Unit 3: Tax accountings

1. Income tax: Thuế thu nhập2. Sales tax: Thuế bán hàng3. Inheritance tax: Thuế thừa kế4. Corporate tax: Thuế DN5. Property tax: Thuế BĐS6. Excise tax: thuế tiêu thụ7. VAT (value – added tax)

Match these expressions with tax to their definitions

3.5

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 don’t 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)

1 g 2 f 3 h 4 d 5 a 6 e 7 b 8c

salvage value: giá trị thu hồiacquisition cost: giá gốc, phí tổn mua sắmdepreciation expense: giá trị khấu haoaccelerated depreciation: khấu hao gia

tốcinterim tax return: tờ khai thuế tạm thờitaxation expense: chi phí thuếtaxable income: lợi tức có thuế, thu nhập

có thuếtax avoidance: sự trốn thuếtax bracket: khung thuế, nhóm thuế

tax evasion: lậu thuế, trốn thuế (illegal)

tax exempt: miễn thuếtax exile: người lưu vong để trốn thuế

to abolish tax: bãi thuế to impose tax: áp dụng thuếto increase tax: tăng thuếtax break: sự giảm thuếtax return: giấy khai thuếTax bracket: khung thuếTax avoidance: trốn thuế (legal)

5 methods of depreciation

1. Straight line: đường thẳng

2. Declining balance: Số dư giảm dần

3. Sum of the years’ digits:Khấu hao theo tổng số

4. Unit of production: sản luong

5. Hours of use: giờ sử dụng

3.3 Read and answer the questions

1. a. How does the accountant calculate the profit before tax figure?

2. b. Why is the taxation amount only an estimate?

3. c. Do they need file the interim tax return?

4. d. Complete the CEO’s notes below:

3.3 Read and answer the questions

1. a. The operating profit minus interest expense.

2. b. Because they don’t know until much later how much tax they have to pay.

3. c. No, they don’t.

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 (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) …………………….

1. Interest expense2. Operating

profit

3. Prepare an interim tax return

4. the taxation expense we include in the P&L.

5. Record it as a net deffered tax asset or liability on the balance sheet.

salvage value: giá trị thu hồiacquisition cost: giá gốc, phí tổn mua sắmdepreciation expense: giá trị khấu haoaccelerated depreciation: khấu hao gia

tốcinterim tax return: tờ khai thuế tạm thờitaxation expense: chi phí thuếtaxable income: lợi tức có thuế, thu nhập

có thuếtax avoidance: sự trốn thuếtax bracket: khung thuế, nhóm thuế

tax evasion: lậu thuếtax exempt: miễn thuếtax exile: người lưu vong để trốn thuế

to abolish tax: bãi thuế to impose tax: áp dụng thuếto increase tax: tăng thuếtax break: sự giảm thuếtax return: giấy khai thuế

Match these expressions with tax to their definitions

3.5

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 don’t 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)

1 g 2 f 3 h 4 d 5 a 6 e 7 b 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. Use words from the box to fill in the gaps

a.Abolish b. bracket c. breaks d. Exempt e. exile f.increase g. property h.return

1.The government needs more money, so it is planning to ………………. taxes.

2. He earns a lot of money- he must be in the highest tax ………

3. She lives there because she has to be a tax …………………..

4. They are planning to ………………………. the tax on large company cars, and replace it with a tax on all company cars.

f

b

e

a

3.6. Use words from the box to fill in the gaps

a. abolish b. bracket c. breaks d. Exempt e. exile f.increase g. property h.return

5. She is a student, so she is tax ……………………...

6. The government is planning to introduce new tax ………….. for IT companies.

7. Don’t buy a house this year- the …………………………………. taxes are being abolished next March.

8. A tax…………… is the same as a tax declaration- it’s a list of income and tax deductible expenditure for the authority.

d

c

g

h

Use words from the box to fill in the gaps

3.6

A. increase

B. bracket

C. exile

D. abolish

E. exempt

F. breaks

G. property

H. return

a. Find words from the conversation which mean the followings

3.7

1. to improve a machine or equipment2. written suggestion3. an opinion of what something means4. rules5. to include as an asset6. an explanation of what something means

1. To upgrade 2. submission

3. interpretation 4. regulations

5. To capitalize 6. definition

c. Use phrases from the box to soften the following statetments

3.7

1. I'm afraid I can't agree with your 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 multi national company’s domestic and foreign oper ations (consulting). Furthermore, they represent their clients before the tax authorities.

1 Fixed assets could includea) buildings b) plant and machineryc) the firm's delivery vansd) fuel for the vans2 Depreciation due to physical deterioration of an asset may includea) wear and tear b) theftc) erosion d) rot3 Machinery becomes obsolete due toa) new technology b) consumptionc) changes in production methods d) changes in fashion4 Amortization is the provision for consumption of the following itemsa) mortgages b) leasesc) patents d) copyright

5 A provision for depletion would be used for the following itemsa) mines b) buildingsc) quarries d) oil wells6 The following are methods of depreciationa) straight-line b) reducing balancec) the sum of the years' digitsd) market value7 A machine could be disposed of by beinga) scrapped b) resold c) revalued d) traded in8 The accounts which would record the sale or disposal of a machine area) machinery account b) sales accountc) machinery disposals accountd) 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. can’t/ we / have / laptops / for/ new / everyone/ it’s / because / too / simply / costly.

5. I’ll / 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 multi national company’s domestic and foreign oper ations (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?