The objective of a Corporate Tax Return is to calculate the income tax a corporation owes to _____________ (1) for a relevant tax period. Its preparation involves submitting details of a company’s earnings and payments for a taxable year.
A company’s income tax return must include a tax calculation, which shows how the profits in financial accounts have been adjusted to taxable profit, reported in a company ___________ (2). The process of adjusting accounting income to taxable income is known as ____________ (3).
A starting point in calculation of the amount of corporate income tax is the ______________ (4)before tax, as reported in income statement. The adjustment of accounting profit generally includes: adding non-deductible costs, deducting tax-deductible costs, deducting ____________ (5), adding/deducting the difference between the accounting and tax depreciation.
Generally, costs are tax deductible if incurred in order to generate and maintain taxable income. All costs claimed as tax deductible should be supported by relevant documentation _________ (6), bills,etc). This documentation should evidence that costs are incurred in a relevant period and that conditions for tax deductibility are met.
The result of these adjustments is the adjusted _________ (7), which is multiplied by the ___________ (8) tax rate. The amount obtained in that way can be further reduced by deducting tax reliefs. Usually, this is the final stage in calculation of the amount of corporate income ___________(9).
Exercise 5. Match the words to their meaning
1.net earnings | A.a guess what the amount or value of something might be |
2.taxable profit | B.a reduction in the value of an asset with the passage of time, due in particular to wear and tear |
3.depreciation | C.a payment that is made ahead of its normal schedule |
4.dividends | D.total revenue minus total costs |
5.retained earnings | E.a financial document that summarises company’s revenues and expenses during a year |
6.income statement | F.one of the several payments towards the expected end-of-year tax liability |
7.advance payment | G.the percentage of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business, or to pay debt |
8.instalment | H.to change something so as to be conformed with something else |
9.estimate | I.a profit or loss upon which income taxes are payable |
10.to adjust | J.a share of the after-tax profit of a company, distributed to its share-holders according to the number and class of shares held by them |
SPEAKING FOCUS
a. Why is there a need for Corporate Income Tax in addition to Personal Income Tax?
b. Describe how Corporate Income Tax is calculated and paid in your country
VOCABULARY FOCUS
abolish (v) упразднять, отменять
accounting profit балансовая прибыль
acquisition cost первоначальная стоимость, стоимость приобретения
adjust (v) согласовывать; приспособлять
advance payment авансовый платеж
allocate (v) распределять
annual returns поступления за год
at the discretion of на усмотрение, по усмотрению
balance sheet балансовый отчет
bank statement банковская выписка; выписка с банковского счета
bill документ на оплату
calculated profit расчетная прибыль
carry out (v) проводить, выполнять, осуществлять
compel (v) вынуждать, принуждать, обязывать
corporate profit tax налог на прибыль организаций
debt obligations долговые обязательства
deductible подлежащий вычету при исчислении налоговой базы
dividend income доход от дивидендов
double taxation treaty соглашение об избежании двойного налогообложения
depreciation снижение балансовой стоимости, износ
entrepreneurial business частные компании, предпринимательство
exemption сумма, вычитаемая из налогооблагаемой базы
fiscal accounting финансовая отчетность, налоговый учет
fixed assets материальные активы
gains доходы
gross proceeds валовый доход, продукт
gross receipts валовые поступления
income statement отчет о прибылях и убытках
incurred expenses понесенные расходы
ineligible не имеющий права
invoice счет на оплату; счет-фактура
legal entities юридические лица, субъекты
levy обложение (налогом)
net book value балансовая стоимость
net income чистая прибыль
payroll ведомость заработной платы
permanent establishments постоянные представительства
rendering services оказание услуг
retained earnings нераспределенная прибыль
running costs текущие материально-денежные затраты
split into (v) разбить на
share capital капитал, представленный акциями
subsidiary дочерняя компания
subsurface resources недра
submit (v) подавать
taxable income налогооблагаемая прибыль
tax rate ставка налога
tax reconciliation согласование налоговых данных
tax return налоговая декларация
throughout повсюду, везде
total revenue совокупный доход
transferring party передающая сторона
unincorporated entity организация без образования юридического лица
warehouse склад, хранилище, оптовая база
without consideration не учитывая, не принимая во внимание
worldwide income общемировой доход
PART 3
TOPIC FOCUS: What Is An ICO?
Read the article and answer these questions
1. What is an Initial Coin Offering?
2. Give some examples of ICO?
3. What stages of ICO can you name?
4. Who can launch an ICO?
5. Why is ICO considered to be as a scam?
If there's been one word on the lips of everyone in finance this past year, it's cryptocurrency. If you've been kicking yourself for not getting in on the ground floor of blockbuster coins like Bitcoin and Ethereum, you might want to consider looking into investing in an Initial Coin Offering (ICO). Be warned, however: ICOs are highly risky even under the best of circumstances, and have a high potential for scams.