Тема №4: inspection and tests.

Inspection and tests play a very important role in business relations. They help to avoid many problems, which can arise in respect of the quality of the goods in future. The sellers are to test the goods and the buyers have the right to inspect and check the goods.

They usually test the workmanship and quality of the contractual equipment and the materials used.

Inspection and tests are carried out at the expense of the sellers of the buyers. It is stipulated in the contract. The seller is to notify the Buyer of the readiness of the goods for the inspection and test.

The notification of Readiness is to be sent to the Trade Representation in the Sellers’ country and the Buyer is to be provided with copy.

If the buyers’ inspector cannot be present at the test, or if the Sellers fail to receive any information within the said period, the sellers are entitled to perform the test without the Buyers’ inspector.

If the tests have proved that the equipment meets the requirements specified in the Contract, the sellers shall present to the Buyers the Test Report.

The final tests and acceptance of the goods are to be performed in the Buyers’ country after finishing the installation and adjustment of the equipment and achieving quantity and quality requirements stipulated in the Contract.

After the tests have been performed, «Report on the Final Test and Putting the Equipment into Operation» is made and signed by the Sellers and Buyers’ representatives, the detailed results of the tests performed being put in this report.

Тема №5: taxation.

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 (i.e. on wages, salaries, profits, dividends, rent and interest) and on capital are known as «direct» taxes. Taxes on commodities or services are known as «indirect» taxes.

Taxes are considered to have three functions:

1) Fiscal or budgetary, to cover government expenditure, to provide the public authorities with the revenue required for meeting the cost of defence, social services, etc.

2) Economic, to give effect to economy policy, to promote stable economic growth, to influence the rate of economic growth of the nation.

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

Business and individuals are subject to many forms of taxes. The various forms of business organization are not taxed equally.

Russian taxes provide revenue for three tiers of the budget: federal, regional and local The major taxes pain to the budget are: Profit tax; Value-added tax; Securities tax.

Tax returns for Russian legal entities are audited by the tax authorities at the time they are submitted.

Along with cases of illegal evasion of tax obligations there are entirely legal ways of avoidance by which a person may so arrange his affairs as to minimize, or even eliminate, tax liability on his property and income.