VOCABULARY FOCUS. Ex. 1.Using a dictionary add as many words as possible into the table. Verbs Adjectives Nouns 1

Ex. 1.Using a dictionary add as many words as possible into the table.

Ex. 2.Find in the text the words with the opposite meaning to the words below:

Miscalculate, discourage, progressive, distribute, incentive, declared, illegal, persuade.

Ex. 3.Find words in the text that mean the following.

1. reducing the value of a fixed asset, by charging it against profits;

2. something which discourages an action;

3. an adjective describing a tax that is proportionally higher for people with less money;

4. spending money to buy things, rather than saving it;

5. working for yourself, being your own boss;

6. a tax on incomes that pays for sickness benefit, unemployment benefit, and old-age pensions;

7. non-financial benefits or advantages of a job;

8. a way to delay the payment of tax to a later time;

9. an adjective describing expenditures that can be taken away from taxable income or profits;

10. a country offering very low tax rates to foreign businesses.

COMPREHENSION

Ex. 1. According to the text, are the following statements TRUE or FALSE?

1. Taxes can be designed both to discourage and to encourage spending.

2. The same amount of money can be taxed more than once.

3. Progressive taxes may discourage people from working extra hours.

4. Sales taxes are unfair because poor people spend more than the rich.

5. The Italian government knows that about one seventh of national income escapes taxation.

6. 'Loopholes' are a common form of tax evasion.

7. If you pay a lot of your income into a pension fund or a life insurance policy you never have to pay tax on it.

8. A company that makes an unusually large profit during a tax year might quickly decide to spend it, for example, on a new factory or equipment.

Ex. 2.Look through the text once again and decide which paragraphs could be given the following headings.

....... Advantages and disadvantages of different tax systems

....... Avoiding tax on profits

....... Avoiding tax on salaries

....... Tax evasion

....... The functions of taxation

Ex. 3. Answer the following questions.

1. What’s the primary function of taxation?

2. What other purposes do taxes have?

3. What alternatives to taxation do you know?

4. What is considered to be a fair tax system?

5. Why is there a substantial “black” or “underground” economy nearly everywhere?

6. What do some employers do to avoid income tax liability?

7. What ways of avoiding tax on profits do different companies use?

T E X T 2