Comprehension

1. Answer the following questions.

1. What does tax policy mean?

2. Taxation is one of the methods of financing, isn’t it?

3. What are the forms of taxation?

4. What is called perks?

5. Where do multinational companies often register their offices?

6. What is a tax burden?

7. How is the legal method to minimize the tax burden called?

8. Using loopholes is an illegal method, isn’t it?

9. What is tax evasion?

10. What can tax evasion lead to?

Vocabulary

2. Match the words to their opposites.

1) legal	a) inaccurately
2) to minimize	b) to decrease
3) accurately	c) small
4) low	d) disadvantage
5) to increase	e) to maximize
6) big	f) inappropriate
7) advantage	g) illegal
8) appropriate	h) high

3. Fill in prepositions and adverbs.

Some Principles of Sound Tax Policy

1. Equity. The burden of tax should be shared in accordance … taxpayer’s respective ability to pay. Taxpayers … the same economic circumstances should receive equivalent treatment.

2. Transparency is a must. A good tax system requires informed taxpayers who understand how taxes are assessed, collected and complied … .

3. Be neutral.

4. Maintain a broad base. Taxes should be broadly based, allowing tax rates to be … low as possible.

5. Keep it simple. The tax system should be as simple … possible.

6. Ensure an open process. Tax legislation should be based … careful economic analysis and transparent legislative procedure.

7. Flexibility. Markets and business practices change over time so that tax base should be responsive and capable … change.

4. Fill in the correct words from the list below.

Goals, total, objectives, laws, financial, tax advisor, planning, flow, implementing, taxes

Tax planning is an important component for your overall … plan.

Careful planning throughout the year can assist you in reducing the … you pay – as well as help you achieve your financial … .

Tax … should not be done in isolation, but instead should be driven by your overall financial goals and integrated with your … financial plan. By developing and … appropriate strategies to lessen or shift current and future tax liabilities, you can improve your prospects of meeting long- and short-term … . For example, accurately projecting your income taxes can help you determine the cash … available to you in the coming year.

Keep in mind that tax … are often complex and frequently change. As a consequence, you should consult your … before making investment and tax decisions.

Grammar in Use

Too/Enough

5. Look and learn.

too + adjective/adverb (negative meaning) too much/too many	He’s too tired to finish the work. (He is so tired that he can’t finish the work.)
adjective/adverb + enough (positive meaning) enough + noun	He’s clever enough to solve the problem. (He’s so clever that he can solve the problem.) He’s got enough money to start his own business.

6. Complete the sentences with too and enough.

1. The instructions were … difficult for him to understand.

2. He earns … money to afford an expensive car.

3. He is … young to apply for the post.

4. The tax rate is … high.

5. Tax laws are complex … .

6. The accountant made … serious errors.

7. He is responsible … to make decisions.

8. The project is important … to do it in a hurry.

7. Fill in the blanks using the words in bold.

1. This project is so complicated that we can’t take it on.

too This project is …………………………. take on.

2. One person can’t handle such a lot of work.

much There ……………… one person to handle.

3. She can afford to buy a car; she’s been saving up for months.

money She has …………………. a car; she’s been saving up for months.

4. He is so ambitious that he could be a good boss.

enough He is …………………… to become a good boss.

5. It is such a silly decision that I can’t agree with it.

too The decision is …………………to agree with.