6. Choose the correct item.

From 1 January 2010, the new rules on the place of supply of services will mean/will be meant that business-to-business supplies of services are taxed/will be taxed where the customer is situated/ situates, rather than where the supplier was located/is located. For business-to-consumer supplies of services, the place of taxation be continued/will continue to be where the supplier is established/established.

However, in certain circumstances, the general rules for supplies both to businesses and to consumers is not/ will not be applicable and specific rules applied/will apply to reflect the principle of taxation at the place of consumption. These exceptions concern/concerns services such as restaurant and catering services, the hiring of means of transport, cultural, sporting, scientific and educational services, and telecommunications, broadcasting and electronic services supplied to consumers.

7. Translate into English.

Что такое НДС? Его платят все производственные организации, работающие по общему режиму налогообложения.

Простых налогов не существует. Характеристика НДС показывает, что этот налог имеет достаточно сложную структуру, поскольку некоторые предприятия освобождаются от его уплаты, некоторые получают определенные льготы.

Налог на добавленную стоимость - это косвенный налог, то есть надбавка к цене товара. Он является формой изъятия части добавленной стоимости в бюджет государства. Определяется НДС как разница стоимости реализованных товаров (услуг) и стоимости материальных затрат на производство и обращение.

Данный налог оказывает непосредственное влияние не ценообразование, структуру потребления, регулирует спрос. По сути, НДС является одним из мощнейших фискальных орудий государства.

Speaking Task

8. Work in pairs. Discuss with your partner the peculiarities of VAT.

Writing

9. Write a short story. You are leaving the UK. You want to reclaim the VAT. Describe this situation.

Unit IV Tax policy

Reading

Tax policy develops and implements tax decisions and programs; reviews regulations and rulings, negotiates tax treaties, provides economic and legal policy analysis for domestic and international tax policy decisions. It also provides estimates for the President's budget, fiscal policy decisions, and cash management decisions.

There are two methods of financing: taxation and borrowing. Taxation takes many forms in the developed countries including taxation of personal and corporate income, so-called value added taxation and the collection of royalties or taxes on specific sets of goods. The debt burden assumed by the government is itself an important policy variable and one that has implications for the conduct of monetary policy. Governments in democratic societies act on many different objectives. They may want to smooth out the nation's income or they may want to take steps designed to increase the national income. They may also want to take steps intended to achieve specific social objectives deemed to be appropriate by the political or legal process.

Non-payment of tax

To reduce the amount of income tax that employees have to pay, some employers give their staff advantages instead of taxable money, called perks, such as company cars and free health insurance.

Multinational companies often register their head offices in tax havens - small countries where income taxes for foreign companies are low, such as Liechtenstein, Monaco, the Cayman Islands, and the Bahamas.

Using legal methods to minimize your tax burden - the amount of tax you have to pay - is called tax avoidance. This often involves using loopholes - ways of getting around the law, because of an error or a technicality in the law itself. Using illegal methods - such as not declaring your income, or reporting it inaccurately - is called tax evasion, and can lead to big penalties.