IV. Responsibilities and Duties

CEO/Management Oversight and Compensation

In addition to the Board's general oversight of the CEO and senior management, the Board also is

responsible for:

• selecting, evaluating and compensating the CEO and overseeing CEO succession planning;

• providing counsel and oversight on the selection, evaluation, development and compensation

of the officers of the Company; and

• approving and maintaining a succession plan for the CEO and other key senior executives,

including an emergency succession plan for the CEO.

Business, Product and Strategic Matters/Compliance with Law and Company Policy

As part of its overall responsibility to serve the long-term interests of the shareholders, the Board also

shall:

• review, approve and monitor fundamental financial and business strategies and major

Company actions;

• review and discuss reports by management on the performance of the Company, its plans,

products and prospects;

• assess major risks facing the Company -- and review and approve strategies for addressing

such risks; and

• ensure processes are in place for maintaining the integrity and reputation of the Company ---

the integrity of the financial statements, compliance with law and Company policy, the

integrity of relationships with customers and suppliers, and the integrity of relationships with

other Company stakeholders.

Conflicts of Interest and Concern Reporting

The Board expects Ford directors, as well as officers and employees, to act ethically at all times and in

accordance with applicable Company codes of ethics. If an actual or potential conflict of interest arises

for a director, the director shall promptly inform the Chairman and the presiding director. If a significant

conflict exists and cannot be resolved, the director should resign. All directors will recuse themselves

from any discussion or decision affecting their personal, business or professional interests. The Board

shall resolve any conflict of interest question involving the Chairman, or a Board member.

PART IV. Taxes’ Certain Aspects

NOTE:

The UK tax administration is now HMRC – Her Majesty Revenue and Customs

HM Revenue & Customs (HMRC) was formed on the 18 April 2005, following the merger of Inland Revenue and HM Customs and Excise Departments

Exercise 1.

Complete the cells with appropriate word forms. The column Attribute includes word forms which define a noun.

Noun 1	Verb	Noun(s) 2	Attribute
	to tax	taxation
payment			payable
	codify	codification	codified
	exempt	Χ	exempt
	evade	Χ	evasive
avoidance		Χ
	reduce	Χ	reduced; reducible
levy		Χ	Χ
charge		Χ	chargeable
Χ		Χ	withholding
imposition		Χ	Χ
	legislate
execution		Χ
judge			Judicial

Exercise 2.

Complete each of the following statements with the appropriate form of the suitable word.

1. Raising money for the budget through ………... the governments establish rules for individuals and entities.

2. When you are going …….your taxes first make calculations and see how much you owe, that is the taxes payable.

3. Tax law is the …….. system of laws that describes government levies on economic transactions, commonly called taxes.

4. Some entities like non-profit organizations which are not supposed to have taxable profits are …….. from income tax payment.

5. Those taxpayers who …….. paying taxes commit a crime, and if such …….. schemes are detected, the lawbreakers are subject to fines or imprisonment.

6. A company that intends to minimize a certain tax can work out a tax ………. plan which is a quite lawful method of reallocation of payments.

7. When the amount of tax payment that tax authorities …… on a person’s income is too large, it’s possible to ………. it by making certain deductions.

8. An accountant usually knows what taxes to ……….. from the employees’ salaries and wages.

9. For the residents of the UK income tax is …….. on all their income which originates in Britain and on all income gained abroad.

10. Tax administration can ……… taxes on the gifts a person has obtained, on lottery prizes and awards.

11. Tax code and taxation rules and regulations are enacted by ……… so that the …… branch of power can implement its budgetary function.

12. The U.S. Tax Court, representing the ……… branch of power, is authorized to resolve cases related to tax law violations.

NOTE to Core Vocabulary 2.

Tax avoidance is now considered as a lawful way to minimize tax payments. The businesses are allowed to plan their tax payments so that not to affect the earnings and profits.

Exercise 3.

Grammar. Clauses of Purpose.

Refer to Grammar Reference Paper to study how the clauses of purpose are formed and used.

Make up the sentences, options of conjunctions are possible.

1. The government raises funds from taxation	so that	decrease a tax burden.
2. Governments need sufficient tax revenues for the budget	so as to	encourage the commercial activity.
3. It’s necessary to fix a lower tax rate	so as not to	minimize the dramatically increased tax payments.
4. The government establishes a tax holiday for young businesses	to	be prosecuted for a tax law violation.
5. The company has resorted to a temporal tax avoidance	in order to	be overtaxed.
6. They allocated their revenues in a tax haven	in order not to	create a budget.
7. You should file your tax return on time	in order that	minimize the tax payments
8. Before calculating the income tax a taxpayer should first define his or her taxable income, then make tax deductions		provide money for various social needs.
9. Local authorities provide tax benefits for small businesses in this developing area		pay taxes in the country they were operating in.
10. Parents can exempt their children educational costs from the taxable base		they are able to strengthen their market position.

Exercise 4 .

Finish the following statements using the information in the text Tax Lawyer p.157 – 158.

A tax lawyer must be able to assist …….. in …….

be able to counsel ……on ……

have tax expertise in ….

have profound knowledge of …..

have a … degree in ….

Exercise 5

Read brief info about two candidates for a position in a tax law firm. Decide if they meet the above stated requirements and explain why “yes” or “no”. Which one would you give the position?

Candidate 1 — JD New York Law School. AB, Duke University. LLM (Taxation), New York University. Tax partner in a well respected law firm. Provides counseling with respect to formation, operation, asset acquisitions and dispositions, offshore asset protection, tax controversy and legislative issues.

Candidate 2 — JD Fordham University (cum laude). LLM (Taxation), New York University. MA Mathematical Economics, Brown University. Tax attorney with big firm experience and in house experience directing the tax affairs of a large multinational company. Areas of practice include mergers and acquisitions, international tax and general domestic tax.

Exercise 6.

Tax lawyer’s competence.

Substitute the long definitions in the following text with the types of the taxes.

Every one pays 1) a tax levied on net personal or business income. When you buy something remember that the price includes 2) a consumption tax which is levied at each stage of production based on the value added to the product at that stage. Some states also levy 3) a tax on retail price of an item bought. If you’re a real estate owner, remember you’ll have to pay

4) a local tax assessed on it. Suppose you deal in a special business in the state of Texas, consequently you’ll pay 5) a local tax imposed upon your corporation as you’re doing business in this state. Besides, as an employer you have to pay 6) a federal tax levied on you as an employer and your employees, and which is withheld from the wages to pay for Social Security programs and provides for the future pensions.

Exercise 7

Tax Law Firm

A)

After you have read the text on p 159-160 study the following verbs and verb phrases which are used to speak about the activity of lawyers.

provide ….. services	assist in	help to do smth	settle …. problems
advise/counsel on	render expertise	resolve issues	prepare smth

B)

Find the English equivalents of the following words and phrases which define the types of a law firm services:

планирование и методы налоговых выплат, услуги по бухгалтерскому учету, снижение налоговых выплат, оценка налогооблагаемой базы, рассмотрение вопросов по планированию федерального налогообложения, налогообложения штата и нескольких штатов, определение суммы налога на доходы, методы налоговых вычетов, аудиты, (проводимые) Службой Внутренних Доходов, возможность налоговых льгот, ведение гражданских процессов в налоговом суде, письма с мнением юриста, подготовка налоговых деклараций для физических лиц и налоговых деклараций для корпораций, планирование налогов на межгосударственном уровне, финансовая документация, включая счет прибылей и убытков, балансовый отчет и финансовый отчет, налоговые вопросы, касающиеся каждого типа организации.

Exercise 8

Grammar Clauses of purpose.

Answer the questions using the clauses of purposes.

What do you need the information about taxation of businesses for?

I need this information to decide what type is better for my business

1. Why does each partner estimate his or her share before paying taxes? (so as to)

2. What do corporations apply with the IRS for? (in order to)

3. Why is it advisable to approach a lawyer when dealing with IRS tax return forms? (so that / learn)

4. Why does the IRS conduct an audit? (so as to)

5. Why is it better for a multinational company to approach tax law professionals? (in order that)

6. What do you deduct the business expenses from the gross income for? (to know …..)

Exercise 9. After-reading tasks

A)

Decide whether the following statements are True or False, correct the false statements:

1. Corporation is a legal entity subject to double taxation: it’s taxed on income, and its owners are taxed on their income, dividends.

2. The income tax rate depends on the income: the larger the income, the higher the tax rate.

3. The range of tax rate is no higher than 35%.

4. A company is taxed on all profits it gains.

5. It is legitimate to deduct all business expenses in order to reduce the taxable income.

6. Employees’ salaries are deducted from profits, and the taxes are paid on net profit.

7. Such expenditures as bonuses don’t help reduce the amount of tax payable

B)

You’re preparing a tax return for your corporation. Which of these expenses will you deduct from the income:

1. repair of the factory equipment – 3 machines;

2. TV commercial

3. delivery of the products by 4 leased vans from the warehouse to the retailer;

4. purchase of raw materials;

5. repair of the Marketing Director’s BMW car;

6. business trips of sales personnel;

7. the Managing Director’s jubilee grand party;

8. telephone and electric energy bills;

9. rent payments;

10. expenditure to buy a yacht for corporate holiday trips;

11. construction of a new warehouse.

12. salaries for the employees.

Exercise 10. How Sole Proprietors Are Taxed

Read the text and answer the following questions that can be further included into the dialogue.

Do sole proprietors have to pay taxes on their personal or business income?

What profits of the business are taxed?

Are the savings on the bank account also taxed?

How is it possible to reduce the taxable income?

Which business expenses are deductible?

What are the accounting rules for a sole proprietor?

What do the self employment taxes mean?

Exercise 11.

Complete the text with the words and phrases from the box below.

rate; tax returns; taxable income; taxpayer; business entities; individual owners;

tax deduction; income taxes; flat tax rate; business profits; deduct; expenses

Corporations are taxed in a different manner than other 1) …. …..In fact, corporations are the only types of business that pay 2) ….. …..on their profits. Partnerships, sole proprietorships, and limited liability companies (LLCs) are not taxed on 3) ….. …... Actually, the business profits "pass through" to the business' owners, who in turn report the business income (or losses) on their personal income 4) ….. …….

Corporations are taxed separately from their 5) …… …... Incorporating a business may prove to be a good way to save on taxes, especially if the 6) …… intends to reinvest the profits in the business. For example, if a taxpayer's business is incorporated, the first $75,000 of the business's profits will be taxed at a lower 7) ….. than if the taxpayer claimed them on his or her personal income tax return. However, there are exceptions: personal service corporations like legal, accounting, consulting, and medical groups must pay a 8) …. ….. of 35 percent on their

9)…. …….

Besides business 10) …….. corporations can 11) ………employee benefits, such as health insurance and up to $50,000 in life insurance. This deduction applies to owners who are also employees of the company. The IRS permits incorporated businesses to treat their owners as employees for benefits purposes, allowing these owners to take the 12) ….. ….. on their own as well as their employees' benefits.