Some additional tasks

Task one:

Use the following words to complete the following conversation.

depends, so, clarify, mean, basically, exactly

Kathy: Hi John. How’s it going?

John: It’s not easy, all this English. We didn’t do any of this on my course.

Kathy: Can I help?

John: Well, maybe you could …………….. a couple of things. Let’s see. Ah, here we are. Provision for income taxes. What does that ……………….?
OK. Provision means putting money aside so that we have something to pay with later. So provision for income taxes is talking about the current year’s tax expense which will have to be paid in the future.

John: Like provisional?

Kathy: Not …………….. Provisional just means temporary, you know, not final. Like a provisional budget. It’s not the final version.

John: I see. And what about deferred income tax balances. What does deferred mean?

Kathy: …………… put off to another day. The income has been recognized in the accounts, but the tax owing on that income will only be realized in the future.

John: OK. How does that affect associated companies?

Kathy: Well, it ………………….. Associated companies and affiliates are a special case. Deferred taxes are not normally recognized on undistributed earnings, but only if the plan is to re-invest the profits.

John: ………. if we don’t invest the profits, we pay tax.

Kathy: Exactly.

 key answers: 1. clarify ; 2. mean;  3.exactly;  4. Basically; 5. depends;  6. So

Task Two: Match these expressions with tax with their definitions

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)

key answers: 1.g ; 2.f; 3.h; 4.d; 5.a; 6.e; 7.b; 8.c

Task Three: Complete the following

Key answers: 1. allocation; 2. complete; 3.cost ; 4.employee  ; 5. information; 6. production/product ; 7.profitable ; 8. sale

Task Four: Now use the correct words from the previous boxes 

a) We have far too much work – we need to ............ an assistant to help us.

b) Everything we do depends on having accurate ................

c) The company ............... electrical goods like photocopiers and scanners.

d) We can’t have new laptops for everyone because it’s simply too .............

e) The pre-tax .............. was over €12 bn.

f) We’ve been ...............the conference room on the ground floor. Let’s meet down there at 2 p.m.
g) They hope to ..................  the report by Friday.
h) We always have the highest  ............... at Christmas.

key answers:

a).employ; b).information; c).produces/sells; d).costly;e).profit;

f). allocated; g). complete/produce; h).sales

Task 5: Match these words from the Statement of Cash Flows with their meanings.

1. dividend —                   a. money that is owed

2. cash —                          b. purchase price minus real value of assets

3. plant —                         c. reduction in value due to wear and tear

4. amortization —            d. money paid out to shareholders

5. goodwill —                   e. writing an intangible asset off over a number of years

6. cumulative                    f. increasing by successive additions

7. depreciation —            g. coins, bank notes, or something that can be easily exchanged for these

8. debt —                          h. building and equipment for manufacturing

Key answers:   1.d;  2.g;  3.h;  4.e ; 5.b ; 6.f ;  7.c; 8.a

Task 6: Use words from the box to fill in the gaps.

• Abolish; taxing; bracket; breaks; exempt; examples; exile; increase; property; return; decrease; revalue

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 – she’s a tax ______.

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

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 tax authority.

Key answers:

1.   increase; 2.   bracket; 3 .exile; 4.   abolish ; 5.  exempt; 6.   breaks 

7.   property;  8.   return