IV. Read the following statements. Say whether they true or not.

1. Adam Smith arranged the rules of taxation.

2. Each individual is not obliged to pay taxes.

3. The tax ought to be arbitrary.

4. Taxes should be based on the individual’s ability to make money.

5. Taxes should be based on the benefits the individual derives from governmental activities.

6. The subjects of the state ought to give down money, help and ideas to the government in proportion to their abilities.

7. The tax ought to be loose.

8. These principles of taxation retain remarkable irrelevance.

V. Translate into English.

1. Этот налоговый режим был принят давно.

2. Налоги должны быть разумными и уместными.

3. Вы должны платить налоги в соответствии со своей платежеспособностью.

4. Никто не любит платить налоги.

5. Надо сделать так, чтобы налоги было выгодно платить.

6. Налоговые сборы расходуются на выполнение социальных программ для общего блага.

7. Налоговый режим обычно соответствует условиям жизни своей страны.

VI. Answer the following questions.

1. Who was Adam Smith?

2. What was the main idea of the first canon?

3. What are the two leadings principles that should taxes be based on?

4. What was assumed in the second canon?

5. What did he set down in his book?

6. How did Adam Smith define the time and the manners of payment (taxes)?

VII. Speak on the topics:

1. The canons of Adam Smith.

2. Principles of taxation.

Vocabulary:

Ability (n) – платежеспособность

Arbitrary (adj) – произвольный

Benefit (n) – выгода

Canon (n) – критерий

Contribute (v) – жертвовать

Contributor (n) – жертвователь

Derive (v) – извлекать

Enjoy (v) – пользоваться, обладать

Equivalence (n) – равноценность

Fair (adj) – справедливый

Plain (adj) – простой

Rational (adj) – разумный

Relevance (n) – уместность

Respective (adj) – соответственный

Retain (v) – сохранять

Revenue (n) – доход

Subject (n) – подданный

Tax burden (n) – налоговое бремя

Tax haven (n) – налоговая гавань

Tax payer (n) – налогоплательщик

Unit 3 Text Tax return.

Tax return is the form on which you have to give information so that your tax can be calculated. The definition of the amount subject to taxation requires an analysis of the taxpayer's situa­tion and of the legal provisions that apply to him. With the in­come tax (and also some taxes on the transfer of property, such as the inheritance tax), the taxpayer submits a tax return provid­ing information as to his occupation, his real and personal prop­erty, his professional expenditures, and other pertinent matters; a corporation supplies, additionally, copies of the balance sheet, profit and loss statement, and minutes of the general meeting that approved these financial reports. The return, with the at­tached reports and statements, is meant to provide such com­plete information that the assessing tax official (someone who works for the government, deciding how much tax a person or company should pay) can rely on it to compute the correct tax. In examining tax returns, the basic principle is that a return is assumed to be correct until the assessing official determines otherwise. In countries such as the United States, where the self-assessment method prevails (the income taxpayer's liability is computed by himself), a minority of returns is selected for audit; most of them are only checked as to timely arrival, inclu­sion of all required forms and attachments, and arithmetical ac­curacy.

I. Arrange the words in suitable pairs.

Legal	Tax
Balance	Reports
Tax	Expenditures
Income	Sheet
Financial	Provisions
Arithmetical	Tax
Inheritance	Return
Professional	Accuracy
Attached	Statements

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

Tax return is the form on which you have to …	is assumed to be correct until the assessing official determines otherwise.
In countries such as the United States, where the self-assessment method prevails…	give information so that your tax can be calculated.
The return, with the attached reports and statements, is meant …	a minority of returns is selected for audit
In examining tax returns, the basic principle is that a return …	an analysis of the tax payer’s situation and of the legal provisions that apply to him.
The definition of the amount subject to taxation requires …	to provide such complete information.