8. Be ready to speak on the topic.

10. Завдання до другого модуля до практичних занять № 27,28,29 на тему «Податки та оподаткування».

Taxation

1. Learn the new vocabulary to the topic:

net trading profits	чистий торгівельний прибуток
a badly run company	компанія, керівництво якою здійснюється погано
tax (direct, indirect)	податок (безпосередній, непрямий)
taxation	оподаткування
expenditure	видатки, витрати
corporation tax	корпоративний податок
income tax	податок на прибуток
earnings	заробіток, находження, дохід, прибуток
legal entity	юридична особа
fiscal revenue	бюджетні надходження
reserves	резерви
tax rate	ставка податку
sales tax	податок з обороту
excise duty	акцизний податок
to levy a tax on, to assess a tax	обкладати податком
value added tax	податок на додану вартість
to exempt from a tax	звільнити від оподаткування
rebate on export	зниження податкової ставки на експорт
tax deductions	відрахування податків
taxable income	дохід, що підлягає оподаткуванню
to collect taxes	стягувати податки

2. Read and translate the text:

International Taxation

Taxation is used to finance government expenditure. It represents a transfer of income from individuals, groups and organizations to the government.

Taxes may be classified under various headings, the commonest distinction being "direct" and "indirect'' taxation. Anyone paying direct tax (e.g. income tax) cannot shift this liability onto others. Taxes on goods, on the other hand are traditionally regarded as 'indirect". Corporation and individual income taxes are direct; value-added taxes, sales taxes, and import or excise duties are indirect taxes.

Income tax is usually collected at source. Employers compute, deduct and remit the tax to be paid on their employees' earnings.

Corporation tax, a tax on the income of companies which are distinct legal entities, is a major source of fiscal revenue. The net income of a corporation constitutes the tax base, irrespective of whether such net trading profits are paid as dividends or kept as reserves. Corporation income taxes vary among the countries. Less developed countries usually have lower corporation tax rates in order to attract foreign investment.

Sales taxes and excise duties are the best known examples of indirect taxes. The distinction between excise duties and sales taxes is based on the scope of coverage. Excise duties are levied on particular commodities e.g. tobacco, alcohol, petrol, while sales taxes apply to a broad range of goods and services. Sales taxes are charged on top of excise duties, wherever the latter apply, so that anyone buying cigarettes or petrol will, in effect, not only pay excise duties but also a sales tax on fop.

The best known kind of sales tax, value added tax (VAT) has won recognition in the European Common Market. This is a national sales tax levied at each stage of production or at the sale of consumer _ goods. The tax is assessed in proportion to the value added during that stage. Generally, manufacturing goods, such as plant and equipment, have been exempted from this tax. In most cases, food items also have been exempted. Here is an example of how VAT works. A tree owner who sells part of a tree to a lumber mill for $1 must set aside ten cents

VAT to pay to the government. The lumber mill processes the tree into building material and sells the wood for $3 to a lumber wholesaler. The mill adds $2 in value and thus sets aside 10 percent of the added value, or twenty cents, to pay to the government. And so the VAT continues until the final sale.

The VAT system offers advantages, such as rebates on exports. Profitable and unprofitable firms are taxed alike, as there is no possibility of tax deductions to determine taxable income. A badly run company is, therefore forced to improve or go out of business. Further, VAT is easy to calculate and collect. But VAT is often accused of having contributed to serious inflation in countries where it was introduced.