VIII. Answer the following questions:

1. What are taxes?

2. What is the purpose of direct and indirect taxation?

3. What functions do taxes perform?

4. What does the budgetary function present itself?

5. How can you characterize the economic function of taxes?

6. What is the role of taxes in the social life of the society?

7. Are businesses taxed equally?

8. How are taxes levied in the US?

9. What is a “schedular” system?

10. What are the assessments based on?

11. What are the major taxes paid to the budget in Ukraine?

12. What does the Ukrainian government try to do in the tax system?

13. How are the legal entities audited in Ukraine?

14. When do the taxpayers have the right to lodge an appeal?

15. In what situations can the same income be taxed twice?

16. How do countries try to mitigate the negative effects of the double taxation?

17. What is the difference between tax evasion and tax avoidance?

IX. Translate into English:

1. Податки є обов’язковими фінансовими внесками окремої особи чи групи осіб на витрати органами державної влади.

2. Податки на прибуток та капітал відомі як прямі податки, а податки на товари та послуги – як непрямі податки.

3. Вважається, що податки виконують три функції: фінансову, економічну, соціальну.

4. Фірми та окремі особи є залежними від багатьох форм податків.

5. В США основним джерелом податкових надходжень є податок на прибуток.

6. В Великобританії податкове законодавство розширюється за рахунок нових податків, що вводяться щорічно при прийнятті фінансового акту.

7. У Великобританії ще не працює система, за якої розмір оподатковуваного прибутку визначається самим платником.

8. В Україні іноземні організації, що постійно працюють на її території, оподатковуються за українськими законами.

9. Головними податками, які сплачуються до бюджету в Україні, є: податок на прибуток, податок на додану вартість (ПДВ), акцизний збір та інші.

10. Багато країн намагаються зменшити пагубні наслідки подвійного оподаткування. Вони укладають договори щодо запобігання подвійного оподаткування.

Taxes in ukraine

I. Read and memorize the following words and word combinations:

Obligatory payment – обов’язковий платіж, payment/fee – плата, to impose a tax – обкладати податком, direct/indirect tax – прямий/непрямий податок, customs duty – митний збір, property tax – податок на власність, excise tax – акцизний збір, income tax – податок на прибуток, value added tax (VAT) – податок на додану вартість.

II. Read and translate the text.

There are different terms for obligatory payments to the state, among them “tax”, “duty”, “payment”, “fee”. A “tax” is a compulsory charge imposed upon persons and businesses for public purposes. Many persons today pay from 25 to 50 percent of their incomes in direct or indirect taxes. “Duty” means payment for import, export, manufacture or sale of goods, customs duties, for transfer of property or for legal recognition of documents. “Fee” is known as a payment for the services of a professional man (for example, a lawyer) or a public body. “Payment” is a paying for work, services or goods bought (payment for land, payment for special use of mineral resources).

In general, there are two kinds of taxes, direct and indirect. The property taxes are direct, as are also income taxes and inheritance taxes. A direct tax is one that cannot be shifted from the person upon whom it is levied to somebody else; it’s a charge on a person’s income or property. An indirect tax is one that may be shifted from the person upon whom it is levied; it’s a charge on the price of goods sold. The excise tax on wines, spirits, and cigarettes is a "hidden" or indirect tax.

The income tax is a direct tax. It is progressive in character, which means that the rate is higher on the higher incomes. It is also an elastic tax. The rates can be quickly changed if the government needs more money. Excise duty is levied on certain consumer goods: petrol and other minerals oils, tobacco products, cars, furs, certain food products, alcohol and alcoholic beverages. Like VAT excise duty is included in the price paid by consumers for these goods. Income tax is a tax on the annual income of individuals, which is at a progressive rate. Import duty is levied on imported goods. Various rates are used: for minerals or raw materials the rates are usually low, but they are higher for finished products. Value added tax is a general consumer tax included in the price paid by consumers for goods and services.