1. 3. Answer the questions.

1. What is financial manager responsible for?

2. Is the marketing manager involved in financial decision?

3. What is the role of the treasurer?

4. Does the controller prepare the financial statements?

5. What is the difference between the controller's and treasurer's duties?

6. What does the CFO do?

1. 4. Say whether these statements are true or false and if they are false, say why.

1. Top management is sometimes involved in financial.

2. The treasurer is the only financial executive in small firms.

3. The controller's main responsibility is to obtain and manage the firm's capital.

4. CFO may be a member of the board of directors.

5. Staff members specializing in corporate planning are too drawn into capital budgeting.

61. 5. Match the synonyms:

to involve	to raise money
to executive	plan
responsibility	to draw into
to obtain capital	to look after
to commit	share
to supervise	manager
project	duty
earnings	return
stock	to manage
to oversee	to invest

Lesson 12 taxes

62. 1. Memorize the following words and word-combinations:

a compulsory charge	обов’язкова плата	обязательный платеж
to impose	оподатковувати, обкладати (податками)	облагать (налогами)
to levy	стягувати (податки)	взимать (налоги)
benefit theory	теорія пільг	теория льгот
equal-distribution theory	теорія рівного розподілу	теория равного распределения
ill afford	сприймати вразливо	воспринимать болезненно
burden	тягар	тяжесть
ability theory	теорія спроможності	теория способности
to be aware	усвідомлювати, знати	осознавать, знать
revenue	дохід, надходження	доход, поступление
excise tax	акцизний збір	акцизный сбор
luxury goods	коштовні товари	предметы роскоши
to shift	переміщувати (сь), передавати	перемещать (ся), передавать

63. 2. Read and translate the text.

A tax has been defined as a compulsory charge imposed upon persons and businesses for purposes. Many persons today pay more 20 per cent to their incomes in direct or indirect taxes.

There are the following theories in accordance with which taxes may be levied:

a) There is the benefit theory. According to it, the more benefit you get from the government, the more you ought to pay. Those are in various ways dependent, such as detectives or those who go to free clinics, should pay the greater part of the taxes. This theory is, of course, largely impractical.

b) There is the equal-distribution theory. Each person should pay the same tax, say a 3 per cent rate. Proportional taxes do not distribute the burden of taxation equitably.

c) There is the ability theory. Adam Smith expressed this theory nearly two centuries ago: “The subject of every state ought to contribute toward the support of the government as nearly as possible in proportion to their respective abilities, that is, in proportion to the revenue which they respectively enjoy under the protection of the state”.

In general, there are two kinds of taxes, direct and indirect. The property taxes are direct, as 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. An indirect tax is one which may be, and usually is, shifted from the persons upon whom it is levied. The sales tax is an indirect tax. It is levied, not directly on the individual, but on goods which the individual purchases. And some people are not aware that they are paying it. The excise tax on wines, spirits, and cigarettes is a “hidden” or indirect tax.

Governments often prefer to raise money by indirect taxes because they are less noticeable and seem less burdensome. Indirect taxes are sometimes levied on luxury goods on the theory that those who can afford these luxuries should pay for the privilege of enjoying them.

The income tax, it has been said previously, is a direct tax. It is progressive in character, which means that the rate is higher on the higher incomes. Further, it is an elastic tax. The rates can be quickly changed if the government needs more money. One defect of the income tax is, of course, the fact that some people make no returns at all or make false returns on their tax sheet. It is this necessary for the government to keep a small army of officials to check on dishonesty.