C) Say if you have learned about the system of tax administration in the UK

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

B. COMMUNICATIVE SITUATIONS

1. Round-table discussion. Taxes provide the principal source of income to all levels of government. Income taxes are the principal source of the national tax income. State and local governments rely on sales, income and property taxes as their principal sources of revenue.

In evaluating taxes focus on the following questions:

§ Who ought to pay taxes?

§ What types of taxes should be levied?

§ Who will actually pay the tax?

2. What are the principal taxes you and your family pay? Add the sales taxes, property taxes and others together to determine what percentage of your family’s income is actually spent on taxes.

3. Are you the type of person who should start a small business? Explain why or why not.

4. Make a short essay on the following:

• The purposes of direct and indirect taxation.
• The purposes of excise duties.
• What are “tax havens”?

¨ READ AND DISCUSS

1. a) Supply the articles where necessary.

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 tax system;... clarify, 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 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 – нагороджувати

tax base – податкова база

loophole – лазівка

stamp duty – гербовий збір

charge – стягувати

advance corporation tax – авансовий корпоративний податок

Дата добавления: 2014-11-29