2020-09-24
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| 1.tax avoidance | A.illegally avoiding paying taxes |
| 2.tax fraud | B.giving a false or misleading representation |
| 3.tax evasion | C.a country that offers foreign individuals and businesses little or no tax liability in a politically and economically stable environment |
| 4.tax haven | D.a large amount of money transferred out of a country due to economic or political reasons |
| 5.misrepresentation | E.to estimate something to be greater than it really is |
| 6.overestimate | F.legitimization of illegally obtained money |
| 7.underreport | G.the use of legal methods to reduce the amount of tax owed |
| 8.exchange control | H.to record on your tax return that you have earned less than you really have |
| 9.capital outflow | I.an intentional act of falsifying information on a tax return to avoid paying the entire amount of tax obligation |
| 10.money laundering | J.a governmental restriction on the movement of currency between countries |
SPEAKING FOCUS
1. What measures are imposed in your country to prevent tax fraud?
2. How does the government in your country fight against money laundering?
3. Describe an instance of the criminal activity given above that you have heard of or witnessed.
4. What measures does your country apply to prevent capital outflow?
5. Describe the roles tax administration performs in your country.
VOCABULARY FOCUS
abolish (v) отменить, аннулировать
addictive вызывающий привычку
ad valorem tax налог со стоимости (налог в виде
процента от стоимости товара)
alcoholic beverages (pl) спиртные напитки
apply to (v) применяться к
attorney адвокат; юрист
capitation поголовное исчисление (плата,
взимаемая из расчета на одного
человека)
compliance соответствие; соблюдение законодательных требования
constitutional law конституционное право
cirrhosis of the liver цирроз печени
currency conversion конвертирование валюты
disclosure раскрываемые сведения
distillery винокуренный завод
distortion неравномерность
duty обязательство
energy taxation налогообложение энергоресурсов
exchange control валютное регулирование
excise stamp акцизная марка
executive branch исполнительная власть
facilitate (v) способствовать, облегчать
imprisonment тюремное заключение
indispensable необходимый, неотъемлемый
lay down the principles определить курс; сформулировать
принципы
Legislative branch законодательная власть
Low-carbon с низким содержанием углерода
legislation законодательство
license fee лицензионный сбор
legal drug разрешенный наркотик
lung cancer рак легких
misrepresentation представление неверных данных
money laundering легализация доходов, полученных преступным путем
occupation занятие; профессия
offshore banking оффшорное банковское дело
oil refinery завод по переработке нефти
overestimate (v) давать завышенную оценку
per unit в расчете на единицу продукции
privilege привилегия, льгота
refer to (v) относить; касаться; обозначать
scope область применения
shift (v) перераспределять
sin tax налог «на пороки» (на табак, алко-
гольные напитки, азартные игры)
stamp duty государственная пошлина
statute законодательный акт
statutory law право, выраженное в законодательных актах
swathe группа людей, большое количество
tax assessment определение налогооблагаемой базы
tax avoidance уменьшение суммы налога без нарушения закона
tax evasion уклонение от уплаты налогов (незаконное)
tax fraud налоговые махинации
tax haven территория с льготным режимом налогообложения
tax identification number регистрационный номер налогоплательщика
underreport (v) занижать сведения о чем-либо
PART 3
Read the article and answer these questions
1. What are the changes to the Tax Code?
2. What do the Like-kind exchanges stand for?
3. What is the difference between the old tax law and the new one concerning the loss carrybacks?
4. How are short-term and long-term capital gains taxed according to the new Tax Code?
5. What does the new Tax Code allow business to do with the pass-through deduction?
How the New Tax Law Impacts Cryptocurrencies
The tax bill that Donald Trump signed into law in late December represents the most substantive changes to the federal tax code in 30 years, but Congress passed up its chance to clarify matters for cryptocurrency investors, traders, issuers and miners. The community is left with a host of questions and ambiguities; but while the tax bill does not directly address cryptocurrencies such as bitcoin, ether and the tokens issued through ICOs, it does impact them indirectly.
Especially important are changes to five provisions in the tax code: like-kind exchanges, loss carrybacks, the corporate tax rate, the business interest deduction and the treatment of pass-through businesses.
Like-Kind Exchanges
Google "bitcoin tax bill" or some variation, and most of the results will focus on section 1031 of the tax code, which allows capital gains taxes to be deferred for certain "like-kind" exchanges of property for other, similar property. The provision was originally envisioned as a break for farmers swapping livestock, but came to be used for trades in commercial real estate, art and airplanes – and cryptocurrencies.
Loss Carrybacks
A second change to the tax code affects businesses in the cryptocurrency space, such as those raising money by issuing tokens through initial coin offerings (ICOs) or a similar fundraising method known as a SAFT. Under the old tax law, business losses could be carried back two years, a boon to companies that raise money in a token sale one year, then experience operating losses in subsequent years. The new law eliminates loss carrybacks.
Corporate Tax Rates
The central provision of the new tax law is a steep cut in the top corporate tax rate from 35% to 21%. Short-term capital gains are taxed as ordinary income, at marginal rates ranging from 10% to 37% under the new law in 2018. Long-term capital gains – profits from selling assets held for at least a year – are taxed at a top rate of 20%. For traders who hold cryptocurrencies for shorter durations, therefore, the new corporate rate could represent an opportunity.
Pass-through Deduction
The introduction of a new deduction for pass-through entities, which allow business income to be paid through personal tax returns, could also represent an opportunity. The new law allows a deduction of up to 20% of pass-through income, limited to 50% of wages paid by the entity or 25% of wages plus 2.5% of the unadjusted basis of the entity's property.
Business Interest Deduction
The new law doesn't just give, however, it taketh away. Business interest deductibility – previously unlimited – will be capped at 30% of adjusted earnings. Miners in particular appear to be taking on the kind of leverage that runs into the limit. The new cap does not apply to personal interest, so it won't apply to people out there mortgaging their houses to buy bitcoin.
By David Floyd | January 8, 2018
INVESTOPEDIA
https://www.investopedia.com/news/how-new-tax-law-impacts-cryptocurrencies-trump/?utm_source=personalized&utm_campaign=www.investopedia.com&utm_term=12147163&utm_medium=email
CASE STUDY
