Listening

1. Look at the text quickly and decide which of the following headlines it was given.

1) Congress bill aims to make foreign takeovers more difficult.

2. Tax bill in US Congress seems to promote takeovers.

3. Congress seeks to increase tax on business.

4. New bill changes tax law on depreciation.

2. Answer the following questions:

1) What is the key aspect of the new tax bill?

2) What effect would the change have on takeovers in the US?

3) Before this bill what had been Congress's attitude to takeovers?

4) What action had Congress been considering to support this previous attitude?

5) What other word is used in the text meaning 'depreciation'?

6) What period of depreciation does the new Congressional bill propose for intangible assets?

7) What are the four categories of deductible assets mentioned in the text?

8. What would be the effect of the new bill on amortisation of computer software and non-competition covenants?

3. For each of the sentences below choose the ending which agrees most closely with the text.

1. In the 1980s the large amounts paid for tangible assets meant that …

1. the purchases were not worthwhile.

2. goodwill had to be given a value.

3. business people recognised that goodwill had little value.

4. the non-depreciation of goodwill became more important.

2. The fact that in the 1980s goodwill's value seemed so high:

1. led to tax accountants seeking to write it off.

2. encouraged tax accountants to look for more deductibles.

3. was accepted because the law gave buyers no alternative,

4. acted as a discouragement to takeovers.

4. Complete the following sentences so that they are true according to the text.

1) In response to the proposed new deductible assets the Inland Revenue ______.

2) The new law on depreciation was proposed _______ .

3) The effect of the new tax law on total tax revenue _______.

4) To balance the loss of tax revenue from the amortisation of goodwill _______.

5. If you were a tax adviser to an American company considering a takeover under the terms of the proposed new law, which of the following pieces of advice would you give to the company?

1) You can buy the stock and regard it as assets for tax purposes.

2) Buying this company's stock and treating it as assets is sure to improve your tax position.

3) This company has large liabilities so the best thing is to purchase the stock only.

4) Because you are making a hostile bid you cannot purchase the assets.

SPEAKING

1. Summarize the information about Tax Accounting, be ready to cover the following issues:

• What is/should be the purpose of taxation system?

• Does the taxation system in your country encourage individual and business enterprises? If so how does it do that? If not what changes would you propose?

Writing

1. The following phrases are from three different letters written by an accountant concerning tax matters. They are all mixed up. Put them in the correct order to produce three correct letters.

1. Yours sincerely