Taxation. International Taxation

1. Remember the words:

- tax (direct, indirect) - податок (безпоcередній, непрямий)

- taxation - оподаткування

- expenditure - видатки, витрати

- corporation tax - корпоративний податок

- income tax - податок на прибуток

- earnings - заробіток, дохід, прибуток

- legal entity - юридична особа

- fiscal revenue - бюджетні надходження

- reserves - резерви

- tax rate - ставка податку

- sales tax - податок з обороту

- excise duty - акцизний податок

- to levy a tax (on) - обкладати податком

- value added tax - ПДВ

- to assess a tax - обкладати податком

- to exempt from a tax - звільнити від оподаткування

- tax deductions - відрахування податків

- taxable income - дохід, що підлягає оподаткуванню

- to collect taxes - стягувати податки

2. Read and translate the text:

Taxation is used to finance government expenditure. It represents a transfer of income from individuals, groups and organizations to the government.

We can define “direct” and “indirect” taxation. Anyone paying direct tax (e.g. income tax) cannot shift this liability into others. Taxes on goods are traditionally regarded as “indirect”. Corporation and individual income taxes are direct; value-added taxes, sales taxes, and import and excise duties are indirect taxes.

Income tax is usually paid at source. Employers compute, deduct and remit the tax to be paid on their employees’ earnings.

Corporation tax, a tax on the income of companies is a major source of fiscal revenue. Corporation income taxes vary among the countries. Less developed countries usually have lower corporation tax rates in order to attract foreign investment.

Sales taxes and excise duties are the best known examples of indirect taxes. Excise duties are levied on particular commodities, e.g. tobacco, alcohol, petrol, while sales taxes apply to a broad range of goods and services. Sales taxes are charged on top of excise duties.

The best known kind of sales tax, value added tax (VAT) has won recognition in the European Common Market. This is a national sales tax levied at each stage of production or at the sale of consumer goods. In most cases, food items have been exempted from this tax. VAD is easy to calculate and collect.

3. Answer the questions:

1. What is taxation used for?

2. How can taxes be classified?

3. What are direct taxes?

4. What are indirect taxes?

5. What is a corporation tax?

6. Are corporation taxes the same in all countries?

7. What is the distinction between excise duties and sales taxes?

8. What are excise duties levied on?

9. What is VAT levied on?

10. What goods are exempted from VAT?

4. Study the following definitions:

taxation - the compulsory contribution of money to the government;

direct tax - a tax that is levied on individuals and corporations;

indirect tax - a tax levied on goods and services;

value-added tax - an indirect tax levied at each stage of the production cycle or at

the sale of consumer goods;

corporation tax - a direct tax levied on the profits accruing to businesses;

income tax - a direct tax levied on the income (wages, rent, dividends)

received by households;

sales tax - a form of indirect tax which is incorporated into the selling

price of a product and which is borne by the consumer;

excise duty - an indirect tax levied by the government on certain goods,

most notably tobacco, oil and alcoholic drink.

5. Translate the following words and word-combinations into Ukrainian:

Government expenditure; a transfer of income; taxes on goods; at source; employees’ earnings; tax rate; particular commodities; consumer goods; profitable; to go out of business; inflation.

6. Match the words in the column one with their synonyms in column two:

1. corporation a) difference

2. to levy b) to count

3. fiscal c) ultimate

4. tax d) revenue

5. final e) financial

6. to calculate f) to assess

7. income g) duty

8. distinction h) company

7. Make a proper selection:

1) liability

2) direct taxes

3) revenue

4) indirect taxes

5) expenditure

6) earnings

7) profit

a)the value of what is received for goods sold, services rendered, and other sources;

b) a legal obligation, such as to pay debts and damages;

c) corporate and individual income tax;

d) spending of money;

e) value-added taxes, sales taxes, import duties;

f) money remaining after business expenses are deducted;

g) wages, salary, or income from work or investments.

8. Write the appropriate word or phrase in the spaces:

1. The income … was raised again last year.

2. Sales of all items except food are … by the city at 8.23 percent.

3. Congress gave everyone a 10 percent income … ….

4. Gifts to charity are tax ….

5. The accountant was found guilty of tax … and sent to jail.

6. The government … a new tax on the people.

7. Governments place … … on tobacco and liquor.

8. Can I get a tax … if I give money to the Children’s Fund?

9. The country’s … policy is to lower taxes and increase spending in order to stimulate the economy.

10. The company has made several big … on new equipment.

11. When … becomes bankrupt, its stock is of no value anymore.

12. She keeps a cash … in a savings account in case of emergencies.

Дата добавления: 2014-11-29