Unit 1. WHAT ARE TAXES?

Министерство Финансов Российской Федерации
Всероссийская государственная налоговая академия
Пособие по английскому языку
«Налоги и налогообложение»
для студентов 2 курса.
Москва 2006
1
ББК 81(Англ)я73
С23
Составители: профессор кафедры «иностранные языки» М.В.
Мельничук, старший преподаватель Дьяконова С.А.,
преподаватель Варламова А.И.
Рецензент: доцент кафедры иностранных языков Н.В. Банина
Пособие “Налоги и налогообложение” предназначено для
студентов, продолжающих изучение английского языка на втором курсе.
Пособие построено на принципах традиционной методики с широким
применением упражнений интенсивного характера. Целевой установкой
данного учебного материала является развитие у студентов навыков
чтения и коммуникации по заявленной тематике.
Утверждено и рекомендовано решением
Учебно-методического совета ВГНА
(протокол № )
© ВГНА МНФ России, 2006
© Мельничук М.В., 2006
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Предисловие.
Данное учебное пособие предназначено для студентов второго
курса, обучающихся по специальности “Налоги и налогообложение”, а
также может быть использовано студентами, изучающими налоговое
право и финансы.
Пособие составлено в соответствии с требованиями программы по
иностранным языкам для неязыковых вузов и рассчитано на 120 часов
аудиторной работы и 60 часов самостоятельной внеаудиторной работы.
Пособие рассчитано на студентов, обладающих знанием
нормативной грамматики английского языка и имеющих словарный
запас 1500-2000 лексических единиц.
Цель пособия научить студентов читать оригинальную
литературу по специальности “Налоги и налогообложение” и вести
беседу на профессиональные темы.
Отличительной чертой пособия является его информативность.
Все тексты, задания и упражнения основаны на материалах монографий,
периодических изданий, американских и британских учебников по
экономике, оригинальных справочных изданиях. В пособие также
включены материалы из Налогового Кодекса Российской Федерации
(2006г.)
Пособие включает 25 тематических разделов, построенных по
единому принципу, обеспечивающему усвоение материала как при
изучении его на занятии, так и при самостоятельной подготовке. В
основу каждого раздела положен текст. Все тексты, представленные в
пособии, являются аутентичным языковым материалом справочного и
аналитического
характера.
Тексты
характеризуются
высокой
концентрацией терминологии по налогам и налогообложению, а также
сопровождаются соответствующими упражнениями на закрепление и
активизацию
терминов
и
околотерминологической
лексики.
Разнообразные упражнения, включающие в себя репродуктивные
задания, направлены на извлечение и переработку смысловой
информации, формирование обширного профессионального словаря.
Тематический принцип построения пособия дает возможность
использовать его для выборочного изучения нужной тематики.
Несмотря на высокую степень информативности предложенных
текстов, учебное пособие не претендует на исчерпывающее
представление сведений в рамках заявленной тематики, так как отвечает
задачам введения и отработки высокочастотного профессионально
релевантного
языкового
материала
по
теме
«Налоги
и
налогообложение».
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Unit 1. WHAT ARE TAXES?
Exercise 1
Practice reading the following words and collocations.
a) expenditure, authority, specific, unrequited, individuals, budgetary,
required,
municipal, monetary, exemptions, redistribute, inequalities,
involuntary, bound, failure, amount, imprisonment, merely, macroeconomic;
b) financial burdens, legal entities, mandatory levies, source of
government
revenue, sever penalties, national debt;
c) to be defined, to contribute towards, to be regularly imposed, to
give effect, to be subject to, to be owed.
WHAT ARE TAXES?
People often say there are only two things a person can be safe of in life:
death and taxes. What are taxes? Taxes are defined as financial burdens borne by
individuals and legal entities according to their ability to contribute towards the
expenditures of public authority without a specific compensation. Taxes are
compulsory levies that are regularly imposed and, as a rule, not destined for a
special purpose; they are regarded as a contribution to the State Budget from
which most government expenditures are financed in the common interest of the
society. Taxes differ from other mandatory levies in that they are unrequited –
i.e., they are not paid in exchange for some specific services or any particular
benefit but represent a general obligation of taxpayers. In other words, there is
no relationship between the tax paid by the person and the benefits received as a
result of public expenditure. In modern economies taxes are the most important
source of government revenue.
Taxes are considered to have three functions:
1) fiscal or budgetary, to cover government expenditures, to provide
the public authorities with the revenue required for meeting the cost of
defence, social services, interest payments on the national debt, municipal
services, etc.;
2) economic, to give effect to economic policy, to promote such
general aims as full employment, monetary stability, to influence the stable
satisfactory rate of economic growth of the nation, and also to influence the
macroeconomic performance of the economy ( the government’s strategy for
doing this is called its fiscal policy. To achieve this aim tax exemptions are
used.);
3) social or redistribute, to increase the welfare of the community, to
lessen
inequalities in the distribution of income and wealth by redistributing
resources between individuals or classes of the population. Historically, the
nobility were supported by taxes on the poor. Modern social security systems
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are intended to support the poor, the disabled or the retired by taxes on those
who are still working.
Taxes are compulsory involuntary payments and every citizen of the
country is legally bound to the tax imposed on him. Failure to pay taxes, or
paying less than one owes, can lead to substantial penalties (besides just the tax
owed). If the failure to pay or the payment of incorrectly low amount is deemed
intentional, not merely a mistake, it is a crime subject to more sever penalties,
including large fines and imprisonment.
Vocabulary
1.
2.
3.
4.
define (v)
burden (n)
bear (bore, borne) (v)
individual(n)
5.
6.
7.
8.
9.
legal entity
contribute
towards (prep)
expenditure (n)
public authority
10.
revenue (n)
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
destined ( adj)
compulsory (adj)
to impose a tax on
levy (n)
unrequited (adj)
benefit (n)
represent (v)
obligation (n)
source (n)
consider (n)
to give effect
22.
23.
to influence smth
exemption (n)
24.
25.
26.
welfare (n)
the community (n)
inequality (n)
определять, давать определение
бремя
нести
1) физическое лицо, 2) человек,
личность
юридическое лицо
вносить вклад
по отношению к, для
расход, трата
государственная власть, органы
госуд. власти
годовой доход (государственный),
валовой доход,
доходные статьи
бюджета
предназначенный
обязательный
облагать налогом (syn. to levy a tax)
сбор, пошлина
невознагражденный
выгода, польза, пособие
представлять
обязательство
источник
считать, полагать
осуществлять,
приводить
в
исполнение
влиять на что-либо
законное освобождение от уплаты
налога
благосостояние
общество
неравенство
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27.
nobility (n)
28.
29.
30.
31.
32.
33.
34.
35.
involuntary (adj)
bound (adj)
failure (n)
owe (v)
substantial (adj)
deem (v)
intentional (adj)
subject (adj)
36.
37.
38.
39.
sever penalty
include (v)
fine (n)
imprisonment (n)
дворянство,
титулованная
аристократия
недобровольный
обязанный
неспособность, невыполнение
быть должным
значительный, существенный
считать, думать полагать
преднамеренный, умышленный
подвластный,
подчиненный,
подверженный
строгое наказание
включать
штраф
заключение (в тюрьму), лишение
свободы
Exercise 2
Answer the questions.
1. What are taxes?
2. Who is obliged to pay taxes?
3. What is the difference between taxes and other compulsory levies?
4. What is the most important source of government revenue?
5. What can failure to pay taxes lead to?
6. Is there any relationship between the tax paid by the person and the
benefits received by him?
7. What functions of taxes do you know?
Exercise 3
Do vocabulary exercises
a) Translate into Russian
1. The British government is planning to increase taxes by 5 per cent over the
next year.
2. They are promising big tax cuts.
3. He was fined for tax evasion (= for not paying his tax).
4. The payments were spread over a long period for tax purposes (= in order
to pay less tax on them).
5. Tobacco and alcoholic drinks are taxed heavily in Britain.
6. The government was short of money because of falling oil revenues.
7. The Inland Revenue is the office which collects national taxes in Britain.
8. Half of our income goes on rent.
9. People on fixed incomes are hurt by inflation.
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10. The company announced pre-tax profit of 2 million for 2003, after making
a loss in 2002.
11. Most of the countries in the region have unstable economies.
12. They let the house to a young man at a rent 50 dollars a week.
13. They lent him the money at 6% interest.
14. Bank interest rates are going to rise this month.
15.If we spend more than our income we’ll run into debt.
16.The country’s wealth comes from its oil.
Exercise 4
Choose several previous sentences and make up all possible types of
questions.
Exercise 5
Guess the meaning of the words by their definitions:
 income which the government receives as tax,
 the highest authority in the country
 money gained by trade or business
 money which must be paid to the government according to income,
property, goods bought, etc.
 to charge a tax
 money received regularly as payment for work or interest from investment
 the system by which a country wealth is produced and used
 money paid regularly for the use of something
 that part of the money made by a business, which is divided among those
who own shares in the business
 a charge made for the borrowing of money
 something owed to someone else
 a large amount of money and possession
Exercise 6
Translate the following:
Считается преднамеренным; покрыть государственные расходы; в
соответствии с их способностью; повлиять на удовлетворительный темп
экономического роста; чтобы достичь этой цели используется
освобождение от уплаты налогов; увеличить благосостояние общества;
уменьшить неравенство в распределение доходов; система социального
страхования предназначена для поддержания бедных; источник
государственных доходов; всеобщая обязанность налогоплательщиков.
Grammar Revision
Exercise 7
Choose the correct answer
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1. Every tax, ……….direct and indirect, is eventually paid for by individuals.
1) both
2) either
3) as
4) neither
2. The…………..economy is in crisis. Unemployment …………. .
1) country’s; is rising 2) country; rises
3) country’s; rose
4) country; has risen
3. After a million pounds …….. on the scheme, they decided that was
impracticable and the scheme ……….. .
1) had spent; was given up
2) was being spent; gave up
3) had been spent; was given up
4) is spent; was given up
4. If the interest rate …………, we won't be able to pay off our debt.
1) rose
2) will rise
3) rises
4) will raise
5. He's got nothing to do but ………..
1) to pay
2) pay
3) paid
4) pays
6. It was recommended that he ………. for the authorities.
1) has to wait
2) waits
3) waited 4) wait
7. ….. Government …… planning ……next taxes but …….. know yet
whether their .own supporters will accept such …… policy.
1) ---, is, ---, it doesn't, a
2) the, is, ---, they, don't, a
3) --- , are, the, they, don't, --4) the, are, it, doesn't, --8. Our new social security scheme is lots ……..than ………. .
1) more generous, previous Government
2) the most generous, the previous Government
3) more generous, the previous Government's
4) the most generous, previous Government
9. Officials …. they …. to lower the Unified Social Tax.
1) have said, planned 2) said, plan 3) have said, plan 4) say, had planned
10.…..resulting $10 billion gap in revenues …… by tax hikes on natural
resources such as oil.
1) a, would be filled 2)---, was filled 3) the, fills 4) the, will be filled
11.First of all we ……. cut the UST, which is …… tax. It will lead to a rise in
……. .
1) need, the biggest, revenue
2) must, biggest, pensions
3) need to, the biggest, wages
4) should, the bigger, fees
12.The government …. use windfall gains from high oil prices to cut taxes
……. keep running a budget surplus.
1) must, rather than 2) should, so that 3) may, and 4) need, in order to
13.The officials ……the hope that …. money that …..in enterprises will be
used in particular to increase wages and become a source of additional
investment and accelerated economic growth.
1) have express, the, stay
2) express, ---, will stay
3) will express, a , stays
4) express, the, stays
14. Growing GDP and an appreciating ruble ………….. the real burden of
the government dollar-denominated debt.
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1) have reduced 2) reduced
3) has reduced 4) had reduced
15. A cut in payroll tax ….. cause many hidden wages to come into the open,
expanding the tax base and slowing the reduction in revenues.
1) might 2) will 3) might have 4) must
Unit 2. PROGRESSIVE AND REGRESSIVE TAXES
Exercise 1
Practise reading the following words and collocations.
a) opposite; percentage; portion; frugal; affluent; burden; in particular;
argument; exactly; enough; without; disincentive; particular; within;
b) mathematical function; reliable transportation; social security taxes;
excise taxes; proportional tax; functioning systems of taxation;
disposable income; material damage; converse argument; federal
government; monetary range;
c) progressive and regressive taxes; interest, rent and other kinds of
income;
d) to keep up appearances; to tend to be; to be fixed; to soak the poor; to
calculate the percentage.
PROGRESSIVE AND REGRESSIVE TAXES
Progressive and regressive taxes describe the tax table, not a political
opinion. It’s like a mathematical function. In a progressive tax, the more you
earn, the higher your tax rate. The opposite of a progressive tax is a regressive
tax. In this case, the less you earn, the higher your tax rate.
The classical progressive tax is income tax, where people with more
income pay a higher percentage of it in taxes.
The classical regressive tax is income tax, where people with more
income pay a less percentage of it in taxes.
The classical regressive tax is sales tax (since lower income people
spend a large portion of their income). For example, let’s imagine two frugal
travelling salesmen. They each have to buy a new car every four years to (say)
keep up appearances, and they need reliable transportation. (One guy makes
20K, the other 300K).
Poor boy buys a $20,000 car pays $1,000 or 5% of his income.
Rich boy buys a $60,000 car pays $3,000 or 1% of his income.
Many taxes tend to be regressive in practise: social security taxes
(because they exclude interest, rent, and other kinds of income common for
the affluent), excise taxes and etc. (a flat tax, also called a proportional tax, is
one where the tax amount is fixed as a function of income, and is a term
mainly used only in the context of income taxes).
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All known functioning systems of taxation have a balance of
progressive and regressive taxes. This idea is almost never debated, the
debates are over where the balance point should be, how much burden should
be on the rich, and how much burden on the middle and the poor, In particular,
progressive taxes soak the rich, regressive taxes soak the poor.
The argument for a progressive tax system is that people with higher
income tend to have a higher percentage of that in disposable income, and can
afford a greater tax burden. A person making exactly enough money to pay for
food and housing cannot afford to pay any taxes without it causing material
damage, while someone making twice as much as one can afford to pay up to
half their income to taxes. The converse argument is that too progressive a tax
rate acts as a disincentive to work.
For example, in the United States (2004) there are six tax brackets that
are used to calculate the percentage of income that must be paid as income tax
to the federal government. If an individual’s yearly income falls within a
particular tax bracket, they pay the listed percentage of their income on each
dollar that falls, within that monetary range, for example, a person who earned
$10,000 in 2003 would be liable for 10% of each dollar earned from the
2,651st dollar to the 9,700th dollar to the 10,000th dollar, for a total of $749,75.
Vocabulary
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
progressive tax (n)
regressive tax (n)
rate (n)
tax rate
income (n)
income tax
sales tax (n)
frugal (adj.)
to keep up
to keep up appearances
reliable (adj.)
K = one thousand
social security tax (n)
to exclude
rent (n)
the affluent (n)
excise tax (n)
flat tax (n)
to debate
burden (n)
– прогрессивный налог; налог, взимаемый
по прогрессивной шкале
– регрессивный налог
– ставка, тариф
– ставка налога
– доход
– подоходный налог
– налог с оборота, налог на продажу
– бережливый, экономный
– поддерживать
– соблюдать приличия
– надежный, прочный
– налог в фонд социального обеспечения
– исключить
– арендная плата
– богатый
– акцизный сбор
– фиксированный (подоходный) налог
– оспаривать
– бремя, долговое бремя
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17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
tax burden
to soak (slang)
disposable (adj.)
disposable income
to afford
damage (n)
material damage
to cause
to act
disincentive (n)
tax bracket (n)
listed
range (n)
monetary range
– налоговое бремя
– выкачивать деньги
– такой, которым можно распоряжаться,
свободный
– располагаемый доход
– позволять себе
– повреждение, ущерб
– материальный убыток
– служить причиной
– действовать
– препятствие, сдерживающее средство
–
налоговая
категория,
группа
по
налогообложению
– включенный в список
– диапазон, коридор (цен)
– денежный диапазон
Exercise 2
In the text find the answers to the following questions.
1. What does a progressive tax mean?
2. What does a regressive tax mean?
3. Which taxes refer to the classical progressive tax? Give an example.
4. Which taxes refer to the classical regressive tax? Prove it.
5. Which kind of taxes (progressive or regressive) do many taxes tend to
be?
6. What is the argument for a progressive tax system?
Exercise 3
Find the most suitable Russian equivalents to the following English
collocations.
People with more income pay a higher percentage of it in taxes; since
lower income people spend a large portion of their income; to have to buy a
new car to keep up appearances; interest, rent and other kinds of income
common for the affluent; the tax amount is fixed as a function of income; to
have a balance of progressive and regressive taxes; cannot afford to pay any
taxes without it causing material damage; must be paid as income tax to the
federal government; to fall within the monetary range.
Exercise 4
In the text find the English equivlents to the following Russian
collocations.
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Прогрессивный и регрессивный налоги дают представление о
налоговой таблице, а не подразумевают под собой какое-либо
политическое суждение; чем больше заработаешь, тем выше будет
ставка налога; классическим примером прогрессивного налога является
подоходный налог; для поддержания своего имиджа каждый должен
покупать новую машину через каждые четыре года; исходя из практики,
многие налоги можно отнести к регрессивным; все известные
действующие системы налогообложения обладают равновесием между
прогрессивными и регрессивными налогами; человек, зарабатывающий
несомненно достаточно денег на еду и содержание дома; слишком
прогрессивный уровень налоговой ставки является препятствием для
того, чтобы зарабатывать больше; ежегодный доход физического лица
подпадает под определенную налоговую категорию.
Exercise 5
Guess the meaning of the words by their definitions.
1. A tax in which the rate of tax decreases as income increases. Indirect
taxes fall into this category. This tax is said to fall more heavily on the
poor than on the rich.
2. A payment made periodically for the use of land, a building, etc.
3. To be able to do or spare something without risking financial
difficulties or undesirable consequences.
4. A group of taxes or category falling within certain defined limits.
5. Injury or harm caused to a person or thing.
6. Something that discourages someone from behaving or acting in a
particular way.
7. To maintain (prices, standards, or one’s morale) at the present level.
8. Able to be trusted.
9. A tax in which the rate of tax increases which increases in the tax base.
Unit 3. A HISTORY OF TAXATION.
Exercise 1
Practise reading the followingwords and collocations.
a) civilization, through, ensure, process, expenditures, society, emergency,
resource, Caesar, empire, virtually, spouse, allegedly.
b) influential history, various reins, appropriate amounts, brilliant tax
strategist, central government, inheritance tax, retirement funds.
c) customs duties on imports and exports.
d) To impose a tax on smth., to be exempt from the tax, to rescind the tax,
to give the responsibility for collecting taxes, to lead a revolt, to result
in smth.
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A HISTORY OF TAXATION.
“Taxes are what we pay
for a civilized society”
Taxation has been around in various forms for a very long time, dating
back to the Romans. It has a long and influential history in the shaping of
civilization through the world.
In Egypt, during the various reins of the Egyptian Pharaohs tax
collectors were known as scribes. During one period the scribes imposed a tax
on cooking oil. They had to audit household to insure that appropriate
amounts of cooking oil were consumed and that citizens were not using
leavings generated by other cooking processes as a substitute for the taxed oil.
In Greece, in times of war the Athenians imposed a tax referred to as
eisphora. No one was exempt from the tax which was used to pay for special
wartime expenditures. The Greeks are one on the few societies that were able
to rescind the tax once the emergency was over. When additional resources
were gained by the war effort the resources were used to refund the tax.
Athenians imposed a monthly poll tax on foreigners, people who did
not have both an Athenian Mother and Father, of one drachma for men and a
half drachma for women. The tax referred to as metoikion.
In Roman Empire, the earliest taxes were duties on imports and exports
called portoria.
Ceasar Augustus was considered by many to be the most brilliant tax
strategist of the Roman Empire. During his reign as “First Citizen” the
publicani were virtually eliminated as tax collectors for the central
government. During this period cities were given the responsibility for
collecting taxes. Caesar Augustus instituted an inheritance tax to provide
retirement funds for the military. The tax was 5 percent on all inheritances
except gifts to children and spouses. The English and Dutch referred to the
inheritance tax of Augustus in developing their own inheritance taxes.
During the time of Julius Caesar a 1 percent sales tax was imposed.
During the time of Caesar Augustus the sales tax was 4 percent for slaves and
1 percent for everything else.
Saint Mattew was a publican (tax collector) from Capernaum during
Caesar Augustus reign. He was not of the old publicani but hired by the local
government to collect taxes.
In 60 A.D. Boadicea, queen of East Angolia led a revolt. Her revolt
allegedly killed all Roman soldiers within 100 miles; seized London; and it is
said that over 80, 000 people were killed during the revolt. The Queen was
able to raise an army of 230, 000. The revolt was crushed by Emperor Neron
and resulted in the appointment of new administrators for the British Isles.
13
VOCABULARY
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
the reins
scribe (n)
to impose
to impose duty on goods
to audit
appropriate (adj)
to consume
leavings (pl)
substitute (n)
to be referred to
to exempt
expenditures (pl)
capital expenditures
government expenditures
to rescind
emergency (n)
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
to gain
effort (n)
to refund
poll tax (n)
duty (n)
customs duties
duty free
export duties
reign (n)
publican (n)
virtually (adv)
to eliminate
to institute
inheritance tax (n)
funds (pl)
spouse (n)
sales tax (n)
to lead
revolt (n)
to seize
31.
to result in smt.
– бразды правления
– писарь, переписчик
– облагать (пошлиной, налогом)
– облагать товары пошлиной
– делать ревизию
– подходящий
– потреблять, расходовать
– остатки
– замена
– именуемый
– освобождать (от налогов)
– расходы, издержки
– вложения в основные средства
– государственные расходы
– отменять, аннулировать
– крайняя необходимость, непредвиденный
случай
– приобретать, получать
– усилия, попытка
– возмещать, компенсировать
– подушный налог
– пошлина, сбор
– таможенные пошлины
– беспошлинный, свободный от пошлины
– экспортные пошлины
– царствование
– откупщик (в древнем Риме)
– фактически, в сущности
– ликвидировать, упразднять, уничтожать
– учреждать, основывать
– налог на наследство
– средства
– супруг, супруга
– налог с продаж
– руководить, возглавлять
– восстание, мятеж
– захватить, завладеть (городом, кораблем и
т.п.)
– приводить к чему-либо, иметь результатом
Exercise 2
14
In the text find the answers to the following questions.
1.
2.
3.
4.
5.
What do you know about taxation in Egypt?
What can you say about taxation in Greece?
What are the earliest taxes in Rome?
Who was the most brilliant tax strategist of the Roman Empire? Why?
What did a revolt led by the queen of East Anglia result in?
Exercise 3
Find the most suitable Russian equivalents to the following English
collocations.
Taxation has been around in various forms; to audit households to
insure that appropriate amounts of cooking oil were consumed; which was
used to pay for special wartime expenditures; to rescind the tax once the
emergency was over; the publicani were virtually eliminated as tax collectors
for the central government; to provide retirement funds for the military; and
resulted in the appointment of new administrators for the British Isles.
Exercise 4
In the text find the English equivalents to the following Russian
collocations.
Система налогообложения имеет историю, которая повлияла на
развитие цивилизаций всего мира; граждане не заменяли масло, которое
облагалось налогом, остатками другого продукта; никто не освобождался
от уплаты налога, который взимался на специальные военные расходы;
афиняне облагали иностранцев ежемесячным подушным налогом;
самыми первыми налогами в Риме были таможенные пошлины на
импорт и экспорт; городам вменили в обязанность сбор налогов; Цезарь
Август учредил налог на наследство.
Exercise 5
Guess the meaning of the words by their definitions.
1. A human society that has a complex cultural, political and legal
organization.
2. A government tax on imports.
3. To give back (money).
4. To take by force or capture.
5. A person’s partner in marriage.
6. Things left behind unwanted, such as food on a plate.
7. To annul or repeal.
15
8. Any tax levied per head of adult population, esp. the tax which replaced
domestic rates (in Scotland from 1989 and England and Wales from
1990, unit 1993).
9. The period during which a monarch is the official ruler of a country.
10. An unforeseen or sudden occurrence.
Unit 4. THE TAX HISTORY OF GREAT BRITAIN.
Exercise 1
Practise reading the following words and collocation.
a) through; scheme; ultimately; Parliament; hence; various; especially; riots;
hooray; precursor; engagement; those; licence; temporarily; annually;
Chancellor; budget; sharply;
b) assessed tax; Anglo-Saxon woman; substantial customs duties; rebellion of
the nobles; status and means; essential commodities; rural laborer; patent
medicines; gloves, perfume and hair powder; temporary tax; dutiable articles;
far-reaching administrative reforms; fiscal indigestion; European
Communities; much narrower purchase tax; avoidance and evasion;
c) to renew; to be imposed on; to be charged with; to occur; to starve; to be
repealed; to last; to require; to be liable to; to facilitate.
THE TAX HISTORY OF GREAT BRITAIN.
The first assessed tax in England was introduced during occupation by
the Roman Empire.
When Rome fell, the Saxon kings imposed taxes, referred as Danegeld,
on land and property. The kings also imposed substantial customs duties.
The 100 year War (the conflict between England and France) began in
1337 and ended in 1453. One of the key factors that renewed fighting in 1369
was the rebellion of the nobles of Aquitaine over the oppressive tax policies of
Edward, The Black Prince.
During 14th century taxes were very progressive. The 1377 poll tax
noted that the tax on the Duke of Lancaster was 520 times higher than the tax
on the common peasant.
Under the earliest taxing schemes an income tax was imposed on the
wealthy office holders, and the clergy. A tax on movable property was
imposed on merchants. The poor paid little or no taxes.
Charles I was ultimately charged with treason and beheaded. However,
his problem with the Parliament came about because of a disagreement in
16
1629 about the rights of taxation afforded the King and the rights of taxation
afforded the Parliament.
The King’s Writ stated that individuals should be taxed according to
status and means. Hence the idea of a progressive tax on those with the ability
to pay was developed very early.
Other prominent taxes imposed during this period were taxes on land
and various excise taxes. To pay for the army commanded by Oliver
Cromwell, the Parliament, in 1643, imposed excise taxes on essential
commodities (grain, meat, etc.). The taxes imposed by the Parliament
extracted even more funds than the taxes imposed by Charles I, especially
from the poor. The excise tax was very regressive, increasing the tax on the
poor so much, that the Smithfield riots occurred in 1647. The riots occurred
because the new taxes lowered rural laborers’ ability to buy wheat to the point
where a family of four would starve. In addition to the excise tax, the common
lands used for hunting by the peasant class were enclosed and peasant hunting
was banned (hooray for Robin Hood!).
In 1800 the British invented a precursor to the modern income tax we
know today to finance their engagement in the war with Napoleon. The tax
was repealed in 1816.
The costs of the War of Independence in turn led to more stamp duties;
on post horses, hats and patent medicines (1783-1941). Those on gloves,
perfume and hair powder did not last so long, but a licence to wear hair
powder was still required in 1855, when there were less than 1,000 users,
mainly footmen.
In 1784 William Pitt the Younger found that there were 68 different
kinds of customs duties; a pound of nutmegs was liable to 9 different duties!
He reformed the tariff and in 1799 introduced a temporary tax, income tax, at
10%. Great Britain still has it after 200 years.
In 1842 Robert Peel reduced the number of dutiable articles from 1,200
to 750; to help meet the cost he introduced income tax at 3%, again
temporarily, and it still has to be imposed annually.
A brilliant Chancellor was William Gladstone. He made far-reaching
administrative reforms; his budget speech of 1853 lasted a record five hours!
By 1874 income tax had fallen to less that 1%.
To meet the costs of the 1939-45 war, the United States, Canada and the
UK, all increased the rates of income tax and to facilitate its collection they all
introduced deduction of tax by employers.
In 1965 James Callaghan caused fiscal indigestion by introducing both
capital gains tax and corporation tax.
In 1972 Edward Heath took Britain into the European Community and
the value added tax replaced the much narrower purchase tax.
In 1974 Denis Healey increased the top rate of income tax to 95%, an
even higher rate than during the 1939-1945 war. It has contrasted sharply with
17
the top rate of 40% since 1988, which has brought in more revenue by
attracting business to the UK and reducing avoidance and evasion.
Vocabulary
1.
assessed tax
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
Coventry
substantial (adj.)
customs duties
to renew
rebellion (n)
oppressive (adj.)
poll tax
peasant (n)
office holder (n)
clergy (n)
movable property
ultimately
to charge
treason (n)
to behead
to come about
to afford
writ (n)
to state
hence
prominent
excise tax
essential commodity
25.
26.
27.
28.
29.
30.
31.
32.
to extract
riots
to occur
laborer (n)
rural (adj.)
to enclose
to ban
to repeal
прямой налог (налог на доходы или
имущество граждан и юридических
лиц)
Ковентри (город в Великобритании)
существенный, большой
таможенные пошлины
снова начинать(ся), возобновлять(ся)
восстание; бунт, мятеж
тиранический, жестокий; гнетущий
подушный избирательный налог
крестьянин, сельский житель
должностное лицо
Духовенство
движимое имущество, движимость
в конечном счете, в конце концов
Обвинять
государственная измена
Обезглавливать
Случаться
предоставлять; давать
Приказ
Гласить
значит, следовательно
Заметный, значительный
акцизный налог
товары (предметы) первой
необходимости
извлекать; вытаскивать
массовые беспорядки
происходить, случаться; иметь место
Рабочий
Сельский
Охватывать
Запрещать
отменять (о законе)
18
33.
War of Independen
34.
35.
36.
37.
38.
39.
in turn
footman (n)
temporary (adj.)
to facilitate
indigestion (n)
purchase tax
40.
to bring in
Война за независимость
(Американская революция).
Освободительная война 1775-83гг.
тринадцати английских колоний, в
ходе которой было создано
независимое государство США
в свою очередь
лакей, слуга
Временный
способствовать, помогать
Неприятие
налог на покупку (форма косвенного
налогообложения; включался в цену
товара)
принести прибыль
Exercise 2
Find the most suitable Russian equivalents to the following English
collocations:
To impose taxes, referred as Danegeld, on land and property; rebellion
of the nobles over the oppressive tax policies; under the earliest taxing
schemes an income tax was imposed on the wealthy; rights of taxation
afforded the King; those with the ability to pay; to lower rural laborers ability
to buy wheat to the point where a family of four would starve; costs in turn led
to more stamp duties; licence to wear hair powder was still required; to
introduce income tax at 3%, again temporarily; to cause fiscal indigestion by
introducing both capital gains tax and corporation tax; to bring in more
revenue by attracting business to the UK and reducing avoidance and evasion.
Exercise 3
Find English equivalents to the following Russian collocations:
Первые налоги в Англии появились тогда, когда она находилась
под властью Римской Империи; ввести ощутимые таможенные
пошлины; бунт дворян против непосильной налоговой политики;
торговцы должны были платить налог на движимое имущество; права в
деле сбора налогов, предоставленные королю; для того чтобы платить
армии под руководством Кромвеля, парламент ввел налог на товары
первой необходимости;
новые налоги снизили покупательную
способность сельских жителей; фунт мускатного ореха облагался 9
разными таможенными пошлинами; провести далеко идущие
административные реформы; поднять высшую ставку подоходного
налога.
19
Exercise 4
Answer the following questions:
1. Which taxes were under the earliest taxing schemes?
2. Why did Charles I have problems with the Parliament?
3. Why were excise taxes imposed on essential commodities in 1643?
4. Were they progressive?
5. Why did the riots in 1647 occur?
6. What did the costs of the War of Independence lead to?
7. What happened in 1784?
8. What was the rate of income tax in 1842?
Does it still have to be imposed annually?
9. Why did the United States, Canada, the UK increase the rates of income
tax during the 1939-45 war?
10.When were capital gains tax and corporation tax introduced?
Exercise 5
Guess the meaning of the words by their definitions:
1. Duty charged on imports or exports.
2. Organized opposition to a government or other authority involving the use
of violence.
3. Any tax levied per head of adult population.
4. Betrayal of one’s sovereign or country, esp. by attempting to overthrow the
government.
5. To give or supply.
6. A tax on certain goods and services sold within a country, such as alcohol
and tobacco.
7. To pull out or uproot by force.
8. A person engaged in physical work.
9. To cancel (a law) officially.
10. Lasting only for a short time; not permanent.
11. To yield (income, profit, or cash).
Unit 5. THE HISTORY OF THE TAX SYSTEM IN THE UNITED STATES
Exercise 1
Practise reading the following words and collocation:
a) circumstances; amendment; gradual; society; economy;
comparatively; wealthy; rarely; southern; primarily; though; tyranny; culture;
fear; southwestern; physically;
20
b) significant changes; specific historical events; income and social
security programs; Federal Government’s revenue; authority; Revolutionary
War; each adult male; persistent wariness; Revolutionary Era; few
responsibilities; sovereign entity; taxes, duties, imposts and excises; common
Defense and general Welfare; distilled spirits, tobacco and snuff, refined
sugar, carriages, property sold at auctions, and various legal documents;
treasury note;
c) to be traceable to; to supply; to be derived from; to impose directly
on; to rely on donations; to endow with the power; to pay the debts; to
suppress the Rebellion; to be abolished; to issue; to discourage consumption.
THE HISTORY OF THE TAX SYSTEM IN THE UNITED STATES
(Part I)
The federal, state and local tax system in the United States have been
marked by significant changes over the years in response to changing
circumstances in the role of government. Some of these changes are traceable
to specific historical events, such as a war or the passage of the 16 th
Amendment to the Constitution that granted Congress the power to levy a tax
on personal income. Other changes were more gradual, responding to changes
in society, in economy, and in the roles and responsibilities that government
has taken to itself.
Until the late 1960’s the Congress raised taxes mainly to fight wars.
With the Great Depression in the 1930’s, the Government began many
income and social security programs, but these cost comparatively little until
the 1960’s. The Federal income tax began as a tax on the wealthy, and it was
not until World War II that the income tax expanded to cover most American
families. Today the personal income tax supplies more than half the Federal
Government’s revenue.
Colonial Times
For most of nation’s history, individual taxpayers rarely had any
significant contact with Federal tax authorities as most of the Federal
government’s tax revenue was derived from excise taxes, tariffs, and customs
duties. Before the Revolutionary War, the colonial government had only a
limited need for revenue, while each of the colonies had greater
responsibilities. For example, the southern colonies primarily taxed imports
and exports, the middle colonies at times imposed a property tax and a ‘head’
or poll tax levied on each adult male, and the New England colonies raised
revenue primarily through general real estate taxes, excises taxes, and taxes
based on occupation.
21
England’s need for revenue to pay for its wars against France led it to
impose a series of taxes on the American colonies. In 1765 the English
Parliament passed the Stamp Act, which was the first tax imposed directly on
the American colonies, and then Parliament imposed a tax on tea. Even though
colonists were forced to pay these taxes, they lacked representation in the
English Parliament. This led to the rallying cry of the American Revolution
that ‘taxation without representation is tyranny’ and established a persistent
wariness regarding taxation as part of the American culture.
The Post Revolutionary Era
The Articles of Confederation, adopted in 1781, reflected the American
fear of a strong central government and so retained much of the political
power in the States. The national government had few responsibilities and no
nationwide tax system, relying on donations from the States for its revenue.
Under the Articles, each State was a sovereign entity and could levy a tax as it
pleased.
The Constitution, which was adopted in 1789, endowed the Congress
with the power to ‘… lay and collect taxes, duties, imposts and excises, pay
the debts and provide for the common Defense and general Welfare of the
United States’.
To pay the debts of the Revolutionary War, Congress levied excise
taxes on distilled spirits, tobacco and snuff, refined sugar, carriages, property
sold at auctions, and various legal documents.
In 1794 a group of farmers in southwestern Pennsylvania physically
opposed the tax on whiskey, forcing President Washington to send Federal
troops in to suppress the Whiskey Rebellion.
During the confrontation with France in the late 1790’s, the Federal
Government imposed the first direct tax on houses, land, slaves, and estates.
The direct tax on estates was the first Federal estate tax. When Thomas
Jefferson was elected President in 1802, these taxes were abolished and for the
next 10 years, there were no internal revenue taxes.
To raise money for the War of 1812, Congress imposed excise taxes
and raised money by issuing Treasury notes. Congress imposed an extra tax
on imported rum to discourage its consumption. In 1817 Congress repealed
these taxes, and for the next 44 years, the Government did not collect internal
revenue. High customs duties and the sale of public land were the main source
of revenue.
Vocabulary
1.
2.
3.
in response to
traceable (adj.)
passage
в ответ на
относимый, приписываемый (чему-л.)
утверждение (закона), вступление
22
4.
5.
6.
7.
8.
amendment (n)
tariff (n)
primarily (adv.)
at times
property tax
9.
10.
11.
12.
13.
14.
15.
16.
17.
poll tax
real estate tax
occupation (n)
to pass
stamp act
to lack
cry (n)
persistent
Articles of Confederation
18.
19.
20.
21.
to reflect
to retain
to rely on
donation (n)
22.
23.
24.
25.
26.
27.
sovereign entity
to endow with smth.
impost (n)
general welfare
snuff (n)
to oppose
28. Federal troops
закона в силу
поправка (к законопроекту)
пошлина
в основном, главным образом
временами; время от времени
налог на доход с недвижимого
имущества
подушный налог
налог на недвижимость
род занятий, профессия
принимать (закон, резолюцию и т.п.)
закон о гербовом сборе
испытывать недостаток; не хватать
лозунг
неизменный, постоянный
Статьи Конфедерации.
Первая конституция США, принятая
в 1777 и ратифицированная в 1781.
Оставалась в силе до 1789.
Закрепляла революционные
завоевания,
провозглашала
независимость, определяла
республиканскую систему правления
бывших английских колоний,
закрепляла слабость центральной
власти, что в значительной мере
предопределило ее скорую замену на
новую конституцию (Constitution of
the United States)
отражать
сохранять
надеяться на
подношение; денежное
пожертвование
суверенная единица
наделять чем-л.
налог, подать
всеобщее благосостояние
нюхательный табак, порошок
встать против; быть против,
возражать
Армия Союза
23
29. to suppress
пресекать; подавлять (восстание)
30. Whiskey Rebellion
31. to abolish
спиртной бунт
Выступление фермеров на западе
Пенсильвании в 1794 против
налогового бремени. Были вызваны
введением в 1791 федерального
акцизного налога на производство и
продажу спиртных напитков, что
сильно ударило по интересам
фермеров районов, производящих
пшеницу.
аннулировать, отменять, упразднять
32. internal revenue tax
налог на внутренние доходы
33.
34.
35.
36.
пускать в обращение (деньги и т.п.)
казначейский билет, облигация
спиртной напиток
мешать осуществлению,
препятствовать
to issue
Treasury note
rum (n)
to discourage
Exercise 2
Find the most suitable Russian equivalents to the following English
collocations:
Tax system has been marked by significant changes over the years;
granted Congress the power to levy a tax; responding to changes in society;
income tax expanded to cover most American families; limited need for
revenue; raised revenue primarily through general real estate taxes, excises
taxes, and taxes based on occupation; even though colonists were forced to
pay these taxes; established a persistent wariness regarding taxation as part of
the American culture; to pay the debts of the Revolutionary War, Congress
levied excise taxes on distilled spirits; physically opposed the tax on whiskey;
imposed an extra tax on imported rum to discourage its consumption.
Exercise 3
Find English equivalents to the following Russian collocations:
В течение десятилетий федеральная, государственная и местная
системы
налогообложения
характеризуются
существенными
изменениями; сегодня сборы от уплаты подоходного налога составляют
более половины дохода федерального правительства; прежде всего
южные колонии облагали налогом вывозимые и ввозимые товары; для
того чтобы сражаться с Францией, Англия нуждалась в денежных
доходах; испытывать недостаток своих представителей в Парламенте;
24
согласно Статьям Конфедерации, каждый отдельный штат являлся
суверенной единицей и мог вводить налоги по своему усмотрению;
Конституция наделила Конгресс правом вводить и собирать налоги.
Exercise 4
Answer the following questions:
1. What have the federal, state and local tax system in the US been
marked by?
2. Did the colonies have the same responsibilities during Colonial Times?
3. What did England’s need for revenue lead to?
4. What do you know about the Articles of Confederation?
5. What possibilities did Congress have under the Constitution?
6. What happened in 1794?
7. When and on what was the first direct tax levied?
8. When were excise taxes imposed?
9. Why did Congress impose an extra tax on imported rum?
Exercise 5
Guess the meaning of the words by their definitions:
1. the establishing of a law by a law-making body
2. a tax levied on land or buildings owned by someone
3. to be short (of) or have need (of)
4. to have trust or confidence
5. health, happiness, prosperity, and general wellbeing
6. to be against (something or someone) in speech or action
7. organized opposition to a government or other authority involving the use
of violence
8. to make something available
Unit 6. THE HISTORY OF THE TAX SYSTEM IN THE UNITED STATES
Exercise 1
Practise reading the following words and collocation:
a) direction; gunpowder; feathers; medicines; source; remaining;
debate; excess; entry; budget; exemption; economy; enough; however;
systematically; although;
b) Civil War; earlier excises taxes; legal documents; liquor and tobacco;
the 16th Amendment; each State’s population; southern and western;
agriculture and rural areas; industrial northeast; Constitutional amendment;
individuals’ lawful income; need for revenue; estates and excess business
profits; the greatest depression; tax legislation; Internal Revenue Code;
25
c) to restore; to decline sharply; to be repealed; to be abolished; to
impose direct taxes; to result in; to allow; to be equal to; to codify all existing
income tax laws; to lower the exemption levels; to be in effect.
THE HISTORY OF THE TAX SYSTEM IN THE UNITED STATES
(Part II)
The Civil War
When the Civil War erupted, Congress passed the Revenue Act of
1861, which restored earlier excise taxes and imposed a tax on personal
incomes. The income tax was levied at 3 percent on all incomes higher than
$800 a year. This tax on personal income was a new direction for a Federal tax
system based mainly on excise taxes and custom duties.
By the spring of 1862 it was clear the war would not end quickly. And
on July 1, 1862 Congress passed new excise taxes on such items as playing
cards, gunpowder, feathers, telegrams, iron, leather, pianos, yachts, billiard
tables, drugs, patent medicines, and whisky. Many legal documents were also
taxed.
The need for Federal revenue declined sharply after the war and most
taxes were repealed.
By 1868, the main source of Government revenue derived from liquor
and tobacco taxes. The income tax was abolished in 1872. From 1868 to 1913,
almost 90% of all revenue was collected from the remaining excises.
The 16th Amendment
Under the Constitution, Congress could impose direct taxes only if they
were levied in proportion to each State’s population.
Then there was the income tax debate pitted southern and western
Members of Congress representing more agriculture and rural areas against
the industrial northeast. The debate resulted in an agreement calling for a tax,
called an excise tax, to be imposed on business income, and a Constitutional
amendment to allow the Federal government to impose tax on individuals’
lawful incomes without regard to the population of each State.
By 1913, 36 States had ratified the 16th Amendment to the Constitution.
In October, Congress passed a new income tax law with rates beginning at 1%
and rising to 7% for taxpayers with income in excess of $500,000.
World War I and 1920’s
The entry of the United States into World War I greatly increased the
need for revenue. The 1916 Revenue Act imposed taxes on estates and excess
business profits. The 1917 Federal budget was almost equal to the total budget
for all the years between 1791 and 1916. The War Revenue Act of 1917
26
lowered exemptions and increased taxes. This greatly increased revenue from
$809 million in 1917 to $3.6 billion in 1918.
Another revenue act was passed in 1918, which codified all existing
income tax laws and taxed incomes of more than $1 million at a rate of 77%.
Still only 5% of the population had to pay income taxes.
During the 1920’s business boomed and as the economy expanded,
revenue from the income tax also grew. Congress cut taxes 5 times, while still
collecting enough revenue. However, in October 1929 the stock market
crashed, marking the beginning of the greatest depression in the nation’s
history. The Government was soon spending more money than was being
collected. To collect more revenue, Congress passed the Tax Act of 1932,
which raised the tax rates and lowered the exemption levels.
In 1939, Congress systematically codified the old and new laws. All tax
legislation passed later amended this basic code. The code was revised by the
83rd Congress and enacted as the Internal Revenue Code of 1954 which,
although amended many times, is still in effect today.
Vocabulary
1.
2.
3.
to erupt
to decline
liquor (n)
4.
to pit
5.
6.
7.
8.
9.
rural area
lawful income
with regard to
excess profit
to codify
10.
11.
12.
13.
14.
15.
16.
17.
18.
to boom
stock market
exemption level
tax legislation
to amend
code (n)
to revise
to enact
Internal Revenue Code
(IRS Code)
вырываться, прорываться
уменьшаться, идти на убыль
спиртной напиток (виски, водка,
джин)
противопоставлять (кого-л. кому-л.),
сводить как соперников
сельский район
доход законного происхождения
относительно; в отношении
сверхприбыль
систематизировать, приводить в
систему
быстро расти
фондовая биржа
необлагаемый уровень
налоговое законодательство
исправлять, совершенствовать
свод законов (государства)
исправлять; пересматривать
вводить закон; устанавливать
кодекс законов о внутренних доходах
(свод федеральных законов,
относящихся к сфере налогообложения
(США)). Определяет, какие доходы и
27
каким образом должны облагаться
налогами.
Exercise 2
Find the most suitable Russian equivalents to the following English
collocations:
The Congress passed the Revenue Act of 1861; tax system based
mainly on excise taxes and custom duties; need for Federal revenue declined
sharply; under the Constitution, Congress could impose direct taxes; tax
debate pitted southern and western Members of Congress; debate resulted in
an agreement calling for a tax; without regard to the population of each State;
greatly increased the need for revenue; which codified all existing income tax
laws; Congress cut taxes 5 times, while still collecting enough revenue; stock
market crashed, marking the beginning of the greatest depression;
systematically codified the old and new laws; which, although amended many
times, is still in effect today.
Exercise 3
Find English equivalents to the following Russian collocations:
Конгресс принял закон о доходах, который восстановил прежние
акцизные сборы и ввел налог на доходы физических лиц; после войны
потребность федерального правительства в государственных доходах
резко сократилась; налогом облагается доход физических лиц,
полученный легальным путем; в 1918 году был принят другой закон о
доходах, который систематизировал все существующие законы о
подоходном налоге; в течение 1920-х бизнес бурно развивался; конгресс
систематически приводил в порядок старые и новые налоговые законы.
Exercise 4
Answer the following questions:
1. What do you know about the Revenue Act of 1861?
2. What were new excise taxes imposed on during the Civil War?
3. What happened after the war?
4. What did the income tax debate result in?
5. What happened to exemptions and taxes during World War I?
6. Why were tax rates raised in 1932?
Exercise 5
Guess the meaning of the words by their definitions:
1. To become smaller, weaker, or less important.
2. More than normal, necessary, or permitted profit.
3. To prosper vigorously and rapidly.
28
4. A highly organized market for the purchase and sale of stocks and
shares, operated by professional stockbrokers and market makers
according to fixed rules.
5. The act or process of making tax laws.
6. A set of principles or rules.
7. To establish by law.
Unit 7. THE HISTORY OF THE TAX SYSTEM IN THE UNITED STATES
Exercise 1
Practise reading the following words and collocation:
a) economy; passage; significantly; excess; however; bureau;
identification; amendment; periodically; economic; fair; efficiency; principle;
among; through; liability; resumption;
b) Social Security Act; unemployment compensation; the aged, the
needy, the handicapped; certain minors; employers and employees; exemption
level; war effort; the lowest-paid workers; usual pattern; social security
coverage; accounting, collection and forms-processing organization;
individuals and private foundations; budget deficits; income tax liability; vast
majority; personal exemption allowances; in excess of; projected future
increases; Economic Growth and Tax Relief and Reconciliation Act; marginal
tax rates;
c) to lead to; to be supported by; to lower; to withhold taxes from; to
simplify; to be expanded; to simplify; to safeguard; to ensure; to be distributed
equitably; to bear the tax burden; to be indexed for; to be refundable for; to
regain.
THE HISTORY OF THE TAX SYSTEM IN THE UNITED STATES
(Part III)
The social security tax
The state of the economy during the Great Depression led to passage of
the Social Security Act in 1935. This law provided payments known as
‘unemployment compensation’ to workers who lost their jobs. Other sections
of the Act gave public aid to the aged, the needy, the handicapped, and to
certain minors. At first, these programs were financed by a 1% tax, paid by
both employers and employees, on the first $3,000 of the employee’s salary or
wage. The tax rate and the wage base have been increased greatly since then,
as have the social programs that are supported by this tax.
World War II
29
The Federal income tax system was significantly affected by World
War II. The need for high defense spending led to passage in 1940 of two tax
laws that increased individual and corporate taxes. The Revenue Act of 1941
lowered exemption levels and increased taxes on excess profits being made on
the war effort. These law increased internal revenue.
Changes in tax laws did more than simply to increase revenue. They
expanded the tax base to include all but the lowest-paid workers. Between
1939 and 1945 the number of taxpayers grew from 4 million to 43 million.
Also during the war other changes were made to the tax system. In 1943,
employers were required to withhold taxes from employees’ paychecks, as
was done during the Civil War. A year later the standard deduction was
created to simplify tax returns for those with yearly incomes under $5,000.
Recent developments
After World War II Congress followed the usual pattern of reducing
taxes. However, the reductions were modest because of increased social
programs. In 1950 social security coverage was expanded to include selfemployed persons, which increased both the tax base and total revenue
collected.
The Bureau of Internal Revenue was renamed the Internal Revenue
Service (IRS) in 1953, following a reorganization of its function. By 1959 the
IRS became the world’s largest accounting, collection and form-processing
organization. Computers were used to simplify its work and improve service
to taxpayers. In 1961 Congress passed a law requiring individual taxpayers to
use their social security number as tax form identification for the computer.
Since the Internal Revenue Code was reorganized in 1954 amendments
have been passed periodically. One important set of changes was contained in
the Tax Reforms Act of 1969, which reduced income tax rates both for
individuals and private foundations. The Economic Recovery Tax Act of 1981
contained large reductions in income tax rates. The main objective of the Tax
Reform Act of 1984 was to reduce the budget deficits in order to safeguard the
economic recovery. Additional objectives were to ensure that all taxpayers
pay a fair share of the tax burden, to reform the taxation of international
income, and to improve the administration and efficiency of the tax system.
The Tax Reform Act of 1986 was designed to create a fairer tax system
while reducing the overall level of the Federal individual income tax. The
principle goal was to relieve families with the lowest incomes of Federal
income tax liability and to provide tax reductions that would be distributed
equitably among the vast majority of individuals who bear the tax burden.
Beginning in 1988 the number of tax brackets were reduced and both
the standard deduction and personal exemption allowances were increased and
are indexed for inflation.
30
The taxpayer Relief Act of 1997 made additional changes to the tax
code and provided some significant benefits for families with children through
the Per Child Tax credit. The significant feature of this tax relief was that the
credit was refundable for many lower-income families. That is, in many cases
the family paid a negative income tax, or received a credit in excess of their
pre-credit tax liability.
The Bush Tax Cut
Under President George W.Bush’s leadership the Congress halted the
projected future increases in the tax burden by passing the Economic Growth
and Tax Relief and Reconciliation Act of 2001. The centerpiece of the 2001
tax cut was to regain some of the ground lost in the 1990s in terms of lower
marginal tax rates (from 39.6% to 33%).
The 2001 tax cut represented a resumption of a number of other trends
in tax policy. For example, it expanded the Per Child Tax credit from $500 to
$1000 per child. It also increased the Dependent Child Tax credit.
Vocabulary
13.
14.
15.
social security tax
the aged (pl.)
the needy (pl.)
the handicapped (pl.)
minor (n)
to affect
war effort
to withhold taxes
to simplify
tax return (n)
modest (adj.)
Internal Revenue Service
(IRS)
private foundation
economic recovery
income tax liability
16.
17.
vast majority
refundable (adj)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
налог на социальное страхование
старики, старшее поколение
бедняки; люди, живущие в нужде
инвалиды
несовершеннолетний
оказывать влияние
военная экономика
удерживать налоги из заработной платы
упрощать
налоговая декларация
скромный, умеренный
внутренняя налоговая служба США
частный фонд (учреждение)
экономическое восстановление
общая сумма налога, подлежащая
выплате
подавляющее большинство
возвращаемый, возмещаемый
31
18.
negative income tax
19.
20.
reconciliation (n)
to regain
to regain lost ground
негативный подоходный налог
(предложение о введении денежных
субсидий для семей и одиночек, когда их
доход падает ниже гарантированного
минимума)
урегулирование
восстанавливать
вернуть утраченные позиции
21.
22.
marginal tax rates
resumption (n)
предельная ставка налога
возобновление
Exercise 2
Find the most suitable Russian equivalents to the following English
collocations:
Payments known as ‘unemployment compensation’ to workers who lost
their jobs; tax system was significantly affected by World War II; excess
profits being made on the war effort; to simplify tax returns for those with
yearly incomes under $5,000; the world’s largest accounting, collection and
form-processing organization; Congress passed a law requiring individual
taxpayers to use their social security number; to reduce the budget deficits in
order to safeguard the economic recovery; to create a fairer tax system while
reducing the overall level of the Federal individual income tax; to provide tax
reductions that would be distributed equitably among the vast majority of
individuals who bear the tax burden; Congress halted the projected future
increases in the tax burden.
Exercise 3
Find English equivalents to the following Russian collocations:
Состояние экономики во время Великой Депрессии привело к
принятию закона об уплате налога на социальное страхование; старики,
нуждающиеся, инвалиды и несовершеннолетние; Вторая Мировая война
оказала влияние на систему уплаты подоходного налога; расширить
налоговую базу для всех работающих, кроме низкооплачиваемой
категории; послабления в налоговой системе были незначительны, т.к.
увеличилось количество социальных программ; чтобы упростить работу,
были использованы компьютеры; периодически принимались поправки
(к закону); чтобы создать более справедливую налоговую систему, был
разработан закон; предоставить семьям с детьми значительные льготы.
Exercise 4
Answer the following questions:
1. What did the state of economy during the Great Depression lead to?
32
2.
3.
4.
5.
6.
7.
What did this law provide?
What happened to the Federal income tax system during World War II?
Why was social security coverage expanded in 1950?
What responsibilities did the IRS have by 1959?
Describe the Tax Reforms Act of 1969, the Tax Reform Act of 1984,
and the Tax Reform Act of 1986.
What changes did the taxpayer Relief Act of 1997 make?
What was the centerpiece of the 2001 tax cut?
Exercise 5
Guess the meaning of the words by their definitions:
1.
2.
3.
4.
Physically or mentally disabled people.
To influence (someone or something).
To make (something) less complicated.
A declaration of personal income used as a basis for assessing an
individual’s liability for taxation.
5. The act of recovering from sickness, a shock, or a setback.
6. Payments by the state to people with incomes below those paying
standard income tax.
7. To get back or recover.
Unit 8. INCOME TAX
Exercise 1
Practise reading the following words and collocations
a) Either; wealth; stipulated; adjusted; circumstances; else; whether;
source; employment; royalties; insurance; alimony; pension; injury; other;
health; redundancy; equal; available; maintaining
b) direct or indirect; inheritance tax; excise tax; family status; financial
burdens; immovable property; natural resources; pecuniary form; casual
earnings; welfare benefit; Russian banking establishment; treasure bond;
undergraduate education; military and official duties; charitable purposes;
c) measured by income; to be levied on; in excess of; to be liable to; to
be entitled to
INCOME TAX
Taxes are most commonly classified as either direct or indirect, an
example of the former type being the income tax (inheritance tax, real estate
tax) and of the latter the sales tax (value-added tax, excise tax). Direct taxes
are taxes on persons; they are aimed at the individual’s ability to pay as
measured by his income or net income in excess of stipulated minimum. They
are also adjusted to take into account the circumstances influencing the ability
33
to pay of the individual, such as family status, number and age of children,
and financial burdens resulting from illness. Income taxes are often levied at
graduated rates; that is, at rates that rise as income rises. Inheritance taxes are
taxes on the money or property that you give to someone else after you die.
Real estate taxes are taxes imposed upon immovable property consisting of
land, any natural resources, and buildings.
In Russia income tax is levied on resident and non-resident individuals,
whether or not they are citizens of the Russian Federation. Individuals are
considered to be a resident if they stay in Russia for 183 days or more in the
calendar year.
Residents are liable to income tax on their world-wide income. Nonresidents are taxed on their Russian Federation source of income.
Income is taxable whether it is received in pecuniary form or in kind.
Taxable
income includes:
- income from employment;
- casual earnings and earnings from secondary employment;
- copyright and patent royalties;
- income from self-employment.
Taxable income does not include: social insurance and social welfare
benefits; alimony ; all types of pensions; payments to students; income
received for work associated with prospecting activity for the extraction of
gold; interest and gains from deposits in Russia banking establishments and
from state treasure bonds; compensation for injury and other damage to
health; capital gains; gifts; insurance payments; redundancy payment.
Each individuals is established to deduction equal to the minimum
wage. An additional deduction is available for the cost of maintaining each
child up to age 18, each child aged from 18 to 24 receiving daytime
undergraduate education and each dependent not having an independent
source of income.
Second World War veterans and invalids, parents and widows of
military personnel who died carrying out military and official duties are
entitled to a deduction equal.
Taxable income may also be reduced by amounts given for charitable
purposes.
1. income tax
inheritance tax
real estate tax
sales tax
value-added tax
Active vocabulary
Налог на доход физических лиц
налог на наследство
налог на недвижимость
налог с продаж
налог на добавленную стоимость
34
excise tax
2. to tax
to levy
to impose
3. to be aimed at smt.
4. to adjust
5. burden (n.)
6. graduated rate
7. immovable property
8. resident (adv.)
9. pecuniary (adj.)
10. pay in kind
11. royalties (pl.)
12. self-employment (n.)
13. social welfare benefit
14. bond (n.)
treasure bond
15. capital gains
16. to be entitled to
акцизный сбор
облагать налогом
быть нацеленным на что-л.
Приспосабливать; устанавливать
бремя (долговое)
прогрессивная ставка
недвижимое имущество
постоянно проживающий
денежный
натуральная оплата
лицензионные платежи
индивидуальная трудовая деятельность
Выплаты по социальному обеспечению
Облигация
казначейская облигация
прирост капитала
иметь право на что-л.
Exercise 2
Find in the text the answers to the following questions.
1. How are taxes classified ?
2. What direct taxes are mentioned in the text ?
3. What are direct taxes aimed at ?
4. What are income taxes levied on ?
5. What are income taxes adjusted to ?
6. What circumstances of the individual influence the abiliy to pay ?
7. What rates are income taxes levied at ?
8. What does the term «inheritance tax» mean ?
9. Who is liable to income tax in Russia ?
10.What income is taxable and what is not ?
11.Who is available for an additional deduction ?
Exercise 3
Find the most suitable Russian equivalents to the following English
collocations
Taxes are most commonly classified as; the former type being the
income tax; measured by income or net wealth; the circumstances influencing
the ability to pay of the individual; financial burdens resulting from illness;
35
income taxes are often levied at graduated rates; taxes imposed upon
immovable property; individuals are considered to be resident ; to be liable to
income tax; to be received in pecuniary form or in kind; copyright and patent
royalties; associated with prospecting activity for the extraction of gold; to be
entitled to deduction equal to; daytime undergraduated education.
Exercise 4
Find in the text the English equivalents to the following Russian
collocations.
В
сфере
внимания
прямых
налогов
находится
платежеспособность каждого человека, которая измеряется уровнем его
дохода и собственного состояния; принимать в расчет обстоятельства,
влияющие на платежеспособность человека; налогом на имущество
облагается нежвижимое имущество, состоящее из земли, природных
ресурсов и стороений; доход облагается налогом независимо от того,
получен он в денежной или натуральной форме; процент и прирост денег
на депозите в банках; каждый человек имеет право на равную
минимальную сумму заработка, не облагаемую налогом.
Exercise 5
Guess the meaning of the words by their definitions
a) to levy a tax on ( people, companies, etc. )
b) something that is carried; load
c) something owned
d) a percentage of the revenue from the sale of a book, performance of a
work, use of a patented invention or of land, paid to the author, inventor, or
owner
e) a payment made by an institution or government to a person who is ill,
unemployed, etc.
f) the total amount of money earned from work or obtained from other
sources over a given period of time
g) shortest; straight
h) a personal tax levied on annual income
Exercise 6
Scan the text to indicate whether these statements are true ( T ) or
false ( F ), and if they are false, say why.
e.g. In my opinion it is true that ....................................
I’m afraid it is false that .......... because..................
1. Taxes are most commonly classified as indirect.
2. Direct taxation is a system of collecting taxes by adding an amount to
the price of goods and services that people buy
36
3. Income taxes take into account family status, number and age of
children and financial burdens resulting from illness
4. Inheritance taxes are taxes on the money or property that you give to
someone else when you alive
5. Income tax is levied only on resident individuals
6. You can receive taxable income in pecuniary form or in kind
Taxable income includes only income from employment and selfemployment
Unit 9. PERSONAL TAXATION IN THE UK
Exercise 1
Answer pre-text questions.
1. How is personal taxation structured in our country?
2. Is the trend in the load of personal taxation upward or downward?
Exercise 2
Read the following words aloud.
Figure; series; allowances; major; couple; private; vaunted; mortgage,
loan; society;
Percentage; scheme source; employee; roughly; ranging; account; relief;
obliged.
PERSONAL TAXATION IN THE UK
Let’s, firstly, study how personal taxation is structured in the UK
and secondly, how it is levied.
Contrary to popular opinion, UK personal taxation is both simple and
relatively low. There are two rates:
25 per cent on taxable income up to £23,700, and 40 per cent on income
above this figure. Like in most countries, there are series of deductions and
allowances which can be taken into account before arriving at net taxable
income figure. The major one relates to the status of the individual: a single
person's allowance at present stands at £3,295, while a married person's
allowance is currently £5,015.
It should be mentioned that the government has recently introduced
legislation which allows married couples to opt for separate taxation.
Other allowances or deductions which are common are, firstly, tax relief
on private pensions. At the moment this is allowable up to 17.5 per cent of
total income, up to the age of 35, rising to 40 per cent above 60 years old.
Also the much vaunted tax relief on mortgages or loans to buy a house - here
there is currently 7 per cent tax relief on the interest payable to the bank or
building society up to a maximum of £30,000 capital borrowed. The
37
percentage relief obviously depends on the interest rates that are operative at
any one time.
And now let’s move on to how personal tax is levied. The Inland
Revenue obliges employers to operate a PAYE (Pay As You Earn) scheme,
which means the tax is deductible at source. In other words, by the employer
before making out the monthly salary cheque or bank transfer to the
employee. The tax is then collected direct from the employer. At the same
time it should be mentioned that the employer is obliged to deduct National
Insurance from the employee's salary - the employee's contribution being
roughly 9 per cent of income, the employer's ranging from 5 to 10 per cent.
These are approximate figures. .
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
Vocabulary
Figure (n)
цифра
Allowance (n)
cкидка, пособие
To take into account
принимать во внимание
Arrive at (v)
прийти к
Currently (adv)
в настоящее время
Opt for (v)
выбирать
Separate (adj)
отдельный
Tax relief
налоговая скидка, налоговая льгота
Vaunt (v)
превозносить
Mortgage (n)
закладная
Loan (n)
заем
Obviously (adv)
очевидно
Operative (adj)
действующий
Oblige (v)
обязывать
PAYE (pay as you earn) сбор налога у источника
Roughly (adv)
примерно
Range (v)
варьировать
Exercise 3
Complete the information in Charts 1 and 2.
Chart 1. Personal taxation
Rates
Lower rate: up to £23,700
a. ____________________%
Higher rate: above £23,700 b. ____________________%
Allowances
Single person:
c. £_____________________
Married person:
d. £_____________________
Pensions:
e. maximum________% of income
Mortgage interest relief:
f. ________________________
38
Chart 2. Collection of personal taxes
Income tax
System:
g._______________________
National insurance
Employee’s contribution:
h.______________________%
Employer’s contribution
i.______________________%
Exercise 4
Answer the questions
1. What do the majority think of British tax?
2. What new legislation has recently been introduced?
3. What do you think the government uses national insurance
contributions for?
Exercise 5
Guess the meaning of the word by its definition
1. to vary between the limits
2. to make it necessary for someone
3. something which is lent, especially money
4. a written agreement to borrow money, especially so as to buy a
house a pay an interest on it to the lender over a period of years
5. to give proper consideration to a fact, situation, etc., when
making a judgment or decision.
6. any of the number signs from 0 to 9
7. deductions that may be made from taxpayer’s gross income
before calculating the income tax liability.
8. Reduction in the amount of tax paid for a particular reason, for
example on amount paid for health insurance.
Exercise 6
Match the words on the left with their best synonym on the right:
1.an overview
a. to escape
2.to get away from
b. that is
3.to the point
c. to choose
4.essentially
d. boasted about
5.contrary to
e . a summary
6. to take into account
f. to collect
7. to opt for
g. concise
8 i.e.
h. fundamentally
9. vaunted
i. by the employer
10.to levy
j. to consider
11.at source
k. general view
12.broad picture
l . as opposed to
39
13.arrive at
14.opt for
15.currently
16.allowance
17.tax relief
18.obviously
19.separate
20.roughly
m. evidently
n. distinct
o. approximately
p. come to
q. choose
r. presently
s. benefit
t. tax credit
Exercise 7
Render the text
PAYE
Pay- as- you- earn means of collecting tax is used because it is often
difficult to collect tax at the end of the year from wage and salary earners. The
duty to collect the tax from their employees as payments are made to them is
placed on employers. There is an elaborate system of administration to ensure
that broadly the correct amount of tax is deducted week by week or month by
month and that the employer remits the tax collected to the Inland revenue
very quickly. Although technically called pay-as-you-earn, the system would
be better called pay-as-you- get-paid.
Unit 10. THE FLAT TAX
Exercise 1
Practise reading the following words and collocations.
a) Evasion; revenue; compliance; simplicity; enact; pension;
unemployment; privilege; annualized; resource; appreciably;
implementation; although; overwhelmingly; incentive; knowledge;
equally; pervasive.
b) Emerging market economy; tax avoidance; separate tax; social
insurance; customs duties; anticipated inflation; excise taxes; tax
avoidance or tax evasion.
c) To be complicated; to eliminate taxes; to exceed; to harmonize tax
codes.
THE FLAT TAX
On January 1, 2001 , a 13 percent flat tax on personal income took
effect in Russia. The old system was complicated, and because of the high
rates evasion was widespread. It also produced little revenue. The new flat tax
has achieved greater compliance due to its simplicity and low rate. It is
producing far more revenue than the former system.
40
The United States and other developed countries could learn from the
experience of Russia and other emerging market economies.
President Vladimir Putin proposed a flat-rate income tax to replace the
progressive income tax rate in order to increase government revenues by
reducing tax evasion.
Russia also reduced the corporate profit tax rate from 35 % to 24 %
(effective January 1, 2002) . It enacted a flat rate small business tax – the
lesser of 6 percent of gross sales or 15 percent of profits.
Other tax reforms included reducing the business sales (turnover) tax
rate; replacing separate taxes for pensions, social insurance, medical insurance
and uneployment with a unified, lower social insurance tax rate; eliminating
most small nuisance taxes and tax privileges; and reducing customs duties.
During its first two years Russia’s 13 % flat tax exceeded all
expectations:
- In 2001 personal income tax revenue were 28 % higher than in 2000
and rose another 20.7 % in 2002.
- During the period January to June 2003, compared with the same
period last year, personal income tax revenue increased by 31.6 %.
- After adjusting for anticipated inflation of about 15 % annualized
over 2003, real rubles from the personal flat tax increased by 16.6 % yearover-year.
Income tax revenues now exceed excise taxes and taxes on natural
resource use. Personal income tax revenue is fast catching up with revenues
from the corporate income tax and value added tax. Russia’s total tax revenue
has grown appreciably since the implementation of the flat tax.
Russia’s rate of growth in Gross Domestic Product (GDP) also hit a
record of 9.0 % in 2000, after adjusting for an 18 % inflation rate. Although
the economy grew at a slower rate in 2001 (5.0 %) and 2002 (4.3%), revenues
continued to rise.
Following Russia’s adoption of the flat tax, Ukraine’s parliament
overwhelmingly approved its own 13 % flat tax on personal income (to take
effect January 1, 2004) as in Russia, Ukraine reduced its tax rate on company
profits from 30 to 25 percent.
In Europe among a growing number of countries that have adopted a
flat tax are Estonia (implemented in 1994), Latvia (1995), Russia (2001),
Ukraine (2004). Others are expected to follow:
- Belarus intends to harmonize its tax code with that of Russia’s.
- The Slovak Republic is about to enact a 19 % flat tax for both
individuals and corporations (effective January 1, 2004).
41
- The opposition Civil Democratic Party (ODS) in the Czech Republic
has drawn up plans to replace the progressive tax system, which has a top rate
of 31 %, with a 15 % flat tax on both personal and corporate income.
- Political parties in Poland and Georgia have announced their support
for the flat tax and there is interest in Bulgaria and Romania.
- Even China has taken the step of translating The Flat Tax into Chinese
for consideration by the Ministry of Finance.
Why so much interest in the flat tax ? A key reason is that it is far more
effective at raising revenue than progressive rates. With progressive rates it
looks as if extra revenue is being extracted from the wealthy.
With a flat tax, there is much less incentive to engage in tax avoidance
or tax evasion. Also, the knowledge that everyone is being treated equally
helps eliminate the culture of evasion that often becomes pervasive in high-tax
countries.
Vocabulary
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
flat tax
to take effect
evasion (n)
tax evasion
compliance (n)
to propose
tax avoidance
to enact
gross sales
profit (n)
excess profit
gross profit
net profit
tax on profits
tax rate
to eliminate
nuisance (adj)
customs duties
to exceed
anticipated (a)
annualized
excise tax
to catch up
value added tax
Налог с фиксированной ставкой
вступить в силу
уклонение
уклонение от уплаты налогов
выполнение, зд. собираемость
предлагать
уклонение от уплаты налогов
вводить закон; постановлять
брутто-продажи
прибыль
сверхприбыль
брутто-прибыль, валовая прибыль
чистая прибыль, нетто-прибыль
налог на прибыль
налоговая ставка
устранить, убрать, ликвидировать
неудобный, неприятный
таможенные пошлины
превосходить
ожидаемый
в годовом исчислении
акцизный сбор
догонять, наверстывать
налог на добавленную стоимость
42
20.
21.
22.
23.
24.
25.
26.
27.
implementation (n)
to implement
Gross Domestic Product (GDP)
overwhelmingly
to adopt
to harmonize
to enact
to draw up (drew, drawn)
осуществление, выполнение
реализовывать, осуществлять
валовой внутренний продукт
подавляющим большинством
принимать
согласовывать
постановить, принять закон
составлять (документ)
28.
29.
30.
support (n)
support of small business
financial support
legal support
consideration (n)
to extract
incentive (n)
поддержка
поддержка малого бизнеса
финансовая поддержка
юридическая поддержка
рассмотрение, обсуждение
извлекать, вычитать
стимул
Exercise 2
Ask questions to the following sentences:
1) Because of the high rates evasion was widespread.
2) To replace the income tax in order to increase government revenues by
reducing tax avoidance.
3) Compared with the same period last year, personal income tax revenue
increased by 31.6 %.
4) After adjusting for anticipated inflation of about 15% annualized over
2003.
5) Following Russia’s adoption of the flat tax, Ukraine’s parliament
overwhelmingly approved its own flat tax.
6) It is far more effective at raising revenue than progressive rates.
Exercise 3
Find in the text the answers to the following questions.
1. Why did a 13% flat tax on personal income take effect in Russia?
2. What did President Putin propose ?
3. What do other tax reforms include ?
4. Was a 13 % flat tax effective ? Why ?
5. What happend to GDP and the economy in Russia ?
6. Which other countries have adopted a flat tax ?
7. Why is there so much interest in a flat tax ?
Exercise 4
43
Find the most suitable Russian equivalents to the following English
collocations.
The new flat tax has achieved greater compliance; other emerging
market economies; to increase government revenues by reducing tax
avoidance; to enact a flat rate small business tax; gross sales or profits; to
replace separate taxes for pensions; social insurance, medical insurance and
unemployment with a unified, lower social insurance tax rate; nuisance taxes
and tax privileges; adjusting for anticipated inflation; to exceed excise taxes
and taxes on natural resource use; to be one more among a growing number of
countries; to be about to enact; to be far more effective at raising revenue; to
extract from the wealthy; much less incentive to engage in tax avoidance; to
treat equally.
Exercise 5
Find in the text the English equivalents to the following Russian
collocation.
Из-за высоких налоговых ставок было широко распространено
уклонение от уплаты налогов; чтобы увеличить доходы государства
путем уменьшения ухода от налогообложения; уменьшение налоговой
ставки на товарооборот компании; устранение большинства ненужных
налогов и уменьшение таможенных пошлин; если сравнивать с этим же
периодом прошлого года; доход от сбора подоходного налога
физического лица почти сравнялся с доходами от налога на доход
предприятий и налога на добавленную стоимость; с момента введения
фиксированного налога общая сумма налоговых сборов заметно
выросла; Белоруссия собирается согласовать свой налоговый кодекс в
соответствии с Российским; фиксированная ставка налога является
намного эффективнее в деле получения большего дохода, чем
прогрессивная.
Exercise 6
The definitions are mixed. Match the word phrases with the proper
definition.
1. capital gain
a)a tax on goods, such as spirits,
produced for the home
2. excise tax market
3. evasion
4.to enact
b) the total value of all goods and
services produced domestically by a
nation during a year
c) to choose (a plan or method)
d) an increase in the capital value of
an asset between the time of its
acquisition by its owner and its sale
44
5. value added tax
6. gross domestic product
7. to adopt
8. income tax
9. to take effect
by that owner
e) a tax levied on the difference
between the cost of materials and the
selling price of a commodity or
service
f) to establish by law
g) a personal tax levied on annual
income
h) the act of evading something (a
duty, responsibility), by cunning or
illegal means
i) to begin to produce results
Unit 11. CORPORATE TAX IN GREAT BRITAIN
Exercise 1
Practise reading the following words and collocation
a) vary; through; authorities; exempt; exceed; expenditure; machinery;
computations; issue; lodged
b) industrialized
countries; corporate bodies and unincorporated
associations; marginal rate; capital gains; appropriate corporation tax
rate; annual allowances; accounting period; two equal installments
c) to impose tax; calculate the profits; a rate is applied to profits; to send
completed tax return; penalties are charged; assessment is incorrect;
distribute profits to shareholders
CORPORATE TAX IN GREAT BRITAIN
Tax imposed on the profits of a company is called corporation tax. All
countries tax corporations in this way.
The rates in different countries vary and some have a specially low rate
for small companies. Countries also differ in the way in which they calculate
the profits on which the tax is imposed.
The rates of company tax in Britain are lower than in most other
industrialized countries. All companies resident in Britain, non-resident
companies trading in Britain through a branch or agency, corporate bodies and
unincorporated associations are subject to corporation tax. Local authorities
are exempt.
The standard rate is 33 per cent. Small companies with profits of less
than £ 250 000 a year pay 25 per cent. A marginal rate of tax is applied to
profits between £ 250 000 and £ 1.25 million. Where profits exceed £ 1.25
million, the whole of the company profit is taxed at the full corporation tax
rate.
45
Capital gains made by companies are taxed at the appropriate
corporation tax rate. Expenditure on plant and machinery qualifies for annual
allowances of 25 per cent. If a company distributes profits to its shareholders,
it is required to pay advanced corporation tax (ACT) on these distributions.
Taxation and payment are based on the financial statements prepared by
the company. The company is required to send its completed tax return,
accounts and tax computations to the Inspector by the fixed date, twelve
months after the end of its accounting period. If the company does not,
penalties are charged.
Corporation taxes are charged for a financial year which runs from 1
April to the following 5 April. Companies generally pay corporation taxes
nine months after the end of the accounting period. Individuals usually pay
taxes in two equal installments on 1 January and 1 July. Usually taxpayers are
given 30 days to pay from the date of issue. If the company or the person
believes the assessment is incorrect an appeal may be lodged against it.
Appeals are made to either the General Commissioners or the Special
Commissioners. They are completely independent of the Inland Revenue.
Active vocabulary
1.
2.
3.
4.
5.
6.
7.
8.
9.
corporation tax
to impose
to impose a duty
to impose tax
to tax
profit (n)
advanced profits
after tax profit
distributed profit
excess profit
loss of profit
windfall profit
to earn profit
to make profit
to turn a profit
resident (a)
corporate body (n)
association (n)
subject (a)
exempt (a)
Налог на прибыль организации
Облагать (пошлиной, налогом)
Облагать пошлиной
Облагать налогом
Облагать налогом
Прибыль
Ожидаемая прибыль
Прибыль после налогов
Распределяемая
прибыль
(выплачивается акционером в форме
дивидендов)
Сверхприбыль
Потеря прибыли
Непредвиденная прибыль
Заработать прибыль
Получать прибыль
Стать прибыльной (о компании)
Проживающий, постоянно живущий
Корпоративная организация
Общество, организация, союз
Подлежащий (to-чему-либо)
Освобожденный
(от
налога,
46
10.
11.
12.
13.
£ (pound)
marginal rate
to exceed
capital gains
14.
expenditure (n)
government (national,state) expenditure
cash expenditures
additional expenditures
expenditures on personnel
to overestimate expenditure
to restrict expenditures
to meet expenditures
to cut expenditures
15.
16.
17.
18.
19.
20.
allowance (n)
tax allowance
personal allowance
finincial statement (n)
tax return (n)
computation (n)
accounting period (n)
penalty (n)
21.
22.
23.
24.
to charge
assessment (n)
to lodge
the Inland Revenue
воен.службы и т.д.)
Usually written
Предельная ставка
Превышать, превосходить
Добавочный
капитал,
прирост
капитала(положительная
разница
между вложенной суммой и суммой,
полученной при реализации актива)
Расход
Государственные расходы
Денежные расходы
Дополнительные расходы
Расходы на заработную плату
персонала
Завышать расходы
Ограничивать расходы
Оплачивать расходы
Сокращать расходы
Налоговая скидка
Необлагаемая часть дохода
Необлагаемый минимум (дохода)
Финансовый отчет
Налоговая декларация
Расчет, вычисления
Отчетный период
Штраф,
штрафные
санкции,
неустойка
Взимать сбор
Обложение
Предъявлять (требование)
Управление налоговых сборов
Exercise 2
Find the most suitable Russian equivalents to the following English
collocations
Tax imposed on the profits; the rates of company tax; non-resident
companies trading in Britain through a branch or agency; to be subject to tax;
to be exempt; to be applied to profits; capital gains made by companies; to be
taxed at the rate;to quality for annual allowances; to be based on the finincial
statements; to be required to send; to pay taxes in two equal installments; an
appeal may be lodged against it; to be required to pay advanced corporation
tax.
47
Exercise 3
Find English equivalents to the following Russian collocations
Облагать налогом подобным образом; отличаться тем, каким
образом
подсчитывать
доход,
облагаемый
налогом;
быть
освобожденным от уплаты налога; предельная ставка налога относится к
доходу от 200 до 300 фунтов; расход на сооружения и оборудование
подлежит ежегодной налоговой скидке; в основе налогообложения
лежит финансовый отчет; от компании требуется высылать инспектору
налоговую декларацию, отчетность и налоговые вычисления; можно
предъявить апелляцию.
1.
2.
3.
4.
5.
6.
7.
8.
Exercise 4
Answer the following questions
In what way do countries differ as far as the corporation tax is
concerned ?
What entities have to pay a tax in Great Britain ?
What companies are exempt from taxes ?
What do you know about the rate of taxation ?
What are taxation and payment based on ?
What kind of documentation do companies have to send to the Inspector
? What happens if the company fails ?
In what period of time do companies and individuals have to pay taxes ?
What can a company or a person do if the assessment is incorrect?
In what case is advanced corporation tax paid ?
Exercise 5
Guess the meaning of the words by their definitions
a) a compulsory payment to a government to raise revenue, levied on
income, property, or goods and services;
b) to ask (an amount of money) as a price;
c) (in Britain) an amount of a person’s income that is not subject to
income tax;
d) money gained in business or trade;
e) not subject to an obligation, tax, etc.;
f) a legal punishment for a crime or offence;
g) a large business or company;
h) the levying of taxes or the condition of being taxed
Exercise 6
Make a short oral summary of the text
Exercise 7
48
Read the text and answer the questions after it
When companies start to trade in a number of countries they can find
themselves liable to tax in more than one jurisdiction. A company will
normally be liable for domestic tax on all its worldwide profit no matter
where it arises. It may also owe tax on that same profit in the country in which
it is incurred.
To help companies avoid being taxed twice on the same profit in two
different places, many pairs of countries have so-called double-taxation
agreements between themselves. These are often very complicated and deal
with much more than company profits. They may include, for example,
provisions to avoid the double taxation of income, dividends or interest
payments. The agreements normally allow companies that have been taxed on
profits in the country where they arose to deduct those taxes from their tax bill
in their country of residence. Moreover, when there is no double-taxation
agreement companies can often treat the tax abroad as a deductible expense
when calculating their domestic taxable profit.
1. How does it happen that companies become liable for double taxation ?
2. What is done to avoid being taxed twice ?
3. Why do many countries have a double-taxation agreement ?
4. What may happen when there is no double-taxation agreement ?
Unit 12. CORPORATE INCOME TAX
Corporate taxation in the USA
Exercise 1
Answer the pre-text questions
1. What types of taxation (direct and indirect) exist in our country?
2. What is the effect of taxation policy on corporate investment decisions?
Exercise 2
Read the following aloud:
a) although; proprietorship; through; primarily; via, securities; applicable;
average, closer; measure; eventually; broad; relevant; mixture; suggesting;
moderate; sacrifice;
b) separate entity; marginal rate; equal to virtually; research equipment;
c) value of assets owned; relatively simple in one respect.
CORPORATE INCOME TAX
In the US and most other countries, the corporate form of organization
is the most important in terms of dollar value of assets owned, although many
49
more firms are organized as partnerships or single proprietorships. Legally, a
corporation is regarded as a separate entity, while partnerships are considered
as extensions of their owners. Income earned through proprietorships and
partnerships is taxed primarily through the personal tax levied on their
owners. Income earned by a corporation may be taxed twice — once when it
is earned via corporate income tax and again when it is received as dividends
by holders of the firm's securities, via personal income tax.
CORPORATE TAX RATES
The corporate income tax is relatively simple in one respect. There are
usually only a few basic rates. For example, in 1983 there was a tax rate of 15
per cent applicable on the first $25,000 of taxable income, a rate of 18 per cent
applicable to the next $25,000, a rate of 30 per cent applicable to the next
$25,000, 40 per cent to the next $25,000 and finally a rate of 46 per cent
applicable to all income over $ 100,000. The result is shown in Chart 1 - the
top line shows the marginal rate, the bottom line shows the average tax rate.
The marginal rate is more relevant for most decisions. For example, if a
corporation were considering an investment that would increase its income
from $65,000 to $70,000 each year, the increase in income would be (1 - 0.3)
X $5,000. As the figure shows, the larger a corporation's taxable income, the
closer its average tax rate comes to the higher marginal rate. Overall such
corporations pay taxes equal to virtually the largest marginal rate (46 per
cent).
DEFINING INCOME
For tax purposes, corporate income is defined as revenue minus
expenses. The problems arise in measuring these two elements. The most
dramatic instance of this difficulty concerns depreciation of assets. If a
corporation buys a computer for $1 million, it is entitled to eventually charge
off this cost as a deductible expense when computing taxable income. On 46
per cent rate, this represents an eventual tax saving of $460,000. The sooner
the cost can be written off, the greater the benefit to the company. For the
purposes of reporting corporate income to the IRS, assets are grouped into
three broad classes. Automobiles and research equipment are considered
three-year property most business equipment is considered five-year property,
buildings are usually considered as fifteen-year property.
Another vexing problem associated with the measurement of corporate
income concerns the cost of inventory sold during the year. This arises when
prices are changing fairly rapidly and a company holds inventory for long
periods. To take a fairly simple case, imagine a retailer of sailboats. At the
start of the year he has 100 in stock, all purchased for $10,000 each. During
the year he takes delivery of 100 more but must pay $11,000 each, ending
with 90 in stock. The boats are sold for $15,000 each. What was his income?
50
The question concerns the relevant cost of the 110 boats that were sold
and of the 90 that remain. The firm may have sold all the 'old' boats first (the
LIFO method), or all the 'new' boats (the FIFO method), or a mixture of the
two( the average-cost method). An accountant may assume any of the above
combinations without regard to the actual facts of the situation.
Let’s discuss the influence of the impact of different inventory valuation
methods on the company’s decision making. When prices have been rising,
the LIFO method will permit a corporation to charge more to cost in the
present and less in the future. This will lower taxes in the present and raise
them in the future. However, before 1970 many companies used the FIFO
method, suggesting that in times of moderate inflation many managers were
willing to sacrifice some real benefits to improve the appearance of their
company's financial statements.
Vocabulary
1.
2.
3.
4.
In terms
Assets (n)
Partnership (n)
Single proprietorship
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
Extention (n)
Primaralily (adv)
Via (prep)
Securities (n)
Relatevly (adv)
Applicable (adj)
Average (adj)
Marginal rate
Relevant (adj)
Overall (adv)
Virtually (adv)
Equal to (adj)
Measure (v)
Dramatic (adj)
Instance (n)
Concern (v)
Depreciation (n)
Eventually (adv)
Charge off (v)
IRS (Internal Revenue Service)
Vexing (adj)
Inventory (n)
с точки зрения, в плане
активы
товарищество
не корпоративная компания,
принадлежащая одному лицу
зд. объединение
главным образом
путем, через
ценные бумаги
относительно
применимый
средний
предельная ставка
уместный, подходящий
в общем и целом
фактически
равный
измерять
яркий, внушительный
пример
касаться
амортизация
в конце концов, в конечном итоге
списывать
Служба Внутренних Доходов
неприятный
стоимость запасов товаров,
51
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
Rapidly (adv)
Stock (n)
Delivery (n)
Relevant cost
Mixture (n)
Acountant (n)
Assume (v)
Without regard
Actual (adj)
Impact (n)
LIFO = last in first out
FIFO = first in first out
Suggest (v)
Moderate (adj)
Sacrifice (v)
Improve (v)
Appearance (n)
Financial statement
товары
быстро
склад, запас
доставка
достоверная цена
смесь
бухгалтер
полагать
без учета
фактический, действительный
влияние, воздействие
полагать
умеренный
жертвовать
улучшать
внешний вид
финансовый отчет
Exercise 3
Study the graph and answer the questions
1. What line shows average tax rates in the graph?
2. What is the difference between marginal and average tax rates?
Chart 1. Marginal and average corporate tax rates, 1983
Taxable income (Source: Sharp. Investments. Prentice Hall (1978))
Exercise 4
Answer the questions:
1. What are the tax advantages of a single proprietorship/partnership versus a
corporation?
2. In what senses is corporate income liable to double taxation?
3.
Why is the marginal rate of taxation most relevant for investment
decisions?
4. In the US, how long does it take to depreciate a photocopier, computer,
etc.?
5. Why do most companies nowadays operate the LIFO inventory method?
52
Exercise 5
Look at the following sentences taken from the Reading passage:
'The larger a corporation's taxable income, the closer its average tax rate
comes to the higher marginal rate
' The sooner the cost can be written off, the greater the benefit to the
company.'
Now express comparative relations using the words : lower, greater, higher,
more, less, shorter, longer. Say at least two sentences in each case.
1. ………..the price, ……….the profit.
2. ………. we wait, ………..the ROI (return on investment).
3. ………. the target market, ………. profitable it is.
4. ………. the demand, ………… the trade deficit.
Exercise 6
Look at the following sentences taken from the Reading passage:
'Although many more firms are organized as partnerships . . ’
‘ 'There arc usually only a few basic rates . . ’
Now complete the sentences with one of the following:
much many few little fewer less
1. ____ people realize how ____ tax they could avoid paying if they studied
the tax laws.
2. ____ people believe they pay too ____ tax.
3. There is too ____ time and too ____ problems to talk about irrelevant
issues.
4. There isn’t ____ evidence to support these figures.
5. You'll pay much ____ tax in the Cayman Islands than in most other places.
6. Very ____ tax authorities have clear plans for corporation tax in the future.
7. There are many ____ opportunities to avoid tax nowadays.
8. ____ companies operate the FIFO method nowadays.
Exercise 7
Complete the list below
Verb
to govern
to provide
…………
………….
to apply
………
to deduct
to assess
to sacrifice
Noun
……………..
…………….
a decision
……………
……………
depreciation
…………….
……………
……………
Adjective
……………….
………………
………………
considerable
……………….
………………
……………….
……………….
………………
53
to profit
……………
………………
Exercise 8
Match the words on the left with their best synonym on the right:
1. accountant
a. Example
2. via
b. in the end
3. virtually
c. make better
4. instance
d. to consider
5. eventually
e. mainly, chiefly
6. charge off
f. Book-keeper
7. vexing
g. Example
8. rapidly
h. Through
9. assume
i. in fact
10. actual
j to write off
11. suggest
k. Influence
12. improve
l. To suppose
13. accountant
m. to make better
14. impact
n. real
Exercise 9
Guess the meaning of the word by its definition.
1. All things owned by a person or business and having some money value,
especially if they can be used to pay debts, produce goods, or in some way
help the business to make profit.
2. A business owned by two or more partners.
3. An official piece of writing, e.g. a bond or a piece of stock, giving the
owner the right to certain property.
4. When compared to others of the same kind
5. Directly connected with the subject.
6. To remove from the records or accounts.
7. All the goods in one place.
8. A combination of thing or people of different types.
9. A person whose job is to control and examine the money accounts of
businesses or people.
10.The US federal organization that assesses and collects all personal and
business federal taxes.
11.Any document that shows the state of the finances or financial position of
a person or organization, usually listing assets and liabilities as in a balance
sheet, or giving an account of profit and loss.
12.The percentage rate of income tax paid by a taxpayer on that part of his
income that is taxed the most.
13.A gradual loss in the value of something, such as a vehicle, a machine or
any asset that wears out with use and age.
54
14.To find the size, length, amount, degree, etc., of something in standard
units.
Unit 13. (CORPORATION) PROFIT TAX IN RUSSIA
Exercise 1
Practise reading the following words and collocations
a) procedure; budget; municipal; through; source; within; whatever;
compliance; legislature; automatically; drawback; relatively
b) significant changes; foreign legal entity; fright expenses; Permanent
Establishment; prior year losses; the Joint Stock Company; the Limited
Liability Company; juridical and natural persons; the due tax amount
and respective interest; unstable financial state
c) Royalties from patents; may be sheltered with; tax is levied on; forms
incorporated by; subject to taxation; submit the accounting reports;
filled out income statements; due to; through restructuring the debt;
through filing for bankruptcy
(CORPORATION) PROFIT TAX IN RUSSIA
Chapter 25 of the Tax Code of the Russian Federation took effect on 1
January 2002 and introduced significant changes to the procedure for (
corporation ) profit tax. It is imposed as an obligation on taxpayers to conduct
separate tax accounting.
According to Chapter 25 the ( corporation ) profit tax is reduced from
35 % to 24 %:
- 7.5 % of the ( corporation ) profit tax goes to the federal budget;
- 14.5 % goes to the budget of the RF subject;
- 2 % goes to the local budget
Moscow City Duma can lower the tax rate ( down to minimum 10.5 % )
on the income part, which is meant for the city budget, for certain categories
of tax payers.
Capital gains are usually taxed at the ( corporation ) profit tax rate of
24 %, but some types of gain in the hands of foreign legal entities are taxed at
20 %.
There are also withholding taxes as follows: dividends 6 % ( 15 % if
either the payer or recipient of the dividends is a foreign legal entity ); interest
20 %; but certain types of state and municipal securities attract a rate of only
15 %; fright expenses 10 %, but only if the payer does not have a Permanent
Establishment in Russia; royalties from patent, know-how technologies, etc.
20 %. 30% of any current year profits may be sheltered with prior year losses.
There is no tax credit with the domestic 6 % dividend tax, but if a Russian
legal entity pays the dividend onwards to its own investor, this is untaxed.
55
The ( corporation ) profit tax is levied on Russian legal entities and
foreign legal entities that carry on business activity in Russia through
permanent establishment and / or receive income from sources in Russia.
Russian Legal Entities ( as the Joint Stock Company or the Limited Liability
Company – business forms incorporated by foreign owners ) are taxed on their
worldwide income. There is no consolidation or group relief for tax purposes;
each company within a group is a separate taxpayer. A permanent
establishment of a foreign legal entity in Russia is taxed on Russia – source
income, which includes income from whatever source.
All entities and individuals subject to taxation must register at the
Federal Tax Service departments and submit the accounting reports and fill
out income statements, pay the required taxes and other dues, according to the
Tax Code of the Russian Federation. Federal Tax Service departments are
monitoring the payments for each tax category and the compliance with the
tax legislature.
In case a taxpayer has not complied with the current tax regulations, he
(she) is subjected to the full due tax payment, interest and fine determined by
the Tax Code of the Russian Federation. If the juridical person does not
comply with the Tax Code requirments, then the due tax amount and
respective interest are collected automatically, the fine is collected through
court.
In case an organization has not been able to submit full payments into
the budget due to certain drawbacks in its operations, unstable financial state
and lack of funds for a relatively long period of time, this matter can be solved
through restructuring the debt ( on the condition that current payment are
submitted ) or through filing for bankruptcy.
Active vocabulary
1.
to take effect
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
to conduct
tax accounting (n)
capital gains
legal entity (n)
Interest (n)
Fright expenses
permanent establishment (n)
royalties (n)
to shelter
losses (n)
to levy
Joint Stock Company
вступить в силу (о законе, правиле и
т.д.)
вести
налоговый учет
прирост капитала
юридическое лицо
процентный доход
затраты на грузовые перевозки
постоянное предприятие
лицензионные платежи
укрывать, прикрывать
потери, убытки
взимать (налог)
акционерное общество
56
14.
Limited Liability Company
15.
16.
17.
18.
19.
20.
to incorporate
relief (n)
to submit
accounting report (n)
income statement (n)
due (n)
due to
legislature (n)
to comply
fine (n)
drawback (n)
funds
debt (n)
bankruptcy (n)
21.
22.
23.
24.
25.
26.
27.
общество
с
ограниченной
ответственностью
регистрировать
освобождение (от уплаты)
представлять (на рассмотрение)
бухгалтерский отчет
отчет о результатах хоз. деятельности
сбор (денежный)
из-за, вследствие
законодательная власть
исполнять требование
штраф
недостаток
средства (денежные)
долг
банкротство
Exercise 2
Answer the following questions
1. What is the rate of ( corporation ) profit tax in Russia ?
2. What are other withholding taxes ?
3. In what case is a Russian legal entity untaxed ?
4. What legal entities are subjected to the ( corporation ) profit tax ?
5. What accounting must all juridical and natural persons do according to
the Tax Code do ?
6. What happens if a taxpayer does not comply with the Federal Sate
Service requirements ?
7. What will happen if an organization is not able to submit full payments
into the budget?
Exercise 3
Find the most suitable Russian equivalents for the following English
collocations
To impose an obligation on taxpayers; to be meant for the city budget;
to be sheltered with prior year losses; to pay dividends on wards; to be levied
on Russian legal entities; to carry on business activity; to receive income
from sources in Russia; to be subjected to taxation; to submit the accounting
reports; to fill out income statements; to monitor the compliance with the tax
legislature; to comply with the current tax regulations; due to certain
drawbacks in operations; to be solved through restructuring the debt or
through filing for bankruptcy
57
Exercise 4
Translate the following Russian collocations using the text
Представить существенные изменения по работе налога на
прибыль предприятий; часть дохода, которая предназначена для уплаты
в городской бюджет; осуществлять коммерческую деятельность на
основе постоянных представительств; включать доход с любых
источников поступления; юридические и физические лица; представить
бухгалтерские отчеты; заполнить отчеты о результатах хозяйственной
деятельности; налоговая служба контролирует уплату налогов и
исполнение налогового законодательства; подлежат уплате всех налогов,
процентов и штрафа, установленных налоговым кодексом РФ; не иметь
возможности полностью уплатить налоги из-за нестабильного
финансового положения; представление предприятия к процедуре
банкротства
Exercise 5
Match the following English equivalents to the Russian ones
1. to take effect
a процентный доход
2. Joint Stoсk Company
b постоянное представительство
3. interest
c взимать (налог)
4. accounting report
d денежный сбор
5. permanent establishment
e отчет о результатах хоз. деят-сти
6. to levy
f акционерное общество
7. due
g денежные средства
8. income statement
h вступить в силу (о законе)
9. funds
i представить (на рассмотрение)
10.to submit
j бухгалтерский отчет
Exercise 6
Write 5 questions that you think a professor might include in the test on the
subject. Discuss them with your group mates
Unit 14. THE VAT
Exercise 1
Practise reading the following aloud
a) consumption, virtually, commodity, provision, distribution, specified,
neutral, transactions, indirectly, enforcement,
b) value added, commercial activities, invoices issued, appropriate
amount, ultimate consumer, actual tax burden, via a system,
c) to resemble, to be designed, to be charged as a percentage, to be
visible, to be collected fractionally, mechanism ensures, to be created.
58
THE VAT
The VAT is a general consumption tax used in virtually every major
country except the U.S. In some countries, including Singapore, Australia,
New Zealand and Canada, this tax is known as “goods and services tax” or
GST.
The VAT is assessed on goods and services, applied at each stage of
the production of a commodity, and charged only on the value added at that
stage. It is a general tax because the tax applies to all commercial activities
that involve the production and distribution of goods and the provision of
services, and a consumption tax because the burden ultimately falls on the
final consumer. It is not a charge on companies.
Although VAT is theoretically a tax on “value added”, in practice it
resembles a sales tax in that each trader adds the tax to sale invoices issued
and accounts for the appropriate tax authority department. However, the trader
is permitted to deduct the amount of tax paid on invoices received for goods
and services (but not for wages and salaries). Thus VAT is a form of
“indirect taxation”, its burden being borne not by traders but by the ultimate
consumers of their goods and services. The system is designed to avoid the
cascade in which tax is paid on tax, as goods and services pass through long
chains of activity.
VAT is often said to be an example of a proportional tax, since the
amount of tax paid is proportional to the size of the tax base, i.e. VAT is a tax
with a single rate. It is charged as a percentage of price, which means that the
actual tax burden is visible at each stage in the production and distribution
chain. Thus being calculated as a specified percentage of the total invoice
value of goods rather than the number of items, VAT is an example of an ad
valorem tax (Latin: according to value).
VAT is collected fractionally, via a system of deductions whereby
taxable persons ( i.e., VAT-registered businesses) can deduct from their VAT
liability the amount of tax they have paid to other taxable persons on
purchases for their business activities. This mechanism ensures that the tax is
neutral regardless of how many transactions are involved.
Personal end-consumers of products and services cannot recover VAT
on purchases, but businesses are able to recover VAT on the materials and
services that they buy to make further suppliers or services directly or
indirectly sold to end-users. In this way, the total tax levied at each stage in
the economic chain of supply is a constant fraction of the value-added by a
business to its products.
The VAT was created by Maurice Laure, joint director of the French tax
authority, in the 1950s. The VAT was invented because very high sales taxes
and tariffs encourage cheating and smuggling. For example, a 30% sales tax
was so often cheated that most of the retail economy would go off the books.
59
This is not the case with VAT. The entire economy helps in the enforcement
by collecting the tax at each production level, and requiring the previous
production level to collect the next level tax in order to recover the VAT
previously paid by that production level.
Vocabulary
1.
2.
3.
4.
5.
VAT
consumption (n)
virtually (adv)
assess (v)
apply (v)
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
commodity (n)
value added
(pl. values added)
resemble (v)
involve (v)
ultimately (adv)
trader (n)
invoice (n)
issue (v)
account (v)
permit (v)
chain (n)
activity (n)
since (prep)
i.e.(id est) читаем that is
actual (adj)
specify (v)
rather than (conj)
item
fractionally (adv)
via
whereby
ensure (v)
regardless
29.
30.
31.
32.
transaction (n)
recover (v)
book (n)
this is not the case
НДС
потребление
фактически
взимать (налог), облагать (налогом)
1) касаться, относиться, быть
приемлемым к
2) применять, употреблять
товар
добавленная стоимость
напоминать
включать в себя
в конечном итоге
торговец
счет-фактура
выписывать
отчитываться
разрешать
цепь, этап
деятельность
т.к., поскольку
то есть
фактический, пoдлинный
точно определять
а не
вид товара
по частям
посредством, через
тем самым, посредством чего
обеспечивать, гарантировать
невзирая на, вне зависимости от того,
что
операция
возмещать, получать обратно
бухгалтерская книга
дело обстоит иначе
60
33.
34.
35.
36.
37.
38.
entire (adj)
enforcement (n)
require (v)
previously (adv)
invent (v)
smuggle (v)
весь, целый
принуждение, установление, давление
требовать
предварительно, ранее
изобретать
заниматься контрабандой
Exercise 2 Answer the questions
1.
What is the VAT?
2.
What is the GST?
3.
What countries use the VAT?
4.
Why is the VAT a general tax?
5.
What is the difference between the VAT and sales tax?
6.
Why is VAT said to be an example of a proportional tax?
7.
Why is VAT considered nuetral?
8.
What was the reason for inventing the VAT?
Exercise 3. Say whether it is true or false
1.
The VAT is a charge on companies.
2.
Besides the U.S. the VAT is a general consumption tax used in virtually
every major country.
3.
The VAT is assessed on profits.
4.
The VAT is a form of direct taxation.
5.
An end-user fails to recover the VAT.
Exercise 4. Translate the sentences
1.
He has to account to the chairman for how he spends the company’s
money.
2.
The rules clearly specify that competitors are not allowed to accept
payment.
3.
Consumers have the right to return faulty goods and demand a refund
from the supplier.
4.
We haven’t received payment for our invoice dated 3 September.
5.
The EC uses protective tariffs to help its farmers.
6.
The ultimate consumer pays considerably more than the manufacturing
price.
7.
Much of the production process is done by hand so there is a high value
added.
8.
One of advantages of indirect taxes is that they can be collected from
comparatively few sources while their economic effects can be widespread.
9.
The sales tax is based on the selling price of goods. Such a tax is not now
generally favoured, since it has a cascade effect, i.e. if goods are sold on from
61
one trader to another the amount of sales borne by the ultimate buyer becomes
too great. VAT was largely designed to meet this objection.
10. For example, if a manufacturer acquires a partly made component, the
value added will be the combination of labour and profit that increase the value
of the part before it is sold.
11. Expenditure tax ( outlay tax) (налог на расходы (косвенный налог)), of
which VAT is an example, is often preferred by tax theorists to income taxes, as
it does not distort the incentive to work.
12. Board of Inland Revenue ( Совет Департамента налогов и сборов). A
small number of higher civil servants, known individually as Commissioners of
Inland Revenue, responsible to the Treasury for the administration and
collection of the principal direct taxes in the UK, but not the indirect VAT and
excise duties. They are responsible for income tax, capital gains tax,
corporation tax, inheritance tax, petroleum revenue tax, and stamp duties.
Under the Tax Management Act 1970, they are under duty to appoint inspectors
and collectors of taxes who, in turn, act under the direction of the board. They
also advise on new legislation and prepare statistical information.
Exercise 5. Guess the meaning by its definition
1.
The worth that is placed on a product by a particular stage in the
production process.
2.
To take (especially goods) illegally in or from one country to another
whereby to avoid paying necessary tax (customs duty).
3.
To provide a satisfactory record, especially money received and paid.
4.
To cause something new to exist; to produce something new.
5.
The act of causing a rule or law to be obeyed or carried out effectively.
6.
To produce a new idea or thing for the first time
7.
In spite of everything; without worrying about or taking account of.
8.
To look like or be alike
9.
To state exactly; describe fully.
10. In Latin the tax that is calculated as a percentage of the value of the
goods
11. A calculation of the amount of tax a person has to pay; the document that
shows this.
12. A raw material or manufactured product available for use or sale.
13. A person who buys goods and services for her/is own use and not for
sale.
14. The using up of food, goods, energy and resources by people,
organizations and countries.
15. A list of goods or services received that states how much you must pay
for them.
16. To get back something that has been lost.
17. An amount that must be paid when particular goods are imported into a
country.
62
18. A person or organization that earns money by buying goods and selling
them at a profit.
19. The act of doing business or carrying out a business deal.
20. A tax charged at some percentage of the price of goods and services. It
can be charged at each stage of the production process, but can be reclaimed by
traders and producers. It is finally paid by the consume
Exercise 6 Grammar revision
1.
It is they……will bear the ultimate responsibility when financial
markets…… demand that deficit reduction …….be once again the order of the
day and tax increases .…. become mandatory.
a)
which; will; should; --; b) that; will; should; c) who; --;--;--; d) who; --;
must;--.
2.
We ….. face the reality that taxes ….. rise a lot in coming years.
a)
will; will; b) will; must; c) must; are going to; d) may; are going to.
3.
A VAT is the ….. way ……the hundreds of billions of dollars per year
that …… .
a)
best; to get; will need; b) least worse, to get, must need; c) less worse,
of getting;
d) least bad, of getting; will be needed.
4.
The alternative is …. tax rates that will …….. reduce the economic
growth.
a)
high; more; b) highest; further; c) higher; far more; d) the highest; far
more.
5.
The ….. we can hope to do is make incremental improvements to the
existing tax system and hopefully prevent it …… .
a)
worst; to get better; b) worse, to get the best; c) better; to getting worse;
d) best; from getting worse.
6.
Congress believe that …… taxes are inevitable.
a)
the highest; b) the lowest; c) lower; d) higher.
7.
In particular, the enactment of a massive new Medicare drug benefit
absolutely guarantees that the taxes …. … in the future even if Social Security
….. successfully.
a)
will raise; will reform; b) will rise; will be reformed; c) will be raised, is
reformed;
d) will be rised; is reformed.
8.
……… considerably different in their details, both bills had the same
goal - to close tax loopholes and use the revenue to reduce rates.
a)
owing to; b) although; c) according to; d) in spite.
9.
The point is that tax reform wasn’t something that Reagan suddenly
announced at the 1984 convention. It was already well in the work; detailed
plans ….. under consideration in congress for some time. All he ….. do was to
push the ball over the goal line for the final score.
a)
had been; was to; b) had been; had to; c) was; had to; d) is; has to.
63
10. If Reagan ….. until his second term to begin the tax-reform process, there
is a serious
that he …… successful
a)
waited; would be; b) had waited; would be; c) had waited; would have
been
11. Reagan had a clear tax philosophy – he wanted tax rates to be as low as
possible. After cutting rates in 1981, however, the emergence of budget deficits
made further tax cuts impossible and, in fact, led to tax increases. If he …. this
point, he likely ….. in 1992.
a)
understood; would be reelected; b) had understood; would have been
reelected.
12. They ….. supporters of tax reform ……. the time they …….the article
about it.
a)
were; since; read; b) have been; from; read; c) were; since; have read; d)
have been; since; read.
13. It is far more important to get the tax base straightened out. We ….. avoid
double taxation, stop taxing things that …..be taxed, start taxing things that
……..be taxed.
a)
should; ought not to; should; b) must; should; should; c) need; shouldn’t;
must.
14. ……there are only two things that ….. be done with income - it …. be
saved or spent – eliminating the taxation of saving necessarily leaves a tax that
falls only on consumption.
a)
as; must; can; b) since; can; can; c) for; can; must; d) because; need; need
15. We ….. have a tax system that taxes only consumption. The objection to
the national retail tax is that it would tax consumption in a way that just won’t
work administratively. One ……. as well replace the tax system with voluntary
contributions to the government. It’s a nice idea, but unworkable.
a)
must; can; b) should; might; c) need; could; d) could; need.
Exercise 7
Translate from Russian into English
1.
В Соединенных Штатах не практикуется налог на добавленную
стоимость, являющийся важным источником государственных доходов во
многих странах, особенно европейских.
2.
НДС эквивалентен обычному налогу на розничную торговлю,
взимаемому по общей ставке со всех продаваемых товаров.
3.
НДС взимается на всех стадиях производства.
4.
Сумма, подлежащая налогообложению на каждой стадии, не равна
цене продажи, а составляет всего лишь добавленную стоимость, т.е. равна
цене продажи за вычетом затрат на покупку факторов производства.
5.
Таким образом, производитель автомобилей, который покупает
сталь и покрышки (cover) у других фирм, платит налог на добавленную
стоимость, которым облагается стоимость проданных автомобилей за
64
вычетом стоимости закупленных и использованных в производстве стали
и покрышек.
6.
Фирма, торгующая автомобилями в розницу, платит свою очередь
налог со стоимости своих продаж, уменьшенной на сумму, выплаченную
производителю этих автомобилей.
7.
Складывая на каждой стадии налоги, легко увидеть, что итоговая
сумма налога на добавленную стоимость представляет собой не что иное,
как налог непосредственно на розничную торговлю.
Unit 15. THE VAT IN RUSSIA
THE VAT IN RUSSIA
Exercise 1
Practise reading the following aloud
a) provisions, automatically, prior, liable, medicine, science, premises,
insurance, securities, penalties, technological, licences, auxiliary, loading,
exemption, difference, recoverable, balance, otherwise, accounting, quarterly,
b) legal entities, individual entrepreneurs, permanent establishments,
adjusting prices, identical goods, relevant comparison data, actual expenses
incurred, if applicable, endorsed by, advertising nature, warranty period,
college of advocates, extremely time-consuming,
c) to be borne ultimately by the consumer, can be granted, to be available, to
be exempt from, to be accredited, to be required, to be acquired.
Along with the profit and excise taxes, the VAT is a major source of revenue
for Russia’s federal budget.
The principle of levying VAT is similar to EU in part that it is borne
ultimately by consumers, but collected through taxable persons. The
provisions regarding the value added tax in Russia are in Chapter 21 of the
Tax Code Part II.
The taxpayers for VAT purposes are all Russian legal entities, individual
Entrepreneurs, and foreign legal entities doing business in Russia through
Permanent Establishments. Registration for VAT purposes is automatically a
part of tax registration as such.
The law gives the right to small-size businesses to be relieved from the VAT
taxpayer’s obligation. This exception can be granted to small businesses with
taxable profit from sale of less than RR1m during three prior months. This
exception is not available for VAT payable at customs for imports and for
those taxpayers who are liable for excise tax.
The subject of taxation is

Sales (including barter) of goods, works and services in Russia,

Imports into Russia,

Goods and services for own use ( including self-construction).
65
Goods, works and services for own use (consumption) are those imported
goods or services consumed for own use, which are not deductible for the
purpose of profit tax.. Construction and works for own use also fall under this
category.
The tax base for VAT purposes is all the revenue earned from the sales of
goods, works, and services. The tax base is determined as the value agreed by
the parties. However the taxation authorities have the right to adjust the price
to that of the market according to the general rules of adjusting prices for tax
purposes. The tax base for services and goods consumed for own use is based
on the price of identical goods or services. In the absence of relevant
comparison data the market price will be used. Construction work for own use
is based on the actual expenses incurred. For the imported goods and services
the tax base is determined as the sum of the purchase price, transportation
costs, customs duties and excise if applicable.
The standard rate for goods, works, and services is currently 18% (from
January, 1, 2004). The reduced rate of 10% applies to certain non-excisable
food products and goods for children in accordance with a number of lists
endorsed by the government: medicines and medical products; newspapers,
magazines, and books related to education, science, and culture (provided
they are not of advertising nature) and also certain services related to their
production.
Sales of certain goods and services are zero-rated.
Below is the list of some of the exempt sales.

Rent of premises and apartments to foreign accredited Representation
Offices and the accredited foreign citizens (this exemption is given in respect
to companies from those countries that extend the same treatment to Russian
companies or organizations)

Public transport

Rent of apartment to individual

Insurance

Banking services, medicine and medical equipment ( with detailed list
of exempted goods and services approved by the Russian government)

Education services (non-commercial)

Securities trade

Interest on loans

Repairs during warranty period without additional payment

Late payment penalties

Interest on credit sales (within limits)

Goods and services under Production Sharing Agreements

In-kind charter capital contributions in form of technological equipment

State duties and levies for licenses, registrations, etc

Culture and arts services (in certain cases)
66

Legal services by members of the college of advocates.
Export goods and services are VAT-free in the following main cases:

Export of goods (with exemptions of oil and gas exported to CIS
countries)

Direct auxiliary services in connection with exporting of goods (e.g.,
transport, loading)

Transit transportation

Goods, works, and services for use by diplomatic missions and
diplomats.
Exemptions from import include specific technological equipment and spare
parts contributed to the charter capital of Russian entities.
The VAT due to the government is calculated as the difference between
Output VAT collected from customers (clients) for goods, works or services
sold, and Input VAT paid to suppliers. Input VAT paid to suppliers is
generally recoverable as long as the underlying costs relate to business
activity of the company. Input VAT refunds are made only to tax registered
person making taxable supplies in Russia, and in practice obtaining refunds
of Input VAT is extremely time-consuming. For recovering of Input VAT,
assets, goods or services have to be acquired for production purposes or for
resale and they have to be recorded on the balance of the company.
Taxpayers with monthly revenue over RR1m are required to pay VAT and
file VAT returns on monthly bases (by the 20th of the following month);
otherwise, VAT accounting and payment is quarterly.
Vocabulary
1.
2.
3.
4.
5.
6.
7.
8.
along with
as such
relieve from (v)
grant (v)
prior (adj)
available (adj)
barter (n)
self-construction (n)
9.
10.
11.
12.
13.
for own use
earn (v)
determine (v)
agreed by the parties
adjust (v)
наряду с
как таковой, по существу
освобождать от
разрешать, предоставлять
предыдущий
действительный, пригодный, доступный
бартер, товарообмен, меновая торговля
строительно-монтажные работы для
собственного потребления
для собственных нужд
зарабатывать
определять
согласованный сторонами
регулировать, корректировать,
подстраивать
67
14. absence (n)
15. relevant (adj)
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
comparison (n)
data (singular – datum)
construction work for own use
actual expenses
incur (v)
if applicable
standard rate
currently (adv)
list (n)
endorse (v)
medicine (n)
related (adj) to
provided (conj)
premises (n)
in respect to
extend (v)
treatment (n)
approve (v)
securities trade
interest on loans
repair (n)
warranty (n)
under Production Sharing
Agreement
arts (n)
in certain cases
legal services
CIS (the Commonwealth of
Independent States)
auxiliary (adj)
due to
difference (n)
output VAT
отсутствие
необходимый, относящийся к данному
вопросу
сравнение
данные
внутренние строительные работы
фактические расходы
понести
в случае применения
основная ставка
в настоящее время
список
одобрять
лекарство
связанный с, касающийся, относящийся к
при условии, что
помещение
в отношении к
предоставлять
обращение, подход
одобрять
продажа ценных бумаг
проценты по займу
ремонт
гарантия
в рамках соглашения о разделе продукции
искусство
в определенных случаях
юридические услуги
СНГ
вспомогательный, дополнительный
причитающийся
разница
выходящий НД
68
47.
48.
49.
50.
51.
52.
input VAT
to obtain refunds
extremely (adv)
acquire (v)
otherwise
quarterly (adv)
входящий НДС
возмещать
чрезвычайно
приобретать
в противном случае
раз в квартал, раз в три месяца
Exercise 2
Answer the questions
1.
What tax is the major source of revenue for Russia’s budget?
2.
What is the subject of VAT taxation?
3.
What is the tax base for VAT purposes?
4.
How is the tax base determined?
5.
What are VAT rates?
6.
What sales are exempt from VAT? Why do you think the are exempt?
7.
Why do you think the tax which is borne ultimately by consumers was
introduced in Russia?
8.
Why do you think some specific imported goods are exempt from the
VAT?
9.
What imported goods are exempt from the VAT?
10. How is the VAT calculated?
11. What is the input VAT?
12. What is the output VAT?
13. How can input VAT be recovered?
14. When is VAT due to be paid? (to be due to – должен по плану)
Exercise 3
Guess the meaning
1.
money that is given back, usually for faulty or unwanted goods
2.
trade by the direct exchange of goods for other goods without using
money
3.
to get money by working
4.
in the way that agrees with
5.
to gain or come to possess by one’s action often over o long period of
time
6.
to agree officially
7.
providing additional help or support, especially with lower rank or
importance
8.
the act of comparing
9.
to express approval or support of smth
10. to give or offer
11. to agree to fulfil or allow to be fulfilled
69
12. a set of words, names, numbers, etc., written one below the other, so
that one can remember them or keep them in order so that they can be found
13. a substance used for treating disease, especially a liquid to be drunk
14. if not
15. a building with any surrounding land, considered as a particular piece of
property
16. four times a year
17. connected in some way
18. to free someone of something
19. to make something broken work again
20. a written guarantee
Exercise 4
Translate from English into Russian
1.
The VAT is charged at every stage of production and sale.
2.
This is a new form of taxation, but not in the sense of a new, additional
tax burden, but in terms of a form of taxation that replaces the sales tax.
3.
In Serbia every entity that posted over 25,000euros in turnover in the
past year, or expects to post as much over the next 12 months, is subject to the
VAT.
4.
Authorities expect the VAT to reduce the grey economy, and boost
competitiveness and exports.
5.
The VAT will also test the liquidity of companies, as tax obligations
will now be charged far more quickly than before.
6.
In Serbia neither basic provisions nor computers were previously
subject to sales tax, but now they are being taxed at the 8 per cent and 18per
cent rates, respectively.
7.
Massive spending took place at the end of 2004 as consumers rushed to
make purchases before the new taxation system went into effect.
8.
According to the Serbian Tax Darectorate, some businesses are likely to
announce price increases as a marketing strategy.
9.
Experts believe it could take as much as half a year for companies to
adjust to VAT.
10. Regardless of the initial problems introduction of VAT in Serbia could
face, VAT is one of the prerequisites for launching Stabilization and
Association talks with the EU.
11. VAT has been functional in most European countries for three decades
now.
12. The customs value any import tax obligations, and, if applicable, the
excise tax are added together. The sum is then multiplied by 20% for the VAT
amount.
13. Inside Russia, the VAT is paid on value added as goods move from raw
materials to sale of finished goods.
70
14. VAT paid on the costs of raw materials, supplies, and services which
are deductible from profit taxes can be recovered, so the tax really amounts to
the VAT paid by buyers , minus the VAT paid by suppliers on raw materials,
supplies, and services.
15. A constantly changing list of exemptions is maintained by the State
Customs Committee, which at present includes high-technology equipment
(particularly if that equipment is used for manufacturing or research and
development) and specialized and public transport, telecommunications, and
medical equipment.
16. If the importer can prove that the imported equipment is designed to
produce goods or means of production, exemptions may also apply.
17. For in-country producers, VAT that has been paid for imports of fixed
capital and nonmaterial assets is refundable once they are in operation.
18. Commodities deposited in kind into the charter fund of an enterprise
with foreign participation are presently exempt.
19. The recent amendment also revise rules for determining the VAT on
service transactions between Russia and foreign entities.
20. VAT is no longer levied on direct intercompany loans from a parent
company to a local subsidiaries, although indirect loans through third-country
subsidiaries still are.
21. The VAT paid on the purchase of fixed capital assets (charter capital
contributions) can now be refunded once the assets are operational.
22. Recent changes represent partial progress toward meeting these
recommendations.
23. Historically, Russia treated sales of goods to buyers in member states of
the Commonwealth of Independent States ( the CIS)as domestic sales subject
to VAT, but has since agreed that such sales (except for oil, natural gas and
gas condensate) should be treated as exports and subject to a 0% rate.
24. Input VAT related to exempt supplies is not recoverable; input VAT
related to zero-rated supplies is recoverable.
25. Should the amount of input VAT exceed output VAT, the excess is to
be offset (возмещать) against other amounts of tax or penalties due to the
same (i.e. Federal) budget for a period of three months.
26. Once a taxpayer has submitted the application, the tax authorities are
allowed up to two weeks to determine whether the refund is due.
27. In the case when goods are returned (including during the warranty
period) to the seller, VAT previously paid by the seller to the budget in respect
of the sale of these goods may be deducted.
28. Vat paid to the budget from amounts of advance payments or other
payments received by the seller against future goods may be deducted in the
case of cancellation of the corresponding contract and the return of the
appropriate amounts of advance payments.
71
29. These deductions should be made in full amount after the appropriate
adjustments in respect of the return of the goods, or rejection of the goods
have been recorded, but not later than one year from the time of return or
rejection.
Exercise 5
Render the following text
A value added tax applies the equivalent of a sales tax to every
operation that creates value. To give an example, sheet steel is imported by a
machine manufacturer. That manufacture will pay the VAT on the purchase
price, remitting that amount to the government. The manufacture will then
transform the steel into a machine, selling the machine for a higher price to a
wholesale distributor. The manufacturer will collect the VAT on the higher
price, but will remit to the government only the excess related to the “value
added” ( the price over the cost of the sheet steel). The wholesale distributor
will then continue the process, charging the retail distributor the VAT on the
entire price to the retailer, but remitting only the amount related to the
distribution markup (наценка) to the government. The last VAT amount is
paid by the eventual retail customer who cannot recover any of the previously
paid VAT.
Exercise 6.
Study the information on the VAT-Invoice and compile the one of
your own.
The VAT-Invoice
The seller has to include the relevant VAT amount in the invoice
presented for payment to the buyer. This invoice for VAT purposes is called
the VAT-invoice. The VAT invoice is a formal document that has to be
produced in connection with each sale. The law specifies in detail the
requirements to its contents.
The VAT-Invoice shall contain

Number and date of issuance

Taxpayer’s Identification Number

Number, name and address of seller and buyer

Name and address of consignor and consignee

Number of payment and settlement document (in case of receiving
advance payments)

Details on the goods (services) unit of measurement

Quantity (volume) of delivered (dispatched) goods (works, services)

Price for unit of goods (services)

Total cost, excluding VAT

Excise tax (when applicable)

Tax rate

VAT amount
72



Total cost, including VAT
Country of origin of the goods
Number of cargo-customs declaration
The list of useful words:
1.
date of issuance
2.
Taxpayer’s
Identification
Number
3.
consignor
4.
consignee
5.
payment
and
settlement
document
6.
advance payment
7.
details
8.
unit of measurement
9.
quantity
10. volume
11. delivered
12. dispatched
13. excluding VAT
14. Excise tax ( when applicable)
15. VAT amount
16. Cargo – customs declaration
дата составления
ИНН
грузоотправитель
грузополучатель
платежно-расчетный документ
авансовый платеж
наименование, описание
единица измерения
количество
объем
поставленный
отгруженный
без учета НДС
сумма акциза по подакцизным товарам
сумма НДС
грузовая таможенная декларация
Exercise 7
Translate from Russian into English
1.
Закон дает право малому бизнесу получить освобождение от
исполнения обязанностей налогоплательщика, связанных с исчислением
и уплатой НДС.
2.
Подобное освобождение предоставляется организациям и
индивидуальным предпринимателям, если за три предшествующих
последовательных календарных месяца сумма выручки от реализации
товаров (работ, услуг) без учета НДС не превысила в совокупности 1 000
000 рублей.
3.
С 1 января 2004года была снижена основная ставка НДС с 20% до
18%.
4.
Если объем продаж компании превысит допустимый уровень, то
все продажи за истекший период будут подлежать обложению НДС с
соответствующим начислением штрафов и пеней.
5.
Налоговые органы имеют право корректировать цену в
зависимости от рыночной цены по общим правилам определения цены в
целях налогообложения.
6.
Авансовые платежи также включаются в налоговую базу.
73
7.
Налоговая база по услугам и товарам для внутреннего
использования рассчитывается на основе цен на идентичные товары и
услуги.
8.
При отсутствии необходимых данных для сравнения используется
рыночная цена.
9.
К ситуациям, когда НДС не применяется, могут быть отнесены
только операции, освобождаемые от налогообложения по статье 149 НК,
а так же в случаях, когда местом реализации не является Россия.
10. Применение пулевой ставки уже подразумевает применение НДС.
11.
При нулевой ставке НДС предполагается, что услуги
предоставляются ( или товары продаются) в России.
12. Реализация некоторых товаров не облагается НДС по социальным
или политическим причинам.
13. Услуги, не включенные в приведенный ниже список, оказываемые
на территории России, облагаются НДС, даже если покупатель не имеет
российского присутствия.
14. Освобождение распространяется только на те компании, которые
имеют лицензию на осуществление соответствующей деятельности, если
таковая лицензия требуется в соответствии с российским
законодательством.
15. НДС рассчитывается и выплачивается в виде разницы между
входящим НДС (собранным с клиентов) и входящим НДС ( уплаченным
поставщикам).
16. Входящий НДС вычитается ( или компенсируется, зачитывается,
возмещается) из выходящего НДС, и разница перечисляется государству.
17. Для вычета НДС или его возмещения применяются специальные
правила в зависимости от характера операций.
18. НДС не может быть вычтен до оплаты соответствующих товаров и
услуг.
19. В случае если сумма налогового вычета за любой налоговый
период превышает общую сумму НДС, исчисленную за тот же отчетный
период, разница зачитывается в счет исполнения обязанностей по уплате
других налогов, пеней и штрафов, подлежащих перечислению в тот же
бюджет, или возвращается.
20. Возмещение входящего НДС по экспортным операциям должно
быть осуществлено в течение трех месяцев от даты предоставления
налоговой декларации.
21. На практике трудно осуществить возврат НДС.
74
Unit 16. THE EXCISE
Exercise 1
Practice reading the following aloud
a) excise, luxury, gasoline, automobiles, within, fuel, theoretical,
altering, elasticity, destination, domestically, explicit,
b) alcoholic beverages, highway usage, inelastic demand
c) to discourage particular behavior, to be often justified on both
grounds, to suggest, commodity is sensitive to, to be waived, to exist.
THE EXCISE
The excise is an indirect tax or duty levied on items produced and sold
within a country, usually on “luxury” ones. Some of the goods on which
excise taxes are collected are as follows: tobacco, alcoholic beverages,
gasoline, automobiles, etc. There are also excise taxes on activities, such as
wagering , highway usage by trucks or air travel, etc. It is an ad valorem tax
on specific goods or, otherwise stated , a fixed rate tax on specific goods; in
this manner it differs from a general sales tax or value-added tax. The tax base
is the non regulated (fee) sales price of the goods including the excise duties.
Excise duties usually have one of two purposes, either to raise revenue
or to discourage particular behavior.
Taxes such as on fuels, alcohol and tobacco are often justified on both
grounds. But theoretical economics suggests that the optimal revenue raising
taxes should be levied on items with an inelastic demand, while behavior
altering taxes should be levied where demand is elastic. Elasticity of demand
means the degree to which the demand for a commodity is sensitive to, or
affected by, a change in price. If a small change results in a large change in
demand, demand is said to be elastic; if a large change in price leads to only a
small change in demand, demand is said to be inelastic.
Excise taxes can be imposed at the point of production or importation,
or at the point of sale. They are usually waived or refunded on goods being
exported, so as to encourage exports, though they are often re-imposed by the
importing country. Smugglers will seek to obtain items at a point which they
are not taxed and then sell them at price between the pre-tax and post-tax
price. They also look to find loopholes, which may exist through importing to
different countries, before then exporting to the destination country.
For similar items, excise duties are the same for imported and
domestically produced goods; if the tax is different, then there is an explicit or
implicit customs duty.
75
Vocabulary
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
luxury (n)
beverages (n)
wagering (n)
truck (n)
otherwise stated
in this manner
differ (v) from
fuel (n)
to be justified
on both grounds
suggest (v)
inelastic demand
sensitive (adj)
result (v) in
waive (v)
16.
17.
18.
19.
20.
21.
seek (sought) (v)
obtain (v)
destination country
domestically (adv)
explicit (adj)
implicit (adj)
роскошь
напитки
заключение пари
грузовик
если выразиться иначе
именно таким образом, именно этим
отличаться от
горючее
быть оправданным
по двум причинам
полагать
неэластичный спрос
чувствительный
приводить к
отказываться от, временно
откладывать
искать
получать
страна- получатель
внутри страны
явный, недвусмысленный
неявный, скрытый
Exercise 2. Answer the questions
1.
2.
3.
4.
5.
6.
7.
8.
9.
What is the excise tax?
What are kinds of goods on which excise taxes are levied?
Are excise taxes imposed on any activities?
What are the purposes of excise duties?
What is elasticity of demand?
What is inelastic demand?
At what point can the excise tax be imposed?
When can excise taxes be refunded? Why are they refunded at this stage?
How do smugglers manage to evade to pay excise tax?
Exercise 3. Guess the meaning of the word by its definition
1. expensive items that are bought from choice not necessity
2. a liquid for drinking, especially one that is not water or medicine
76
3. a place to which someone is going or to which someone is sent, esp. at the
end of a long journey.
4. To be dissimilar in nature, character, type, etc.
5. Within a particular country
6. The government tax on certain goods produced and used inside a country
or they are imported
7. Clearly and fully expressed
8. Material that is used for producing heat or power by burning
9. a reason; the facts or conditions that provide a base for an action
10. implied and understood though not directly expressed
11. to become the owner of something by means of effort; to get
12. to have as a result; to cause
13. to make a search; try to find
14. strongly or easily influenced or changed by something
15. to cause a new idea to form in the mind
16. the action of risking an amount of money on an uncertain result
17. to state officially that a right or rule is no longer in effect
Exercise 4. Render the text
Board of Customs and Excise (Таможенное и Акцизное Управление)
This government department is responsible for collecting and
administering customs and excise duties and VAT. The Commissioners of
Customs were first appointed in 1671 by Charles II. The Excise department,
formerly part of the Inland Revenue department, was merged with the
Customs in 1909. The Customs and Excise have an investigation division
responsible for preventing and detecting evasions of revenue laws and for
enforcing restrictions on the importation of certain goods (e.g. arms, drugs,
etc.). Their statistical office compiles overseas trade statistics from customs
import and export documents.
Exercise 5
Translate from English info Russian
1. The implicit cost is the cost that is extra to main costs and is usually
unrecorded or hidden, such as the cost of the services performed by the
owner of a business in managing it.
2. Luxury tax is a special indirect tax on luxuries, i.e. on articles or services
that are expensive and not really necessary for normal living, such as a tax
on jewellery and non-essential goods.
3. An excise is a type of ad valorem tax that is imposed at the time of
purchase of sale transaction or in connection with importation across a
political border (tariffs).
77
4. The tax base may be the purchase price or the declared value.
5. A fuel excise is often used to pay for public transportation and for the
protection of the environment.
6. A high alcohol excise is used to discourage alcohol consumption, relative
to other goods.
7. You can’t mix oil and water, which are both liquids.
8. In the USA the excise is levied by the city or town where the vehicle is
principally garaged and the revenues become part of the local community
treasury.
9. An excise at the rate of $25 per one thousand dollars of valuation
(effective 1/1/81) is levied on each motor vehicle.
10. Information on the value of the motor vehicle is accessed electronically
through a data bank complete with valuation figures.
11. Different sources provide the valuation figures depending on whether the
motor vehicle is an automobile, a truck, a motorcycle, or a trailer.
12. Present market value, price paid, or condition are not considered for
excise tax purposes.
13. The excise tax law establishes its own formula for valuation for state tax
purposes whereby only the manufacture’s list price and the age of the
motor vehicle are considered.
14. Every motor vehicle owner must pay an excise tax based on valuation at
least ten percent of the manufacture’s list price; thus, owners of vehicles
older than 5 years should have a fixed excise tax bill for succeeding years
of ownership.
15. If a motor vehicle is registered after the beginning of any calendar year,
no excise will be imposed for those months, if any.
16. The annual excise due on cars registered after January 1 will be reduced,
therefore, by one twelfth of the full year’s excise for every month prior to
the one in which the vehicle was registered.
17. Generally, tax collectors do not accept partial payment of an excise bill.
18. Taxpayers should be prepared to pay the whole amount due.
19. In the USA payment of the motor vehicle excise is due 30 days from the
date the excise bill is issued ( not mailed, as popularly believed).
20. A person who does not receive a bill is still liable for the excise.
21. If an excise tax is not paid within 30 days from the issue date, the local
tax collector will send a demand, with a fee for $5.
22. All interests and penalties should be clearly stated on the bill.
23. Vehicle owners should be aware of the fact that the excise tax law gives
tax collectors 6 years from the date the bill was issued to collect an excise
tax bill.
24. If the owner of motor vehicle thinks that s/he is entitled to an adjustment
of his/her excise bill, it is strongly recommended that s/he pay the bill in
full.
78
25. If the owner moved before the first of the year, s/he must pay the tax to
the new community to which the owner moved.
26. It is important to remember that the bill for a vehicle you no longer own
should not be ignored.
27. It is best to put all questions in writing and to request a written response
so that procedures are clearly defined should additional difficulties arise.
Exercise 6
Translate from Russian into English
1. Тремя главными источниками государственных доходов являются:
личный подоходный налог, отчисления на социальное страхование, а
так же акцизные сборы и налоги с продаж.
2. Налоги с продаж и акцизные сборы, которые по своему значению
стоят на втором месте, являются налогами, взимаемыми с продаж
определенных товаров.
3. В США на федеральном уровне имеются акцизы на алкогольные
напитки и табачные изделия, а так же на автомобили, телефонные
переговоры и авиационные билеты.
4. На уровне штатов и местных органов важным источником доходов
являются налоги на продажи вообще ( при этом некоторые товары
часто от них освобождаются).
5. “Налоги – это наша плата на цивилизованность общества” (Оливер
Уэнделл Холмс)
6. Уровень налогов определяется
государственных расходов.
главным
образом
размером
7. Облагая высоким налогом заработную плату правительство может
вынудить людей меньше работать, а вводя налог на бензин, заставить меньше ездить на автомобилях.
8. Органы власти США – Федеральное правительство, правительства
штатов и местные органы собирают в виде налогов сумму, равную
почти 1/3 ВНП. Этот показатель ниже, чем в большинстве
промышленно развитых странах.
79
Unit 17. TAXATION IN CANADA
Exercise 1
Practise reading the following words and collocation:
a) independent; defence; provinces; responsibilities; crisis; provincial
government; enough; however; percentage; average; significantly; throughout;
wealthy; inelastic; recipient;
b) centralized federal government; unlimited revenue gathering abilities;
direct taxes; health care and education; the largest source of provincial funding;
license permits; federal government; nineteenth century; skyrocketing welfare
costs; health of economy; dramatic change; the greatest bulk of government
funding; tariffs, fees and investments; source of revenue; both residential and
commercial properties; cigarettes, gasoline and alcohol; Employment Insurance
system; relatively; withholding tax;
c) to attempt; to be entrusted with; to be meant; to result in; to be
responsible for; to dependent on; to be funded; to account for; to be levied on.
TAXATION IN CANADA
When Canada became independent in 1867 the British North America Act
attempted to create a centralized federal government with unlimited revenue
gathering abilities. The federal government was entrusted with the high cost
programs, most notably defence and the building of railways. The provinces
were given limited taxation power; they could only impose direct taxes such as
sales and income tax. They were given responsibilities that were meant to be
cheaper such as health care and education.
For the early part of Canadian history most federal government revenue
came from tariffs on trade with excise taxes making up the rest of the
government’s funding. The largest source of provincial funding was license
permits and transfers of funds from the federal government. The first corporate
taxes were introduced at the end of the nineteenth century.
This resulted in a crisis during the Great Depression. The provincial
governments were responsible for the skyrocketing welfare costs, but they could
not raise enough taxes, especially since the taxes permitted the provinces were
so dependent on the health of economy. The federal government still had plenty
of money, however. This resulted in the system of transfer payments between
two levels of government that continues to this day.
The First World War had mostly been financed by traditional means, but
the Second World War led to a dramatic change in the tax system. The
percentage of Canadian government revenue from indirect taxes fell from 90%
80
in 1913 to less than 40% by 1946. Instead Canadians began to pay income taxes
and direct taxes have since provided the greatest bulk of government funding.
Nowadays Canada’s taxation rate is about average among OECD
countries, but it is significantly higher than the rate in the United States, the
country with which Canada usually compares itself. In total, about 36.8% of
Canada’s GDP goes to taxes. And today about over 70% of government income
comes from taxation, the rest from tariffs, fees and investments.
Income taxes (over 40% of tax revenue) are the most significant sources
of revenue for the federal and provincial governments. Income taxes throughout
Canada are progressive, with the wealthy paying a higher percentage than the
poor. But Canadian income taxes are still less progressive than those of many
nations.
The federal government also imposes a 7% sales tax on most purchases
known as the GST. Every province except for Alberta has a provincial sales tax
of some sort.
The municipal level of government is funded largely by property taxes on
both residential and commercial properties. These account for about 10% of
total taxation in Canada.
Both the federal and provincial governments impose hefty excise taxes on
inelastic goods such as cigarettes, gasoline and alcohol. A great bulk of the costs
of these items in Canada is taxes.
A levy for the Employment Insurance system and the Canada Pension
Plan is paid by every worker and these along with smaller services like workers’
compensation account for 12% of government taxes.
Also companies and corporations in Canada pay tax on profit income and
on capital gains. These make up a relatively small portion of total tax revenue. A
withholding tax is levied on dividends paid – this is a tax credit to the account of
the dividend recipient.
Vocabulary
1.
2.
3.
4.
5.
6.
7.
8.
to attempt
to entrust (with)
tariff (n)
funding (n)
license (permits)
transfer of funds
to result (in)
Great Depression
делать попытку, стараться
вверять; возлагать, поручать
тариф; налог, пошлина
субсидирование, финансирование
разрешение; лицензия
перевод (денежных) средств
кончаться, иметь результатом
Великая
депрессия
(крупнейший
экономический
кризис,
охвативший
США,
начиная
с
1929
и
сопровождавшийся резким падением
промышленного производства и цен на
с/х
продукцию
широкой
волной
81
финансовых банкротств и колоссальным
ростом безработицы)
вызвать
резкое
повышение,
стремительный рост; подниматься резко,
подскакивать (о ценах)
социальное обеспечение
трансфертные
платежи
(выплаты
населению по программам социального
страхования и платежи процентов
владельцам гос. обязательств)
способ, средство
обеспечивать
основная масса, большая часть чего-л.
организация экономического
сотрудничества и развития
9.
to sky-rocket
10.
11.
welfare (n)
transfer payments
12.
13.
14.
15.
means (n.,pl.)
to provide
bulk (n)
OECD
(Organization for Economic
Cooperation and
development)
GDP(gross domestic product) ВВП, валовой внутренний продукт
tax revenue
гос. доходы от сбора налогов
commercial property
коммерческая
недвижимость,
собственность
(объекты
нежилой
недвижимости, которые могут приносить
доход и предназначены для деловых
целей (офисные здания, рестораны,
гостиницы, магазины, склады и т.п.)
to account for
отвечать; нести ответственность за что-л.
hefty (adj.)
большой, объемистый
levy (n)
сбор, взимание (пошлин, налогов)
Canada Pension Plan
Канадская
пенсионная
программа
(негосударственная
пенсионная
программа, финансируемая за счет
взносов работников, работодателей и
самозанятых; дополняет государственную
Пенсионную программу)
workers’ compensation
пособие по нетрудоспособности
16.
17.
18.
19.
20.
21.
22.
23.
Exercise 2
Find the most suitable Russian equivalents to the following English
collocations:
To be entrusted with the high cost programs, most notably defence and
the building of railways; responsibilities that were meant to be cheaper such as
health care and education; the taxes permitted the provinces were so
dependent on the health of economy; taxes are progressive, with the wealthy
82
paying a higher percentage than the poor; to be funded largely by property
taxes on both residential and commercial properties.
Exercise 3
Find English equivalents to the following Russian collocations
Провинциям были даны ограниченные права по сбору налогов;
большую часть государственных доходов от сбора налогов составлял
сбор налога на торговлю и акцизные сборы; местные правительства были
ответственны за резкое повышение расходов на социальное обеспечение;
это привело к созданию системы трансфертных платежей между
федеральными и местными органами самоуправления; в итоге 36.8%
внутреннего валового продукта Канады уходит на уплату налогов;
самым значительным источником доходов федерального и местного
правительства является подоходный налог.
Exercise 4
Answer the following questions:
1.What kind of taxes could the provinces impose under the British
North America Act (1867)?
2. What did most federal government revenue come from for the early
part of Canadian history?
3. What was the main source of provincial funding?
4. Were there corporate taxes in Canada in the 19th century?
5. What resulted in a crisis during the Great Depression?
6. Why did the Second World War lead to a dramatic change in the tax
system?
7. Is taxation rate in Canada higher (or lower) than in the USA?
8. What does government income come from?
9. What are the most significant sources of government revenue?
10. What do progressive taxes mean?
11. Does the federal government impose a sales tax?
12. What is the municipal level of government funded by?
13. What do you know about the excise tax?
14. What must every worker pay for?
15. Do companies and corporations pay taxes?
Exercise 5
Correct the information. True or false.
1. The British North America Act attempted to create a centralized
federal government with limited revenue gathering abilities.
2. For the early part of Canadian history federal government revenue
came from sales.
83
3. The provincial governments could raise taxes because they were
independent on the health of economy.
4. The federal government did have enough money and this resulted in
the system of transfer payments between the two levels of governments that
continues to this day.
5.Nowadays about 30% of government income comes from tariffs, fees
and investments.
6. Income taxes are not the main sources of revenue, accounting for
30% of tax revenue.
7. Canadian income taxes are more progressive than in other countries.
8. The federal government does not levy a tax on purchases.
9. Both the federal and provincial governments do not impose excise
taxes on inelastic goods.
10. Canadian workers should not pay a levy for the Employment
Insurance.
11. There is no corporate tax in Canada.
Exercise 6
Guess the meaning of the words by their definitions
1. To make an effort (to do or achieve something)
2. To explain or count up what has been spent
3. To rise very quickly
4. To end in (a specified way)
5. To give (someone) a duty or responsibility
Unit 18. TAXATION IN THE UNITED KINGDOM
Exercise 1
Practise reading the following words and collocation:
a) government; citizenship; additionally; therefore; range; source; payable;
others; amongst; respectively; probate;
b) business rates and council tax; national insurance; excise duties; resident
and domiciled; tax haven; central management and control; employees,
employers and self-employed; supplies of goods and services; marginal rate;
fuel, alcohol, tobacco, betting and vehicles; shares and securities; modernized
version; real estate; deceased person;
c) to be subject to smth.; to be liable to smth.; to be exempt from smth.; to be
charged on smth.
84
TAXATION IN THE UNITED KINGDOM
Taxation in the United Kingdom may involve payments at least two
different levels of government: local government and central government.
Local government is financed by grants from central government funds,
business rates and council tax. Central government revenues are mainly
income tax, national insurance contributions, value added tax, excise duties,
corporation tax, capital gains tax, inheritance tax and stamp duty.
All UK derived income and gains are subject to UK taxation no matter
the citizenship neither the place of residence of the individual nor the place of
registration of the company.
Individuals who are both resident and domiciled in the UK are
additionally liable to taxation on their worldwide income and gains. For
certain individuals, therefore, the UK is a tax haven: being resident but not
domiciled in the UK means that only income remitted to the UK is taxed,
together with all capital gains.
A company is resident in the UK if it is UK-incorporated or if its central
management and control of a company are in the UK. A company is domiciled
in the UK if it is incorporated in the UK. A company’s domicile has no effect
on its tax position – it pays tax on its worldwide income and gains.
Income tax forms the bulk of revenues collected by the government.
Depending on an individual’s income, the rate of income tax ranges from 10%
(starting rate) to 20% (basic rate for interest), to 22% (basic rate), to 32.5%
(higher rate for UK dividends), to 40% (higher rate).
The second largest source of government revenues is national insurance
contributions, payable by employees, employers and self-employed.
The third largest source of government revenues is value added tax,
charged at the standard rate of 17.5% on supplies of goods and services.
Certain goods and services are exempt from VAT, and others are subject to
VAT at lower rate of 5% (the lower rate) or 0% (‘zero-rated’).
The fourth largest source of government revenues is corporation tax,
charged on the profits and capital gains of companies. The highest rate is 30%,
but lower rates apply to companies with levels of profits below 1.5 million
pounds.
Capital gains are subject to tax at the marginal rate of income tax (for
individuals) or of corporation tax (for companies).
Excise duties are charged on, amongst other things, fuel, alcohol,
tobacco, betting and vehicles.
Stamp duty is charged on the transfer of certain partnership interests at
rates of up to 4%, and shares and certain securities at a rate of 0.5%.
Modernized versions of stamp duty, stamp duty land tax and stamp duty
85
reserve tax, are charged respectively on the transfer of real estate and shares
and securities, at rates of up to 4% and 0.5%.
Inheritance tax is levied on certain gifts and the estates of deceased
persons at a rate of 40%. Any inheritance tax must be paid by the
administrators of estate before probate is granted.
Vocabulary
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
Налог на предпринимателя
муниципальный налог (взимается с
домовладельцев или арендаторов дома,
квартиры и т.п.)
capital gains tax
Налог на реализованный прирост
капитала
to derive
получать, извлекать (from)
gains
доходы
citizenship
гражданство
dual citizenship
двойное гражданство
to acquire citizenship/ получать гражданство
to receive citizenship
to grant citizenship
предоставить гражданство
to
revoke
smb’s лишать кого-либо гражданства
citizenship
place of residence
местожительство
resident (n)
житель; постоянно проживающее лицо
to domicile
поселиться на постоянное жительство;
сделать основным местопребыванием
tax haven
Налоговая гавань
to remit to smth./smb
иметь отношение, относиться; касаться
чего-л., кого-л.
to incorporate
регистрировать, оформить (общество и
т.п.)
domicile (n)
юридический
адрес;
постоянное
местожительство
bulk (n)
величина, объем
self-employed
предприниматель без образования
юридического лица
supply of goods
предложение товара
to apply to smth.
применять, использовать
marginal rate of tax
предельная налоговая ставка
transfer (n)
перевод, перечисление (денежных
сумм)
interest in partnership
доля в капиталах товарищества
securities (n.,pl.)
ценные бумаги
Business rates (n)
council tax
86
21.
22.
23.
24.
respectively (adv.)
real estate
deceased person
probate (n)
25.
probate (n)
26.
to grant
соответственно
недвижимое имущество
умершее лицо
официальное утверждение завещания
судом
официальное утверждение завещания
судом
предоставлять
Exercise 2
Find the most suitable Russian equivalents to the following English
collocations:
Local government is financed by grants from central government
funds; to be subject to UK taxation; no matter the citizenship neither the place
of residence of the individual nor the place of registration of the company; to
be additionally liable to taxation on their worldwide income and gains; only
income remitted to the UK is taxed; the bulk of revenues collected by the
government; employees, employers and self-employed; to be at the standard
rate of 17.5%; profits and capital gains of companies; to be subject to tax at
the marginal rate of income tax; the transfer of certain partnership interests at
rates of up to 4%; modernized versions of stamp duty; to be charged at rates
respectively of up to 4%; any inheritance tax must be paid by the
administrators of estate.
Exercise 3
Find English equivalents to the following Russian collocations
Местное самоуправление финансируется из фондов центрального
правительства; доходы центрального правительства в основном
составляют сборы от уплаты подоходного налога, взносы в фонд
социального страхования, от уплаты налога на добавленную стоимость,
акцизных сборов, налога с доходов компаний и т.д.; вся прибыль о
доходы, полученные на территории Соединенного Королевства,
подлежат налогообложению; резидентом считается та компания, которая
зарегистрировалась на территории Соединенного Королевства; в
зависимости от того, какой доход имеет человек, ставка подоходного
налога может изменяться от 10% до 20%; определенные товары и услуги
освобождены от уплаты налога на добавленную стоимость; налог на
имущество взимается с определенной собственности и имущества
умершего лица в размере 40%.
87
Exercise 4
Answer the following questions:
1. What is local government financed by?
2. What central government revenue do you know?
3. What income and gains are subject to UK taxation?
4. Who is liable to taxation?
5. Which company is considered to be a resident?
6. Which company is considered to be a domicile?
7. What are four sources of government revenue?
8. How is charged each of them charged?
9. What other sources of government revenue do you know?
Exercise 5
Guess the meaning of the words by their definitions
a) tax payable on the total amount of money received from work done and
from investments;
b) money taken by a government from profits made by companies and
corporations;
c) a tax charged at 15% of the price of goods and services. It can be
charged at each stage of the production process, but can be reclaimed by
traders and producers. It is finally paid by the consumer;
d) a tax on certain goods and services sold within a country, such as
alcohol and tobacco;
e) a tax imposed, usually with some exemptions, on any profit made when
an asset is sold.
Unit 19. TAXATION IN GERMANY
Exercise 1
Practise reading the following words and collocation:
a) criticized; themselves; complexity; advisor; approximately; within; spouse;
range; relevant; religion; minus; considerably; especially; spouse;
b) constant modifications; corporate pressure groups; frequently;
industrialized countries; maximum marginal rate; compulsory fee; social
security; into the bargain; continual contentious political issue; tax purposes;
short term contractor; German-sourced income; children’s allowances;
Married, or widowed employees; salaried employee; social insurance;
solidarity tax; health insurance, pension insurance, unemployment insurance
and health/nursing care insurance; retirement age; private health insurance
policy; permanent disability;
88
c) to assume; to be modified; to vary; to be generally considered; to be liable
to pay tax; to alter; to entitle; to withhold tax; to calculate; to be liable for
smth.; to be partly subject to a tax; to oblige.
TAXATION IN GERMANY
Taxation is one of the most criticized matters in Germany. Germans
themselves assume that it should be one of the most complex systems in the
world. The complexity of the German tax system is a result of constant
modifications prompted by corporate pressure groups.
Since tax regulations are frequently modified and hard to understand,
people rely on tax advisors, as they do in all industrial countries.
Individual tax rates in Germany vary with the income, that is the tax
rates are progressive as they are in all industrialized countries of the West. On
salaries and wages, income taxes are paid as you earn. Income taxes had been
by 2005 and the maximum marginal rate was 42% in 2005.
By law, employees pay ‘as they earn’ a compulsory fee for their
individual social security of approximately 20-21% of what they earn. The
same amount is paid by the employer into the bargain. This is a continual
contentious political issue in Germany.
In Germany, for tax purposes you can either be a resident or a nonresident. If you have been present in Germany for over 183 days in the last
year, you are generally considered to be a resident for tax purposes. If you are
a non-resident for tax purposes (e.g. short term contractor), you will generally
still be liable to pay tax on German-sourced income. The rate may vary; tax
relief opportunities and double taxation agreements may alter it.
There are 6 tax classes that you may fall into:
1. Those single or separated, but not falling into categories 2 or 3.
2. Single and separated, with a child, entitling them to children’s
allowances.
3. Married, or widowed employees who are within the first year of a
spouse’s death.
4. Married employees both receiving income.
5. Married persons who would normally fall into category 4, but whose
spouse is in tax class 3.
6. Employees who receive income from other employment on one or more
different tax cards.
On top of this, you may either be a salaried employee (as most people
are) or a free-lance (a free professional, e.g. doctors, architects). For salaried
employees, the employer withholds tax and social insurance.
89
Wages are taxed in different progressive ranges. Solidarity tax is levied
for the purpose of supporting the economy of the former GDP and is
calculated at 5.5% of your wage tax.
Church tax is only relevant if you listed a religion on your tax form. It
will be either 8 or 9% of your wage tax. But it is difficult to stop paying
church tax once you have begun.
Regular employees are liable for the following individual social
insurances: health insurance, pension insurance, unemployment insurance and
health/nursing care insurance.
Health insurance is 6-7% of taxable income (before tax, minus
deduction). Pension insurance is 9.65%, unemployment insurance is 3.25%
and health care insurance is 0.85% of taxable income. In total, this is around
21% of your income. These payments are partly subject to a tax relief or tax
deductions. Employers have to pay the same amounts that go into the social
security of the individual employee.
German pensions are currently not taxable at retirement age. If the
earnings of an employee are above a certain limit (about 46,800 euros in
2005), he or she can opt for a private health insurance policy, which can be
considerably cheaper, especially when the employee is young and unmarried.
The national health system is a family insurance, covering spouse and
children, while private health insurance policies cover individual risks only.
A free-lance professional is not obliged to take out social insurance
policies.
It might be wise to take up some other insurance such as permanent
disability, life insurance, or pension insurance.
Depending on your type of work, you may not be classed exactly as a
free-lance, and you will be subject to a trade tax, which is a tax calculated
with a region-dependant multiplier on your existing tax bill. This varies from
10% to 16% of your existing tax bill, depending on where you are.
Vocabulary
1.
2.
3.
to assume
to prompt
pressure group
4.
5.
6.
7.
8.
to rely on
marginal rate
social security
into the bargain
non-resident (n)
9.
short term
допускать, предполагать
подсказывать; внушать
влиятельная группа, оказывающая
давление на политику
Надеяться на
предельная ставка
социальное страхование
кроме того; сверх того; вдобавок
человек, не проживающий постоянно
в одном месте
краткосрочный период
90
10.
tax relief
11.
17.
18.
double taxation
agreement
to alter
single (adj.)
separated (adj.)
to entitle (to)
children’s allowance
(family allowance)
spouse (n)
salaried employee
19.
20.
21.
22.
wage tax (salary tax)
church tax
to list
solidarity tax
23.
24.
social insurance
tax deduction
25.
26.
27.
28.
29.
to opt (for, between)
free-lance (adj.)
to oblige
permanent disability
tax on trade
12.
13.
14.
15.
16.
налоговая ставка (разрешенный законом
вычет из налогооблагаемой базы)
соглашение об исключении двойного
налогообложения
изменять; вносить изменения
холостой; незамужняя
разведенный
давать право на что-л.
пособие на детей
муж, супруг; жена, супруга
служащий (работник, сотрудник) на
окладе
налог на заработную плату
церковный налог
вносить в список; регистрировать
налог солидарности (введен в Германии
для финансирования расходов по
воссоединению с Восточной Германией)
социальное страхование
налоговый вычет (сумма, которую
налогоплательщик может вычитать из
валового дохода при расчете
налогооблагаемого дохода)
выбирать, предпочитать
внештатный; свободный
обязывать; заставлять, принуждать
постоянная нетрудоспособность
промысловый налог
Exercise 2
Find the most suitable Russian equivalents to the following English
collocations:
To be one of the most criticized matters; to be a result of constant
modifications prompted by corporate pressure groups; tax rates are
progressive as they are in all industrialized countries; to be a continual
contentious political issue in Germany; you are generally considered to be a
resident for tax purposes; German-sourced income; who are within the first
year of a spouse’s death; to be levied for the purpose of supporting the
economy of the former GDP; to list a religion on your tax form; health
insurance, pension insurance, unemployment insurance and health/nursing
91
care insurance; can be considerably cheaper; the national health system is a
family insurance, covering spouse and children; a free-lance professional; may
not be classed exactly as.
Exercise 3
Find English equivalents to the following Russian collocations
Сложность системы налогообложения в Германии возникает в
результате регулярных изменений, предлагаемых со стороны
влиятельных корпоративных групп; подоходный налог взимается с
заработанной вами суммы; служащие платят обязательный взнос в фонд
социального страхования; сумма денег, по поводу которой в Германии
идут непрерывные политические споры; штатные работники должны
делать отчисления на индивидуальный счет социального страхования; в
настоящее время немецкие пенсии не облагаются налогом; человек
свободной профессии не обязан получать полис социального
страхования.
Exercise 4
Answer the following questions:
1. Why is the German tax system considered to be one of the most complex
systems in the world?
2. What does the German individual taxation depend on?
3. What contentious political issue is there in Germany?
4. What categories of individuals do you know?
5. What are 6 tax classes?
6. How are regular employees liable?
7. What is the rate of health, pension, unemployment and health care
insurance?
8. Are German pensions taxable?
9. What do you know about private health insurance policy?
Does it cover spouse and children?
Exercise 5
Guess the meaning of the words by their definitions
1. State provision for the welfare of the elderly, unemployed, or sick,
through pensions and other financial aid.
2. A reduction in the amount of tax a person or company has to pay.
3. To make or become different; change
4. Amount of money paid by the Federal Government to the parents of
dependent children.
5. To include in a list.
92
6. A self-employed person doing specific pieces of work for various
employers.
7. To compel someone by legal, moral, or physical means.
Unit 20. TAXATION IN THE REPUBLIC OF IRELAND
Exercise 1
Practise reading the following words and collocation:
a) broadly; through; among; government; budget; Ireland; expenditure;
percentage; score; employee; themselves; employer; however; charge;
register; share capital; vary; create; annually; range; nature;
b) central government tax revenue; excise duties; sources of revenue;
other significant contributors; the third lowest rate; health services and social
welfare; total tax revenue; relatively straightforward; annual tax returns;
applicable tax; share sales and inheritance; additional income; banks and
savings-institutes; on behalf of the government; major source of revenue;
taxable goods; purchase of a property; financial products; cheques and credit
cards; automatic teller machine and laser cards; normal income and chargeable
gains; manufacturing firms, enterprises and businesses;
c) to be derived from; to be spent on; to be measured by; to reduce tax
evasion; to be charged on; to be exempt from; to be subject to;
TAXATION IN THE REPUBLIC OF IRELAND
The system of taxation in the Republic of Ireland is broadly similar to
that of taxation in the United Kingdom. On an individual basis most people
are taxed through the Pay As You Earn (PAYE) system, based on their ability
to pay – the system is quite progressive with little or no tax on low earners and
a high rate applied to top earners. For businesses, tax rates are among the
lowest in the world, with many firms enjoying corporation tax rates of
between 10% and 12.5%. A large amount of central government tax revenue
is derived from the value added tax (VAT), excise duties and other taxes.
VAT and income tax are the largest sources of revenue for the
government. Other significant contributors to the national budget in 2004 were
corporation tax and excise duties. This is somewhat surprising as Ireland has
the third lowest rate of corporation tax in the world with a top rate of just
12.5%.
Of the government revenue, 26% of expenditure is spent annually on
the health services, 31% on social welfare and 17% on education.
The tax burden in Ireland, as measured by Forbes Misery Index, is
lower than most of the world.
Another popular measure of the tax burden in a country is by working
out total tax revenue as a percentage of GDP. By this measure Ireland again
93
performs well, with a score of 31.2% in 2003. This compares to 51.4% in
Sweden, 49.4% in Denmark, 42% in the United Kingdom. Currently Ireland
scores 4th best in Europe.
The tax system in Ireland for employees is relatively straightforward;
they themselves do not have to file annual tax returns as their employer
deducts applicable tax at source. However the system for collection of tax on
additional income such as dividends, share sales and inheritance is somewhat
more complicated for individuals.
Deposit Interest Retention Tax better known as DIRT is a tax charged
on the interest earned on bank accounts. It was introduced in Ireland in the
1980s to reduce tax evasion on unearned income. DIRT tax is deducted at
source by the banks and savings-institutes, on behalf of the government, at a
rate of 20% on all interest earned.
Value Added Tax (VAT) is a major source of revenue for the Irish
government. VAT registered traders collect it. All traders who sell over
51,000 euros of taxable goods or over 25,500 euros of taxable services must
register for VAT. The VAT period is currently two calendar months. A VAT
return is made on the 19th day of the following month.
In Ireland stamp duty is charged on the purchase of a property (in
addition to VAT), on some financial documents, on the formation of a
company or increase in its share capital and on financial products such as
cheques and credit cards. The rates of stamp duty vary from 0% to 9%. First
time buyers (someone who has not purchased a house before) pay a reduced
rate depending on the value of property; indeed they are exempt from paying
any stamp duty on houses costing less than 317,500 euros.
In the early 2000’s, in order to raise more money without raising
income tax rates, the government created several new taxes. Some of these
taxes came in the form of new stamp duties on financial products. Today in
Ireland, credit cards are subject to a 40 euros annual duty, and automatic teller
machine and laser cards are subject to 10 euros each annually.
Corporation tax is charged on the profits of companies, which includes
both normal income and chargeable gains. Certain expenses such as interest
repayments can be offset against profits. The current rate of corporation tax in
Ireland ranges from 10% to 25%, depending on the nature of the business.
The 10% rate, introduced in 1981, applies to a limited number of
manufacturing firms, enterprises and businesses located in the Shannon Free
Zone; all typically large multi-nationals. The next rate, 12.5%, applies to all
trading income and is the normal rate for most businesses. The highest rate,
25%, applies to non-trading income such as interest gains, discounts received
and rental income.
94
Vocabulary
1.
2.
3.
4.
5.
6.
7.
8.
PAYE
to derive (from)
social welfare
tax burden
to work out
tax revenue
total (adj.)
GDP (gross domestic
product)
9. relatively (adv.)
10. to file
11. tax return
12.
13.
14.
15.
to deduct
applicable (adj.)
unearned income
tax at source
16. inheritance (n)
17. trader (n)
18. purchase (n)
19. share capital
20. stamp duty
21. automatic teller
machine
22. chargeable (adj.)
23. gains (n., pl.)
24. expenses (n., pl.)
25. to offset
26. free zone
Сбор налога у источника
получать, извлекать
социальное обеспечение
налоговое бремя
составлять, выражаться (в такой-то цифре)
государственные доходы от сбора налогов
общий, совокупный, суммарный
ВВП, валовой внутренний продукт
(совокупная стоимость товаров и услуг,
созданных внутри страны за определенный
период (обычно за год))
относительно, сравнительно; соответственно
подавать какой-л. документ; регистрировать
налоговая декларация (подаваемая
налогоплательщиком для исчисления
причитающегося с него налога)
удерживать; вычитать, отнимать
применимый, подходящий
непроизводственный доход, рентный доход
налог у источника (налог, взимаемый путем
вычета суммы налога из общей суммы
подлежащего выплате дохода)
наследство
торговец
покупка, приобретение
акционерный капитал (продается или
покупается в виде акций)
гербовый сбор
банкомат
подлежащий оплате
доходы
расход, издержки, трата, затрата
возмещать, компенсировать
свободная зона, район беспошлинного ввоза
95
Exercise 2
Find the most suitable Russian equivalents to the following English
collocations:
To be broadly similar to; most people are taxed through the Pay As You
Earn (PAYE) system; a high rate applied to top earners; other significant
contributors to the national budget; this is somewhat surprising; by working
out total tax revenue as a percentage of GDP; to be relatively straightforward;
to file annual tax returns as their employer deducts applicable tax at source;
a tax charged on interest earned on bank accounts; to be deducted at
source by the banks and savings-institutes; pay a reduced rate depending on
the value of property; some of these taxes came in the form of new stamp
duties; which includes both normal income and chargeable gains; can be offset
against profits.
Exercise 3
Find English equivalents to the following Russian collocations
Большинство людей платят налоги по системе PAYE; люди с
небольшим заработком платят меньше налогов; центральное
правительство получает большую сумму дохода от уплаты налога на
добавленную стоимость; ежегодно 26% государственных доходов
тратиться на здравоохранение, 31% на социальное обеспечение и 17% на
образование; для того, чтобы сократить уклонение от уплаты налогов;
ставка уплаты гербового сбора варьируется в пределах от 0% до 9%; в
зависимости от специфики деятельности компании ставка уплаты налога
с доходов компании колеблется в пределах от 10% до 25%.
Exercise 4
Answer the following questions:
1. What is the system of taxation in the Republic of Ireland similar to?
2. What are the largest sources of revenue for the government?
3. Which other significant contributors do you know?
4. What can you say about the tax burden in Ireland (according to Forbes
Misery Index)?
5. What does a straightforward system of taxation mean for employees?
6. When and why was DIRT introduced?
7. What does the VAT stand for?
8. What is stamp duty charged on? What is its rate?
9. What happened in the early 2000’s?
10.What can you say about the corporation tax in Ireland?
Exercise 5
Say whether these statements are true or false. Use the following:
96
-
In my opinion (I think) it is true
I agree with this statement
It is quite right
I don’t think it is true
I’m afraid it is false
1. The system of taxation is based on people’s income.
2. Tax rates in the Republic of Ireland are among the lowest in the world.
3. VAT and income tax are the only sources of revenue for the
government.
4. Employees themselves have to file the annual tax returns.
5. DIRT was introduced to enlarge tax evasion on unearned income.
Exercise 6
Guess the meaning of the words by their definitions
1. Social services provided by a state for the benefit of its citizens.
2. A declaration of personal income used as a basis for assessing an
individual’s liability for taxation.
3. In UK a tax paid on the transfer of land or of stocks and shares to a new
owner.
4. Money received from interests or dividends on capital or investments
rather than from a salary or business profits.
5. Sums of money spent by a company on goods and services that do not
become part of a company’s assets, e.g. rent, wages, insurance, etc.
6. To balance something or to compensate for something.
7. To place (a legal document) on public or official record.
8. The total value of all goods and services produced domestically by a
nation during a year.
9. The amount of money put into a company by its shareholders when they
buy shares and used to buy the items it needs to carry on its activities.
10.A method of collecting direct taxes in which the employer deducts the
amount owed from an employee’s weekly or monthly wages and pays it
directly to the government.
Unit 21. TAXAION IN THE USA
Exercise 1
Practise reading the following words and collocations.
a) Government; through; traditionally; source; two-fifths; forerunner;
seizures; prosecution; unconstitutional; passage; amendment; authorize;
97
without; apportionment; except; significant; deduction; exemption;
retirement, desire; although; inequity; fairly.
b) Property taxes; excise taxes; social insurance; resident aliens; the Office
of the Commissioner of Internal Revenue; the Supreme Court; in
conformity with; a major source of federal revenue; annual internal
revenue collections; withholding taxes; individuals and businesses; a
major feature; itemized tax deductions; store charge cards; installment
loans; tax liability; proliferation of tax exemptions.
c) To levy on the worldwide income; to base on the principle of
progressive taxation; to assess, levy and collect taxes; to enforce tax
laws; to eliminate taxes; to improve the fairness; to restore confidence;
to reassert the objective.
TAXAION IN THE USA
In the United States federal, state, and local governments cover their
expenses mainly through taxation, with each level of government depending
chiefly on one or two types. In general, local governments have received most
of their tax revenues from property taxes, while state governments
traditionally have depended on sales and excise taxes. Since World War ІІ,
however state income taxes have grown more important.
The federal government’s chief source of revenue has been the income
tax, which in recent years has brought in about two-fifths of total federal
revenues. Other federal taxes include the corporate profit tax and social
insurance ( Social Security ) tax.
The federal income tax is levied on the worldwide income of U.S.
citizens and resident aliens and on certain types of U.S. income of nonresidents. The first U.S. income tax law was enacted in 1862 in order to
support the Civil War. A forerunner of the modern income tax was based on
the principle of graduated, or progressive taxation. The 1862 tax law also
established the Office of the Commissioner of the Internal Revenue Service,
which was given the power to assess, levy and collect taxes, and the right to
enforce tax laws through property and income seizures and through
prosecution.
The income tax was declared unconstitutional by the Supreme Court in
1895 because it was not apportioned among the states in conformity with the
Constitution. It was not until 1913, with the passage of the 16 th Amendment to
the Constitution, that Congress was authorized to levy an income tax without
apportionment. The 16th Amendment resulted in a revenue law that taxed both
individual and corporate incomes but, except during World War І , the income
tax system was not a major source of federal revenue until the 1930s.
In fiscal year 1918 annual Internal Revenue collections passed the
billion dollar mark for the first time. During World War ІІ the modern system
for managing federal income taxes was introduced, income tax rates were
98
raised to very high levels, and these taxes became the principal sources of
federal revenue. The withholding tax on wages was introduced in 1943, and
this was significant in increasing the number of taxpayer to 60 million and tax
collections to $ 43 thousand million by 1945.
In October 1986, the President signed into law the Tax Reform Act of
1986 – perhaps the most massive reform of the U.S. tax system since the
beginning of the income tax. With this act, Congress promised individuals and
businesses lower tax rates on their income, provided they gave up or reduced
many popular income tax deductions.
The Tax Reform Act replaced 15 previous law tax brackets, which had
a top tax rate of 50 %, with a system that had only two tax brackets – 15 %
and 28 %. Increases in the personal exemption, or the amount of income
exempted from taxes for each person dependent on the income tax filer, and
the standard tax deduction, which is used by filers who do not itemize
deductions, was designed to eliminate taxes for millions of low-income
Americans. In fact, most filers with taxable incomes of less than $ 20,000 pay
a lot less in taxes.
A major feature of the tax reform is that many itemized tax deductions
that were permitted under the previous law were reduced or eliminated,
including sales tax deductions and deductions for interest paid on credit cards,
store charge cards, installment loans or auto loans. Deduction of up to $ 2,000
put in an Individual Retirement Account is still permitted, but under the new
law it is limited to filers not covered by a retirement plan at work, or filers
whose annual income is below $ 25,000 for individuals or $ 40,000 for
married couples. In addition, a minimum tax of 21% will be imposed on any
individuals or businesses who would seek to make extensive use of deductions
to reduce their tax liability.
Many supporters of the 1986 Tax Reform Act say that reform was
driven by a desire to improve the fairness of the federal income tax system.
Although the federal income tax had been implemented by Congress
according to the principle of progressivity, the proliferation of tax exemptions,
exceptions and loopholes had made progressivity an illusion – one allowing
many rich people and businesses to pay lower taxes than less affluent ones.
The new law sharply reduces progressivity but aims at restoring confidence in
the system by eliminating inequities. The new law reasserts the objective of
collecting tax revenue fair, considering the idea of using taxes to accomplish
some other social or economic good.
Vocabulary
1.
2.
government ( n )
revenue (n )
to receive revenue
правительство
доход, денежное поступление
получать доход
99
4.
5.
6.
7.
8.
9.
10.
11.
12.
property tax
sales tax
excise tax
income tax
corporate profit tax
social security tax
withholding tax
source ( n )
to levy
resident alien
non-resident ( n )
to enact
forerunner ( n )
to be based on smth.
progressive (graduated) taxation
Internal Revenue (Service)
13.
14.
15.
16.
17.
18.
to assess
to enforce
seizure ( n )
prosecution ( n )
Supreme Court
to apportion
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
in conformity with
amendment ( n )
to authorize
fiscal year
to pass
to give up
to reduce
deduction ( n )
to replace
tax bracket
exemption ( n )
to itemize
to eliminate
installment loan
tax liability
supporter ( n )
fairness ( n )
to implement
proliferation ( n )
3.
33.
34.
35.
36.
налог на имущество
налог с продаж
акцизный сбор
подоходный налог
налог на прибыль организаций
налог в фонд социального обеспечения
удерживаемый налог
источник
облагать (налогом)
постоянный житель-иностранец
нерезидент
вводить закон, постановлять
предвестник
основываться на чем-л.
прогрессивное налогообложение
служба внутренних доходов
(налоговый орган)
оценивать
проводить в жизнь
конфискация
преследование по суду
верховный суд
распределять, делить
(пропорционально)
в соответствии с
поправка
уполномочивать
финансовый год
превышать
отказываться
уменьшать
удержание, вычет (фин.); скидка
заменять
налоговый разряд
освобождение ( от налогов )
перечислять по пунктам, уточнять
ликвидировать
ссуда с рассрочкой погашения
задолженность по налоговым платежам
сторонник
справедливость
осуществлять
распространение
100
37.
38.
39.
40.
41.
loophole ( n )
to restore
inequity ( n )
to reassert
to accomplish
лазейка
возвращать (на прежнее место)
несправедливость
подтверждать
осуществлять
Exercise 2
Find in the text the answers to the following questions.
1. In what way do federal, state and local governments cover their
expenses?
2. What is the federal government’s chief source of revenue ?
What other federal taxes do you know?
3. What is the federal income tax levied on ?
What is its history ?
4. What happened in 1918 ?
5. When was the Tax Reform Act signed ?
Was it successful ? Why ?
6. What are results of the new law ?
Exercise 3
Find the most suitable Russian equivalents to the following English
collocations.
Federal, state and local governments cover their expenses mainly
through taxation; the income tax has brought in about two-fifths of total
federal revenues; certain types of U.S. income of non-residents; the right to
enforce tax laws through property and income seizures and through
prosecution; Congress was authorized to levy an income tax without
apportionment; this was significant in increasing the number of taxpayers;
provided they gave up or reduced many popular income tax deductions; the
amount of income exempted from taxes for each person dependent on the
income tax filer; many itemized tax deductions that were permitted under the
previous law were reduced or eliminated; it is limited to filers not covered by
a retirement plan at work; to restore confidence in the system by eliminating
inequities.
Exercise 4
Find in the text the English equivalents to the following Russian
collocations.
Большинство доходов местное правительство получает от налогов
на собственность; основным источником доходов федерального
правительства был подоходный налог; чтобы поддержать Гражданскую
войну, в 1862 году был введен первый закон, касающийся сбора
подоходного налога; он (закон) был основан на принципе
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прогрессивного налогообложения; подоходный налог был объявлен
Верховным судом неконституционным актом; впервые сбор внутренних
доходов превысил уровень миллиона долларов в 1918 финансовом году;
в 1943 году был представлен налог, удерживаемый с зарплаты;
ликвидировать налоговый пресс с американцев с низким доходом;
налоговые удержания с процентов, выплачиваемых по кредитной
карточке; налоговая реформа была проведена с огромным желанием
улучшить справедливость системы сбора федерального подоходного
налога; различные налоговые скидки, исключения и лазейки сделали
прогрессивность нового закона иллюзией.
Exercise 5
Guess the meaning of the words by their definitions.
1. A compulsory payment to a government to raise revenue, levied on
income, property, or goods, and services.
2. Improved or corrected.
3. A person who is a citizen of a country other than the one in which he or
she lives.
4. The act or process of substracting.
5. Injustice or unfairness.
6. To carry out ( instructions etc. )
7. To bring down or lower.
8. Money lent at interest for a fixed period of time.
9. Income, that obtained by a government from taxation.
10.To establish by law.
11.The executive policy-making body of a country or state.
12.The levying of taxes or the condition of being taxed.
Unit 22. HOW TO AVOID AXATION IN THE USA
HOW TO AVOID AXATION IN THE USA
Exercise 1 Read the following aloud:
a) primary, investments, consequently, dividend, disincentive, substantial,
statistics, subsidized, variety, multinational, laundering,
b) by permitting various methods, accelerated depreciation accounting,
slightly regressive, medium-sized, national insurance, donations to charities,
c) to finance, can be designed to dissuade, to allow, to redistribute, to control,
to be described as tax-deductible.
Exercise 2 Read the text and decide which paragraphs could be given
the following headings.
......... Advantages and disadvantages of different tax systems
102
......... Avoiding tax on profits
......... Avoiding tax on salaries
......... The functions of taxation
A
The primary function of taxation is, of course, to raise revenue to
finance government expenditure, but taxes can also have other purposes.
Indirect excise duties, for example, can be designed to dissuade people from
smoking, drinking alcohol, and so on. Governments can also encourage capital
investment by permitting various methods of accelerated depreciation
accounting that allow companies to deduct more of the cost of investments
from their profits, and consequently reduce their tax bills.
B
There is always a lot of debate as to the fairness of tax systems.
Business profits, for example, are generally taxed twice: companies pay tax on
their profits (corporation tax in Britain, income tax in the USA), and
shareholders pay income tax on dividends. Income taxes in most countries are
progressive, and are one of the ways in which governments can redistribute
wealth. The problem with progressive taxes is that the marginal rate - the tax
people pay on any additional income - is always high, which is generally a
disincentive to both working and investing. On the other hand, most sales
taxes are slightly regressive, because poorer people need to spend a larger
proportion of their income on consumption than the rich.
С
The higher the tax rates, the more people are tempted to cheat, but there
is a substantial 'black' or 'underground' economy nearly everywhere. In Italy,
for example, self-employed people - whose income is more difficult to control
than that of company employees - account for more than half of national
income. Lots of people also have undeclared, part-time evening jobs (some
people call this 'moonlighting') with small and medium-sized family firms, on
which no one pays any tax or national insurance. At the end of 1986, the
Director of the Italian National Institute of Statistics calculated the size of the
underground economy, and added 16.7% to Italy's gross national product
(GNP) figure, and then claimed that Italy had overtaken Britain to become the
world's fifth largest economy.
D
To reduce income tax liability, some employers give highly-paid
employees lots of 'perks' (short for perquisites) instead of taxable money, such
as company cars, free health insurance, and subsidized lunches. Legal ways of
avoiding tax, such as these, are known as loopholes in tax laws. Life insurance
policies, pension plans and other investments by which individuals can
postpone the payment of tax, are known as tax shelters. Donations to charities
that can be subtracted from the income on which tax is calculated are
described as tax-deductible.
E
Companies have a variety of ways of avoiding tax on profits. They can
bring forward capital expenditure (on new factories, machines, and so on) so
that at the end of the year all the profits have been used up; this is known as
making a tax loss. Multinational companies often set up their head offices in
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countries such as Liechtenstein, Monaco, the Cayman Islands, and the
Bahamas, where taxes are low; such countries are known as tax havens.
Criminal organizations, meanwhile, tend to pass money through a series of
companies in very complicated transactions in order to disguise its origin from
tax inspectors - and the police; this is known as laundering money.
Vocabulary
1.
2
3
4
5
6
7
8
9
10
11
13
14
15
16
17
18
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
excise duty
dissuade (v)
permit (v)
various (v)
accelerated depreciation
accounting
deduct (v)
consequently (adv.)
reduce (v)
tax bills
marginal rate
additional (adj)
disincentive (n)
substantial (adj)
account for (n)
moonlighting (n)
tax liability
perquisite (n)
loophole (n)
postpone (n)
tax shelter
donation (n)
subtract (v)
deductible tax
a tax loss
tax haven
transaction
disguise (v)
laundering money
tax exemption
tax avoidance
tax evasion
tax return
capital transfer tax
capital gains tax (CYT)
акцизный сбор
отговаривать, разубеждать
позволять, разрешать
различный
учет ускоренной амортизации
удержать
следовательно
уменьшить
сумма выплачиваемых налогов
предельная ставка
добавочный, дополнительный
препятствие, сдерживающее средство
существенный
давать, объяснять, отчитываться
работа по совместительству
задолженность по налоговым платежам
приработок
лазейка
отсрочить
налоговая защита
денежные пожертвования
вычитать
списываемые налоги
убыток, учитываемый при налогообложении
укрытие от налогов, налоговая гавань
финансовая операция
скрывать, маскировать
«отмывание денег»
освобождение от налога
(законное) уклонение от налогов
уклонение от уплаты налогов (незаконное)
налоговая декларация
налог на передачу капитала
налог на реализованный прирост рыночной
104
стоимости капитала
Exercise3
The definitions are mixed. Match the word phrases with the proper
definitions.
tax haven
- legislation that provides rules of tax charges and tax
payments
tax rate
- a statement which each taxpayer must make once a year
showing his/her income during the past year
tax exemption
- freedom from payment of taxes allowed by law
tax burden
- money paid as taxes
tax revenue
- a person authorized to collect taxes
tax base
- a charge or payment of taxes fixed according to a
standard scale
tax holiday
- collection of laws, rules and regulations relating to
taxation
tax avoidance
- illegal ways of paying less or no taxes
tax year
- amount of income, capital gain, goods on
which one must pay taxes; taxable income,
taxable goods, property etc.
tax law
- the income received by the state from taxation
tax return
tax
evasion
tax
payment
tax collector
tax code
- the period of a year which the government uses to
calculate how much tax a person or business must pay
- a stated period in a year when a new business is
allowed not to pay taxes (in some countries)
- a country where the tax rates are so low that some
companies prefer to have part of the business located
there. So they pay less taxes
- responsibility to pay taxes
- legal ways of paying less taxes
Exercise 4
Which terms do the following sentences define?
1. The tax people pay on their wages and salaries is called
a. capital transfer tax
b. income tax
c. wealth tax
2. A tax on wages and salaries or on company profits is a
a. direct tax
b. indirect tax
c. value-added tax
3. A tax levied at a higher rate on higher incomes is called a
a. progressive tax
b. regressive tax
c. wealth tax
4. A tax paid on property, sales transactions, imports, and so on is a/an
105
a. direct tax
b. indirect tax
c. value-added tax
5. A tax collected at each stage of production, excluding the already-taxed
costs from previous
stages, is called a/an
a. added-value tax
b. sales tax
c. value-added tax
6. Profits made by selling assets are generally liable to a
a. capital gains tax
b. capital transfer tax
c. wealth tax
7. Gifts and inheritances over a certain value are often liable to a
a. capital gains tax
b. capital transfer tax
c. wealth tax
8. The annual tax imposed on people's fortunes (in some countries) is a/an
a. added-value tax
b. capital gains tax
c. wealth tax
9. Reducing the amount of tax you pay to a legal minimum is called
a. creative accounting
b. tax avoidance
c. tax evasion
10. The tax on wages and salaries (and business profits in the US) is called
… …… . In Britain the tax on business profits is called corporation tax.
a. direct tax
b. income tax
с. wealth tax
11. A tax that is levied at a higher rate on higher incomes is called
a……tax.
a. progressive .
b. regressive
с. value-added
12. Property taxes, sales taxes, customs duties on imports, and excise
duties on tobacco, alcoholic drinks, petrol, etc. are……. taxes.
a. direct
b. indirect
с. value-added
13.
Most sales taxes are slightly……… because poorer people need to
spend a larger proportion of their income on consumption than the rich.
a. progressive
b. regressive
с. repressive
.
14. Reducing the amount of tax you pay to a legal minimum is called
………
a. fiscal policy
b. tax avoidance
c. tax evasion
15. Making false declarations is called
and is obviously
illegal.
a. creative accounting
b. tax avoidance
с. tax evasion
Exercise 5
Comprehension
According to the text, are the following statements TRUE or FALSE?
1 Taxes can be designed both to discourage and to encourage spending.
2 The same amount of money can be taxed more than once.
3 Progressive taxes may discourage people from working extra hours.
4 Sales taxes are unfair because poor people spend more than the rich.
5 The Italian government knows that about one seventh of national income
escapes taxation.
106
6 'Loopholes' are a common form of tax evasion.
7 If you pay a lot of your income into a pension fund or a life insurance
policy you never have to pay tax on it.
8 A company that makes an unusually large profit during a tax year might
quickly decide to spend it, for example, on a new factory or equipment.
Exercise 6
Find words in the text that mean the following.
1 reducing the value of a fixed asset, by charging it against profits
2 something which discourages an action
3 an adjective describing a tax that is proportionally higher for people with
less money
4 spending money to buy things, rather than saving it
5 working for yourself, being your own boss
6 a tax on incomes that pays for sickness benefit, unemployment benefit, and
old-age pensions
7 non-financial benefits or advantages of a job
8 a way to delay the payment of tax to a later time
9 an adjective describing expenditures that can be taken away from taxable
income or profits
10 a country offering very low tax rates to foreign businesses
Exercise 6. Discussion
1. As a present and future taxpayer, do you prefer direct or indirect taxes, and
progressive or non-progressive taxes?
2. The last sum of money you received had already been taxed, or will be
liable to taxation, depending on which country you are in. Similarly, the last
sum of money you spent probably included a percentage of taxes.
Make up a list of different types of taxes you can think of. If you do not know
the actual names, try to describe the different taxes, e.g. ‘The tax you pay if
you import something from another continent’ and so on.
3. Give examples of direct and indirect taxes.
4. Who does these words belong to:
‘In these word nothing can be said to be certain except death and taxes’?
Unit 23. THE TAX CODE OF THE RUSSIAN FEDERATON
Exercise 1
Read the following aloud:
Retrospectively, provision, procedure, authority, levy, circumstance, liability,
audit, offence, administrative compliance, specify, authority, introduction .
Tax Code Part I
107
The highest norm on taxes is set in the Russian constitution article 57, which
states, that "all are obliged to pay legally established taxes and duties." The
article continues with setting the important principle that new taxes and
adverse changes to taxes cannot be applied retrospectively. Further regulations
are given in the Tax Code.
The first part of the Tax Code was adopted in 1998 and entered into force on 1
January 1999. This first part of the Tax Code regulates general taxation
matters, setting out the most important provisions of the Russian taxation
system. It gives a closed list of possible taxes and charges (articles 13, 14 and
15).
It specifies the procedure of how taxes are introduced and recalled, and
defines all aspects of dealings between the state, the taxpayers and the Tax
Agents. The Tax Code is intended to become the only piece of legislation
which regulates all taxation matters: from the relations of tax authorities and
taxpayers to the procedure of calculation and payment of all taxes.
All the various taxes that can be levied in Russia are listed in the Tax Code.
The tax reform foresees a gradual adoption of new taxes and the abolishment
of some old ones.
Tax Code Part I sets:
1. Types of taxes and fees that can be levied (articles 12, 13, 14,15)
2. Circumstances giving rise to a tax liability and its fulfillment (chapter 8)
3. Principles of the introduction, enforcement and cancellation of taxes and
dues, federal and local (article 12 )
4. The general terms for setting taxes and duties (article 17)
5. Rights and obligations of the taxpayers and the taxation authorities (articles
21, 23, 31, 32)
6. Detailed description of administrative compliance rules and Tax Audits
(chapter 14)
7. Liability for Tax Offences (Section VI of the Tax Code)
8. The appeal procedures and dispute regulation (Section VII of the Tax Code)
Tax Code part II
In the second part of the Tax Code each individual tax is described separately
and completely.
The first taxes under the Tax Code were the Value Added Tax, the Excise, the
Personal Income Tax and the Social Tax in chapters 21-24 of the Tax Code.
These taxes were adopted in 2000 and came into force in 2001.
The list of taxes which were levied in 2005 is as follows:
Federal Taxes and Fees
1. Profit Tax
2. Value Added Tax
3. Excise Taxes
108
4. Personal Income Tax
5. Unified Social Tax
6. Mineral Extractions Charges
7. State Duty
8. Inheritance and Gift Tax
9. Duty on Usage of Water Resources
10. Charges for Use of Natural Resources
Regional Taxes and Fees
1. Property Tax (Corporate)
2. Tax on Gambling Industry (regional tax from 1 November 2003)
3. Transport Tax
Local Taxes and Fees
1. Land Tax
Exercise 2
Say these taxes in English:
1. Акцизы
2. Налог на прибыль организаций
3. Налог на добавленную стоимость (НДС)
4. Налог на доходы физических лиц.
5. Платежи за пользование природными ресурсами
6. Единый социальный налог
7. Налог на добычу полезных ископаемых
8. Государственная пошлина
9. Налог с имущества, переходящего в порядке наследования и дарения
10. Налог на игорный бизнес
11. Налог на имущество предприятий
12. Налог на игорный бизнес
13. Транспортный налог
14. Земельный налог
15. Налог на имущество физических лиц
1.
2.
3.
4.
5.
Tax Code
the highest norm
set (v)
article (n)
to be obliged
Vocabulary
Налоговый кодекс
норма высшей юридической силы
устанавливать
статья
быть обязанным
109
6.
7.
8.
9.
legally (adv)
establish (v)
duty (n)
adverse change
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
to be applied
retrospectively
regulation (n)
further (adj)
adopt (v
to enter into force
taxation (n)
matter (n)
provision (n)
list
(n)
possible (adj)
charge (n)
specify (v)
introduce (v)
recall (v)
Tax Agent
fee
(n)
levy (v)
circumstance (n
to give rise
tax liability
30.
31.
32.
33.
34.
35.
36.
37.
fulfilment (n
due (n)
enforcement (n)
cancellation (n)
term (n)
offence (n)
appeal procedure
various (adj)
законно
устанавливать, учреждать
сбор, пошлина, налог
изменение, ухудшающее положение
(налогоплательщика)
иметь обратную силу
регулирование
1) дальнейший, 2) детальный
принимать (закон)
вступать в силу
налогообложение
вопрос
положение, статья
список, перечень
возможный
сбор, налог
четко определять
вводить
отменять, отзывать
налоговый агент
сбор
взимать, облагать (налогом)
условие, обстоятельство
приводить к
налоговая обязанность, задолженность по
налоговым платежам
исполнение, выполнение
пошлина, сбор, налог
установление
отмена
условие
правонарушение
порядок обжалования
различный, разнообразный
Exercise 3
Answer the questions:
1. Where is the highest norm on taxes set?
2. What does the article 57 of the Russian constitution state?
110
3. Why cannot new taxes and adverse changes to taxes be applied
retrospectively?
4. When did the first part of the Tax Code enter into force?
5. What does Tax Code Part I regulate?
6. What is the Tax Code intended to regulate?
7. What does Tax Code Part I set?
8. What is listed in the Tax Code?
9. Why is the abolishment of some old taxes introduction new ones foreseen?
10.When did articles 12, 13, 14, 15 of the Tax Code come into force? Why
didn’t it happen earlier?
11.What does Tax Code part II set?
12.What is the system of taxes in Russia?
13. What federal, regional, and local taxes do you know?
14. What other taxes do you think might be expected to be adopted?
15. What information is of primary importance in this Unit?
Exercise 4
Match the following Russian equivalents to the English ones
 законно установленные налоги и сборы
 каждый обязан платить
 устанавливать основы российской налоговой системы
 исчерпывающий перечень
 налоги и сборы, которые планируется принять
 вводить и взимать налоги
 налоговые органы.
 формы и порядок проведения налогового контроля
 права и обязанности налогоплательщиков и налоговых органов
 виды налогов и сборов.
 условия возникновения и порядок исполнения обязанности по
уплате налогов
 ответственность за налоговые правонарушения
 общие условия установления налогов и сборов
 принципы установления, введения в действие и отмены налогов и
сборов, как федеральных, так региональных и местных
 права и обязанности налогоплательщиков и налоговых органов
 порядок обжалования актов налоговых органов, рассмотрения и
принятия решения по жалобам налогоплательщиков
Exercise 5
Translate into Russian using active vocabulary
1. The Tax Code has, in some cases, put the responsibility for the collection
and payment of taxes not directly on the taxpayer, but on the entity (лицо)
111
providing the income subject to taxation. Such entities responsible for the
payment of taxes are called Tax Agents.
2. Any action which is allowed by law is legal.
3. Are the charges for postage stamps in force yet?
4. The company has established a new system for dealing with complaints
5. The government obtains revenue through direct taxation (=the taxing of
income) and indirect taxation (= the taxing of goods)
6. We must increase taxation if we want to spend more on education
7. They charged a heavy tax on imported wine
8. A tariff is a tax set by a government on general types of goods entering or
leaving the country
9. Duty is used about particular sums of money paid as tax in connection
with particular goods or events
10.I had to pay customs duty on the stereo system I had bought from Japan
11.In Britain purchase tax was a tax charged on all goods except those
necessary for life, such as food, and collected by being added to the price
in shops. It was changed to VAT after1973
12. The rules clearly specify that competitors are not obliged to accept
payment charged
13.If your liabilities exceed your assets your may go bankrupt.
14.The police are responsible for the enforcement of the law
Exercise 6
Guess the meaning of the words by their definitions
 the system of getting money for the needs of a government by means of
taxes
 the amount of money people pay for the support of their government
 a collection of laws or rules
 to set up, begin, create
 any of various types of tax
 to ask in payment
 to state exactly, describe fully
 any person or organization that has a legal duty to pay tax
 to demand and collect tax
 the amount of tax debt to be paid
 official charges or payments
 a monetary charge imposed by the government on persons, entities or
property to yield public revenue
Exercise 7
Explain the following. Consult the text and vocabulary
* adverse changes to tax
 to be applied retrospectively
112




to regulate taxation matters
transition period
to be still in force as gradually amended
Tax Agent
Exercise 8
Translate into English
1. Во второй части Налогового кодекса детально регулируется каждый
налог
2. Первыми налогами, установленными НК, были налог на добавленную
стоимость, акцизы, подоходный налог и социальный налог
3. Эти налоги были приняты в 2000 году и вступили в силу в 2001 году
4. Дальнейшая реформа была проведена в 2001 году
5. Были введены некоторые важные законодательные принципы защиты
прав налогоплательщиков
Exercise 9
Supplementary reading
Text 1
Hierarchy of Norms
It is a very important provision and principle of the law that the Tax
Code is considered to fully address all of the rights and obligations of the
taxpayers and the authorities. The Tax Code is meant to form a uniform and
universal system of rules to be applied directly by the authorities and
taxpayers. The Tax Code is meant to fully cover the legal regulation of
taxation matters. According to the Tax Code, the law cannot be changed and
nothing can be added to the law by any other norms, such as instructions,
explanations and interpretations issued by the Government, the taxation
authorities, the regional authorities, or any other authorities (article 14).
The taxation authorities will issue forms for tax registrations, the
calculation of taxes and for Tax Returns or determine the procedure for
calculation of certain items for the correct computation of taxes. However, in
contrast to the system in use before the Tax Code was adopted, the authorities
cannot create or change the law with these taxation guidelines and
instructions.
All the federal taxes and charges are fully detailed in the Tax Code.
This includes defining the taxpayers for each tax, the objects of taxation, the
tax base, the tax rates, any exemptions and administrative procedures. For the
regional and local taxes the Tax Code sets out common principles with an aim
to unifying taxation through the whole of Russia. The regional and local
governments are left with some discretion to set tax rates, extend some
exemption and decide on other taxation matters within the framework of the
Tax Code.
113
Vocabulary
1. Hierarchy of norms
иерархия норм права
2. Uniform
единообразный
3. Universal
универсальный
4. Tax Return
налоговая декларация
5. to determine
определять
6. Discretion
свобода действий
7. to extend exemption
предоставлять льготу
Exercise 9
Retell text 2 using the words below
to exist
существовать
assets
активы, фонды, капитал
allocation
размещение
transfer
переводить, передавать
residual
остаточный
neither…nor ни…ни
transparent
прозрачный
predictable
предсказуемый
ad hoc
(применяемый) к данному случаю, к конкретному случаю
flaw
недостаток
whim
произвол
to put in place = to create
The History of Taxation in Russia
In the Soviet Union, the predecessor state to Russia, there existed in
practice no real taxation system. This was quite natural against the background
that in the USSR with its planned economy it was a stated aim to create the
first ever state without taxes. Practically speaking, all production property and
assets were state-owned, and asset and profit allocation was done by the
central planning organization.
In the planned economy the companies were not actually taxed, rather
they transferred certain residual amounts of financing back to the center.
With the economic reforms of 1900s, there emerged a need to create a
taxation system suitable for a market economy. The process of creating an
appropriate taxation system has neither been quick nor painless. The taxation
system, or rather the lack of a transparent, predictable and stable taxation
system, has widely been considered as one of the main reasons for the
economic woes that Russia experienced during the 1990s.
A tax system started to emerge from the beginning of the 1990s.
During these early years of reforms the tax laws did not take shape within a
114
unified system, but rather through the ad hoc adoption of laws and rules,
regulating taxation, which kept changing frequently. There was a lack of clear
rules for norm hierarchy (knowing which laws and rules would take
preference over each other) and a lack of rules defining the authority of
various governmental, federal and local bodies. This lead to serious flaws in
the legal protection of the taxpayer, who was often left to the arbitrary whim
of various authorities. The gradual adoption of the Russian Tax Code has
brought order into the taxation system. Considering the current results of the
tax reform at hand one may well conclude that in less than ten years a fairly
Unit 24. THE TAX AUTHORITIES OF THE RUSIAN FEDERATION
THE TAX AUTHORITIES OF THE RUSIAN FEDERATION
The first part of the Tax Code of the Russian Federation states that Tax
Authorities ( Tax Bodies) in the Russian Federation are the Federal Tax
Service of the Russian Federation and its territorial divisions in the Russian
Federation ( article 30).
According to article 31 the Tax Bodies shall have the right:
1) to demand from a taxpayer or a tax agent documents in the forms
established by state bodies and local self-government bodies to serve as
grounds for the calculation and payment (deductions and transfers) of taxes;
2) to carry on tax inspections in the order prescribed by this Code;
3) to make a seizure of documents, during tax inspections of a taxpayer
or a tax agent, testifying to the commission of tax offences in cases when there
are sufficient grounds to believe that these documents will be destroyed,
concealed, changed or replaced;
4) to summon to tax bodies taxpayers, payers of dues or tax agents to
give pertinent explanations by means of written notices in connection with the
payment (deduction or transfer) of taxes by them or in connection with a tax
inspection, and also in other cases associated with the execution by them of
the legislation on taxes and dues;
5) to suspend transactions in the accounts of taxpayers, payers of dues
and tax agents in banks and to distrain the property of taxpayers, payers of
dues and tax agents in the order prescribed by this Code;
6) to examine (inspect) workrooms, depots, trading and other premises
and areas used by taxpayers to derive income or connected with the
maintenance of the objects of taxation, regardless of their place of location, to
draw up an inventory of the property belonging to taxpayers. The procedure
for drawing up an inventory of the taxpayer's property during a tax inspection
shall be endorsed by the Ministry of Finance of the Russian Federation and the
Federal Tax Service of the Russian Federation;
7) to determine the sums of taxes to be paid by taxpayers to the budget
or to the extra-budgetary funds and calculated on the basis of available
information about a taxpayer, and also of the data on other similar taxpayers in
115
case of the refusal of the taxpayer to admit tax officials to examination
(inspection) of workrooms, depots, trading and other premises and areas, used
by the taxpayer to derive income or connected with the maintenance for the
purpose of taxation taxation, in case of the refusal to submit to a tax body
documents necessary for the calculation of taxes during more than two
months, in case of the absence of the record-keeping of incomes and expenses,
of the objects of taxation, and in case of keeping a record with the
contravention of the established order that has led to the impossibility of
computing taxes;
8) to demand that taxpayers, tax agents and their representatives should
remove the revealed breaches of the legislation on taxes and dues and to
control the fulfillment of said requirements;
9) to recover tax and due arrears, and also penalties in the order
established by this Code;
10) to control the compliance of big expenses of natural persons with
their incomes;
11) to demand from banks documents confirming the execution of
payment orders of taxpayers, payers of dues and tax agents and the fulfilment
of collection letters (orders) of tax bodies on the write-off of the amounts of
taxes and penalties from the accounts of tax payers, payers of dues and tax
agents;
12) to attract specialists, experts and interpreters for tax control;
13) to summon as witnesses persons who may know any circumstances
of relevance to tax control;
14) to apply for the cancellation or suspension the validity of licenses
issued for the engagement in certain activities to entities and individuals.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Vocabulary
Demand (v)
Требовать
Local self-government bodies органы местного самоуправления
Serve(v)
Служить
Ground (n)
Основание
Calculation (n)
Исчисление
Deduction (n)
Удержание
Transfer (n)
Перечисление
Carry on (v)
проводить
Inspection (n)
проверка
Seizure (n)
Выемка, конфискация
Testify (v)
свидетельствовать
Commission (n)
совершение
116
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
45.
46.
47.
Offence ( n)
Sufficient (n)
Destroy (n)
Conceal (v)
Replace (v)
Summon (n)
Pertinent (adj)
Notice (n)
Execution (n)
Legislation (n)
Suspend (v)
Due (n)
Distrain (v)
Derive (v)
Maintenance (n)
Workroom (n)
Depot (n)
Trading (adj)
Premises (n)
Belong (v)
Endorse (v)
Extra-budgetary (adj)
Available (adj)
Refusal (n)
Admit (v)
Official (n)
Submit (v)
Contravention (n)
Representative (n)
Remove (v)
Reveal (v)
Breach (n)
Fulfillment (n)
Requirement (n)
Recover (v)
правонарушение
достаточный
уничтожать
скрывать
заменять
вызывать
уместный
уведомление
исполнение
законодательство
приостанавливать
сбор
налагать арест на
извлекать
содержание
производственное помещение
складское помещение
торговый
помещение
принадлежать
утверждать
внебюджетный
имеющийся в наличии
отказ
допускать
должностное лицо
представлять
нарушение
представитель
устранять
выявлять
нарушение
выполнение
требование
взыскивать
117
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
Arrears (n)
Compliance (n)
Collection letter (order)
Write-off (n)
Penalty (n)
Account (n)
Witness (n)
Circumstance (n)
Apply for (v)
Cancellation (n)
Validity (n)
Issue (v)
Set up (v)
недоимки
соответствие
инкассовое поручение (распоряжение)
списывать
пени
счет (банковский)
свидетель
обстоятельство
заявлять ходатайство
аннулирование
действие ( юридическое)
выдавать
устанавливать
Exercise 1
Answer the questions.
1. What are the Tax Bodies of the Russian Federation?
2. What should the Tax Bodies demand from a taxpayer or a tax agent?
3. What is the order of carrying on tax inspections?
4. In what case shall a seizure of documents be made?
5. What is the order of suspending transactions in the account?
6. Who determines the sum of taxes to be paid to the budget?
7. What tax authorities endorse the procedure o f drawing up an inventory on
taxpayer’s property?
8. In what cases shall the Federal Tax Service of the Russian Federation
approve of the forms of applications for registration?
9. In what cases do the Tax Authorities determine the sums of taxes to be
paid by taxpayers to the budget or extra-budgetary funds?
10.Who do the Tax Authorities summon to the tax control as witness?
11.When is the cancellation or suspension the validity of licenses applied for?
12.Who do the Tax Bodies attract for tax control?
13.What other rights do you think the Tax Bodies shall have?
14.What are the names of Tax Authorities in the UK, the USA, the Republic
of Ireland?
Exercise 2
Match the English word combination in the column with the Russian
equivalents in the right-hand column.
1. Transaction on the accounts
a. Операция по счетам
2. In the order prescribed
в. извлекать доход
118
3. To draw up an inventory.
с. выемка документов
4. Record-keeping of income and expenses d. Налагать арест на
собственность
5. Established order
e. устанавливать процедуру
6. Circumstances of relevance
f. Приостанавливать операции
7. Derive income
g. Скрывать документы
8. Testify to a commission
h. Проводить инвентаризацию
9. Conceal document
i. Установленный порядок
10. Control the compliance
j. имеющее значение oбстоятельство
11. Submit documents
l. Предоставлять документы
12. Revealed breaches
m. контролировать соответствие
13. Recover arrears
n. свидетельствовать о совершении
14. Endorse the procedure
о. Выявленные правонарушения
15. Suspend transactions
р. взыскивать недоимки
16.Seizure of documents
q. учет доходов и расходов
17. to distrain property
s. в порядке, предусмотренном
Exercise 3
Match the words on the left with their best synonyms on the right
1. to carry on
a. To arrest
2. ground
b. a set of laws
3. inspection
c. to obtain from
4. pertinent
d. denial
5. execution
f. To continue
6. refusal
g. basis
7. to establish
h. check
8. offence
i. appropriate
9. trading
j. fulfilment
10.premises
l. To set up
11.to distrain
k. enough
12.legislation
m. merchant
13.to derive
n. accommodation
14.sufficient
o. to order officially
15.to summon
p. breach
Exercise 4
Guess the meaning of the word by its definition.
1. a written or printed statement giving information or directions to the
public.
2. To stop or cause to be ineffective for a period of time.
3. The act of keeping something in good condition.
4. A storehouse for goods
5. To be the property of somebody
119
6. To give or offer for consideration
7. Money that is owed from the past and should have been paid.
8. Someone who is present when something happens, for example a crime or
an accident.
Exercise 5
Translate into English. While translating consult the text.
1. Взыскивать недоимки по налогам и сборам.
2. Приостановить операции по счетам налогоплательщиков.
3. Требовать от налогоплательщика или налогового агента документы
для исчисления и уплаты налогов.
4. Налагать арест на имущество налогоплательщика
5. Документы, подтверждающие правильность исчисления.
6. Проводить налоговые проверки в порядке, установленном настоящим
Кодексом.
7. Осматривать производственные, складские и торговые помещения.
8. Порядок проведения инвентаризации имущества.
9. Определять
суммы
налогов,
подлежащие
внесению
налогоплательщиками в бюджет.
10.Заявлять ходатайства об аннулировании или о приостановлении
действия выданных лицензий.
11.Требовать от банков документы, подтверждающие исполнение
платежных поручений
12.Контролировать соответствие крупных расходов физических лиц их
доходам.
13.Непредставление в течение более двух месяцев налоговому органу
необходимых для расчета налоговых документов.
14.Вызывать на основании письменного уведомления.
15.В случаях, когда есть достаточные основания полагать, что эти
документы будут уничтожены, сокрыты, изменены или заменены.
16.Контролировать выполнение указанных требований.
Exercise 6. Complete the list below:
Verb
noun
adjective
operate
………………..
…………………….
…………………..
…………………
seizing
………………….
………………...
serviceable
………………….
………………..
calculable
………………….
Execution
…………………..
…………………
………………..
derivative
budget
……………….
……………………………
……………….
……………….
…………….
Admissible
…………………
……………….
Established
120
…………………
representation
…………………..
require
………………
………………….
Collect
………………
………………….
…………………
suspension
………………….
Exercise 7
Insert the appropriate prepositions if any.
To demand ….. a taxpayer a tax return; to serve as grounds …… payments; to
summon ….. tax bodies taxpayers; the property ….. taxpayers; to distrain …..
taxpayers’ property; carry ….. tax inspections; to testify ……the commissions
of tax offences; the compliance of big expenses of the individuals …….. their
income; regardless ….. their place of location; the procedure ….. drawing up
an inventory; the execution of the legislation …..taxes and duties, suspend
transactions ……. the accounts of taxpayers.
…………………
………………
transacted
Unit 25. GENRAL PRINCIAPLES OF TAXATION
Pre-text exercises
Exercise 1. Practice reading the following words and collocations
a) Rationality; efficiency; predominantly; redistribution; sufficiency;
viability; juridical; congruence; thus; consequently; sensitivity;
discretionally; maintenance; appropriately;
b) technical requirements; the most refined classification; overall
objectives; internal coherence; revenue-collecting capacity; budgetary
settlement; excessive inflation; fiscal pressure; allocation of resources;
redistribution of income and wealth.
c) ethical, social or economic; budgetary-fiscal, political-social, political –
economic and technical fiscal; flexibility, neutrality and equity;
transparency, feasibility and convenience; deficit or surplus.
d) to pass judgement; according to this principle; to ensure public
expenditure; with regard to the oscillations of the economic situation; to
take into account differing circumstances.
GENRAL PRINCIAPLES OF TAXATION.
The principle of taxation comprise rationality, efficiency and justice in
fulfilling the general objectives of State activity. On the one hand, they are the
operative expression of a value system (ethnical, social or economic) which
passes judgement upon the tax system. On the other hand, they embody
technical requirements aimed at ensuring the contribution of the tax system to
the fulfilment of the general objectives of Public Finance.
Neumark (1970) believes such principles emanate from the objectives
which taxes must serve, within the social context which validates them. He
121
established the most refined classification of these principles. He makes out
budgetary-fiscal, political-social, political-economic and technical-fiscal
principles.
Thus, the ideal tax system begins with the objectives of taxation, then
produces the corresponding principles, next shapes the tax system and, finally,
structures the taxes. Any coherent criterion of classification must relate the
general principles to the basic functions of the public sector in a particular
economy.
Following Musgrave (1959), predominantly technical principles must
be seen in conjunction with the overall objectives of economic stability, the
optimal allocation of resources and the redistribution of income and wealth.
Loscos (1995) places the principles of efficiency or rationality and sufficiency
of the tax system within the first group, passing next to those of flexibility,
neutrality and equity.
4.1 Efficiency or rationality.
This principle includes a set of demands directed towards guaranteeing
the internal coherence of the various elements comprising the tax system and
their adjustment to the balanced achievement of the objectives and the
possibility of cheap and easy management and collection which does not
involve excessive tax compliance costs for taxpayers.
This principle is related to the classic norms of certainty, convenience
and economic viability of taxation, or that of minimum-cost of administration
and compliance as proposed by Due (1968), together with the juridical-fiscal
and technical-fiscal principles proposed by Neumark (1970) for the design of
the tax system, both internal (principles of congruence, continuity and
economic viability) and external (principles of transparency, feasibility and
convenience).
4.2 Sufficiency.
According to this principle, the tax system is to allow the
Administration to collect the revenue necessary to meet total expenditure or
public needs.
There are two different interpretations of this formulation: absolute
sufficiency and relative sufficiency.
Absolute sufficiency means that the tax system must generate sufficient
revenue to ensure public expenditure in a specified financial year. It is a
potential capacity, independently of the degree to which considerations of
economic stability suggest the use of this revenue-collecting capacity in order
to present a balanced budgetary settlement, whether with a deficit or surplus.
122
Relative sufficiency refers to the fulfilment of this principle to the
meeting of the collective needs existing at a specific point in time (“desirable
expenditure”).
Thus, this formulation of the sufficiency principle is linked to the two
budgetary – fiscal principles proposed by Neumark (1970), namely sufficiency
and the capacity for increase.
4.3 Flexibility.
According to this principle, the tax system must be flexible. The
evolution of revenue levels must respond positively to variations in the level
of economic activity. In situation of economic growth, an increase in the tax
burden reduces public demand, avoiding excessive inflation. During economic
downturns a reduction of fiscal pressure allows demand to be sustained, thus
reducing the decrease in economic activity. Hence, the more progressive the
tax system is, the greater effect such action have.
Consequently, the sensitivity of the tax system with regard to the
oscillations of the economic situation should be triggered both automatically
(passive flexibility) and discretionally (active flexibility).
4.4 Neutrality.
The neutrality principle is that the tax figures which comprise the fiscal
system should not interfere, or interfere only minimally, with the market
allocation of resources. The tax system should not alter the decisions of
economic agents regarding the consumption of the different types of goods,
nor in the choices made between consumption and saving, working or not
working, investing (or not) in specific sectors. The principle was the
avoidance of excessive taxation.
4.5 Equity.
According to this principle the tax system must be equitable in the
distribution of the fiscal burden, taking into account differing circumstances.
This is a concept of justice linked to the function of the redistribution of
income and wealth for which the public sector is responsible. All citizens must
contribute in the same way to the maintenance of public expenditure.
The application of this principle is based on the two criteria: horizontal
equity (equal treatment for those in equal circumstances) and vertical equity
(appropriately unequal treatment for those in unequal circumstances),
corresponding to the principles of generality, equality, proportionality and
redistribution.
1.
establish (v)
Vocabulary
устанавливать, учреждать, основывать
123
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
base on smth (v)
comprise (v)
embody (v)
contribution (n)
fulfilment (n)
Public Finance
allocation (n)
redistribution (n)
income (n)
annual income
to bring in an income
the principle of efficiency
the principle of sufficiency
the principle of flexibility
the principle of neutrality
the principle of equity
demand (n)
internal (adj)
internal coherence
external (adj)
15. costs (n)
high (heavy) costs
to bear costs
to cut down costs
16. the principle of congruence
the principle of continuity
the principle of viability
the principle of transparency
the principle of feasibility
the principle of convenience
17. revenue (n)
18. expenditure (n)
19. public needs
20. surplus (n)
21. tax burden
22. oscillation (n)
23. to interfere
24. consumption (n)
25. to be responsible for smth
основывать, базировать на чем-то
включать, заключать в себе
воплощать в себе, олицетворять
вклад, взнос
выполнение, осуществление
государственное финансирование
Распределение
Перераспределение
доход, прибыль
годовой доход
приносить доход
принцип эффективности
принцип достаточности
принцип гибкости
принцип нейтральности
принцип справедливости
требование, спрос, потребность
Внутренний
внутренняя связь
Внешний
издержки, расходы
большие расходы
нести расходы
сокращать расходы
принцип соответствия
принцип непрерывности
принцип жизнеспособности
принцип прозрачности
принцип выполнимости
принцип удобства
доходы, денежные поступления
расход, потребление
общественные нужды
избыток, излишек
налоговое время
Колебание
Вмешиваться
Потребление
быть ответственным за что-то, объяснять
Exercise 2
124
Find in the text the answer to the following questions.
1. What do the principles of taxation comprise?
2. Who established the most refined classification of these principles?
What principles does he distinguish?
3. What is Musgrave’s point of view ?
4. What does the principle of efficiency include? What is this principle
related to?
5. What is the principle of sufficiency? What kind of sufficiency do you
know?
6. Why must the tax system be flexible?
7. What does the principle of neutrality mean?
8. What does the principle of equity mean?
Exercise 3
Find the most suitable Russian equivalents to the following English
collocations.
To comprise rationality, efficiency, and justice in fulfilling the general
objectives; the operative expression of a value system; to pass judgement upon
the tax system; to embody technical requirements aimed at ensuring the
contribution; to make out budgetary-fiscal, political-social, politicaleconomic, and technical-fiscal principles; must relate the general principles to
the basic functions; optimal allocation of resources and the redistribution of
income and wealth; to include a set of demands directed towards; to involve
excessive tax compliance costs for taxpayers; must be designed in such a way
as; to ensure public expenditures; in order to present a balanced budgetary
settlement; to respond positively to variations in the level of economic
activity; to reduce public demand, avoiding excessive inflation; to interfere
minimally with the market allocation of resources; to be equitable in the
distribution of the fixed burden.
Exercise 4. Fill in the gaps.
1. The principle of taxation ______ rationality, efficiency and justice.
2. Such principles ______ from the objectives which taxes must serve.
3. This principle is ______ to the classic norms of certainty, convenience
and economic viability.
4. The second interpretation (relative sufficiency) ______ to the fulfilment
of this principle.
125
5. An increase in the tax burden ______ public demand.
6. The tax system should not ______ the decisions of economic agents.
7. All citizens must _____ in the same way to the maintenance of public
expenditure.
Exercise 5. Make a short oral summary of the text.
Exercise 6. Study the principles of taxation as follows:
PRINCIPLES
1. SUFFICIENCY
BUDGETARY-FISCAL
2. CAPACITY TO
INCREASE
3. GENERALITY
SOCIO-POLITICAL
AND
ETHNICAL
4. EQUALITY
5.
FORMULATION
The tax system must be
structured in such a way
that tax revenue permits
lasting coverage of
expenditure.
If necessary, and in the
short term, the tax system
must supply the
complementary revenue
necessary to cover new
expenditure of permanent
character or of unique and
extraordinary character.
All natural and legal
persons with capacity to
pay should pay the tax,
with no exceptions unless
justified by unavoidable
reasons of public policy or
tax technicalities.
Individuals in identical
circumstances
must receive equal tax
treatment, while
individuals in different
circumstances must receive
unequal tax treatment.
The tax burden must be
fixed in proportion to the
126
PROPORTIONALITY
6. REDISTRIBUTION
7. AVOIDANCE OF
FISCAL DIRIGISME
8. MINIMAL FISCAL
INTERVENTION
POLITICALECONOMIC
8. NEUTRALITY
REGARDING
COMPETITION
10. ACTIVE
FLEXIBILITY
indicators of the capacity to
pay, in such a way that
taxation is equally onerous,
in relative terms, for all
taxpayers.
Tax policy must affect the
primary distribution of
income provoked by the
market, diminishing
income differences via
progressiveness.
Tax policy must avoid
fragmentary and nonsystematic intervention
which unjustifiably favours
or harms specific economic
groups, productive sectors
or expenditure categories,
or the adoption of certain
juridical forms.
The Tax Administration
must limit its intervention
in the private sphere of the
taxpayers, and in the
exercise of their individual
economic liberty, to the
minimum necessary for the
observance of budgetaryfiscal and justice principles.
Tax policy must avoid all
involuntary consequences
which harm the functioning
of competition and must
suppress or attenuate such
imperfections.
The design of the tax
system must allow the
discretionary execution of
anti-cyclical fiscal policies,
by the alteration of their
structure or tax procedures,
or variation in the rates.
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11. PASSIVE
FLEXIBILITY
12.ORIENTATION
TOWARDS GROWTH
13. CONGRUENCE
AND
SYSTEMIZATION
14. TRANSPARENCY
15. FEASIBILITY
JURIDICAL AND
TECHNICAL-FISCAL
16. CONTINUITY
The tax system must be
structured in such a way
that it automatically
contributes to the
mitigation of the temporary
fluctuations in
macroeconomic activity.
Fiscal policy must be
structured, both as a whole
and in its constituent
elements, in such a way as
not to slow growth but
instead allows it to exercise
a positive influence, should
the desired rate not be
achieved.
The tax system must pay
equal attention to the
achievement of its various
objectives, avoiding the
neglect of some objectives
to the benefit of others, and
the existence of gaps or
contradictions in its
composition and structure.
The tax regulations must be
intelligible, clear and
precise, unambiguously
establishing the rights and
duties of taxpayers, in
order to avoid arbitrariness
in tax
settlement and collection.
The tax regulations must be
acceptable to the taxpayers
and capable of being
applied by the Tax
Administration.
The tax regulations must be
continuously in force, and
only be changed in the
context of general
and systematic reforms.
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17. ECONOMIC
VIABILITY
18. CONVENIENCE
The structure of the tax
system and the composition
of its elements must be
established in such a way
that the costs of
administration and
compliance do not exceed
the minimum necessary to
comply with its politicaleconomic and sociopolitical objectives.
The taxpayer must enjoy all
possible facilities for
compliance with his or her
tax obligations, while the
higher principles of
taxation are observed
Source: NEUMARK (1970)
Answer the questions:
1. Whose principles are these? Why is his system considered the most
refined?
2. Why cannot any of these principles of taxation be omitted?
3. What criteria should be taken into account in designing the ideal tax
system?
4. Why are the principles placed in such an order?
5. What criteria should be taken into account in designing the ideal tax
system?
Exercise 7. a) Translate the text into Russian.
c) Supply the paragraphs with the suitable titles:
a. Tax neutrality
b. Concentration of revenue sources.
c. Minimization of collection lags.
d. Broad and objectively defined tax bases.
d) Dwell on the basic ideas about the desired features of a tax
system, compare them with the four qualities Adam Smith thought
desirable in taxation.
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'The four qualities most wanted in any system of taxation have been set
down by Adam Smith. These are as follows:
1.
The citizens of every country ought to help support their government as best they can in proportion to their abilities. That is, they should give
in proportion to the income they enjoy under the protection of the state.
2.
The tax each person is bound to pay ought to be certain, not
arbitrary. The time, method, and amount of payment must be clear and plain.
If not, all will be more or less at the mercy of the tax collector, who may then
be willing to raise the tax or to threaten the same. An uncertain taxation can
only promote corruption. Certainty, by contrast, is so important that even
some degree of inequality is to be preferred to a very small amount of
uncertainty.
3.
Each tax ought to fall due at the time, or in the way, it is most fit
for the subject to pay it. A tax on the rent of land or of houses can be paid at a
regular term or when money is most apt to be at hand. Taxes on luxury goods,
luxury taxes, can, of course, be paid at the time of sale.
4.
Every tax ought to be so managed that it will take out - and keep
out - of the pockets of the people as little as possible beyond what it brings in
to the public treasury. Waste is less to be feared when the number of officers
in the tax service is kept down; it is less likely when the tax does not offer a
temptation to smuggling; and it is less when the people are not subject to the
frequent visits of tax gatherers, or to the restrictive trade practices that create
them.
Of the four maxims, equality of taxation is least understood. Why
should equality be the rule in tax matters? For the reason that it should be the
rule in all state affairs. A government ought not to distinguish between
persons or classes in the claims they have on it. What sacrifices the
government requires from one of them should bear as heavily or as lightly on
all. In this way, the least sacrifice will be felt by the whole.
If any one bears less than his or her fair share of the burden, another
must suffer more. The lightening of the one's share is not so great a good as
the increased burden on the other is an evil. Equality of taxation, therefore,
means equality of sacrifice. It means sharing what each person gives towards
the costs of government so that no one will feel any more or less trouble than
anyone else. This standard of perfection cannot, of course, be fully reached;
but our first need is to know what perfection is.
130
Оглавление
Предисловие. ................................................................................................... 3
Unit 1. WHAT ARE TAXES? ........................................................................ 4
Unit 2. PROGRESSIVE AND REGRESSIVE TAXES ............................... 9
Unit 3. A HISTORY OF TAXATION. ........................................................ 12
Unit 4. THE TAX HISTORY OF GREAT BRITAIN. .............................. 16
Unit 5. THE HISTORY OF THE TAX SYSTEM IN THE UNITED
STATES .......................................................................................................... 20
Unit 6. THE HISTORY OF THE TAX SYSTEM IN THE UNITED
STATES .......................................................................................................... 25
Unit 7. THE HISTORY OF THE TAX SYSTEM IN THE UNITED
STATES .......................................................................................................... 29
Unit 8. INCOME TAX................................................................................... 33
Unit 9. PERSONAL TAXATION IN THE UK .......................................... 37
Unit 10. THE FLAT TAX ............................................................................. 40
Unit 11. CORPORATE TAX IN GREAT BRITAIN ................................. 45
Unit 12. CORPORATE INCOME TAX ...................................................... 49
Unit 13. (CORPORATION) PROFIT TAX IN RUSSIA ........................... 55
Unit 14. THE VAT ......................................................................................... 58
Unit 15. THE VAT IN RUSSIA .................................................................... 65
Unit 16. THE EXCISE................................................................................... 75
Unit 17. TAXATION IN CANADA ............................................................. 80
Unit 18. TAXATION IN THE UNITED KINGDOM ................................ 84
Unit 19. TAXATION IN GERMANY .......................................................... 88
Unit 20. TAXATION IN THE REPUBLIC OF IRELAND ...................... 93
Unit 21. TAXAION IN THE USA ................................................................ 97
Unit 22. HOW TO AVOID AXATION IN THE USA ............................. 102
Unit 23. THE TAX CODE OF THE RUSSIAN FEDERATON ............. 107
Unit 24. THE TAX AUTHORITIES OF THE RUSIAN FEDERATION
........................................................................................................................ 115
Unit 25. GENRAL PRINCIAPLES OF TAXATION .............................. 121
131
Составители: Мельничук Марина Владимировна,
Дьяконова Станислава Аркадьевна,
Варламова Алла Игоревна
Пособие по английскому языку
«Налоги и налогообложение»
для студентов 2 курса.
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