4. Make a short essay on the following:

• The purposes of direct and indirect taxation.

• The purposes of excise duties.

• What are “tax havens”?

 READ AND DISCUSS

1. A) Supply the articles where necessary.

b) Write down 3-5 questions about the text.

c) Say if you have learned about the system of tax administration in the UK.

The British Government's programme of tax reform has sought to maintain ... climate in which business can thrive and individual initiative is rewarded. Its major aims are … following: to keep … tax burden as low as possible through firm control over public expenditure, to maintain … broad tax base, which helps to keep tax rates low, and to shift the balance of taxation from taxes on income to taxes on expenditure. Steps have also been taken to close tax loopholes. The government is committed to simplifying ... .administration of ... tax system, both for individuals and for companies. The government admits that there are four general principles for ... efficient administration of tax system; ... clarify, continuity, cost-effectiveness and convenience.

At present, the Inland Revenue assesses and collects ... taxes on income, profits and capital, and stamp duty.

Taxes on individual incomes are generally progressive in that larger incomes bear ... greater amount of tax.

In general, income tax is charged on all income which originates in … Britain and on all income arising abroad of people resident in Britain. Some forms of income, however, are exempt.

Britain has entered into … agreements with many countries to provide relief from double taxation. Most wage and salary earners pay their income tax under a Pay-As-You-Earn (PAYE) system whereby is deducted and accounted for to the Inland Revenue by the employer

The rates of company tax in Britain are lower than in … most other industrialized countries. A company which distributes profits to its shareholders is required to pay advance corporation tax (ACT) on these distributions to ... Inland Revenue.

Words you may need:

reward – нагороджувати

tax base – податкова база

loophole – лазівка

stamp duty – гербовий збір

charge – стягувати

advance corporation tax – авансовий корпоративний податок

2. A) Supply prepositions where necessary.

b) Write down 3-5 questions about the text.

c) Explain the functions performed by excise duties.

What Is an Excise Duty?

Indirect taxes are divided ... general and special taxes ... consumption. The general tax on consumption, value-added tax, or VAT, is levied … more or less all products and a large number of services. The special taxes on consumption are, … the other hand, levied on specifically selected products and services. For historical reasons, they are generally known as excise duties.

As far as payments to the state are concerned, it is common to distinguish … taxes and charges. A charge usually relates to the provision of a particular service or function ... the state. The charges paid to obtain license or a passport are typical cases.

Payment... a tax does not entail any direct counter-performance the part of the state. The revenue from taxation is used – via the state budget – to finance all government activities, including defense and the education system, … instance.

In the case of excise duties, the government does not provide any specific services … those who pay these taxes. The revenue .. excise duties is stated .. the state budget. Therefore, these excise duties, even through they are sometimes called charges are in reality taxes in the true sense of the word.

Most of the excise duties in Sweden were introduced for other purposes than merely to provide income … the state. They can, … fact – in contrast … other taxes – also be used as instruments to influence consumption patterns in a desirable direction for the society. The introduction of an excise duty is, as a rule, based .. both public finance requirements and other political considerations.

The taxes on energy, spirits, wine and tobacco are typical examples of excise duties used as instruments ... influence. They are also some of the oldest Swedish excise duties. The charge … pesticides and insecticides is another, more recent example of an excise duty which Was introduced to restrict the usage of pesticides and insecticides ... health and environmental reasons.

In Sweden excise duties now account... a significant proportion of the state's revenue. The annual cost to the Swedish government of administering excise duties (personnel, premises, computers, etc,) amounts ... 0.06 per cent of the total revenue from these taxes.

Words you may need:

excise duty – акцизний збір, акциз

distinguish – проводити відмінність

relate (to) – бути пов’язаним

entail – волоти за собою

counter-performance – дія у відповідь

via – через

amount (to) – досягати, складати