Unit 5. Economics and trade теxt 5.1 taxation

1. Practice the pronunciation of the following words

finance(v/n), expenditure, levy, wages, salary, impose, death, inherited, estate, taxed, employee, final, value-added, Australia, New Zealand, Singapore, excise, tobacco, tariff, percentage, proportional, actually, gasoline, petrol, instead, perk, multinational, haven, Liechtenstein, Monaco, the Cayman Islands, the Bahamas, minimize, burden, avoidance, technicality, inaccurately, evasion, penalties

2. Read and memorize the following words and word-combinations

   • to levy - стягувати, збирати (податки тощо) ; оподатковувати

   • income tax - прибутковий податок

   • capital gains tax - податок на збільшення вартості капіталу; податок на приріст капіталу; податок на реалізований дохід від приросту вартості активів

   • capital transfer tax - податок на передачу капиталу

   • inherited money or property – успадковані гроші або власність

   • death tax - податок на спадщину

   • inheritance tax or estate tax – податок на спадщину

   • corporation tax - податок на доходи корпорацій; податок на корпорації; податок на дохід юридичних осіб

   • social security spending – витрати на соціальне забезпечення

   • value-added tax податок на додану вартість, ПДВ

   • sales taxes - податок з обігу; податок на продаж

   • excise tax - акцизний податок, акциз

   • excise duties - акцизні збори

   • perks – додаткові пільги

   • tax haven - територія з пільговим режимом оподаткування; податкове сховище; податкова оаза

   • to minimize a tax burden - применшувати податковий тягар

   • tax avoidance - зниження суми оподаткування (законним чином) ; мінімізація суми оподаткування; мінімізація податків

   • avoidance - уникнення, ухилення

   • loophole - лазівка

   • technicality – юридичні тонкощі

   • tax evasion – ухиляння (обминання, обхід (закону))від сплати податків

   • evasion - обминання, обхід (закону)

   • to lead to big penalties – приводити до великих штрафів

III. Read and translate the texts. Direct taxes

Governments finance most of their expenditure by taxation. If they spend more than they levy or charge in taxes they have to borrow money.

Direct taxes are collected by the government from the income of individuals and businesses.

• Individuals pay income tax on their wages or salaries, and most other money they receive.

• Most countries have a capital gains tax on profits made from the sale of assets such as stocks or shares. This is usually imposed or levied at a much lower rate than income tax.

• A capital transfer tax (commonly called death duty in Britain) is usually imposed on inherited money or property. Other names for this tax are inheritance tax or estate tax.

• Companies pay corporation tax on their profits. Business profits are generally taxed twice, because after the company pays tax on its profits, the shareholders pay income tax on any dividends received from these profits.

• Companies and their employees also have to pay taxes (called national insurance in Britain) which the government uses to finance social security spending – unemployment pay, sick pay, etc.

BrE: corporation tax; AmE: income tax