II. Answer the following questions:

1. In accordance with what are tax inspectors required to work?

2. By whom are losses and other damages caused by tax officers compensated?

3. How many types of tax offices are there?

4. What are the total numbers of tax officers in the various administrative units?

5. On what is the distribution of tax offices over the territory based?

6. What do the central, district and local authorities promote?

7. What is established for the execution of those tasks?

8. Give some examples of local payments.

9. How many employees, including Tax Militia, work, on average, for a tax office?

10. How many people in each tax office are engaged in tax auditing?

11. By whom is the tax administration represented in the Cabinet of Ministers?

III. Give the main ideas of the text, and write a short summery. The peculiarities of the state tax system in ukraine

I. Read and and translate the text:

Major taxpayers classified as large companies may be roughly divided into five groups:

-Power plants (including oil companies, mines, and hydroelectric plants);

-Transport companies;

-Telecommunications companies;

-Trading companies;

-Financial institutions.

Each large companies tax unit has established special teams for those industries in its portfolio. Again, the tax liability is the determining factor for being classified a large company, not the company's size. The fiscal issues of taxpayers other than large companies are dealt with by the local tax offices.

Ukraine has several types (instruments) of tax, such as income tax, profits tax, value added tax, property tax, motor vehicle and road tax, excise, import duties, natural resources tax, local rates, and others (for more details, see paragraph 2.2.1). The local tax offices are organised according to tax instruments (such as value added tax, profits tax, and income tax). As a result a local office has, on average, separate teams for each of some 16 tax instruments of which the most important are value added tax and income tax (including profits tax). In addition to the units for the various tax instruments, a separate department is in charge of tax auditing. In principle, two types of examination are carried out: desk tests (for checking consistency of the tax returns) and audits on site. The audit unit and the relevant tax instrument unit consult each other frequently. If a company has to submit returns for each and every tax instrument, it must fill in and file at the local tax office up to 72 tax return forms each year. For all these tax instruments a separate test or audit can be carried out.

A tax audit can cover more than one tax instrument, and a taxpayer can be audited several times each year. A complex audit for all instruments can only be made once every year. Compared with what is customary in other countries, the audit frequency can be called high. For large companies it is about once each year; for small and medium-sized companies it is once every two years. In theory, a tax audit can cover the last three fiscal years or less if the previous audit took place on a more recent date as, in principle, the same fiscal period cannot be subjected to a tax audit twice. In practice the period covered by an audit is two years at most. Although the auditing period is thus restricted, there is no legal provision that limits the period for which additional assessments can be imposed. Thus in theory, the period for which corrections to tax returns can be made is indefinite. In practice, however, this is not the case, as at the latest a tax audit is carried out every two years and it is not permitted to include in an audit a period that was audited before. An exception is made for the term of supplementary levying of property tax. Under Section 18 of the Property Tax Act and subsequent changes and amendments taxpayers who have not paid taxes for their ownership of land, are not assessed for a period of more than two years ago.

Audits on site (field audits) can only be instituted with the approval of the head of the tax office.