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ENGLISH FOR FINANCE НАВЧАЛЬНИЙ ПОСІБНИК

UNIT 9. TAXES AND TAXATION

TEXT 1. TAX

Task 1. Study the vocabulary:

compulsory	обов’язковий
charge	встановлювати ціну
impose	обкладати податком
levy	обкладати податком
legal entity	юридична особа
tribe	плем’я, рід
secessionist	сепаратист; відступник
movements	дії
in cash	готівкою
corvee	панщина
labor	праця
encourage	надихати
circulation	обіг
goods and services	товари та послуги
levy in cash	cтягуватися готівкою
taxation	оподаткування
means of taxation	засіб оподаткування
comparable	порівняльний
tuition	навчання
fee	плата
utilities	комунальні послуги
obtain	отримувати
resources	грошові кошти
bills	банкноти
minting coins	карбування монет
imposе	накладати
penalties	штрафи
fine	штраф
predetermined	визначений, зумовлений
expenditure	витрати

Task 2. Read and translate the text:

TAX

A tax is a compulsory charge or other levy imposed on an individual or a legal entity by a state or a functional equivalent of a state (e.g., tribes, secessionist movements or revolutionary movements). Taxes may be paid in cash or in kind or as corvee labor. In modern capitalist taxation systems, taxes are designed to encourage the most efficient circulation of goods and services and are levied in cash. In kind and corvee taxation are characteristic of traditional or pre-capitalist states and their functional equivalents. The means of taxation, and the uses to which the funds raised through taxation should be put, are a matter of hot dispute in politics and economics. Public finance is the field of political science and economics that deals with taxation.

The legal definition and the economic definition of taxes differ in that economists do not consider many transfers to governments to be taxes. For example, some transfers to the public sector are comparable to prices. Examples include tuition at public universities and fees for utilities provided by local governments. Governments also obtain resources by creating money (e.g., printing bills and minting coins), through voluntary gifts (e.g., contributions to public universities and museums), by imposing penalties (e.g., traffic fines), by borrowing, and by confiscating wealth. From the view of economists, a tax is a non-penal, yet compulsory transfer of resources from the private to the public sector levied on a basis of predetermined criteria and without reference to specific benefit received.

In modern taxation systems, taxes are levied in money; but, in-kind and corvée taxation is characteristic of traditional or pre-capitalist states and their functional equivalents. The method of taxation and the government expenditure of taxes raised is often highly debated in politics and economics.

Task 3. Choose the best variant:

1. The means of taxation are …

a) a matter of hot dispute in politics.

b) are a matter of hot dispute in education.

c) are a matter of hot dispute in science.

2. Taxes may be paid in cash or in kind or …

a) as labor

b) as corvee labor

c) in cheques

3. Public finance deals with …

a) money

b) currency

c) taxation

4. From the view of economists, a tax is …

a) a compulsory transfer of resources to the public sector

b) a compulsory transfer of resources from the private to the public sector

c) A compulsory transfer of resources from the private sector

5. Governments also obtain resources by creating money …

a) through voluntary gifts

b) through forced gifts

c) through voluntary donation

Task 4. Fill in the gaps:

A 1._______ is a compulsory charge or other levy imposed on an individual or a legal entity by a state or a functional equivalent of a 2.________ (e.g., tribes, secessionist movements or revolutionary movements). Taxes may be paid in 3._______ or in kind or as corvee labor. In modern capitalist 4._______ systems, taxes are designed to encourage the most efficient circulation of goods and 5.______ and are levied in cash. In kind and corvee taxation are characteristic of 6.________ or pre-capitalist states and their functional equivalents. The 7._______ of taxation, and the uses to which the funds raised through taxation should be put, are a matter of hot dispute in 8.________ and economics. Public 9.________ is the field of political science and 10.________ that deals with taxation.

Means, tax, economics, state, finance, taxation, traditional, cash, services, politics

Task 5. Choose the best answer:

1. What is a tax?

a) A tax is a charge or other levy imposed on an individual.

b) A tax is a compulsory charge or other levy imposed on an individual or a legal entity by a state or a functional equivalent of a state.

c) A tax is a compulsory charge or other levy imposed on a legal entity by a state or a functional equivalent of a state.

2. How do governments obtain resources?

a) by creating currency.

b) by creating money, by borrowing, and by confiscating wealth .

c) by confiscating wealth.

3. How may taxes be paid?

a) Taxes may be paid in cash or as corvee labor.

b) Taxes may be paid in kind or as corvee labor.

c) Taxes may be paid in cash.

4. For what purposes are taxes designed?

a) taxes are designed to rise the most efficient circulation of goods and services and are levied in cash.

b) taxes are designed to encourage circulation of services and are levied in cash.

c) taxes are designed to encourage the most efficient circulation of goods and services and are levied in cash.

5. What is public finance?

a) Public finance is the branch of political science and economics that deals with taxation.

b) Public finance is the field of political science.

c) Public finance is an economics science that deals with taxation.

6. What is a taxation from the view of economists?

a) From the view of economists, a tax is a penal, yet compulsory transfer of resources from the private to the public sector levied on a basis of predetermined criteria and without reference to specific benefit received.

b) From the view of economics, a tax is a non-penal, yet obligatory transfer of resources from the private to the local sector levied on a basis of predetermined criteria and without reference to specific benefit received.

c) From the view of economists, a tax is a non-penal, yet obligatory transfer of resources from the private to the public sector levied on a basis of predetermined criteria and without reference to specific benefit received.

7. What is the difference between the legal and economic definition of taxes?

a) The legal definition and the economic definition of taxes differ in that economists consider many transfers to governments to be taxes.

b) The legal definition and the economic definition of taxes differ in that economists do not consider many transfers to governments to be taxes.

c) The economic definition of taxes differ in that economists consider many transfers to governments to be taxes.

Task 6. Match the words to make word partnerships from the text:

1) legal a) government

2) voluntary b) system

3) local c) expenditure

4) government d) equivalent

5) taxation e) entity

6) functional f) gifts

TEXT 2. TAXATION

Task 1. Study the vocabulary:

income	податок
expenses	витрати
compulsory	обов’язковий
expenditure	витрати
revenue	дохід
national debt	національний борг
welfare	добробут
deductions	відрахування
exemptions	звільняти від податку
donations	субсидія, дарування
corporate income taxes	корпоративний податок на доходи
property taxes	податок на власність
excise taxes	акцизний збір
gift taxes	податок на дарування
merit	заслуговувати
equity	власний капітал
enforceability	виконання зобов’язань
proprietorship	власність

Task 2. Read and translate the text:

TAXATION

In poetry, spring is a time when a young person’s fancy turns to thoughts of love. But in economics, spring is much less romantic period. It is the season when millions of people in many countries begin to sort their previous year’s income and expense records – the first step in determining their personal income tax. Taxes are a compulsory financial contribution by a person or body of persons towards the expenditure of a public authority. In modern economies taxes are the most important source of government revenues. Taxes on income and on capital are known as “direct” taxes. Taxes on commodities or services are known as “indirect” taxes.

Taxes have three functions:

a) fiscal or budgetary, to cover government expenditure, to provide the public authorities with the revenue required for meeting the cost of defense, social services, interest payment on the national debt, municipal services, etc;

b) economic, to give effect to economic policy, to promote stable economic growth, to influence the rate of economic growth of the nation;

c) social, to increase the economic welfare of the community, to lessen inequalities in the distribution of income and wealth.

In calculating this tax, you are allowed to take specific types of deductions and exemptions. Some deductions that may be made (within limits) from your income are donations to your alma mater and to various non-profit organizations.

The amount of income tax you must pay at a given income, level depends on several things. These include whether you are single or married and what the particular tax rates happen to be at the time. The rates are usually revised by the government every few years.

Tax is money compulsory levied by the state or local authorities on individuals, property, or businesses. Taxes can be levied and classified in many ways. In many countries there are three principal types of taxes:

Taxes on income (personal income taxes and corporate income taxes);

Taxes on wealth (property taxes; death and gift taxes);

Taxes on activities (sales and excise taxes; social security taxes).

Because the power to tax is so weighty a matter, economists have developed several broad standards for judging the merits of a tax:

1. Equity. Tax burdens should be distributed justly.

2. Efficiency, Stability, and Growth. A tax should contribute toward improving resource allocation, economic stabilization, and growth in the total output of goods and services.

3. Enforceability. A tax should be adequate for its purpose and acceptable to the public, or else it will be impossible to enforce.

Businesses and individuals are subject to many forms of taxes. The various forms of business are not taxed equally. The tax situation is simplest for proprietorships and partnerships; corporations or companies are treated differently.

Task 3. Choose the best variant:

1. Taxes are a compulsory financial contribution by a person or body of persons towards the expenditure of a …

a) local authority

a) public government

b) local offices

2. Businesses and individuals are subject to many forms of …

a) disputes

b) taxes

c) debates

3. In modern economies taxes are the most important source of government …

a) incomes

b) spending

c) sales

4. Tax is money compulsory levied by the state or local authorities on individuals, property, or …

a) government

b) businesses

c) society

5. Taxes on commodities or services are known as …

a) direct taxes

b) indirect taxes

c) excise taxes

Task 4. Fill in the gaps:

In poetry, spring is a time when a young person’s fancy turns to thoughts of love. But in 1._______, spring is much less romantic period. It is the season when 2._______ of people in many countries begin to sort their previous year’s 3._______ and expense records – the first step in determining their 4.______ income tax. 5._______ are a compulsory 6._______ contribution by a person or body of persons towards the 7.________ of a public authority. In modern economies taxes are the most important source of government 8._________. Taxes on income and on 9.________ are known as “direct” taxes. Taxes on commodities or 10.________ are known as “indirect” taxes.

Financial, economics, services, personal, expenditure, millions, income, capital, Taxes, revenues

Task 5. Choose the best answer:

1. What is known about the various forms of business?

a) they are taxed equally.

b) they were not taxed equally.

c) they are not taxed in the same way.

2. What does the amount of income tax you must pay at a given income depend on?

a) on some important things

b) on several things

c) on one important thing

3. What is a tax?

a) is money compulsory levied by the local authorities on individuals, property, or businesses.

b) is money compulsory levied by the state authorities on individuals, property, or businesses.

с) is money compulsory levied by the government or local authorities on individuals, property, or businesses.

4. What is spring in economics?

a) It is the season when billions of people in most countries begin to sort their previous year’s income

b) It is the season when thousands of people in countries begin to sort their temporary year’s income

c) It is the season when millions of people in many countries start to sort their previous year’s income

5. What are taxes in modern economy?

a) taxes are important source of government revenues.

b) taxes are the most important source of government incomes.

с) taxes are unimportant source of government revenues.

6. How can taxes on commodities be defined?

a) Taxes on commodities or services are defined as “direct” taxes.

b) Taxes on commodities or services are known as “indirect” taxes.

c) Taxes on commodities or services are known as “property” taxes.

7. How many functions do taxes have?

a) Taxes have several functions

b) Taxes have some functions

c) Taxes have three functions

Task 6. Match the words to make word partnerships from the text:

1) romantic a) contribution

2) economic b) income

3) local c) welfare

4) financial d) burden

5) tax e) period

6) personal f) authorities

TEXT 3. FORMS OF TAXATION IN ANCIENT TIMES

Task 1. Study the vocabulary:

pharaoh	фараон
biennial	дворічний
limestone	вапняк
households	домогосподарство
share	частка
obsolete	застарілий
seigniorage	сенйораж
Scutage	плата за звільнення від військової служби
Tallage	збори
Tithe	десятина
congestion	скупчення
tax evader	неплатник податків, ухилятися від сплати

Task 2. Read and translate the text:

FORMS OF TAXATION IN ANCIENT TIMES

The first known system of taxation was in Ancient Egypt around 3000 BC - 2800 BC in records are granary receipts on limestone flakes and papyrus. Early taxation is also the first dynasty of the Old Kingdom. Records from the time document that the pharaoh would conduct a biennial tour of the kingdom, collecting tax revenues from the people. Other described in the Bible. In Genesis it states “But when the crop comes in, give a fifth of it to Pharaoh. The other four-fifths you may keep as seed for the fields and as food for yourselves and your households and your children”. Joseph was telling the people of Egypt how to divide their crop, providing a portion to the Pharaoh. A share of the crop was the tax. In monetary economies prior to fiat banking, a critical form of taxation was seigniorage, the tax on the creation of money. Other obsolete forms of taxation include:

Scutage, which is paid in lieu of military service; strictly speaking, it is a commutation of a non-tax obligation rather than a tax as such but functioning as a tax in practice. Tallage, a tax on feudal dependents. Tithe, a tax-like payment (one tenth of one’s earnings or agricultural produce), paid to the Church (and thus too specific to be a tax in strict technical terms). This should not be confused with the modern practice of the same name which is normally voluntary.

(Feudal) aids, a type of tax or due that was paid by a vassal to his lord during feudal times. Danegeld, a medieval land tax originally raised to pay off raiding Danes and later used to fund military expenditures. Carucage, a tax which replaced the danegeld in England. Tax farming, the principle of assigning the responsibility for tax revenue collection to private citizens or groups. Socage, a feudal tax system based on land rent.

Some principalities taxed windows, doors, or cabinets to reduce consumption of imported glass and hardware. Armoires, hutches, and wardrobes were employed to evade taxes on doors and cabinets. In some circumstances, taxes are also used to enforce public policy like congestion charge (to cut road traffic and encourage public transport) in London. In Tsarist Russia, taxes were clamped on beards.

Task 3. Choose the best variant

1. Joseph was telling the people of Egypt how to divide their crop, providing a portion to the …

a) Pharaoh

b) Egypt

c) Old Kingdom

2. In Tsarist Russia, taxes were clamped on …

a) food

b) beard

a) poultry

3. Tax farming, the principle of assigning the responsibility for tax revenue collection to private citizens or …

a) groups

b) societies

c) settlers

4. The first known system of taxation was in Ancient Egypt around 3000 BC - 2800 BC in the first dynasty of the …

a) Century

b) Empire

c) Old Kingdom

5. Early taxation is also described in the …

a) documents

b) Bible

c) narration

Task 4. Fill in the gaps:

The first known system of 1.________ was in Ancient Egypt around 3000 BC - 2800 BC in records are granary receipts on limestone flakes and papyrus. Early taxation is also the first 2.________ of the Old Kingdom. Records from the time 3.________ that the pharaoh would conduct a biennial tour of the kingdom, collecting tax 4.________ from the people. Other described in the 5.________. In Genesis it states “But when the crop comes in, give a 6.________ of it to Pharaoh. The other four-fifths you may keep as seed for the fields and as food for yourselves and your households and your 7._______”. Joseph was telling the people of 8.________ how to divide their crop, providing a portion to the Pharaoh. A share of the crop was the 9.________. In monetary 10.________ prior to fiat banking, a critical form of taxation was seigniorage, the tax on the creation of money.

Economies, dynasty, taxation, Egypt, Bible, fifth, children, revenues, tax, document

Task 5. Choose the best answer:

1. What did some principalities do to reduce consumption of imported glass and hardware?

a) they taxed windows, doors, or floors

b) they taxed windows, doors, or cabinets

c) they taxed windows, doors, or ceiling

2. What was Joseph telling the people of Egypt?

a) how to divide their food, providing a portion to the Pharaoh

b) how to divide their barley, providing a portion to the Pharaoh

c) how to divide their crop, providing a portion to the Pharaoh

3. What were taxes clamped in Tsarist Russia on?

a) beard

b) animal husbandry

c) harvest

4. What was socage?

a) a feudal tax law based on land rent

b) a feudal tax based on land sale

c) a feudal tax system based on land rent

5. What was the tax in Ancient Egypt?

a) a share of the crop

b) a share of money

c) a share of income

6. When and where the first known system of taxation appeared?

a) in Ancient Rome

b) in Ancient Egypt

c) in Ancient Greece

7. For what purpose were armoires, hutches, and wardrobe employed?

a) to evade taxes on doors and flats

b) to evade taxes on doors and windows

c) to evade taxes on cabinets and doors

Task 6. Match the words to make word partnerships from the text:

1) tax a) service

2) public b) tax

3) military c) revenues

4) fuedal d) citizens

5) land e) tax

6) private f) transport

TEXT 4. TYPES OF TAXES

Task 1. Study the vocabulary:

direct tax	прямий податок
indirect tax	непрямий податок
impose	обкладати податком
income tax	прибутковий податок
poll tax	подушний податок
punishment	покарання
proprietary	який складає власність когось
corporation tax	податок на прибуток корпорацій
regressive	регресивний
value added tax	податок на додану вартість
remit	звільняти від (податків)
wholesale	оптова торгівля
retail	роздрібна торгівля
invoice	рахунок
tax evader	неплатник податків

Task 2. Read and translate the text:

TYPES OF TAXES

Taxes are sometimes referred to as direct or indirect. The meaning of these terms can vary in different contexts, which can sometimes lead to confusion. In economics, direct taxes refer to those taxes that are collected from the people or organizations on whom they are imposed. For example, income taxes are collected from the person who earns the income. By contrast, indirect taxes are collected from someone other than the person responsible for paying the taxes.

Income tax is commonly a progressive tax because the tax rate increases with increasing income. Income tax fraud is a problem in most, if not all, countries implementing an income tax. Either one fails to declare income, or declares nonexistent expenses. Failure to declare income is especially easy for non-salaried work, especially those paid in cash. Tax enforcement authorities fight tax fraud using various methods, nowadays with the help of computer databases. Income tax may be collected from legal entities (e.g., companies) as well as natural persons (individuals), although, in some cases, the income tax on legal entities is levied on a slightly different basis than the income tax on individuals and may be called, in the case of income tax on companies, a corporation tax or a corporate income tax.

A poll tax, also called a per capita tax, or capitation tax, is a tax that levies a set amount per individual. The earliest tax mentioned in the Bible of a half-shekel per annum from each adult Jew was a form of poll tax. Poll taxes are regressive, since they take the same amount of money (and hence, a higher proportion of income) for poorer individuals as for richer individuals. Poll taxes are difficult to cheat.

A value added tax (sometimes called a goods and services tax, as in Australia and Canada) 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 manufacturer will pay the VAT on the purchase price, that amount to the government. The manufacturer 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). VAT was historically used when a sales tax or excise tax was uncollectible.

Task 3. Choose the best variant:

1. Direct taxes… refer to those taxes that are collected from the people or organizations on whom they are imposed.

c) are collected from the men

d) are collected from the state and organizations

e) are gathered from the people or organizations

2. Income tax is …

c) a form of punishment for productivity

d) punishment for economic productivity

e) a form of punishment for economics

3. A poll tax is a tax that …

c) levies a set amount per individual

d) levy a set amount per individual

e) levied a set amount per individual

4. A value added tax applies the equivalent of a sales tax to every operation that creates…

d) currency

e) money

f) value

5. Who pays the tax is determined by the …

a) government

b) market place

c) authority

Task 4. Fill in the gaps:

Taxes are sometimes referred to as direct or 1.________. The meaning of these terms can vary in different contexts, which can sometimes lead to confusion. In 2._______, direct taxes refer to those taxes that are collected from the people or organizations on whom they are imposed. For example, income taxes are collected from the 3._______ who earns the 4.________. By contrast, indirect taxes are collected from someone other than the person responsible for paying the 5.________.

From whom a tax is collected is a matter of 6.________. However, who pays the tax is determined by the market place and is found by comparing the price of the good (including tax) after the tax is 7.________ to the price of the good before the tax was imposed. For example, suppose the 8.________ of gas in the U.S., without taxes, were $2.00 per gallon. Suppose the U.S. government imposes a tax of $0.50 per gallon on the 9.________. Forces of demand and 10.________ will determine how that $0.50 tax burden is distributed among the buyers and sellers.

Income, indirect, economics, supply, gas, imposed, law, taxes, person, price

Task 5. Choose the best answer:

1. What should you know about direct and indirect taxes?

c) The meaning of these terms is complex

d) The meaning of these terms can vary in different contexts

e) The meaning of these terms doesn’t differ

2. What is an income tax?

d) Income tax is commonly a regressive tax because the tax rate increases with increasing income

e) Income tax is a progressive tax because the tax rate increases with decreasing income

f) Income tax is a progressive tax because the tax rate increases with increasing income

3. When was VAT historically used?

a) when a sales tax or excise tax was uncollectible

b) when an income tax was uncollectible

c) when a sales tax was collectible

4. What is a poll tax?

d) is a tax that levies a set amount for individual

e) is a tax that levies a set amount per individual

f) is a tax that levies a set amount to individual

5. How do tax enforcement authorities fight tax fraud?

c) using various methods, nowadays with the help of computer databases

d) using various methods, nowadays with the help of rules of law

e) using various methods, nowadays with the help of some regulations

6. From whom may income tax be collected?

a) It may be collected from companies

b) It may be collected from legal entities

c) It may be collected from companies as well as individuals

7. What tax was first mentioned in the Bible?

a) The earliest tax mentioned in the Bible of a half-shekel per capita from each adult Jew was a form of poll tax

b) The earliest tax mentioned in the Bible of a half-shekel per annum from each Jew was a form of poll tax

c) The earliest tax mentioned in the Bible of a half-shekel per annum from each grownup Jew was a form of poll tax

Task 6. Match the words to make word partnerships from the text:

1) indirect a) entities

2) purchase b) distributor

3) legal c) income

4) wholesale d) taxes

5) declare e) tax

6) corporation f) price

TEXT 5. PROPERTY TAX

Task 1. Study the vocabulary:

property tax	податок на власність
ad valorem	цифра, оголошення, реклама
real estate	нерухомість
recurrent basis	поворотний момент
annual charge	щорічна плата
estimate	оцінювати
hearths	домашнє вогнище
inheritance tax	податок на спадщину
deceased	небіжчик
entity	економічна одиниця, юр. особа
lieu	замість
vehicle	автотранспортний засіб
coverage	покриття
exempt	звільняти (від податків)

Task 2. Read and translate the text:

PROPERTY TAX

A property tax (or millage tax) is an ad valorem tax levy on the value of property that the owner of the property is required to pay to a government in which the property is situated. Multiple jurisdictions may tax the same property. There are three general varieties of property: land, improvements to land (immovable man-made things, e.g. buildings) and personal property (movable things). Real estate or realty is the combination of land and improvements to land. Property taxes are usually charged on a recurrent basis (e.g. yearly). A common type of property tax is an annual charge on the ownership of real estate, where the tax base is the estimated value of the property. For a period of over 150 years from 1695 a window tax was levied in England, with the result that one can still see listed buildings with windows bricked up in order to save their owners money. A similar tax on hearths existed in France and elsewhere, with similar results. The two most common type of event driven property taxes are stamp duty, charged upon change of ownership, and inheritance tax, which is imposed in many countries on the estates of the deceased.

In contrast with a tax on real estate (land and buildings), a land value tax is levied only on the unimproved value of the land (“land” in this instance may mean either the economic term, i.e., all natural resources, or the natural resources associated with specific areas of the Earth’s surface).

When real estate is held by a higher government unit or some other entity not subject to taxation by the local government, the taxing authority may receive a payment in lieu of taxes to compensate it for some or all of the foregone tax revenue.

In many jurisdictions, there is a general tax levied periodically on residents who own personal property within the jurisdiction. Vehicle and boat registration fees are subsets of this kind of tax. The tax is often designed with blanket coverage and large exceptions for things like food and clothing. Household goods are often exempt when kept or used within the household. Any otherwise non-exempt object can lose its exemption if regularly kept outside the household. Thus, tax collectors often monitor newspaper articles for stories about wealthy people who have lent art to museums for public display, because the artworks have then become subject to personal property tax. If an artwork had to be sent to another state for some touch-ups, it may have become subject to personal property tax in that state as well.

Task 3. Choose the best variant:

1. There are three general varieties of property …

a) land, improvements to land, and private property

a) land, improvements to land, and personal property

b) land, improvements to land, and state property

2. The tax is often designed with blanket coverage and large exceptions for things like …

a) food and clothing

b) meal and furniture

c) clothing and perfumes

3. A common type of property tax is an annual charge on the ownership of …

a) property

b) real estate

c) household

4. The two most common types of event driven property taxes are stamp duty, charged upon change of ownership, and …

a) inheritance tax

b) excise tax

c) income tax

5. In many jurisdictions, there is a general tax levied periodically on residents who own …

a) private property

b) personal property

c) business property

Task 4 .Fill in the gaps:

A 1.________ tax is an ad valorem tax levy on the value of property that the 2.________ of the property is required to pay to a 3.________ in which the property is situated. Multiple jurisdictions may 4._________ the same property. There are three general varieties of property: 5._________, improvements to land (immovable man-made things, e.g. buildings) and personal property (movable things). 6.________ or realty is the combination of land and improvements to land. Property taxes are usually charged on a recurrent 7.________ A common type of property tax is an 8.________ charge on the 9.__________ of real estate, where the tax base is the estimated 10.________ of the property.

Annual, property, government, value, owner, land, ownership, tax, basis, Real estate

Task 5. Choose the best answer:

1. What may multiple jurisdictions tax?

a) the same property

b) some property

c) any property

2. What is a general tax?

a) tax levied on residents who own personal property within the jurisdiction.

b) tax levied from time to time on residents who own personal property within the jurisdiction.

c) tax levied on residents who own private property within the jurisdiction.

3. What are the three general varieties of property?

a) land, improvements to land, and personal property

b) land, labour and capital

c) land, improvements to land, and business property

4. Where was the window tax levied and for what purposes?

a) window tax was levied in England, with the result that one can still see listed buildings with windows bricked up in order to save their own money.

b) window tax was levied in England, as the result that one could still see listed buildings with windows bricked up in order to save their owners money.

c) window tax was levied in England, with the result that one can still see listed buildings with windows bricked up in order to save their owners money.

5. What is a land value tax levied on?

a) the improved value of the land

b) the value of the property

c) the unimproved value of the land

6. To what kinds of taxes do vehicle and boat registration fees refer to?

a) general tax

b) private tax

c) regressive tax

7. What do tax collectors often monitor?

a) newspaper articles for stories about rich people who have lent art to museums for public display, because the artworks have then become subject to personal property tax.

b) magazine articles for stories about wealthy people who have lent art to museums for public display, because the artworks have then become subject to personal property tax.

c) science articles for stories about wealthy people who have lent art to museums for public display, because the artworks have then become subject to personal property tax.

Task 6. Match the words to make word partnerships from the text:

1) owners a) goods

2) household b) tax

3) personal c) display

4) property d) money

5) public e) authority

6) taxing f) property

UNIT 10. TAXATION SYSTEMS

TEXT 1. TAXES AND TAXATION IN UKRAINE

Task 1. Study the vocabulary:

taxation	оподаткування
compulsory	обов’язковий
expenses	витрати
compute	підраховувати
taxes due	податкове зобов’язання
imposition	оподаткування, обкладання
insurance	страхування
payroll taxes	податок на фонд заробітної плати
turnover taxes	податок з обігу
excise taxes	акцизний збір
value-added taxes	податок на додану вартість
scrutiny	дослідження
advertising	реклама
compulsion	змушувати
justice	справедливість

Task 2. Read and translate the text:

TAXES AND TAXATION IN UKRAINE

Taxation is a system of compulsory contributions levied by a government on persons, businesses, and property used as a source for government expenses and other public purposes.

Fiscal policy means government efforts to keep the economy stable by increasing or decreasing taxes or government spending. For many years, the government tries to raise taxes to fund more and more social and defense program. Besides, government at every level is financed through the collection of taxes. Under state and local laws organizations and individuals are required to compute their tax liability, complete the necessary forms, and pay the taxes due. Many features of taxation, both in the imposition and collection of taxes, are the same in many countries. Government expenses are growing, so, their need in money is big.

Managing taxes means tax implications of all financial transactions. Every business tries to minimize its taxes, so tax accounting has developed into one of the most important branches of accounting throughout the world. Many businesses pay over 50 per cent of their net income to the state government in the form of income taxes, and the rest taxes cover the next 30-40 per cent.

So, careful planning designed to decrease the tax liability to the lowest level is the major concern of a business. On the Other hand, tax computation is under strict scrutiny of Tax Administration.

The fiscal system of Ukraine includes taxes, other compulsory payments to the budget and state purpose-oriented funds. The system of taxes includes general state and local taxes and duties. General state taxes: payments with the same mechanism of performance all over the territory of Ukraine (single dates of payment, benefits, rates). They include value-added tax, excise duty, income tax of citizens, enterprise income tax, land tax, fiscal license tax, tax on the owners of vehicles ; compulsory state pension insurance, charges to State innovation fund, etc. Each Council (Rada) possesses the right to independently determine benefits, rates and dates of local payments. The local taxes and duties include advertising tax, rates, hotel duties, parking tax, tax for issuing a release for location oftrade and service objects, tax for the right to use the local symbolism.

It has been announced by legislation that the fiscal system of Ukraine is based on the following principles: the promotion of production business activities; liability (act under state compulsion); equality; stability; principle of social justice; equivalence and proportionality; compensation. The value-added tax (VAT) is an indirect tax added to the price of goods, works, or services for sale on the territory of Ukraine, import or export.

Task 3 .Choose the best variant:

1. Under state and local laws organizations and individuals are required to compute their tax liability, complete the necessary forms, and pay …

a) the taxes

b) the taxes due

c) the taxes debt

2. The fiscal system of Ukraine includes taxes, other compulsory payments to the budget and state purpose-oriented …

a) taxes

b) obligations

c) funds

3. The system of taxes includes general state and local taxes and …

a) duties

b) rules

c) interest

4. Managing taxes means tax implications of all financial …

a) agreements

b) transactions

c) deals

5. Many features of taxation, both in the imposition and collection of taxes, are the same in many …

a) countries

b) states

c) governments

Task 4. Fill in the gaps:

Fiscal 1.________ means government efforts to keep the economy stable by increasing or decreasing 2.________ or government spending. For many years, the government tries to 3.________ taxes to fund more and more social and defense program. Besides, government at every 4._______ is financed through the collection of taxes. Under state and local laws 5.________ and individuals are required to compute their tax 6._______, complete the necessary forms, and pay the taxes due. Many features of 7.________, both in the imposition and collection of taxes, are the same in many countries. Government 8.________ are growing, so, their need in money is big. Managing taxes means tax implications of all financial transactions. Every 9.________ tries to minimize its taxes, so tax accounting has developed into one of the most important branches of accounting throughout the world. Many businesses pay over 50 per cent of their net 10.________ to the state government in the form of income taxes, and the rest taxes cover the next 30-40 per cent.

Expenses, income, policy, taxation, organizations, liability, business, taxes, level, raise

Task 5. Choose the best answer:

1. What is taxation?

c) is a system of compulsory contributions levied by a government on

individuals, businesses, and property used as a source for government and

other public purposes

b) is a system of compulsory contributions levied by a government on individuals, businesses, and pro

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