Vocabulary

Progressive income tax прогрессивный подоходный налог

Applicable применимый, пригодный, подходящий

Comparable сравнимый

Excise tax акциз, акцизный налог

Charge сбор, отчисление

Pension Fund Пенсионный фонд

Employment Fund Фонд занятости

Social Insurance Fund Фонд социального страхования

Medical Insurance Fund Фонд медицинского страхования

Selling price продажная цена

Sales problem проблема сбыта

Flat rate единообразная ставка

Reduced rate льготная ставка

Tax allowance налоговая льгота

Tax break налоговая льгота

Anxiety беспокойство, обеспокоенность

Imputed tax вмененный налог

Tax deferment отсрочка налога

To deprive лишать

Giant гигант

To owe быть должным

Clear-cut and stable legislative base четкая и стабильная законодательная база

Hasty, ill-considered decisions скороспелые, плохо продуманные решения

Adversely отрицательно, неблагоприятно

To affect сказываться

To earn income получать доход

To rent equipment сдавать оборудование в аренду

To stifle душить

Exercise 12. Answer the following questions

1. What is the attitude towards taxes in Russia?

2. How are personal incomes taxed in Russia?

3. How are businesses taxed in Russia?

4. How do taxes on businesses in Russia compare with similar taxes in other countries?

5. Are there any tax breaks in Russia?

6. What privileges exist for small businesses?

7. What’s the attitude of government officials towards tax exemption and tax deferment?

8. Is tax collection satisfactory in Russia at the moment? What are the reasons for the poor collection of taxes?

9. Is there any discrimination against foreign companies?

10. Do Russian tax authorities draw on Western experience?

Exercise 13. Find the Russian equivalents for the following:

1. personal income tax

__________________________________________________________________________

2. to tax higher incomes

__________________________________________________________________________

3. to be applicable

__________________________________________________________________________

4. the upper limit of the tax rate

__________________________________________________________________________

5. juridical persons

__________________________________________________________________________

6. intermediary activities

__________________________________________________________________________

7. to cause sales problems

__________________________________________________________________________

8. tax allowances

__________________________________________________________________________

9. a growing tax evasion

__________________________________________________________________________

10. to do away with tax breaks

__________________________________________________________________________

11.to be under a big question mark

__________________________________________________________________________

12. an imputed tax on income

__________________________________________________________________________

13. tax deferments

__________________________________________________________________________

14. to deprive the state budget

__________________________________________________________________________

15. to provide a clear-cut and stable legislative base

__________________________________________________________________________

16. to earn income from renting equipment

__________________________________________________________________________

17. to borrow experience

__________________________________________________________________________

Exercise 14. Find the synonyms for the words in italics

1. Many Russians complain that the taxes are too high.

2. There are many rich people in Russia now.

3. Progressive income tax is applicable in such cases.

4. The upper limit of the tax rate.

5. The tax rate depends on what each particular business is involved in.

6. Do businesses…. Pay similar taxes?

7. Your profit tax is comparable to other countries’ taxes.

8. Along with the profit tax, enterprises pay VAT.

9. Higher prices often cause sales problems.

10. Are there many tax allowances in Russia now?

11. The government plans to do away with many tax breaks.

12. There is a good deal of anxiety…

13. Taxes must be used to support not to stifle business.

Exercise 15. Translate the sentences into English.

1. Насколько я знаю, многие россияне жалуются, что налоги в России слишком высокие, например, подоходный налог.

____________________________________________________________________________________________________________________________________________________

________________________________________________________________

2. В подобных случаях применяется прогрессивный подоходный налог.

____________________________________________________________________________________________________________________________________________________

________________________________________________________________

3. Верхний предел налоговой ставки в настоящее время составляет 35 %.

____________________________________________________________________________________________________________________________________________________

________________________________________________________________

4. Юридические лица, занимающиеся предпринимательской деятельностью, платят 13% в федеральный бюджет и до 25 % в региональный бюджет.

____________________________________________________________________________________________________________________________________________________

________________________________________________________________

5. Налоговое бремя слишком тяжело для предприятий, поскольку наряду с подоходным налогом, они должны платить налог на добавленную стоимость, акцизный налог, налог на собственность и другие местные налоги.

______________________________________________________________________________________________________________________________________________________________________________________________________________________________

________________________________________________________________

6. Они также производят отчисления в Пенсионный фонд, в Фонд занятости, в Фонды социального и медицинского страхования.

______________________________________________________________________________________________________________________________________________________________________________________________________________________________

________________________________________________________________

7. Эти налоги оплачиваются потребителями, а не производителями.

____________________________________________________________________________________________________________________________________________________

________________________________________________________________

8. Что касается налога на добавленную стоимость, используете ли вы единообразную ставку налога на все товары?

___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

9. У малых предприятий существует альтернатива: либо они платят вмененный налог на прибыль, либо они платят налоги в установленном порядке и соответственно имеют некоторые отсрочки.

______________________________________________________________________________________________________________________________________________________________________________________________________________________________

________________________________________________________________

10. Я считаю, что государство должно обеспечить четкую и стабильную законодательную базу для малых предприятий.

____________________________________________________________________________________________________________________________________________________

________________________________________________________________

11. В ситуации растущей неуплаты налогов государство планирует отменить многие налоговые льготы.

____________________________________________________________________________________________________________________________________________________

________________________________________________________________

Exercise 16. Read the article below quickly to pick out the main economic indicators. Supply prepositions where necessary. Then study the vocabulary given after it.

The European Union, UK objections aside, edged closer last week to agreement about a minimum tax on savings and investment. The proposal, which may benefit the US, has worthy aims. But it is deeply flawed.

The EU is trying to improve the policing of the taxation of capital. Suppose a German resident puts his money into a bank account in Luxemburg, which does not tax interest payments to non-residents. In theory, he should be taxed on his interest as he receives it in Germany, and so should gain no advantage from moving his money. In practice, though, the interest payment rarely finds its way on to the tax return. The German resident receives gross interest and Luxemburg gains from the growth in its banking system, but the German government is out of pocket. This type of tax evasion happens on a large scale within the EU.

The European Commission has proposed that EU countries should be obliged to do one of two things. They could provide information on non-residents’ interest income to their home countries to ensure they will be fully taxed at home. Some EU countries, with stringent banking secrecy laws, would be reluctant to do this. An alternative would be to impose a withholding tax of 20 per cent, so at least some tax would be paid on interest income.

This solution would work if the capital stayed neatly within the confines of the EU. But it cannot be so easily tied down. That was true even in 1963, when the US introduced a similar tax. The result then was capital flight, the creation of the Eurodollar market, and the establishment of London and Switzerland as the premier global financial centers, at the expense of New York.

Now, with global capital more mobile, the movement of funds may be even swifter. The EU would undeniably lose out to low-tax countries such as Switzerland and, ironically, the US.

The EU proposal is also unwelcome because it is the thin end of an interventionist wedge. Taxation has recently been moving up the EU agenda. The proposal is itself part of a package which includes plans to eliminate certain discriminatory tax regimes. More ominously, the Commission has hinted that it is in favor of changing general tax rates.

Until now, national governments have held fast to the principle of subsidiarity in tax matters. But the pressure being put on the UK to accept the withholding tax proposal suggests that tax harmonization measures could be forced through as member states vie to prove they are “good Europeans”. Loss of tax flexibility would be a grave mistake and could permanently damage the EU’s competitiveness.

This does not mean that the problem of evasion of taxes on capital should be ignored. But the EU approach is misguided. Instead, the issue should be tackled at a global level. The OECD, which has already prepared a report on the subject, may be the appropriate forum.

Unilateral EU action will not stop tax evaders. But it could stifle the move towards greater efficiency and integration in Europe’s capital markets, which a single currency will otherwise promote. The plan should be dropped.