3.1Answer the questions to the text .

1. Individuals are taxed on their incomes. What are compa­nies taxed on?

2. Why are corporation taxes becoming smaller?

3. What is it important to remember in company taxation?

4. What income of the company is assessed for tax?

5. Why is it important to know where the company is resi­dent?

6. How is the location of the company determined?

7. What are the approaches to the taxing the subsidiaries of foreign-based companies in industrially developed countries?

8. And what are these approaches in other countries?

9. What do countries with close control over foreign enter­prises require them to do?

10.How can governments stimulate industrial development?

11. In what case do governments offer concessions to com­panies?

12. What are the measures to limit the repatriation of divi­dends from the host country to the home-country?

13. What can the home-country do in return?

3.2Finds in the text English equivalents to the Ukrainian word combinations.

Обкладатися податком на прибуток; чистий дохід; сприяти розвитку промисловості; самостійна одиниця, що оподатковується ; прибуток, що враховується для оподаткування; місце знаходження головного офісу компанії; проводити засідання правління компанії; мати різні доходи, компанії, що розміщені за кордоном; застосування законів про податки щодо закордонних компаній; реєструвати вартість крупних інвестицій; надавати звільнення від податків; об оснуватися у слабо розвиненій частині країни; поширювати свій контроль і на іноземні підприємства; обмежувати кількість інвестицій; складна сфера оподаткування.

3.3Replace the highlighted words with the synonyms from the text.

1. Company's net income is the same as its net profit.

2. The same is true of company taxes that have been decreas­ing too.

3. A company is imposed on its own taxes which are differ­ent from those of its owners and shareholders as individuals.

4. Expenses and allowances are deducted from gross income before tax is levied.

5. The place where the head office is situated is the place where the company is resident.

6. Foreign companies may be treated differently as far as taxes are concerned.

7. Governments try to reduce the repatriation of dividends of foreign companies.

3.4 Group the following words into pairs of synonyms.

income, encourage, different, expenses, profit, impose, find out, cease, support, distinct, spending, assess, determine, overseas, foreign, , stop

3.5 Group the following words into pairs of antonyms.

host country, depressed, developed, home-based, close down, set up, home country, income, expenses, separate, common, gross, head office, net, subsidiary office, foreign-based

6. Find in the text the words which mean

1) financial gain; an excess of income over spending;

2) a payment of money made to the owner of the land, of the patent, etc.

3) think about carefully in order to decide;

4) that which is spent;

5) fix; be the fact that decides something;

6) one, who receives guests;

7) an effort to do something;

8) need; depend on for success, fulfillment, etc.

9) the privilege granted by the government of having the sole right to make or sell something, which one has invented