Ex. 5. Sum up the contents of the main dialogue. Use the phrases from Ex. 5 (Unit 1).

Ex. 6. Read the dialogue, translate the Russian remarks into English and act it out:

Foreigner: The tax system in Russia has changed significantly over the years of the reforms. But businessmen and individuals still complain that the system of taxation is unfair and inadequate.

Russian: Да, это так. Несмотря на огромную работу в области налогового законодательства, проделанную за годы реформ, наша налоговая система постоянно критикуется представителями бизнеса, законодательной и исполнительной ветвями власти. Учитывая это, мы сейчас работаем над налоговым кодексом.

F.: What concept underlies this document?

R.: Прежде всего мы считаем необходимым снизить налоговое бремя на товаропроизводителя. Мы планируем сделать это путем снижения налоговых ставок, а также за счет постепенного увеличения налогов с физических лиц. Мы также намерены отменить многие налоговые льготы, которые лишают бюджет значительных налоговых доходов.

F.: Our tax system is based on the same principles and it works rather well. From our experience I can say that more emphasis should also be placed on tax collection in your country.

R.: Вы абсолютно правы. Наше правительство принимает меры по повышению собираемости налогов, усиливает контроль за лицами, имеющими высокие доходы, за платежами в Пенсионный фонд. Мы пытаемся закрыть все лазейки (loopholes) для лиц, уклоняющихся от уплаты налогов. Вот суть нашей налоговой политики.

F.: Life shows that a system works effectively where the policies are right. Let's hope you are on the right way.

Ex. 7. Work on vocabulary and grammar.

a) Study the key words of the unit in the dictionary at the back of the book:

tax, taxation, tax allowance, tax breaks, tax concessions, tax benefits, tax exemptions;

b) Think of the verbs that are commonly used with:

tax, taxation, profits, revenue, complaint, claim, effects, non-compliance, tax rate, burden of taxation, privilege, income, exemptions;

c) Think of the nouns that are most often used with:

to levy, to collect, to tax, to impose, to introduce, to pay, to reduce, to avoid, to evade, to exempt;

d) Make your own sentences with any five word combinations from (b) and (c).

e) Match the verbs from (a) with nouns from (b) below:

 

a) to reduce b) economic welfare

to improve taxes

to correct inequality

to increase revenue

to check imports

to withhold business

to tax adverse balance of payments

f) Write out from the main text international words like: contribution, authority, service, etc. Transcribe them and read aloud.

Ex. 8. a) Supply the articles where necessary.

b) Write down 3-5 questions about the texts.

c) Say if you have ever reclaimed your VAT.

a) If you thought duty-free was... only way to buy cut price goods in... Europe, you'd be wrong. Tax-free shopping offers... even greater number of discounts to visitors from outside... EU and includes more than just... perfume,... alcohol and... cigarettes.

The main difference between... duty-free and... tax-free shopping is that duty-free is available to everyone travelling within... EU. Tax-free shopping, however, is... perk only available to... non-EU members flying into European countries, which adds up to around 100 million tourists each year. The Value-Added Tax normally included in... price of goods is refunded when leaving... EU.

Most goods are sold with VAT included in... selling price. This ranges from... 7 per cent for some goods in Germany to 25 per cent in Sweden and Denmark. In... UK, VAT stands at 17.5 per cent. However, visitors only get... saving of 14.8 per cent on... purchase price as there is... added fee for... handling of the refund.

Tax-free shopping has become... big business with tourists from non-EU countries spending huge sums every year. It's a simple system which means you receive... cash-in-hand refund when you leave... country. There is often a minimum sale of between $ 30 and $100 to qualify for... refund.

After purchasing any goods ask for... Tax-free Shopping Voucher which you need to reclaim your VAT. When you leave the EU... vouchers must be stamped at... customs and all your purchases shown to them. The vouchers can then be cashed at... Refund Points.

Based on: European Businessman

Words you may need:

discount n скидка

perk n преимущество

refund v возмещать, возвращать

handling of the refund оформление возврата (налога)

cash-in-hand наличность

to qualify for refund получить право на получение возмещения

reclaim v требовать обратно

voucher n квитанция, ваучер

d) Say what you have learned about the system of tax administration in the UK.

b) The British Government's programme of tax reform has sought to maintain... climate in which business can thrive and individual initiative is rewarded. Its major aims are... following: to keep... tax burden as low as possible through firm control over public expenditure, to maintain... broad tax base, which helps to keep tax rates low, and to shift the balance of taxation from taxes on income to taxes on expenditure. Steps have also been taken to close tax loopholes. The government is committed to simplifying... administration of... tax system, both for individuals and for companies. The government admits that there are four general principles for... efficient administration of a tax system:... clarity, continuity, cost-effectiveness and convenience.

At present, the Inland Revenue assesses and collects... taxes on income, profits and capital, and stamp duty.

Taxes on individual incomes are generally progressive in that larger incomes bear... greater amount of tax.

In general, income tax is charged on all income which originates in... Britain and on all income arising abroad of people resident in Britain. Some forms of income, however, are exempt.

Britain has entered into... agreements with many countries to provide relief from double taxation. Most wage and salary earners pay their income tax under a Pay-As-You-Earn (PAYE) system whereby tax is deducted and accounted for to the Inland Revenue by the employer.

The rates of company tax in Britain are lower than in... most other industrialized countries. A company which distributes profits to its shareholders is required to pay advance corporation tax (ACT) on these distributions to... Inland Revenue.

Words you may need:

reward v вознаграждать

tax base налоговая база

loophole n лазейка

stamp duty гербовый сбор

charge v взимать

advance corporation tax авансовый корпорационный налог

Ex. 9. a) Supply the prepositions where necessary.

b) Write down 3-5 questions about the text.

c) Explain the functions perfomed by excise duties.

What Is an Excise Duty?

 

Indirect taxes are divided... general and special taxes... consumption. The general tax on consumption, value-added tax, or VAT, is levied... more or less all products and a large number of services. The special taxes on consumption are,... the other hand, levied on specifically selected products and services. For historical reasons, they are generally known as excise duties.

As far as payments to the state are concerned, it is common to distinguish... taxes and charges. A charge usually relates to the provision of a particular service or function... the state. The charges paid to obtain a driving licence or a passport are typical cases.

Payment... a tax does not entail any direct counter-performance... the part of the state. The revenue from taxation is used – via the state budget-to finance all government activities, including defence and the education system,... instance.

In the case of excise duties, the government does not provide any specific services... those who pay these taxes. The revenue... excise duties is stated... the state budget. Therefore, these excise duties, even though they are sometimes called charges are in reality taxes in the true sense of the word.

Most of the excise duties in Sweden were introduced for other purposes than merely to provide income... the state. They can,... fact-in contrast... other taxes-also be used as instruments to influence consumption patterns in a desirable direction for the society. The introduction of an excise duty is, as a rule, based... both public finance requirements and other political considerations.

The taxes on energy, spirits, wine and tobacco are typical examples of excise duties used as instruments... influence. They are also some of the oldest Swedish excise duties. The charge... pesticides and insecticides is another, more recent example of an excise duty which was introduced to restrict the usage of pesticides and insecticides... health and environmental reasons.

In Sweden excise duties now account... a significant proportion of the state's revenue. The annual cost to the Swedish government of administering excise duties (personnel, premises, computers, etc.) amounts... 0.06 per cent of the total revenue from these taxes.

Words you may need:

excise duty акцизная пошлина, акциз

distinguish v проводить различие

relate (to) v быть связанным

entail v влечь за собой

counter-performance n ответное действие

via prep через

amount (to) v достигать, составлять

Ex. 10. Open the brackets putting the verbs in the correct form: