Vocabulary

To file a tax return подавать налоговую декларацию

IRS (Internal Revenue Service) Налоговая служба США

To comply with regulations выполнять требования

Appeal апелляция

Seizure наложение ареста на имущество,

изъятие имущества

The math is accurate расчет произведен правильно

Enforcement actions принудительные меры

Defaulting taxpayer налогоплательщик, нарушивший закон

Tax lien залоговое право на имущество в обеспечение уплаты налогов

The lien was filed in error право на удержание имущества было применено ошибочно

To recover damages взыскать убытки

Integrity честность, профессиональная репутация

Promptly без задержки, незамедлительно

Courteously учтиво, обходительно, вежливо

Exercise 12. Answer the following questions:

1. What taxes provide the bulk of budget revenues in Russia?

2. How can tax assessment be done?

3. How do taxes in Russia compare with taxes in other countries?

4. Is there a need to soften the burden of taxation in Russia?

5. Are people beginning to understand that paying taxes is in their interest?

6. What is the difference between tax evasion and tax avoidance?

7. What is usually taxed?

8. What is an excise duty?

9. Why were excise duties introduced?

10. How can poor tax collection in Russia be explained?

11. What measures, in your opinion, can improve tax collection in Russia?

12. What rights do local bodies of authority have regarding taxes?

13. What is the government planning to do to eliminate defaults on payments and ensure that taxes are paid?

14. What enforcement measures can be taken against defaulting taxpayers?

Exercise 13. Find the Russian equivalents for the following:

1. tax collection

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2. sharp decline in tax revenue

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3. tax evasion

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4. inadequate tax law

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5. to evade taxes

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6. to put up with a situation

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7. to move the tax burden from enterprises to incomes and property

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8. the procedures of tax collection

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9. to face a similar situation

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10. to comply with the tax laws

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11. the right of taxpayers

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12. to select returns for examination

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13. to pay the bill in full

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14. to place a tax lien

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15. to voluntarily pay the tax due

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Exercise 14. Find the synonyms for the words in italics

1. poor tax collection

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2. we understand your concern

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3. inadequate tax law and weak control on the part of tax services

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4. we can’t put up with such a situation any longer

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5. they are unclear about filing tax returns

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6. to face a similar situation

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7. to provide taxpayers with information

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8. to comply with the tax laws

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9. we make available special publications

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10. the taxpayers have confidence in the integrity, efficiency … of our tax system

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11. our tax employers do their best to serve the public

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Exercise 15. Translate the sentences into Russian:

1. I’m sure you know that one of the most serious problems in Russia now is poor tax collection causing sharp decline in tax revenue.

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2. Inadequate tax law and weak control on the part of tax services make it possible for taxpayers to find loopholes and evade taxes.

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3. We can’t put up with such a situation any longer, particularly because the government is planning to gradually move the tax burden from enterprises to incomes and property of physical persons.

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4. Sometimes individual taxpayers and businesses do not pay taxes or do not pay them fully because they do not understand the procedures of tax collection, they are unclear about filing tax returns.

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5. But we in the US Internal Revenue Service (IRS) try to educate taxpayers, to provide them with information, to help them to comply with the tax laws.

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6. We invite people to attend our educational programmes designed for specific groups of taxpayers; we make available special publications which explain the many rights of taxpayers, procedure of appeal and seizures, etc.

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7. The purpose of the IRS is to collect the amount of tax revenue at the least cost, so we increasingly work in cooperation with local volunteers, who offer free help in preparing tax returns, for instance, for elderly taxpayers.

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8. If a taxpayer owes tax, IRS employees will send the taxpayer a bill describing the tax and stating the amount the taxpayer owes in tax, interest and penalties.

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9. One of the goals of the IRS is to protect the rights of American taxpayers, so that they have confidence in the integrity, efficiency and fairness of out tax system.

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10. Taxpayers have the right to be treated fairly, professionally, promptly and courteously. Our tax employees also do their best to serve the public by continually improving the quality of services.

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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.

Tax Reform in Developing Countries

In 1985, the government of Jamaica embarked on a comprehensive tax reform. This reform included changes in the personal income tax, the company tax, and indirect taxes. The reforms of the personal income tax were particularly profound. A complicated, narrowly-based individual income tax levied under a progressive statutory rate was replaced by a broadly-based single-rate tax in 1986. Before the reform, the highest marginal tax rate of 60 per cent (including payroll taxes) was reached at the relatively low annual income level of less than three times per capita GDP. The provisions of the tax code were complicated, with no standard deduction and sixteen separate credits. In addition, employers could grant nontaxable allowances to employees. The resulting tax system was difficult and costly to administer and contained important disincentives; evasion and avoidance all but negated the progressivity of the statutory rate structure.

Under the reformed system, the complex rate structure was replaced with a single rate of 33 1/3 per cent; the 16 tax credits were replaced with a standard deduction equal to two times per capita GDP; most non-taxable allowances were incorporated into the tax base; and interest income was included in the tax base. Initial results suggested that the combination of a higher standard deduction, a broadened base, and a lower flat rate improved administration, increased the progressivity of the tax system, and raised tax yields.

The government of Indonesia adopted a major tax reform in late 1983. An important aspect of this reform was the wholesale elimination of tax incentives for investment. Before 1983, numerous incentives in the investment code were designed to favor specific industries, promote exports, develop remote regions, promote technology transfers, strengthen the stock exchange, and even encourage firms to be audited by public accountants. The numerous, and often contradictory, tax incentives created a complicated system unable to fulfill its revenue function or to serve the special purposes originally intended. Further, such incentives created effective tax rates that varied both between and within sectors and thus misallocated the capital stock. Tax reform eliminated nearly all special tax incentives, allowing the company tax rate to be reduced. The simplified incentive system was intended to minimize tax-induced intersectorial preferences, while the lowered company tax rate provided more uniform benefit to all investors.