2020-09-24
845
1. (two words) Tax consequences ______________
2. (two words)Tax effect ______________
3. To lessen the effectiveness ______________
4. To bring into agreement; make compatible or consistent ______________
5. Acting in advance of a future situation; anticipatory _______________
6. (two words) An analysis of a financial situation from a tax perspective, aimed at aligning financial goals with tax efficiency _______________
7. (two words) An amount that can be taken off a business’s profit figure when calculating tax, to allow for the fact that an asset has lost part of its value during a particular period of time _______________
8. (two words) Dividing income among family members _______________
9. (three words) To postpone tax liability _______________
10. (two words) A situation when the amount of income received from investment is less than the interest expense _______________
Exercise 3. Complete the sentences with the words from the box:
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1. What are the __________ of foreign property ownership?
2. Tax planning involves _________ financial goals with tax implications.
3. __________ refers to the process of transferring income from the hands of one family member to another.
4. The key to effective tax planning is to ________ for as long as possible in order to invest money, earn income, reduce debt, and to make other purchases.
5. ___________ from one year to another is one way to cut tax liability.
6. In many countries, some ___________ payments are tax deductible.
7. In certain cases, taxpayers can claim __________ to recover part of the costs associated with property.
8. In general, it is considered advantageous to delay the __________ as long as possible.
9. ____________ is a measure of how much of the return on an investment is left over after the taxes are paid.
10. ___________ can be used to offset future years’ capital gains.
| defer tax liability | tax efficiency | reconciling |
| depreciation allowances | shifting income | splitting income |
| capital loss carryforwards | tax implications | fringe benefit |
| realization of capital gains | ||
GRAMMAR FOCUS:
Exercise 4. Reported Speech.
Relate the fragments from the conversation to your colleague.
Mark: ‘I am going to analyse the client’s investment portfolio as soon as possible.’
Sue: ‘I have advised the client to shift income to the next year.’
Jane: ‘We must insist on salary packaging that includes non-cash benefits.’
Richard: ‘We failed to defer the realization of capital gains.’
Ann: ‘I always try to reconcile financial goals with their tax implications.’
Example: Mark said that he was going to analyse his client’s investment portfolio.
Exercise 5.
Relate to your partner the conversation from a meeting you have recently been to.
Exercise 6. Text completion.
Read the text and complete it with the following words.
fiscal sovereignty uniform tax system tax harmonization
thresholds origin-based bilateral
indirect taxes discriminatory tax measures double taxation
Tax Harmonisation
Creating conditions for free movement of goods, labour and services requires a tax system that is based on a common set of rules. The process of convergence of tax system, or ________________ (1), is of particular importance for the European Union. This is because proper functioning of a single market necessitates elimination of _______________ (2), such as customs duties and trade barriers.
Tax harmonization can take different forms and may involve harmonization of either tax bases or tax rates, or both of them (full harmonization). However, there are many obstacles to achieving that goal. These obstacles are primarily the result of unwillingness of member states to surrender their tax and _____________(3) to the EU on account of various economic, political and social reasons.
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In consequence, the creation of a _________________(4) is no longer the primary objective within the EU. Instead, it strives towards approximation of national tax system and harmonization of ___________ (5), VAT in particular.
VAT Harmonisation
Although VAT is relatively easy to administer within a single country, it becomes more complex when businesses operate across borders, and more than one country imposes their VAT regulations. In order to prevent ___________(6), most EU countries have adopted the destination-based principle of taxation, under which VAT is levied in the country where the taxed product is being sold. An alternative to destination principle is the __________(7) principle, which requires that VAT is collected in the country where production takes place.
Direct Tax Harmonisation
Harmonization of direct taxes proved a difficult task due to numerous discrepancies between member countries. Those discrepancies arise from different mechanisms for calculation of tax base, different levels of tax rates, different tax-free ____________(8) and different forms of taxation in general.
Double Taxation Agreements
Since many businesses or individuals, residents in one country, earn taxable gains abroad, they may be subject to taxation in both countries. In order to prevent this from happening, many countries have signed _________(9) double taxation agreements. Under the provisions of these agreements, taxpayers are usually required to pay a tax in the country of residence and are exempt from payment in the country in which the gain was earned.
Exercise 7. Match the words below to their definitions.
| 1.convergence | A.something that makes imports and international trade more difficult or expensive |
| 2.tax harmonisation | B.the principle under which value added taxes are kept by the country where the taxed product is being sold |
| 3.discriminatory | C.the process of eliminating the tax barriers and discrepancies between the tax systems |
| 4.trade barriers | D.the principle under which value added taxes are kept by the country where the production takes place |
| 5.sovereignty | E.the state of becoming similar, but not the same |
| 6.uniform | F.complete independence and self-government |
| 7.approximation | G.treating particular people, companies or products differently from others, especially in an unfair way |
| 8.double taxation | H.conforming to one principle, standard or rule |
| 9.destination principle | I.the process of gradually changing to become similar |
| 10.origin principle | J.a situation in which two or more governments charge tax on the same income or property |
SPEAKING FOCUS
1. What tax planning strategies do you find most effective and why?
2. What tax planning strategies do companies in your country employ to reduce the amount of taxable income?
3. You are a tax adviser engaged by your partner’s company to improve their tax position. Suggest several tax planning strategies and explain how they might help.
4. Describe the impact that tax harmonization produces on your country.
VOCABULARY FOCUS
accrue (v) накапливать
Americas Северная и Южная Америка
appealing привлекательный
approximation приблизительное соответствие
attribute (v) приписывать
be subject to smth. подлежать; подпадать под действие;
подвергаться
Book of Genesis Книга Бытия
bounty нажива, награда
carve (v) вырезать
clay tablet глиняная дощечка
compliance соблюдение законодательных требований
compliant behaviour уступчивость
conceal (v) скрывать, утаивать
convergence сближение; взаимодействие
dedicate (v) предназначать
defer (v) откладывать; переносить срок
depreciation allowance налоговая скидка на износ основных средств
derive from (v) происходить от; выводиться из
double taxation двойное налогообложение
donate (v) жертвовать; дарить
encounter (v) столкнуться
enforce (v) вводить в действие; воплощать
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в жизнь соблюдение законов и
правил
entrench (v) укреплять; укоренять
excessive чрезмерный; повышенный;
непомерный
fiscal sovereignty налогово-бюджетный суверенитет
flat tax фиксированный подоходный налог
fringe benefits льготы и привилегии
grievance недовольство
hefty внушительный; значительный
headgear головной убор
institute (v) учреждать; устанавливать
Jew иудей
large-scale широкомасштабный; большой
levy (v) собирать; облагать (налогом)
make up for (v) возмещать, компенсировать что-то
medieval средневековый
mercenary военный наемник
militiamen полиция
negative gearing отрицательный механизм
“No taxation without representation” не может быть налогов, если пла-
тельщики не имеют представителей
в налогооблагающем органе
nobility аристократия; дворяне
nomad кочевник
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poll tax подушный налог
produce продукция; сельскохозяйственная продукция
property tax налог на собственность
reconcile (v) улаживать; совмещать
repeal (v) аннулировать (закон); признать
утратившим действие
rule over (v) править; управлять
salary packaging система заработной платы
scaled вычисленный; со шкалой
shift (v) перемещать, передвигать; перекладывать
single market единый рынок
split (v) отделять; разделять на части
staples основные предметы торговли
strife вражда; противостояние
take over (v) поглощать; забирать
tax burden налоговая нагрузка
tax code налоговый кодекс
tax harmonization унификация налогового законодательства; согласование налоговых режимов
tax implication воздействие налогообложения
tax planning оптимизация налогообложения; налоговое планирование
timing определение сроков; время осуществления
tribute дань, подношение
turmoil беспорядки, массовые волнения
undermine (v) разрушать; подтачивать; негативно влиять
uniform tax system единая налоговая система
wearisome утомительный, изнурительный
weigh (v) довлеть, тяготеть
weird необычный, причудливый
wig парик
PART 3
