Unit 8 : taxation slide thuyết trình

- The function of taxation: The primary function of taxation is to raise revenue to finance government expenditure.. 2, Income taxes are often progressive +, Disadvantage: the problem of

Unit 8: Taxation

I, Vocabulary – Đào Thị Phương (21.12)

tăng

/ˈkæl.kjʊ.leɪt/ Calculate Tính toán

nhiệm

/ /lɑɪf/ ɪnˈʃʊər·əns/ Life insurance Bảo hiểm nhân thọ

/ˌmʌl·tiˈnæʃ·ə·nəl Multinational SX, KD ở nước ngoài

I, Summary – Đỗ Hải Đăng (21.13)

Unit 8 talk about the taxation There are 5 main idea

- The function of taxation: The primary function of taxation is to raise

revenue to finance government expenditure In addition, the government uses taxation on different purpose such as dissuade people from smoking, drinking alcohol And encourage capital invesment by permitting many methods of

accelerated depreciation accounting

- Advantages and disadvantages of different tax systems:

+, Advantages: governments can redistribute wealth through:

1,Business profits are often tax twice:

- Tax on companies's profits

- Tax on shareholder's dividends

2, Income taxes are often progressive

+, Disadvantage: the problem of the marginal rate is always high, so it can be a

discentive to both working and investing

- Tax evasion: The higher the tax rate, the more people are tempted to

cheat.For example, many people do past time evening job, but they don't declare to the agency in order to not pay any tax or national insurance

- Avoiding tax on salaries: They are some legal ways of avoiding tax on

salaries For example: giving employees "perks" such as: company's car, free health insurance, subsidized lunches

- Avoiding tax on profits: Companies have a variety of way of avoiding

tax on profit For example:

+ investing more capital in new machines, factories

+ set up head offices in countries where taxes are low (tax haven)

+ laundering money

III, Short questions – Đào Thị Phương(21.12)

1, What is the primary function of taxation?

The primary function of taxation is financing the government expenditure

2 What are the other function of taxation?

Besides financing the government spending, the function of taxation include:

- Redistributing income and wealth

- Encouraging capital investment

- Balancing of payments

- Protecting domestic industries

- Preventing people consuming special goods such as: alcohol, car,

tobacco

3 What is the tax evasion?

Tax evasion is the illegal act or practice of failing to pay taxes which are owed In businesses, tax evasion can occur in connection with income taxes, employment taxes, sales and excise taxes, and other federal, state, and local taxes

4 How many kinds of Tax are there and what are they?

There are two kinds of Tax:

1.Direct Taxes: is the tax levied on taxable human

2.Indirect Taxes: is the tax levied on goods and services

5 What is income tax?

Income tax is tax levied on personal and corporate

6 What is tax haven?

It is a country offering very low tax rates to foreign business

7 What is tax rate?

Tax rate is the percent of income paid as tax, or the percent of the value of

a good, service or asset paid as tax

IV, Long questions – Nguyễn Thị Thu Trà (21.13)

1, What are the way of evade tax?

*,Knowingly not reporting income

*, Providing false information to the agency about business income or expenses

+, Under-reporting income (claiming less income than you actually received from a specific source)

+, Reporting expense not legally allowed

*, Not paying taxes owed

2, What are the way of avoid tax?

+,Some employers give highly-paid employees lots of ‘ perks’ instead

of taxable money, such as company cars, free health insurance,

and subsidized lunchs.Life insurance policies,pension plans and

other investments by which individuals can postpone the payment tax

+,Donations to charities that can be subtracted from the income

+,Companies have variety of ways of avoiding tax on profit They can bring forward capital expenditure so that at the end of the year all the profit have been used up.Multinational companies often set up their head offices in countries where taxes are low

3 How many types of tax rate?

Tax rates can be classified as one of three types: progressive tax,

proportional, or regressive

A progressive tax is one in which the percent paid as tax rises as the amount rises (for example, income tax)

A proportional tax is one in which the percent paid as tax stays the same as the amount rises (for example, sales tax, or corporate income tax)

A regressive tax is one in which the percent paid as tax falls as the amount rises (for example, value added tax in some cases)

4,What are the disadvantage of tax system in Viet Nam?

- Tax policy system is inadequate, not consistent, appropriate and

realistically cause difficulties in the implementation process

- System not cover tax policy and regulate all sources of income in the economy and no real guarantee of equality, justice and the obligation to pay tax in accordance with national legislation

- Understanding and sense of observing people's tax policy has been

uneven and deeply

- Not focus on the application of advanced scientific and technological cooperation in tax