Vocabulary

European Commission Европейская комиссия

EU, European Union Европейский союз, Евросоюз

Brussels Брюссель

To have second thoughts еще раз вернуться к рассмотрению

Tax on bank interest налог на банковскую процентную ставку

To withhold a tax снизить налог

To impose a tax облагать налогом

Tax treaty налоговое соглашение

To refund the tax withheld сумма, возвращаемая в качестве компенсации при снижении налога

Tax collecting structures системы сбора налогов

To certify удостоверять, заверять

Corporate bond issuer компании, выпускающие облигации

Higher capital costs затраты из основного капитала

European bond markets expanding расширение европейских рынков облигаций

Ready легко доступный, находящийся под рукой

To migrate to other markets перейти на другие рынки

To re-visit пересмотреть

Domestic legislation внутреннее законодательство

To impose requirements предъявлять требования

To overturn свергать, ниспровергать

The special position of UK особый статус принадлежащих

offshore islands Великобритании оффшорных островов

The strongest of reasons веские основания

To urge настаивать, убеждать

Exercise 2. Answer the following questions.

1. What does this article deal with?

2. What is the European Commission proposal? What does it reflect?

3. Why would the EU withholding tax be so damaging for UK?

4. What kind of treaty do member states of the EU have? Speak about the withheld tax refunding?

5. What is the situation of the offshore islands?

6. What are the association’s concerns?

7. What does the association urge the authorities in the UK and Brussels to have?

8. What countries would receive different repayments of up to half of the tax withheld?

9. Where does the remedy of the problem lie in?

Exercise 3. Fill in the gaps with the words and expressions from the text:

1. The __________________________ is proposing a 20 per cent withholding tax on ________________. It is not a measure the UK government should _____________.

2. The UK already, in most cases, imposes a___________________________ of 20 per cent on such interest unless the recipient is able to ________________ that he or she is not ordinarily resident for tax purposes in the _________.

3. If the proposal were to be adopted and the UK were ___________________to deduct tax, this would be a useless piece of ___________________.

4. The UK has ____________________with all the other member states of the EU that would require it to refund the tax ______________________ from residents of those other states, except for residents of Belgium, Italy, Portugal and Spain – who would receive _______________________________ of up to _____________ of the tax withheld.

5. The Commission’s proposals no doubt reflect _________________________ about what it sees as undesirable _______________________.

6. It may be that the ____________________ lies in _____________________ the domestic legislation and tax collection structures of member states affected rather than in seeking to ________________________________ on other states.

7. In particular, the special position of UK offshore islands is not something the UK government should be prepared to ____________________________without the strongest of reasons, even if it is legally and constitutionally _____________ .

8. The association’s concern is with the ____________________________who could face _________________________________, first because of the need to increase the return offered to compensate for ________________________________ just at the time when European bond markets should be expanding to offer corporates ____________________ of funds and, second, because of ____________________ demand from investors who may _____________________ to other markets, for example the US.

9. The association urges the authorities in the UK and Brussels to ________________________________about this most ____________________ proposal.

Exercise 4. Translate the words and expressions below from Russian into English and make up your own sentences with them.

1. системы сбора налогов

_____________________________________________________________________________

2. удостоверять, заверять

_____________________________________________________________________________

3. компании, выпускающие облигации

_____________________________________________________________________________

4. затраты из основного капитала

_____________________________________________________________________________

5. расширение европейских рынков облигаций

_____________________________________________________________________________

6. легко доступный, находящийся под рукой

_____________________________________________________________________________

7. перейти на другие рынки

_____________________________________________________________________________

8. пересмотреть

_____________________________________________________________________________

9. внутреннее законодательство

_____________________________________________________________________________

10. предъявлять требования

_____________________________________________________________________________

11. свергать, ниспровергать

_____________________________________________________________________________

12. особый статус принадлежащих Великобритании оффшорных островов

_____________________________________________________________________________

13. веские основания

_____________________________________________________________________________

14. настаивать, убеждать

_____________________________________________________________________________

Exercise 5. Translate the words and expressions below from English into Russian and make up your own sentences with them.

1. European Commission

_____________________________________________________________________________

2. EU, European Union

____________________________________________________________________________

3. Brussels

____________________________________________________________________________

4. To have second thoughts

____________________________________________________________________________

5. Tax on bank interest

____________________________________________________________________________

6. To withhold a tax

____________________________________________________________________________

7. To impose a tax

____________________________________________________________________________

8. Tax treaty

____________________________________________________________________________

9. To refund the tax withheld

____________________________________________________________________________

10. Tax collecting structures

____________________________________________________________________________

Exercise 6. Find in the text (ex.1) English equivalents for the following Russian phrases from the text:

1. снижение налога на банковскую процентную ставку

_____________________________________________________________________________

2. решение этой проблемы заключается в …

_____________________________________________________________________________

3. пересмотр внутреннего законодательства

_____________________________________________________________________________

4. предъявление требований к другим государствам

_____________________________________________________________________________

5. пересмотр особого статуса оффшорных островов

_____________________________________________________________________________

6. в правовом отношении

_____________________________________________________________________________

7. наша ассоциация обеспокоена положением компаний

_____________________________________________________________________________

8. сопряжены с ростом затрат из основного капитала

_____________________________________________________________________________

9. необходимость увеличить сумму, подлежащую возврату

_____________________________________________________________________________

10. компенсация при снижении налога

_____________________________________________________________________________

11. расширение европейских рынков облигаций

_____________________________________________________________________________

12. с целью предоставления более дешевых и надежных источников наличности

_____________________________________________________________________________

13. снижение спроса со стороны инвесторов

_____________________________________________________________________________

14. переходить на другие рынки

_____________________________________________________________________________

Exercise 7. Single out the main points of the text (ex.1). Use the following opening phrases:

1. The text looks at (the problem of …) …

_____________________________________________________________________

2. The text deals with the issue of …

_____________________________________________________________________

3. It is clear from the text that …

_____________________________________________________________________

4. Among other things the text raises the issue of …

_____________________________________________________________________

5. The problem of … is of great importance.

_____________________________________________________________________

6. One of the main points to be singled out is …

_____________________________________________________________________

7. Great importance is also attached to …

_____________________________________________________________________

8. In this connection, I’d like to say …

_____________________________________________________________________

9. It further says that …

_____________________________________________________________________

10. I find the question of … very important because …

_____________________________________________________________________

11. We shouldn’t forget that …

_____________________________________________________________________

Exercise 8. Match the verbs from (a) with the nouns from (b) below:

a) to support b) the funds

to impose engaging

to adopt anxieties

to refund the legislation

to receive the position

to move the return

to avoid to other markets

to reflect a measure

to re-visit requirements

to overturn a proposal

to increase the tax

to migrate repayments

Exercise 9. Think of and write the nouns that are most commonly used with:

1. to withhold

_____________________________________________________________________________

2. to impose

_____________________________________________________________________________

3. to refund

_____________________________________________________________________________

4. to certify

_____________________________________________________________________________

5. to overturn

_____________________________________________________________________________

6. to return

_____________________________________________________________________________

7. to urge

_____________________________________________________________________________

8. to counter

_____________________________________________________________________________

9. to increase

_____________________________________________________________________________

10. to compensate for

_____________________________________________________________________________

11. to expand

_____________________________________________________________________________

12. to support

_____________________________________________________________________________

Exercise 10. Read the articles filling each gap with a suitable word from the box (in the first article). Then study the vocabulary given after them.

a) Tax Administration

The tax system in Russia has changed significantly ____________________ the past five years. One of the _______________ changes has occurred in the institutional stricture of the country’s tax administration. The Taxation Ministry, which is __________ for the administration of all major taxes, was reorganized in 1991.

This institutional ______________ in the structure of the Ministry has been accompanied by numerous changes of the revenue structure of the _______________. Not only have new ______________ been introduced (the value-added tax and the expended property tax, among others), the revenue-sharing arrangements have also been adjusted a number of times over the last five years. Tax rates themselves have changed a number of __________ over the last five years. Additionally, the privatization of ________________ and the growth of new business have left the Ministry with an increased responsibility to locate and ________________ taxpayers. The growth in the number of self-employed businesses is particularly problematic because these _______________ have a higher rate of non-compliance worldwide since locating evaders is difficult.

Computerization is not widespread, which _________________ collection efficiency even more, and prosecution against evaders is difficult. Finally, the development of new systems of accounting and audit is necessary to _____________ the efficiency of tax collection.

Some of the problems in the area of tax administration are new to Russia, such as the development of new enterprises, the change in the structure of the Ministry, development of international systems of accounting, and increased commerce with foreign firms. These problems continue to exist under the _______________ system of taxation as well.

b) Tax System Design

Recent studies have singled out some of the desired features of the tax system that should emerge as countries develop. They are as follows:

Concentration of revenue sources. A system that raises revenue from a limited number of taxes and rates may substantially reduce administration and compliance costs. Avoidance of numerous taxes may also facilitate the assessment of the effects of policy changes and avoid an impression of excessive taxation.

Broad and objectively defined tax bases. A broad tax base with limited exemptions enables revenue to be raised with relatively low rates. Substantial erosion of the tax base through exemptions requires much higher rates to achieve a given amount of revenue. Tax bases should be defined so as to ensure that producers and consumers can clearly estimate their tax liability when they plan activities.

Minimization of collection lags. In an inflationary environment the real value of tax receipts may decline substantially when there are long lags in payment. High penalties are necessary to ensure that legal delays are not compounded by delinquency lags.

Tax neutrality. The tax system should finance government operations with the least cost and disturbance to the patterns of production, and the generation and use of income. Hence, neutrality of the tax system is considered desirable, in the sense that distortions in incentives should be limited unless there are compelling reasons to discourage the production, consumption or trade of a particular commodity. The activity, most profitable before tax, should remain most attractive after tax.