1) Russian tax system underwent significant changes during the last few years.
2) Russian Government already has worked out the Tax Code and adopted a number of related laws but it still works to improve tax administration, to close the loopholes for tax evasion.
3) Some businessmen consider the system complicated and unfair.
4) Revenue from the single social tax usually goes into three funds: for pension, medical and social insurance.
5) Business community welcomes UST (Unified Social Tax) introduced some years ago.
6) In the nearest future the Russian Government will want to create condition when business thrives and budget tax revenue grows.
7) The main taxes in Russia will be VAT, tax on profit, excises, income tax, and unified social tax, tax on property and tax on minerals mined.
8) People believe that in future the government will reduce the tax rates, will create incentives for the employers not to evade taxes, not to disguise their activities, to state the true amounts of their employees’ wages.
9) Personal incomes in Russia usually are levied by a flat 13 percent tax rate, which are the lowest in Europe.
10) As a rule, VAT is charger at rate of 10 percent from foodstuffs and goods for children.
№12
| T | F |
| 1) There were no taxes in pre-monetary societies. | + |
| 2) King Solomon was the first who spoke about the necessity of taxes. | + |
| 3) In the Middle Ages there were self supporting countries which didn’t levy taxes. | + |
| 4) American Tax code has never been changed. | + |
| 5) Social Revolution didn’t destroy the tax system of Russia. | + |
| 6) The first decrees on taxation issued by the Soviet Government were income tax on monthly wages, the public taxes on rural proprietors and other. | + |
| 7) Russian tax system was partially destroyed in1941-1960. | + |
| 8) The tax system that works in Russia today was put in practice in 2000. | + |
| 9) There were 20 laws in the basis of the Russian tax system. | + |
| 10) The Tax Code of the Russian Federation is not adopted yet. | + |
№13
In 1985, the government of Jamaica embarked on a comprehensive tax reformed system. This reform included changes in the personal income tax, the company tax, and indirect taxes. The reforms of the personal income tax were particularly profound. A complicated, narrowly-based individual income tax levied under tax code was replaced by a broadly-based single-rate tax in 1986. Before the reform, the highest marginal tax rate of 60 per cent was reached at the relatively low tax base of less than three times per capita GDP. The provisions of the employees were complicated, with no standard deduction and sixteen separate credits. In addition, employers could grant nontaxable allowances to reform. The resulting tax system was difficult and costly to administer and (to contain) important disincentives; evasion and avoidance all but negated the progressivity of the statutory rate structure.
Under the progressive statutory rate, the complex rate structure was replaced with a single rate of 33 1/3 percent; the 16 tax credits were replaced with a standard deduction equal to two times per capita GDP; most non-taxable allowances were incorporated into the annual income level; and interest income was included in the tax base. The major changes in the tax law introduced in 1985 remain unchanged making the present-day tax system stable and conducive to the economic development.