Finance and financial system

Put the correct words from the table below in the above article.

1.  (a)  embassy  (b)  embarrasses  (c)  embracing  (d)  embarrassing

2.  (a)  except  (b)  reject  (c)  expect  (d)  accept
3.  (a)  online market  (b)  upmarket  (c)  unmarked  (d)  upscale
4.  (a)  injected  (b)  suggested  (c)  rejected  (d)  reflected
5.  (a)  from  (b)  of  (c)  for  (d)  far
6.  (a)  using  (b)  uses  (c)  usage  (d)  used
7.  (a)  singing  (b)  signing  (c)  signaling  (d)  sighing
8.  (a)  In  (b)  On  (c)  At  (d)  Of
9.  (a)  far  (b)  all  (c)  of  (d)  at
10.  (a)  reflected  (b)  infected  (c)  affected  (d)  inspected
11.  (a)  they  (b)  them  (c)  those  (d)  that
12.  (a)  others  (b)  another  (c)  the other  (d)  other

WHAT  ARE  TAXATION?

 

Taxes are a compulsory financial contribution by a person or body of persons towards the expenditure of a public authority. In modern economies taxes are the most important source of government revenues. Taxes on income (i.e. on wages, salaries, profits, dividends, rent and interest) and on capital are known as “direct” taxes. Taxes on Commodities or services are known as “indirect” taxes.

Businesses and individuals are subject to many forms of taxes. The various forms of business organization are not taxed equally. The tax situation is simplest for proprietorships and most partnerships; corporations or companies are treated differently.

In the United States of America nearly all of the federal government’s revenues come from taxes. By far the most important source of tax revenue is the personal income tax. Gross receipts from corporate income taxes yield a far smaller percentage of total federal receipts. Individual states levy their own taxes. As a result, for example, the profits of a corporation are liable to federal and sometimes state corporate income taxes. This often imposes a double tax burden. When the after–tax income is paid out to stock–holders as dividends, it is then taxed again as personal income.

In the United Kingdom there is no single code of tax law, the body of tax legislation being increased by each year’s Finance Act.

The United Kingdom operates a “scheduler” system, taxable income from different sources is calculated and taxed under the rules of a particular "schedule".

Tax assessments are normally based on returns issued by the Board, of Inland Revenue (referred to simply as “Inland Revenue”) completion by the taxpayer. While companies may receive tax return they normally submit instead a copy of their annual accounts together with a computation of taxable profits.

The United Kingdom does not yet operate a system of self assessment for tax on income and capital gains, but it is be; introduced at the moment.

Under Russian law, all Russian legal entities, whether they have foreign investment or not, are subject to the profit tax law. Foreign entities that have a taxable permanent establishment in Russia are also taxed under this law.

Russian taxes provide revenue for three tiers of the budget: federal, regional and local. The major taxes paid to the budget are: Profit tax–Value–added tax (VAT); Securities tax; Withholding tax.

The Russian government tries to create a climate in which business can thrive, to keep the tax burden as low as possible. It also attempts to eliminate tax allowances, which deprive the budget of tax revenues, and to improve tax collection.

Tax returns for Russian legal entities are audited by the authorities at the time they are submitted.

When a company resident in one country receives income or from a source in another, or when shareholders and company domiciled in different countries it is possible that incomes arising be taxable in each country, i.e. taxed twice. Many countries seek to mitigate the potentially harmful effects of double taxation by entering with other countries into double tax treaties, or arrangement preventing the same income being taxed twice.

A number of countries have problems«because of significant taxpayer non-compliance.

Along with cases of illegal evasion of tax obligations there entirely legal ways of avoidance by which a person may so arrange his affairs as to minimize, or even eliminate, tax liability on his property and income.