Unit 3:

Tax accountings

1. Income tax: Thu thu nhp

2. Sales tax: Thu bn hng
3. Inheritance tax: Thu tha k
4. Corporate tax: Thu DN
5. Property tax: Thu BS
6. Excise tax: thu tiu th
7. VAT (value added tax)

3.5

Match these expressions with

tax to their definitions

1. tax
avoidance

a. someone who lives in another country for

tax reasons

2. tax bracket

b. to introduce a new tax on something

3. tax evasion

c. to make the tax go up

4. tax exempt

d. when you dont have to pay tax on certain

income

5. tax exile

e. to cancel a tax

6. to abolish
tax

f. tells you what amount of tax to pay based

on income

7. to impose
tax

g. trying not to pay tax (legal)

8. to increase
tax

h. trying not to pay tax (illegal)

1g

2f

3h

4d 5a

6e

7b

8c

salvage value: gi tr thu hi

acquisition cost: gi gc, ph tn mua sm
depreciation expense: gi tr khu hao
accelerated depreciation: khu hao gia
tc
interim tax return: t khai thu tm thi
taxation expense: chi ph thu
taxable income: li tc c thu, thu nhp
c thu
tax avoidance: s trn thu
tax bracket: khung thu, nhm thu

tax evasion: lu thu, trn thu

(illegal)
tax exempt: min thu
tax exile: ngi lu vong trn
thu
to abolish tax: bi thu
to impose tax: p dng thu
to increase tax: tng thu
tax break: s gim thu
tax return: giy khai thu
Tax bracket: khung thu
Tax avoidance: trn thu (legal)

5 methods of depreciation
1.
2.
3.
4.
5.

Straight line: ng thng

Declining balance: S d gim dn
Sum of the years digits:Khu hao
theo tng s
Unit of production: sn luong
Hours of use: gi s dng

3.3 Read and answer the questions

1.
2.
3.
4.

a. How does the accountant calculate

the profit before tax figure?
b. Why is the taxation amount only an
estimate?
c. Do they need file the interim tax
return?
d. Complete the CEOs notes below:

3.3 Read and answer the questions

1.
2.

3.

a. The operating profit minus interest

expense.
b. Because they dont know until
much later how much tax they have to
pay.
c. No, they dont.

d. Fill in the blank

Taxation expense is calculated by subtracting
(1)

from
(2)
This gives us an
estimate, which we use to (3) ..
We
need
it
to
justify
(4)
If there is any
difference between the profit before tax
and the taxable income, we (5)
.

d. Fill in the blank

Taxation expense is calculated by subtracting
expense
(1) 1. Interest

from
(2)
2. Operating

This gives us an
profit
estimate,
which
we
use
to
(3)
....
3. Prepare an interim tax return
We
need
it
to
justify
(4)
4. the taxation expense we include in If
..
the P&L.
there is any difference
between the profit
before tax and the taxable income, we (5)
.
5. Record it as a net deffered tax
asset or liability on the balance sheet.

salvage value: gi tr thu hi

acquisition cost: gi gc, ph tn mua sm
depreciation expense: gi tr khu hao
accelerated depreciation: khu hao gia
tc
interim tax return: t khai thu tm thi
taxation expense: chi ph thu
taxable income: li tc c thu, thu nhp
c thu
tax avoidance: s trn thu
tax bracket: khung thu, nhm thu

tax evasion: lu thu

tax exempt: min thu
tax exile: ngi lu vong trn
thu
to abolish tax: bi thu
to impose tax: p dng thu
to increase tax: tng thu
tax break: s gim thu
tax return: giy khai thu

3.5

Match these expressions with

tax to their definitions

1. tax
avoidance

a. someone who lives in another country for

tax reasons

2. tax bracket

b. to introduce a new tax on something

3. tax evasion

c. to make the tax go up

4. tax exempt

d. when you dont have to pay tax on certain

income

5. tax exile

e. to cancel a tax

6. to abolish
tax

f. tells you what amount of tax to pay based

on income

7. to impose
tax

g. trying not to pay tax (legal)

8. to increase
tax

h. trying not to pay tax (illegal)

1g

2f

3h

4d 5a

6e

7b

8c

 1.

What do the governments use the

taxation system for?
2. What are the roles of taxation laws?
3. Who can help companies on all the
taxes they are liable?
4. Who are the tax specialists?
5. What do these specialists do?

3.6.

fromc.the
box to
in
a. AbolishUse
b.words
bracket
breaks
d.fill
Exempt
exile
f.increase
the gaps

g. property h.return

e.

1.The

government needs more money, so

it is planning tof. taxes.

2. He earns a lot of money- he must be

in the highestb tax
3. She lives there because she has to be
e
a tax ..
a
4. They are planning to .
the tax on large company cars, and
replace it with a tax on all company
cars.

3.6.
a. abolish

Use words from the box to fill in

b. bracket c. breaks d. Exempt e. exile
the
gaps
f.increase g. property h.return
5. She is a student, so she is
...
d

tax

6. The government is planning to introduce

new tax .. for IT companies.

7. Dont buy a house this

. taxes
abolished next
g March.

year- the
are being

8. A tax is the same as a tax

declaration-h its a list of income and tax
deductible expenditure for the authority.

3.6

Use words from the box to fill in

the gaps

A. increase

E. exempt

B. bracket

F. breaks

C. exile

G. property

D. abolish

H. return

3.7

1.
2.
3.
4.
5.
6.

a. Find words from the

conversation which mean the
followings
to improve a machine or equipment
written suggestion
an opinion of what something means
rules
to include as an asset
an explanation of what something means

1. To upgrade

2. submission

3. interpretation

4. regulations

5. To capitalize

6. definition

3.7
c. Use phrases from the box
to soften the following
1. I'm afraid I can't agree with your
statetments
comments.
I'm sorry but they (Just) don't make
much sense.
2.
I'm
sorry,
but
this
conversation ... Could you please
call me ... ?

3. I'm sorry but I disagree ... I'm

afraid that's not (quite) right.
4. Excuse me, but I think there may
be a problem with your idea.
5. Your calculations seem to be full
of mistakes.
6. It appears that you don't have the
necessary experience to do this job

Taxation planning
The governments of some countries use the taxation
system to promote investment.
Taxation laws are enacted to encourage domestic and
international corporations to either invest or raise capital,
and tax brackets are given to specific industries or to
certain types of expenses to attract investors and
consumers.
As a result of these taxation measures, there is significant
scope for taxation planning in some countries and
companies would be well advised to use such opportunities
to structure their business in the most tax effective manner.
For both their clients business and the various taxation
laws, companies turn to their tax advisers for help on all
the taxes for which they are liable, such as income tax,
sales tax, property tax and payroll tax.
These
tax
specialists
are
normally
Chartered
Accountants and CPAs who are not only involved in the
preparation of tax returns (compliance), but who also give
advice on a multinational companys domestic and foreign
operations (consulting). Furthermore, they represent their
clients before the tax authorities.

1 Fixed assets could include

a) buildings
b) plant and machinery
c) the firm's delivery vans
d) fuel for the vans
2 Depreciation due to physical deterioration
of an asset may include
a) wear and tear
b) theft
c) erosion
d) rot
3 Machinery becomes obsolete due to
a) new technology
b) consumption
c) changes in production methods
d) changes in fashion
4 Amortization is the provision for
consumption of the following items
a) mortgages b) leases
c) patents d) copyright

5 A provision for depletion would be used for the

following items
a) mines
b) buildings
c) quarries d) oil wells
6 The following are methods of depreciation
a) straight-line b) reducing balance
c) the sum of the years' digits
d) market value
7 A machine could be disposed of by being
a) scrapped b) resold c) revalued d) traded in
8 The accounts which would record the sale or
disposal of a machine are
a) machinery account
b) sales account
c) machinery disposals account
d) provision for depreciation (machinery)
account

 III.

Complete the sentences by reordering

the given words
1. We/ to/ employ / an / help / assistant /
us/ need/ to.
2. Everything / do depends / having/ on /
accurate / we / information.
3. company / the / electrical / photocopiers /
produces / goods / like/ and / scanners.
4. cant/ we / have / laptops / for/ new /
everyone/ its / because / too / simply /
costly.
5. Ill / debts/ paid / his/ have / off / next /
by / year.

 III.

Complete
the
sentences
by
reordering the given words
1. The / over / pre-tax/ was / 12$ / profit.
2. We / have/
allocated/
been /
conference / the / ground / room / on /
floor / the.
3. They / complete/ hope / to / report/
the.
4. We / at / usually/ the/ highest/ have/
sales / Chrismas.
5. Many / developing/ are / countries/
burdened/ heavy / by/ debt.

- The governments of some countries use

the
taxation
system
to
promote
investment.
- Taxation laws are enacted to encourage
domestic and international corporations
to either invest or raise capital, and tax
breaks are given to specific industries or
to certain types of expenses to attract
investors and consumers.
- As a result of these taxation measures,
there is significant scope for taxation
planning
in
some
countries
and
companies would be well advised to use
such opportunities to structure their
business in the most tax effective manner.

Taxation planning
The governments of some countries use the taxation
system to promote investment.
Taxation laws are enacted to encourage domestic and
international corporations to either invest or raise capital,
and tax brackets are given to specific industries or to
certain types of expenses to attract investors and
consumers.
As a result of these taxation measures, there is significant
scope for taxation planning in some countries and
companies would be well advised to use such opportunities
to structure their business in the most tax effective manner.
For both their clients business and the various taxation
laws, companies turn to their tax advisers for help on all
the taxes for which they are liable, such as income tax,
sales tax, property tax and payroll tax.
These
tax
specialists
are
normally
Chartered
Accountants and CPAs who are not only involved in the
preparation of tax returns (compliance), but who also give
advice on a multinational companys domestic and foreign
operations (consulting). Furthermore, they represent their
clients before the tax authorities.

 1.

What do the governments use the

taxation system for?
2. What are the roles of taxation laws?
3. Who can help companies on all the
taxes they are liable?
4. Who are the tax specialists?
5. What do these specialists do?