1  -         2  -          3  -         4  -         5  -         6  -        7  -         8  -        9  -    

10 -        11-          12-         13-         14-         15-        16-         17-        18-  

8. Use each of the phrasal verbs above once to complete the text. You may need to use the past tense, the past participle or the present continuous form. 

After three years of rapid grown, sales began to (1). . . .  . Then, with the recession, they (2). . . .dramatically.  We had to (3). . . .the factory in Ireland, and (4). . . . sixty people. That left a lot of machine workers (5) . . . . a job in one small town. They (6) . . . . the newspapers every day, but there weren’t many job vacancies.

The unemployed had to (7) . . . . any kind of casual work they could find. We also had to (8) . . . .  staff in the London office, and reconsider the whole British operation that we’d (9) . . . . only five years before. Some of the American managers wanted to (10)  . . . . the British market entirely, and to (11)  . . . . our whole European business. Instead we have (12)  . . . . a restructuring, and (13)  . . . . all our plans for expansion, and for (14)  . . . .new products. We’re trying to (15) . . . .as best we can. We might even have to (16) . . . . our prices a little, hoping we can (17) . . . . . our customers’ brand loyalty. At least there are some signs that the recession has (18) . . . .  .   

9. Use the correct form of these verbs in the following sentences: 

 

1. If you inherit a lot of money, you …. for capital transfer tax.
2. In some countries, employers have to …. tax from your pay and ….it direct to the tax authorities, so employees have no possibility of ….income tax.
3. Some people hire expensive accountants to tell them how to ….taxes – legally, of course!
4. The government always tries to ….taxes in the year before elections.
5. The government has a huge deficit and is going to ….either the rate of VAT or income tax.
6. The government ….special taxes on petrol, alcohol and tobacco.

Listening & speaking

10. Listen to the text “Inflation”: 

    Inflation is a rise in the general level of prices. It is caused by an excess of demand over supply, and is related to an increase in the money supply. Single-digit inflation is usually described by economists as a moderate inflation. Double or triple-digit inflation, which some countries have survived for quite long periods, is known as galloping inflation. Inflation of four or more digits, as in Germany in the early 1920s, and Argentina in the early 1980s, is known as hyperinflation.

    Prices in general tend to remain at the same anticipated level   unless there are

demand-pull or cost-push shocks. If aggregate demand exceeds what a country can   produce at full employment, prices will rise (including wages, the price of labor): this is demand-pull inflation. But, for the last   fifty years, costs have pushed up prices and wages, even in recessions and periods of high unemployment: this is cost-push inflation. Cost-push inflation is caused, for example, when unions demand wages that employers cannot afford or when oil producers are able to raise their prices.

    The opposite of inflation, when prices fall (generally for short periods), is deflation. Government policies can be inflationary (often by accident), disinflationary or reflationary. Disinflationary policies might be aimed at slowing down price inflation or at reducing imports, they involve reducing demand by raising taxation and / or cutting government spending. Reflationary policies, on the contrary, involve revitalizing a sluggish economy by increasing consumer demand, either by cutting taxes or raising benefits, or relaxing monetary and credit restrictions.

     Inflation is measured by the retail price index (RPI) in Britain and the consumer price index (CPI) in the US. These measure the cost of a ‘basket’ of goods and services, including food, clothing, housing, fuel, transport and medical care. The individual items in price indices are weighted, meaning that allowance is made for their relative importance in people’s spending.

    Unless inflation is both balanced (affecting all prices and costs equally) and anticipated, it distorts relative prices, tax rates and real interest rates. Unexpected inflation tends to benefit people with fixed nominal interest rate debts, and so disadvantage creditors and people with fixed nominal interest rate assets or non-index-linked pensions.

  

11. Make up the discussion with your partner. Use words and questions given below:

assets consumer debts deflation

excess employment               hyperinflation           interest

producers restrictions  spending                       supply

      unemployment      weighted 

1. What is the inflation rate in your country at present?

2. Can you give current examples of double and triple-digit inflation?

3. What is your government’s policy at the moment? Does it seem to be more concerned with price stability or with reducing unemployment?

Revision box

12. Use sentences 1 to 10 to make up a short text about “Government Spending”. Complete each sentence, by taking a middle part from the second box and from the third box:

1. If tax revenues are higher
2. If, on the contrary, government expenditures exceed
3. A structural surplus or deficit
4. A cyclical surplus or deficit, on the other hand,
5. Budget deficits have to be funded by the sale of government bonds,
6. The higher the amount of government bonds sold in a country,
7. Neo – classical economists
8. On the other hand, if the money supply is expanded,
9. The is partly due to the acceleration principle,
10. But of course everybody knows

________________________________________________________________    

a. called gilt - edged securities in Britain

b. call this “crowding out”,

c. increased government spending

d. is result of government policies such as

e. is the result of the business cycle:

f. money collected by taxes,

g. than government spending,

h. that increasing the money supply

i. the less capital is available

j. which is that increased demand for consumer goods

__________________________________________________________________k. a country has a budget deficit.

l. a country has a budget surplus.

m. almost inevitably leads to inflation.

n. and Treasury bonds in the USA.

o. and use it as an argument against Keynesian fiscal policies.

p. can raise output and investment, at least in the short term.

q. changes in spending or revenues caused by a boom or a slump.

r. for private sector investment.

s. produces a greater increased demand for capital goods.

t. tax rates, welfare and defense  spending, and so on.

 

13. Match the following terms with the definitions below, and then use them to label the situations: 

                  classical unemployment                 seasonal unemployment

cyclical unemployment    structural unemployment

frictional unemployment                 voluntary unemployment 

1. . . . .  exists in trades or occupations where work fluctuates according to the time of year.
2. . . . . exists when people choose not to work, often because they cannot find jobs that pay enough money (e.g. more than social security benefits).
3. . . . . is temporary unemployment that arises when people voluntarily leave a job to look for another one.
4. . . . . is the loss of jobs caused when wages are too high
5. . . . . occurs during recessions, when the overall demand for labor declines.
6. . . . . occurs when the skills of available workers do not match the jobs vacant.

 

       I lost my job with It’s crazy – the only

      4,000 other people jobs available round

      when they closed here pay less than I get

      down the coal mine. from Social Security. 

      1._________________                                       4. ____________________ 

      I work with a traveling                                        I’m a skilled electrician,

      circus in the summer,                                           but there’s such a slump

      but it’s just closed for                                           in the construction

      the winter.                                                             industry right now that

                                                                                    I’m out of work.

      2.__________________

                                                                                    5.____________________ 

     The union went on                                                 I left my job last week

     strike for 8% pay                                                   after an argument with

     rise. They got it, but                                              my boss. I’m sure I can

     the company laid off                                              find something better.

     ten of us.

     3. __________________                                       6.____________________ 

14. Choose the correct words to complete each sentence:

1. The tax on wages and salaries (and business profits in the US) is called . . . .   . In Britain the tax on business profits is called corporation tax.

       a. direct tax                     b. income tax                      c. wealth tax

2.  A tax that is levied at a higher rate on higher incomes is called a . . . . tax.

     a. progressive                  b. regressive                      c. value-added 

3.   Property taxes, sales taxes, customs duties on imports, and excise duties on tobacco, alcoholic drinks, petrol, etc. are . . . .taxes.

         a. direct                            b. indirect                          c. value-added 

4.   Most sales taxes are slightly. . . .because poorer people need to spend a larger proportion of their income on consumption than the rich.

     a. progressive                    b. regressive                     c. repressive

5.   A sales tax collected at each stage of production, excluding the already-taxed costs from previous stages, is called a  . . . .   .

     a. sales tax                          b. value-added tax            c. added-value tax

6. Profits made from the sale of assets are liable to a  . . . . tax.

a. capital gains                    b. capital transfer             c. wealth

7. Gifts and inheritances are usually liable to . . . . tax.

a. capital gains                    b. capital transfer             c. wealth

8. Reducing the amount of tax you pay to a legal minimum is called . . . .  .

a. fiscal policy                     b. tax avoidance                c. tax evasion

9. Making false declarations is called . . . . and is obviously illegal.

a. creative accounting          b. tax avoidance                c. tax evasion

10.   Bringing forward capital expenditure (on new factories, machines, and so on) so that at the end of the year all the profits have been used up is known as making a

. . . .   .

         a. mistake                                b. tax haven                     c. tax loss

11.   Multinational companies often set up their head offices in low-tax countries such as Liechtenstein, Monaco, the Cayman Islands, and the Bahamas, known as       

. . . .   .

     a. tax havens                             b. tax heavens                  c. tax shelters

12.   Criminal multinationals such as the Mafia tend to pass money through a series of companies in very complicated transactions in order to disguise its origin from tax inspectors and the police; this is known as . . . . money.

      a. cleaning                                  b. laundering                    c. washing                   

15. Translate the text into English:

    Два главных компонента деятельности по управлению налогами  - это налоговые отчеты, согласование и налоговое планирование.

    Первый из них включает подготовку отчетов, надлежащее указание текущих и отсроченных налоговых расходов и задолженностей по налоговым платежам в финансовых отчетах, а также контакты с налоговыми органами по проверке правильности начисления налогов.

    Налоговое планирование – это непрерывный процесс наблюдения, предвидения и установления связей между развитием бизнеса и развитием налогового законодательства для достижения оптимальных долгосрочных экономических преимуществ  для корпорации. 

16. All the words below can be combined with tax or taxation in a two - word partnership (e.g. tax accounting, progressive taxation). Add tax and /or taxation before or after the following words:

1. ……..accounting……                    14. …….inspector…….
2. ……..allowance…….                    15. …….loophole…….
3. ……..authority……..                     16. …….loss………….
4. ……..avoidance……                     17. …….payer………..
5. ……..consultant……                     18. …….progressive…
6. ……..corporation….                      19. …….rates…………
7. ……..deductible…...                      20. …….rebate……….
8. ……..direct………..                       21. …….regressive…..
9. ……..evasion………                      22. …….retune………
10. ……..free…………..                      23. …….sales………
11. ……..haven…………                     24. …….shelter……..
12. ……..income……….                      25. …….withholding...
13. ……..indirect………                      26. …….year…………