Unit 24: Taxation. What is taxation? What does it mean?

Transcription

1 Unit 24

2 Unit 24: Taxation What is taxation? What does it mean? To tax (from the Latin taxo; "I estimate") is to impose a financial charge or other levy upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes consist of direct tax or indirect tax, and may be paid in money or as its labor equivalent.

3 taxation A means by which governments finance their expenditure by imposing charges on citizens and corporate entitites. Governments use taxation to encourage or discourage certain economic decision. For example, reduction in taxable personal (or household) income by the amount paid as interest on home mortgage loan results in greater construction activity, and generates more jobs. oporezivanje, porezi, poresko opterećenje

4 tax Compulsory monetary contribution to the state s revenue, assessed and imposed by a government on the activities, enjoyment, expenditure, income, occupation, privilege, property, etc., of individuals or organizations. - porez tax formula

5 progressive tax Income tax that takes a larger percentage of a larger income and a smaller percentage of a smaller income. For example, a tax on luxury cars. regressive tax Taxation that takes a larger percentage of a lower income and a smaller percentage of a higher income. For example, a tax on the basic necessities (which form a large percentage of the expenditure of the lower income population) is a regressive tax. proportional taxes Income tax that takes the same percentage of all incomes, whether large or small. Also called flat tax.

6 indirect taxes Charged levied by the State on consumption, expenditure, privilege, or right but not on income or property. Customs duties levied on imports, excise duties on production, sales tax or value added tax (VAT) at some stage in production distribution process, are examples of indirect taxes because they are not levied directly on the income of the consumer or earner. Since they are less obvious than income tax (because they don t show up on the wage slip) politicians are tempted to increase them to generate more state revenue. Also called consumption taxes, they are regressive measures because they are not based on the ability to pay principle. posredni porezi

7 sale (retail) taxes porez na promet tariff duties on imports turnover taxes - Treated like the Ad valorem except for one major difference this tax is computer on major products and services at the end of the manufacturing process. porez na promet

8 value-added taxes Indirect tax on the domestic consumption of goods and services, except those that are zero-rated (such as food and essential drugs) or are otherwise exempt (such as export). It is levied at each stage in the chain of production and distribution from raw materials to the final sale based on the value (price) added at each stage. It is not a cost to the producer or the distribution chain members, and whereas its full brunt is borne by the end consumer, it avoids the double taxation (tax on tax) of a direct sales tax. Introduced by the European Economic Community (now the European Union) in the 1970s. porez na dodatu vrijednost

9 direct taxes A government levy on the income, property, or wealth of people or companies. A direct tax is borne entirely by the entity that pays it, and cannot be passed on to another entity. Examples include corporation tax, income tax, and social security contributions. Unlike consumption taxed, direct taxes are based on the ability to pay principle but they sometimes work as a disincentive to work harder and earn more because that would mean paying more tax. neposredni porezi

10 poll taxes Flat tax levied on all adults comprising a population or those within a jurisdiction of the taxing authority. property tax Ad valorem tax imposed on the market value of real and personal property such as boats, cars, buildings, land, etc. porez na imovinu

11 Indirect Speech - Questions When transforming questions, check whether you have to change: pronouns present tense verbs (3rd person singular) place and time expressions tenses (backshift) Also note that you have to: transform the question into an indirect question use the interrogative or if / whether

12 Indirect Speech - Questions Why don t you speak English? He asked me why I didn t speak English. Do you speak English? He asked me whether / if I spoke English.

13 Indirect Speech - Questions When reporting questions, it is especially important to pay attention to sentence order. When reporting yes/ no questions connect the reported question using 'if'. When reporting questions using question words (why, where, when, etc.) use the question word.

14 Indirect Speech - Questions She asked, "Do you want to come with me?" BECOMES She asked me if I wanted to come with her. Dave asked, "Where did you go last weekend?" BECOMES Dave asked me where I had gone the previous weekend. He asked, "Why are you studying English?" BECOMES She asked me why I was studying English.