Text 6 tax legislation in Ukraine

Exercise 5.4 Read the statements. Are they true or false? Correct the false ones.

1. Human resources departments of tax militia accept all citizens of Ukraine who have university qualifications.

a) True; b) False

2.Actions and decisions of tax militia are final and cannot be appealed.

a)True; b) False

3.Public officers of tax militia bear responsibility for service misconduct.

a)True; b) False

4.Tax militia protects the State Tax Service employees against illegal infringements related to the implementation of their service duties.

a)True; b) False

5.The state of health is important when applying for a job at the tax militia department.

a)True; b) False

6.It is beyond tax militia competence to take measures to compensate damages incurred to the state.

a)True; b)False

7. Tax militia search for taxpayers who dodge taxes and other obligatory payments.

a)True; b) False

8. Tax militia is a special department within the bodies of the State Tax Service.

a)True; b) False

Exercise 5.5 Give English equivalents for the following words and word combinations as they were used in the text:

1. Здійснювати контроль –

2. Податкове законодавство –

3. Оперативно-розшукова діяльність –

4. Розслідувати злочини –

5. Обов’язкові виплати –

6. Платники податків –

7. Забезпечувати безпеку –

8. Службові обов’язки –

9. Приймати рішення –

10. Здійснювати допит –

11. Приймати на контрактній основі –

12. Нести відповідальність –

Exercise 5.6 Complete the sentences with the missing words:

1. Tax militia prevents crimes and other violations in the area of _____.

2. Tax militia searches taxpayers, that _____ taxes and other mandatory payments.

3. Tax militia ensures protection of workers employed at bodies of the STS against _____ infringements related to the fulfillment of their service duties.

4. Tax militia shall perform interrogation and _____ investigation within the scope of their competence.

5. Human resources departments of tax militia accept citizens of Ukraine on the ____ basis.

Exercise 6.1 Study the vocabulary:

1) level of the development	1) рівень розвитку
2) clear goal-direction	2) чітке цілеспрямування
3) key principles	3) основні принципи
4) to determine	4) визначати
5) total amount of revenue	5) загальна сума надходжень
6) stable source of revenue	6) стабільне джерело надходжень
7) tax releases and exemptions	7) звільнення від податку
8) consumer commodities	8) споживчі товари
9) to prevent tax evasion	9) запобігати ухиленню від сплати податку
10) to foresee	10) передбачати
11) to reduce a tax	11) зменшувати податок
12) gross income	12) валовий дохід
13) current calendar year	13) поточний календарний рік
14) to solve targets	14) визначати цілі
15) depreciation	15) знецінення, зменшення вартості

Exercise 6.2 Read and translate the text:

The young Ukrainian state creates its own tax system, which is not a simple copy of the experience of other countries. The tax system must reflect concrete situation in the country: level of the development of the economy, social sphere, its external and internal policy, and many other things.

Tax system and tax policy in our country has clear goal-direction to solve specific targets and problems. Taxes are the main instrument in Government regulation of the economy, forming revenue encouraging Science Technical Progress, restricting of inflation and increasing of prices in Ukraine.

Without well doing would not be possible the existence of the state tax system. In Ukraine it is provided by indirect taxes (VAT, excises, custom duties), as well as corporate income tax, personal income tax and land tax.

Key principles of building tax system in Ukraine were determined by Ukrainian Parliament in the Law «On system of taxation» on 18th of February, 1997. The building of tax system is based on the liability and social justice, equal tension and proportion, equality and nondiscrimination, stability, economic effectiveness and substantiation, encouraging of business activity and investments, inflation neutrality and administrative simplification of tax law and providing of its free access and understanding.

Taxes, charges and duties in Ukraine are divided into state and local taxes. The following taxes are determined as the state ones: VAT, excise duty, CIT, PIT, custom duty, state duty, payment for using land, rent payments, vehicle owner's tax, trade tax, geological prospecting charge, which were made on Government account, charge for special using of natural resources, environment coil charge, Chernobyl Fund charge and Social Security Fund charge, Pension Fund charge Innovation Fund charge, payment for trade patent and some kinds of business activity.

One of the main sources of revenue is VAT. The proportion of VAT in Combined Budget Revenue during several years testifies that this tax is stable source of revenue.

VAT was introduced in Ukraine on the 1st of January 1992 instead of acting before turnover tax and sales tax, which were imposed according to central-planning prices system.

Introducing of new types of indirect taxes (VAT and excise), first of all, was connected with necessity of providing of sufficient and constant revenue in conditions of wide liberalization of prices and developing inflation process. So, it was economically reasonable.

It is very important for budget that taxes must be paid by all customers of the commodities (services), during passing all steps of processing, from first step till the end.

Excise duty is the tax withholding on the group of specific goods. Excise was introduced in Ukraine in 1992. It levied on consumer commodities, which are not basic goods and have high profitability.

Excise rates in force on tobacco, strong beverages and vehicles were introduced in 1996 by three Laws «On import custom duties and excises on tobacco production», «About import custom duties and excises on strong beverages» and «About import custom duties and excises on some types of vehicles and tires to them».

According to the Law in force excise duty is not imposed on some kinds of oil products. That allows oil importers to avoid taxation during custom process. Sometimes there are cases of declaring oil production, which are levied by excise, under the other production code, which are not levied by excise or have fewer rates. In order to prevent tax evasion, it s necessary to make some changes in acting tax law to foresee increasing of excise duty rates and expansion of oil goods, which tax by 40 excise. Such approach will help to increase revenue and will not be so tangible with respect to the final price of oil products, as far as little rate of excise duty will not great increase prices for one kilogram of liquid fuel.

For comparison in Germany fuel excise duty is the main federal tax and makes 7,5 % of the revenue. So, for 1,5 DM excise is 0,98 DM.

Ecological problems are also solved through proper taxation in Western countries. Some years ago Germany industry did not agree to equip cars by catalyst. Then Government reduced tax on cars, which were equipped by catalyst and excise on those types of petrol that used for these cars. Excise was also increased on such types of petrol, which have led other kinds of dangerous chemicals.

It is provided the principally new approach for determining tax base in the Ukrainian Law «On corporate income tax». The corporate income tax is determined now as gross income less the amount of gross expenses and depreciation. Previously the taxable income was determining as the difference between sale revenue and expenses included to realize product's cost price.

All units of business activity, which receive profits from economic activities, as well as budget and public organizations, non-residents, branches, subsidiaries and other separate departments, which have individual bank account and/or conduct separate business accounting are considered to be taxpayers.

Gross income includes total revenue from realization of goods (services), providing bank, insurance and other operations, sale of securities, currency, liabilities and debt-claims, also gains from other origins and operations (grants, realization of capital resources and intangible assets, insurance reserves, which were not used to prescribe, penalties and surcharges).

Taxation of personal income is providing according with the Cabinet of Ministry Decree «On personal income tax». Taxpayers of PIT are Ukrainian nationals, foreign nationals and stateless persons, which are either residents or non-residents of Ukraine.

The total taxable income of individuals includes all income in any form money and in kind, national or foreign currency. Income received in kind is included to total taxable income for current calendar year according to market prices, besides of income of agriculture enterprises, where prices fix according Government sale prices.

Exercise 6.3 Match the English equivalents with their Ukrainian ones:

1. External and internal policy	a).економічна ефективність та обґрунтування
2. The experience of other countries	b) податок на прибуток юридичних осіб
3. To solve specific targets	c) податок на прибуток фізичних осіб
4. The existence of the state tax system	d) відповідальність та соціальна справедливість
5. Personal income tax	e) сприяти інвестуванню
6. Liability and social justice	f) головне джерело надходжень
7. Economic effectiveness and substantiation	g) вирішувати особливі цілі
8. Corporate income tax	h) зовнішня та внутрішня політика
9. To encourage investments	i) додаткові звільнення від податку
10. Custom duty	j) мито
11. Geological prospecting charge	k) досвід інших країн
12. Environment soil charge	l) уникати оподаткування при проходженні через митницю
13. The main source of revenue	m) збір на охорону навколишнього середовища
14. Additional tax releases and exemptions	n) збір на геологорозвідувальні роботи
15. To avoid taxation during custom process	o) існування державної податкової системи

Exercise 6.4 Fill in the suitable words:

the amount according to taxpayers state and local stable source the existence the main instrument

1. Taxes are _____ in government regulation of economy.

2. Without well doing would not be possible ______ of the state tax system.

3. Taxes, charges and duties in Ukraine are divided into ______ taxes.

4. The proportion of VAT in combined budget testifies that this tax is a _____] of revenue.

5. All units of business activities which receive profits from economic activity are considered to be ______.

6. Taxation of personal income is provided ______ the Cabinet of Ministry Decree “On personal income tax”.

7.The personal income tax rate ranges from 10% to 40% depending on ______ of total revenue.

Дата добавления: 2015-01-03