II. Закінчіть речення за допомогою фраз з правого стовпчика: (Score – 8 points)

An enterprise may use sales proceeds for Provision № 72 imposes The procedure of paying out cash on accounts Funds in the amount not exceeding the limit In order to fix a limit an enterprise is The cash limit is valid until Enterprises that have current accounts in several banking establishments

a restriction on the permissible amount of any cash transaction between enterprises. to draw up an application-calculation its own operating costs and disbursements. the day of approval of the new set limit for the following year. is regulated by clause 2.15 of provision № 72. may submit the application-calculation to any banks in which current accounts are opened. may be kept in the cash office of an enterprise at the end of the working day.

III. Знайдіть еквіваленти до наступних словосполучень: (Score – 7 points)

IV. Дайте відповіді на питання до тексту: (Score – 8 points)

1. What is the main document which regulates procedures and conditions for conducting business cash transactions in Ukraine?

2. What may an enterprise use sales proceeds for?

3. What restriction does Provision № 72 impose?

4. How are enterprises to settle in cash with each other and with individuals?

5. Where is the procedure of paying out cash on account regulated?

6. When is individual worker to compile a report on how the funds received were used and to the accounting department after a business trip?

7. What is the cash balance limit of a cash office?

8. What is an enterprise to do in order to fix a limit?

(Total Score – 65 points)

Unit 6. (Total Score – 42 points)

OFFSHORE AREAS AS A MEANS OF SAVING AND AUGMENTING CAPITAL (Score – 12 points)

The word „offshore” is interpreted literally.

In international practice, the definition „offshore” is used to characterise financial centres which carry out financial and credit operation jointly with foreign entrepreneurs on terms that are preferential for the entrepreneurs in a broader sense, „offshore areas” means countries or their territories where the government grants considerable taxation privileges to certain companies owned by foreigners in such areas, which are called offshore, accounting and audit requirements are decreased or absent and trade and customs limits are entirely or partially removed.

What are the advantages of offshore areas?

For countries where offshore areas are located, they are an excellent means of attracting foreign capital and developing their own industrial and social infrastructure.

For foreign entrepreneurs using offshore areas it is a method:

1. to save capital since funds are on account at reliable banks where payment for banking services is not high;

2. to effectively accrue capital. This is facilitated by the alleviation of taxes, as well as by the extent of a free capital flow. For example, in many offshore areas, currency restrictions or currency controls are practically absent. Also, an additional advantage (in the entrepreneurs’ opinion) is the presence on anonymity for businesses using offshore areas and confidentiality of information about those businesses (hereafter − offshore companies). In other words, the real owners of an offshore company may remain unknown by registering the company through trust companies using documents where they indicate the last names of nominal shareholders and people responsible for performing corporate duties and instructions. At the same time, the real owners, through power of attorney, transfer shares into the nominal shareholders’ control. The real owners also limit the scope of the security-related financial operations which may be carrier out by the people mentioned above.

We have already mentioned that offshore areas are only an advantage far certain kinds of companies. That is why, in offshore areas it is expedient to register:

• insurance companies engaged in risk insurance or reinsurance;

• shipping (ship owning) companies using their own, as well as charted vessels during transportation;

• news agencies and companies rendering services in marketing, advertising, management, etc.;

• holding companies.

The Ukrainian legislation provides for protection against the influence on the national economy by offshore areas. For instance, the Law of Ukraine “On the State Privatisation Program” dated May 18, 2000 №. 1723-III forbids companies registered in offshore areas from taking the role of an industrial investor while privatising state property.

Ukrainian entrepreneurs have a real opportunity to become owners of offshore companies overseas. Especially because at present there exists a rather developed market of services in registering companies in offshore areas (having a low taxation level or complete tax exemption).

It should be noted that the list of offshore areas promulgated in accordance with the resolution of the Cabinet of Ministers of Ukraine of March 14, 2001 №.79-p* is not complete. Actually, the number of offshore areas is much greater but domestic entrepreneurs pay attention to such areas Cyprus, the Bahama Island, the Isle of Man, etc.

The list of offshore areas

The British Isles regions	Bahama Island
Olderny	Barbados
Isle of Herncy	British Virgin Islands
Isle of Gersy	Virgin Islands (USA)
Isle of Man	Cayman Islands
The Middle East	Grenada
Bahrein	Bermuda Islands
North, Central and South America	Netherland Antilles
Belize	Terks and Caycos
Dominican Republic	Saint-Kits and Navies
Costa Rica	Africa
Panama	Liberia
Europe	Mauritius
Andorra	Seychelles
Gibraltar	Pacific ocean region
Campione	Vanuatu
Cyprus	China-Hong-Kong (Syangan), Makao (Aomin)
Madeira	Samoa
Malta	Labuan
Monaco	Marshall Islands
Caribbean region	Nauru
Angilia	Niue
Antigua	Cook Islands
Aruba	Singapore

Words and word combinations (Score – 12 points)

Offshore areas	офшорні зони
augmenting	примноження
preferential	пільговий
to accrue	накопичувати
alleviation of taxes	зниження тиску податків
anonymity	анонімність
through power of attorney	на підставі доручення
security-related operations	операції з цінними паперами
reinsurance	перестрахування
to forbid	забороняти
tax exemption	звільнення від податку
promulgated	оприлюднений

1. Дайте відповіді на питання до тексту: (Score – 4 points)

   1. What does the word „offshore” mean?

   2. What are the advantages of offshore areas?

   3. May the real owners of an offshore company remain unknown?

   4. Have ukrainian entrepreneurs an opportunity to become owners of offshore companies overseas?

2. Прочитайте текст ще раз та складіть план тексту. (Score – 6 points)

3. Зробіть письмовий переклад 2, 3 абзаців. (Score – 6 points)

(Total Score – 42 points)

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