7. Summarize the information of the unit and speak on the topic: Business Organizations

Unit 5 Taxation

Taxes are a compulsory financial contribution by a person or groups of persons to the expenditure of public authorities. In modern economies taxes are the most important source of government revenues. Taxes imposed on income (on wages, salaries, profits, dividends, rent, interest) and on capital are known as “direct” taxes. Taxes on commodities or services are known as “indirect” taxes.

Taxes have three functions:

- fiscal or budgetary, to cover government expenditure, to provide the public authorities with the revenue required for meeting the cost of defence, social services, interest payments on the national debt, municipal services, etc;

- economic, to give effect to economic policy, to promote stable economic growth;

- social, to increase the economic welfare of the community.

Businesses and individuals are subject to many forms of taxes. The various forms of business organizations are not taxed equally. The tax situation is simpler for proprietorships and most partnerships while companies are levied differently.

Russian taxes provide revenue for three tiers of the budget: federal, regional and local.

The major taxes paid to the budget are: profit tax, value-added tax, securities tax. Tax

returns are audited by tax authorities at the time they are submitted.

If a company or a person assessed believes the assessment is incorrect in any way, an appeal may be lodged against it. The appropriate financial organ is required by law to reply to such an appeal within five days.

We should say that along with cases of illegal evasion of tax obligations there are legal ways of avoidance by which a person or a business may so arrange affairs as to minimize or even eliminate tax liability on property and income.

Words and expressions

compulsory (adj) - принудительный, обязательный

contribution (n) - вклад

make a contribution - сделать вклад

a contribution to smth. - вклад во что-либо

public authorities - органы государственной власти

source (n) - источник

revenue (n) - доход

to collect revenue - получать доход

annual, yearly revenue - годовой доход

net revenue - чистый годовой доход

impose (v) - облагать налогом

e.g. A special tax is imposed on very high incomes. - Очень высокие доходы облагаются специальным налогом.

direct taxes - прямые налоги

indirect taxes - косвенные налоги (налог на товары или услуги, а не на частное лицо или компанию)

provide (v) - обеспечивать

to provide smb. with smth. - обеспечивать кого-либо чем-либо

defence (n) - оборона

municipal services - муниципальные услуги

give effect - осуществлять, приводить в исполнение

promote (v) - способствовать, помогать, содействовать

welfare (n) - благосостояние

levy (v) - взимать налог, облагать налогом

to levy a tax on smb. - облагать кого-либо налогом

tier (n) - уровень

value-added tax (VAT) - налог на добавленную стоимость (НДС)

securities tax - налог на ценные бумаги

tax return - налоговая декларация

tax authority - налоговый орган

submit (v) - представлять на рассмотрение

to submit smth. to smb. – представить что-либо кому-либо

e.g.They submitted their report to us. - Они представили нам на рассмотрение свой доклад.

assess (v) - облагать налогом

lodge (v) - подавать жалобу, прошение

illegal evasion of tax obligations - незаконное уклонение от налоговых обязательств

avoidance (n) - избежание (минимизация налоговых обязательств законным путем)