I. Answer the following questions.

1. What is tax evasion?

2. What is tax avoidance?

3. What is the first simple way of avoiding tax?

4. What can be done depending on the tax payer’s occupation to avoid taxes?

5. What other way is open to an individual?

6. What can be done similarly?

7. What does a trust involve?

8. How did men usually leave their income to their wives in the past?

9. What is much more common now?

10. What are trusts aimed to do?

11. What is another legal way of avoiding tax?

12. What are the ways of tax evasion?

13. What is the most common form of tax evasion in the EU?

14. What can be done by tax authorities to find evaders?

II. Complete the sentences by choosing suitable endings from the right-hand column.

One simple way of avoiding tax is to claim …	… tax evasion and avoidance.
Putting money into trusts …	… so as to avoid in heritance tax on death is another legal way to avoid tax.
Trusts set up in this way in the country of residence …	… in the form of a trust is much more common.
Governments distinguish between …	… all tax allowances due and keep one’s coding with the tax authorities up to date.
Arranging to pass on assets during life …	… can also save taxes.
Leaving assets to minors …	… are not major ways of avoiding taxes.

III. Translate into Russian.

Tax evasion; tax avoidance; penalties; legal; illegal; to claim allowances; to set against income; to be payable; a territorial system; to put money into trusts; to administer; for the benefit of; to leave assets to minors; to avoid inheritance tax; to conceal income; a genuine mistake; to impose fines; to pay cash for services; not to declare the income; a lavish lifestyle; to be detected; to take the risk.

IV. Find in the text and write out English equivalents for the following combinations.

До обложения налогом; физическое лицо имеет возможность; причитающиеся льготы; когда это выгодно с точки зрения уплаты налогов; откладывать сумму денег; сейчас это не менее распространено; оставить деньги непосредственно; когда несовершеннолетние достигают взрослого возраста; не главный способ; нацелены на; свести до минимума налоговое бремя; намеренная невыплата полагающегося налога; показания за уклонение от налогов; штраф равен нескольким суммам невыплаченного налога; злостные нарушители; декларировать доход; масштаб этого вида уклонения от налога; имеет тенденцию увеличиваться; не стоит рисковать.

V. Fill in prepositions where accessory.

1. One should distinguish … tax evasion and tax avoidance.

2. The taxable income depends … the tax payer’s occupation.

3. A Variety of expenses can be set … income before it is taxable.

4. It is open … the individual to save in tax-free schemes.

5. One can repatriate profits as and when favourable to do so … a taxation point of view.

6. Putting money … trusts can also save taxes.

7. A trust involves … setting … an amount … money or property.

8. Trustees administer … the money or the property of the trust … the benefit of individuals.

9. Men sometimes leave … their wives income … a trust rather than leaving them money outright.

10. Such trusts normally end when minors reach … their majority or sometimes … later age.