E

Column B

1. a tax levied on the exchange of goods and services at one or more stages in the process of distribution.

2. a tax is levied on the wealth or income of individuals. Income, wealth, and inheritance taxes and social security charges are examples of this tax.

3. a tax that is levied on expenditure, such as a sales tax imposed at the retail level, excise tax, or value-added tax.

4. an indirect tax on consumption that is levied at each discrete point in the chain of production and distribution, from the raw material stage to final consumption.

5. a tax imposed by a government on the operation of motor vehicles, usually based on weight or engine displacement.

6. the foreign manufacture of goods by a domestic firm primarily for import into its home market.

Column a

1. VAT;

2. Sales tax;

3. Road tax;

4. Offshore manufacturing

5. Direct tax;

6. Indirect taxes.

x.9. Match each term in Column A with its definition in Column B:

Ex. 10. Write several paragraphs on the following using given words and word combinations:

1. taxes:

compulsory; contribution; expenditure; a source of government revenues; taxes on income; taxes on capital; “direct” taxes; taxes on commodities; “indirect’ taxes.

2. functions of the taxes:

fiscal function; expenditure; the public authorities; revenue; a cost of defense; social services, interest payments; municipal services; economic function; economic policy; to influence; the rate of economic growth; social function; to increase; welfare; to lessen inequalities; income; wealth.

c) taxation in the USA:

federal government; revenues; personal income tax; gross receipts; corporate income tax; percentage; individual states; to levy; to impose; a double tax burden; the after-tax income; stock-holders.

4. Tax system in Ukraine

legal entities; foreign investment; profit tax law; foreign entities; permanent establishment; law; to provide; revenue; national and local budgets;: profit tax; Value-added tax (VAT); securities tax; withholding tax; government; to create; to thrive; to attempt; tax allowances; to deprive; tax revenues; to improve; tax collection.

 iii. ORAL Practice

A. Dialogue

1. Read and translate the dialogue in pairs: Taxation in Ukraine

Foreigner: I hear that many Ukrainians complain that taxes are too high in Ukraine, personal income tax, for example.

Ukrainian: I can’t agree with you here. The existing 15% income tax on personal income under 20 thousand hrivnas a year is not too heavy.

Foreigner: There are many rich people in Ukraine now. How are higher incomes taxed?

Ukrainian: Progressive income tax is applicable in such cases. The larger the income, the bigger proportion of it is paid as tax. The upper limit of the tax rate is 25% at the moment.

Foreigner: Do businesses involved in intermediary activities, including stock exchange activities, banking and insurance pay similar taxes?

Ukrainian: No, such businesses pay taxes on profit and insurance pay similar taxes.

Foreigner: Well, your profit tax is also comparable to other countries’ taxes, isn’t it?

Ukrainian: Yes, but the tax burden on businesses is too high, because along with the profit tax, enterprises pay VAT, excise tax, property tax and other local taxes. They also pay changes to the Pension Fund, Employment Fund, and Social Insurance and Medical Insurance Funds.

Foreigner: VAT and excise are indirect taxes which are levied on transactions and are included into the selling price. They are paid by consumers and not by producers.

Ukrainian: Yes, you are absolutely right, but higher prices often cause sales problems.

Foreigner: As to the VAT, do you use a flat rate for all goods?

Ukrainian: No, a reduced rate of 10% is applicable to foodstuffs and goods for children.

Foreigner: In this connection, are there many tax allowances in Ukraine now?

Ukrainian: Quite a lot, but in the situation of growing tax evasion the government plans to do away with many tax breaks.