GPLQLVWUDWLYH(VWLPDWH 5HSODFHVWKH9DOXH$GGHG7D[DQG,QFRPH

3DQDPD 1RQH 1$ 1$

9HQH]XHOD 1RQH 1$ 1$

$UJHQWLQD )HGHUDO $),3 6HOIJRYHUQLQJ <HV <HV <HV

&RVWD5LFD HQHUDO7D[ '7 'LYLVLRQRIWKH9LFH <HV 1R 1R

(O6DOYDGRU HQHUDO'LUHFWRUDWH ',, 'LYLVLRQRIWKH0LQLVWU\ <HV 1R 1R

1LFDUDJXD HQHUDO'LUHFWRUDWH ', $XWRQRPRXV <HV 1R 1R

3DQDPD HQHUDO'LUHFWRUDWH ', 'LYLVLRQRIWKH0LQLVWU\ <HV 1R 1R

8UXJXD\ HQHUDO'LUHFWRUDWH ', 'LYLVLRQRIWKH0LQLVWU\ <HV 1R 1R

6RXUFH$XWKRUVEDVHGRQWKHUHSRUW³7ULEXWDFLyQ\$GPLQLVWUDFLyQ7ULEXWDULD±$PpULFD/DWLQD´&,$7

0H[LFR

%UD]LO

$V D UHFHQW ,0) GRFXPHQW VWDWHG ³,PSURYLQJ UHYHQXH DGPLQLVWUDWLRQ LV

2(&'

/DWLQ$PHULFDQFRXQWULHV &RVWV'3UDWLR 2(&'FRXQWULHV &RVWV'3UDWLR

6RXUFH$XWKRUVEDVHGRQGDWDIURP&,$7IRU/DWLQ$PHULFDDQGGDWDIURP7D[$GPLQLVWUDWLRQLQ2(&'DQG6HOHFWHG1RQ

$UJHQWLQD QD

0H[LFR

$UJHQWLQD

6RXUFH$XWKRUVEDVHGRQGDWDIURP(&/$&SRSXODWLRQDQGODERUIRUFH&,$7DQG2(&'

$),3$GPLQLVWUDGRUD)HGHUDOGH,QJUHVRV3~EOLFRV³3ODQGHJHVWLyQ