UNIT

UNIT 10 7 TAXATION

YÊU CẦU:
1. Học thuộc từ vựng trong bài
2. Làm các bài đọc hiểu / bài tập từ vựng
3. Đọc và dịch sang tiếng Việt
4. Viết câu trả lời cho câu hỏi topic còn lại

PREVIEW
Match the terms in column A with their definitions in column B
1. Income tax A. Multinational companies often set up their subsidiaries
2. Progressive tax in low-tax countries such as Liechtenstein, Monaco, the
3. Indirect taxes Cayman Islands, and the Bahamas
4. VAT (Value added tax) B. Property taxes, sales taxes, customs duties on imports,
5. Capital gain tax and excise duties on tobacco, alcoholic drinks, petrol, etc.
6. Capital transfer tax C. Bringing forward capital expenditure (on new factories,
7. Tax avoidance machines, and so on) so that at the end of the year all the
8. Making a tax loss profits have been used up
9. Tax evasion D. The tax on wages and salaries (and business profits in
10. Tax havens the US)
E. Making false or no declarations to tax authorities
F. A tax liable to profits made from the sale of assets
G. A tax that is levied at a higher rate on higher incomes
H. Reducing the amount of tax you pay to a legal
minimum
I. A tax collected at each stage of production, excluding
the already-taxed costs from previous stages
J. A tax levied on gifts and inheritances over a certain
value
A – 10 B–3 C–8 D–1 E–9 F–5 G–2 H–7 I–4 J-6
Impose/ levy + taxes + on sth = tax sth
- Personal (individual) income tax is the tax (which is) imposed on individual
incomes.
- Corporate income tax is the tax imposed/ levied on the company’s profits/
incomes.
A levy (n) is a sum of money that you have to pay, for example as a tax to the
government.
- ...an annual motorway levy on all drivers. [+ on]
Synonyms: tax, fee, toll, tariff
If a government or organization levies (v) a tax or other sum of money, it demands
it from people or organizations.
- They levied religious taxes on Christian commercial transactions. [VERB
noun + on]
- Taxes should not be levied without the authority of Parliament. [VERB
noun]
A toll is a small sum of money that you have to pay in order to use a particular
bridge or road. – phí cầu đường
A tariff (n) is a tax that a government collects on goods coming into a country
(imports) – thuế hải quan/ thuế nhập khẩu
- America wants to eliminate tariffs on items such as electronics. [+ on]
A tariff (n) is the rate at which you are charged for public services such as gas and
electricity, or for accommodation and services in a hotel. – phí dịch vụ công
[British, formal]
- The daily tariff includes accommodation and unlimited use of the pool and
gymnasium.
Be liable to sth
If you are liable for something such as a debt, you are legally responsible for it.
- The airline's insurer is liable for damages to the victims' families. [+ for]
- Capital gain tax is the tax liable to profits made from the sale of assets
Depreciate (v): hao mòn
- Fixed assets depreciate over time. They lose their value over time because
they are used, or they are out-of-date, or they are affected by environmental
factors.
If something such as a currency depreciates or if something depreciates it, it loses
some of its original value.
- Inflation is rising rapidly; the yuan is depreciating. [VERB]
- The demand for foreign currency depreciates the real value of local
currencies. [VERB noun]
- During those five years, the pound depreciated by a quarter. [VERB + by]
The yuan is the unit of money that is used in the People's Republic of China.
- For most events, tickets cost one, two or three yuan.
- The yuan is also used to refer to the Chinese currency system.
- The yuan recovered a little; it now hovers around 8.2 to the dollar.
Discounts for the depreciation of fixed assets = depreciations
Depreciation (n)
a. the reduction in value of a fixed asset due to use, obsolescence, etc
b. the amount deducted from gross profit to allow for such reduction in value
Basically there are 3 methods of computing depreciations:
+ linear method = average weighted method
+ bringing forward capital expenditure: tính hao mòn theo phương pháp
giảm dần
Capital = fixed assets
Defining taxable incomes (profits): xác định thu nhập chịu thuế
Profits before tax (taxable incomes) = Net sales – Total costs (raw materials used +
salaries and wages + administrative costs + operation costs + depreciations +
interests)
Profits before tax x tax rates = tax bills
Declare (v) khai báo
If you declare something, you state officially and formally that it exists or is the
case.
- The government is ready to declare a permanent ceasefire. [VERB noun]
Declaration (n) – make declarations
A declaration is an official announcement or statement.
- They will sign the declaration tomorrow.
- The opening speeches sounded more like declarations of war than offerings
of peace. [+ of]
- ...the issues arising from their declaration of independence.
Tax offices = tax authorities: cơ quan thuế
An authority is an official organization or government department that has the
power to make decisions.
- ...the Health Education Authority.
- Any alterations had to meet the approval of the local planning authority.
Capital gain = income gained from selling the company’s assets
Capital gain (n) profit resulting from the sale of capital investments, as stocks, real
estate, etc.
A capital gain is the amount by which the selling price of a financial asset exceeds
its cost.
Capital transfer tax
If you inherit money or property, you receive it from someone who has died.
- He has no son to inherit his land. [VERB noun]
- ...paintings that he inherited from his father. [VERB noun + from]
- ...people with inherited wealth.
An inheritance tax is a tax which has to be paid on the money and property of
someone who has died.
Capital transfer tax (in Britain) a tax payable from 1974 to 1986 at progressive
rates on the cumulative total of gifts of money or property made during the donor's
lifetime or after his or her death. It was replaced by inheritance tax
 MAIN IDEAS OF UNIT 7
I> Different types of taxes (tên các loại thuế và định nghĩa)
+ based on things imposed taxes
(Terms + definitions)
+ based on tax rates: progressive taxes; regressive taxes
+ based on ways of paying taxes: direct taxes; indirect taxes
II> Functions of taxation
III> Tax evasion
IV> Tax avoidance
TOPIC QUESTIONS
1. What are different functions of taxation?
- The primary function of taxation is to raise revenue for the government
expenditure.
- Different types of taxes have different functions. For example:
+ Function of income taxes is to redistribute wealth (income)
+ Function of corporate income tax is to encourage investment in fixed assets by
permitting various methods of computing depreciations of fixed assets.
+ Function of excise taxes is to dissuade people from consuming some special and
unnecessary goods and services such as wine, beer, cosmetics, hotels, restaurants,
+ Function of payroll taxes is to ensure social security
+ Functions of customs duties (tariff) are to restrict the consumption of imports; to
protect domestic producers.
2. How do companies and individuals evade taxes?
Evade (v) = escape + paying taxes: trốn nộp thuế
evasion (n)
3. How do individuals avoid taxes?
4. How do companies avoid taxes?

HOW TO WRITE A TOPIC (PARAGRAPH)

Before writing, an outline should be made
OUTLINE FOR Q2: How do companies and individuals evade taxes?
- Introductory sentence: definition of tax evasion
- Topic sentence: some ways for both individuals and firms to evade taxes
- Body of the paragraph:
+ Idea 1: individuals
Supporting sentence: ways for individuals + specific explanations to these ways/
examples for illustration.
 Sub-main idea 1 - self-employed people/ freelancers
 Sub-main idea 2 – people with part-time jobs
+ Idea 2: Firms
+ Supporting sentence: ways for firms + specific explanations to these ways/
examples for illustration.

Tax evasion means making false or no declaration to the tax authorities. There are some
ways for both individuals and firms to evade taxes. Firstly/ First of all, First, freelancers
whose incomes are much more difficult to control than that of companies’ employees
often don’t declare their incomes to the tax offices, thus they evade paying taxes on
personal incomes as well as paying payroll taxes. Besides, people with part-time jobs
also don’t pay any income taxes and payroll taxes on their incomes earned from small
and medium-sized companies. Not only individuals but also firms are tempted/ induced
to treat. Tax evasion by firms covers evasion of income tax, VAT, customs duty and
excise tax. For example (lấy ví dụ các trường hợp các công ty bị phát hiện trốn thuế).

Other suggested topic sentences:

- Individuals and firms have been evading taxes in some different ways.
- People have been witnessing many cases of tax evasions by both individuals and
firms almost everywhere.
- Tax authorities in most countries in the world have discovered many cases of tax
evasions by both individuals and firms.

Fraud (n) is the crime of gaining money or financial benefits by a trick or by lying.
- He was jailed for two years for fraud and deception.
- Tax frauds are dealt with by HMRC.
Fraudulent (adj): intended to deceive someone, for example, to get money:
- They thought I might try to collect insurance on a fraudulent claim.
- For a charge of fraudulent trading to succeed, dishonesty would first have to be
proved.
Fraudulence (n) the fact of intending to deceive by doing something dishonest and
illegal:
- She felt anger at herself for failing to see through Peter's fraudulence.
- The report reveals a scandal of political fraudulence.

READING 1
TAXATION
The primary function of taxation is, of course, to raise revenue to finance
government expenditure, but taxes can also have other purposes. Income taxes in most
countries are progressive, and are one of the ways in which governments can redistribute
wealth.
- Payroll taxes => (generate) trust funds – quỹ bảo hiểm xã hội – which are spent on
social security and medicare.
- Income taxes => (generate) federal funds (state budget) which are spent on
government projects or programs such as the construction of infrastructure that
benefit all the society.

Governments can also encourage capital (fixed assets) investment by permitting various
methods of accelerated depreciation accounting that allow companies to deduct more of
the cost of investments from their (taxable) profits, and consequently reduce their tax
bills.

Indirect excise duties, for example, can be designed to dissuade people from smoking,
drinking alcohol, and so on. Varying justifications and explanations for taxes have been
offered throughout history. Early taxes were used to support ruling classes, raise armies
and build defenses. Later justifications have been offered across utilitarian, economic or
moral considerations. Proponents of progressive levels of taxation on high-income
earners argue that taxes encourage a more equitable society. Higher taxes on specific
products and services, such as tobacco or gasoline, have been justified as a deterrent on
consumption. Advocates of public goods theory argue taxes may be necessary in
instances in which the private provision of public goods is considered sub optimal, such
as with public transportation or national defense.

methods of accelerated depreciation accounting: phương pháp tính hao mòn lũy kế
tax bills = tax liabilities
- The function of excise taxes is to dissuade people from consuming some special
(unnecessary) goods and services such as wine, beer, cosmetics, restaurants,
hotels, etc.

What are different common types of taxation? As mentioned above, taxation

applies to all different types of levies. These can include (but are not limited to): 
 Income tax: Governments impose income taxes on financial income generated by
all entities within their jurisdiction, including individuals and businesses.
 Corporate tax: This type of tax is imposed on the profit of a business.
 Capital gains: A tax on capital gains is imposed on any capital gains or profits
made by people or businesses from the sale of certain assets including stocks,
bonds, or real estate. 
 Property tax: A property tax is assessed by a local government and paid for by
the owner of a property. This tax is calculated based on the property and land
values. 
 Inheritance: A type of tax levied on individuals who inherit the estate of a
deceased person. 
 Sales tax: A consumption tax imposed by a government on the sale of goods and
services. This can take the form of a value-added tax (VAT), a goods and services
tax (GST), a state or provincial sales tax or an excise tax.

The higher the tax rates, the more people are tempted to cheat – gian lận, but there is a
substantial 'black' or 'underground' economy nearly everywhere. Tax evasion applies to
both the illegal nonpayment as well as the illegal underpayment of taxes. Unlawful
attempt to minimize tax liability through fraudulent techniques to circumvent or frustrate
tax laws, such as deliberate under-statement of taxable income or willful non-payment of
due taxes. Whereas tax evasion is an offense (punishable by both civil and criminal
penalties), tax avoidance is not. In Italy, for example, self-employed people - whose
income is more difficult to control than that of company employees - account for more
than half of national income. Lots of people also have undeclared, part-time evening jobs
(some people call this 'moonlighting') with small and medium-sized family firms, on
which no one pays any tax or national insurance.

Self-employed people = freelancers: người làm nghề tự do: such as photographers/

tailors/
Temp sbd to do sth: xui khiến/ xúi giục ai đó làm gì

Tax avoidance is the use of legal methods to modify an individual's financial

situation to lower the amount of income tax owed. This is generally accomplished by
claiming the permissible deductions and credits. This practice differs from tax evasion,
which uses illegal methods, such as underreporting income to avoid paying taxes. Most
taxpayers use some form of tax avoidance. Even though it may seem negative, it really
isn't. In fact, tax avoidance is a legal way for people or other entities to minimize their tax
liability. These can be in the form of deductions or credits used to their advantage to
lower their tax bills.
 
To reduce income tax liability, some employers give highly-paid employees lots of 'perks'
(short for perquisites) instead of taxable money, such as company cars, free health
insurance, and subsidized lunches. Legal ways of avoiding tax, such as these, are known
as loopholes in tax laws. Life insurance policies, pension plans and other investments by
which individuals can postpone the payment of tax, are known as tax shelters. Donations
to charities that can be subtracted from the income on which tax is calculated are
described as tax-deductible. Individuals who contribute to employer-sponsored retirement
plans with pre-tax funds are engaging in tax avoidance because the amount of taxes paid
on the funds when they are withdrawn in retirement is usually less than the amount the
individual would owe. Furthermore, retirement plans allow taxpayers to defer paying
taxes until a much later date, which allows their savings to grow at a faster rate.
Companies have a variety of ways of avoiding tax on profits. They can bring
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; this is known as making a tax loss.
Multinational companies often set up their subsidiaries in countries such as Liechtenstein,
Monaco, the Cayman Islands, and the Bahamas, where taxes are low; such countries are
known as tax havens.
Criminal organizations – tổ chức tội phạm - , meanwhile, 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 laundering money.

I> According to the text, are the following statements are TRUE or FALSE? Give the
evidences.
1. The same amount of money can only be taxed once.
2. One of the ways for governments to redistribute wealth in society is to allow
companies to deduct more of the cost of investments from their profits
3. Progressive taxes may encourage investments or persuade people to work extra hours.
4. To reduce the amount of tax, some bosses give highly-paid employees subsidies or
benefits.
5. Property tax is a type of tax levied on individuals who inherit the estate of a deceased
person. 
6. “Tax shelters” are a common form of tax evasion.
7. If you pay a lot of your income into a pension fund or a life insurance policy you never
have to pay tax on it.
8. A company that makes an unusually large profit during a tax year might quickly decide
to spend it, for example, on a new factory or equipment.
1. T 2. F 3. F 4. T 5. F 6. F 7. F 8. T

II> Find words in the text that mean the following

1. reducing the value of a fixed asset, by charging it against profits
2. something which discourages an action
3. an adjective describing a tax that is proportionally higher for people with higher money
4. A person who advocates a theory or a proposal
5. working for yourself, being your own boss
6. the process of creating appearance the large money obtained from criminal activity
comes from a legitimate source.
7. non-financial benefits or advantages of a job
8. a way to delay the payment of tax to a later time
9. an adjective describing expenditures that be taken away from taxable income or profits
10. a country offering very low tax rates to foreign businesses
1. accelerated depreciation 2. Disincentive 3. progressive
4. proponents5. self-employed 6. money laundering
7. perks 8. tax shelter 9. Deductive s10. a tax haven

VOCABULARY EXERCISES
Fill in the gaps in the text using words/ phrases in the box.
income tax avoiding investments salary calculated
varies liability earnings methods profit
In the 21st Century, the number of different taxes that we are obliged to pay has
reached record levels which means as a society we are even less willing to pay them. As
well as income tax we are exposed to many other taxes including corporation tax, capital
gain tax, consumption tax and property taxes. All of this can be too much to handle for an
SME so accountants are often used to try to minimize the tax (1) …………….. of a
company.
Certain taxes are unavoidable though. As a registered business entity you will
have to pay a consumption tax, which would either be sales tax in the US or value added
tax in the rest of the world. Sales tax is levied against the consumer, which means that the
company has no liability other than the act of collecting the tax which is (2) …………….
on the sale price of a product. This tax is held by the company until a determined time
when it is paid to the appropriate governmental department. As there is no tax due from
the production of the goods, sales tax does not affect the (3) ………….. of an
organization, unlike VAT which is levied on both the consumer and the producer.
Capital gains tax, which is basically a tax on the sale of a non-inventory asset that
has increased in value since purchase. The difference in value is then treated as a taxable
source of income and thus has tax levied against it. The rate of taxation (4) …………
depending on the income tax bracket of the individual or corporation selling the asset and
whether it is a short or long-term gain. Short term gains are anything up to one year. As
any accountant dealing with capital gains tax knows, it is advisable to wait for over 12
months after the point of purchase before selling the asset so that long-term capital gains
tax is due at a lower rate. Tax due on both short and long-term gains can be deferred by a
variety of (5) …………… .
Corporation tax is the taxation method for taxing the income of a business entity
classified as a corporation; the tax rate is dependent on the taxable (6) ……….. of that
corporation. As with income tax, the tax due may be reduced with the aid of tax credits.
Tax credits are offered to businesses for a variety of reasons with the most
common of these being, encouragement to invest in alternative energies, encouragement
to employ certain individuals, disaster relief or on earnings outside the US. These credits
are then offset against the tax liability reducing the tax due.
Even individuals are confronted by an often confusing array of taxes. The most
common of these taxes is (7) …………. , which taxes our earnings. People are often
unaware how much income tax they pay as it is dealt with by the employer who, while
calculating the wages for an employee also calculates the income tax due and deducts this
from the pay packet.
The PAYE system in England is the system of paying wages and appropriate taxes
and insurances on the cost of employees. This system allows employers to withhold any
deductions due on an employee’s (8) ………….. , while calculating the correct payments
for statutory sick and maternity pay.
Tax affects everyone from an employee to the CEO of the largest corporation but
if you are in the position where you employee a good accountant, you can actually lower
your liability by exploiting loopholes in the anti-avoidance registration.
A common method of (9) ………… income tax is for an employee in the higher
tax bracket to channel their wages through a shell company, thus changing the type of
taxation from income to corporation. Then drawing the maximum salary while remaining
on the lower tax bracket, after a certain number of years the shell company is then
liquidated.
Accountants can also advise on the best type of (10) …………… so as to receive
tax credits from the government. There is an old expression: “Only two things in life are
certain, death and taxes.” Well, we can’t do anything about the former, but a good
accountant can help with the latter.

READING 2
Read the following text and choose the best answer A, B, C or D
 A tax is an amount of money that governments require to be paid to support the
government. Taxes have been around for a long time. In fact, there is a very old saying
that in this world nothing is certain but death and taxes. Many centuries ago people were
already paying taxes. Six-thousand-year-old clay tablets were found, in what is now
modern day Iraq, containing the earliest known tax records.
The early Greeks paid taxes like those that are still enforced today, taxes on what
people owned and sold. Roman taxes are mentioned in the Bible, and the fall of the
Roman Empire is said to be in part due to the huge burden of taxes Romans imposed on
the people. In ancient times, the Chinese civilization had a form of taxation that required
that one-tenth of each person's land and what was earned from it belonged to the
government.
Where there were taxes there always seemed to be the question of whether the taxes
were fair. During the Middle Ages, there were many taxes. Every adult had to pay a poll
tax, a tax just for being there, and existing as a person. There were also property taxes,
even if one did not own property, and part of every person's work or what they grew must
go to the Church.
Nobles revolted against King John in 1215 because he asked for payment of new
taxes, made current taxes greater, and tried to tax people to pay for a war effort. King
John's leadership was not trusted by the people who felt they had no obligation to pay to
support this war.
During the Colonial Period settlers went to new lands and these lands became new
sources of taxes. Taxes were especially needed to pay for wars. In 1779, the first income
tax, a tax on employment income, was used by Great Britain to pay for wars against
Napoleon.
The American Revolution was in part caused by what the colonists in America
considered unfair taxation. The colonists had to pay taxes to England but were not
represented in the English government. Their battle cry was, 'No taxation without
representation.'
When the United States was first established there were few taxes. There was not
much need as times were peaceful and there was little need to pay for an army. The
government was also small and had no great need for extra money.
However, as the country grew there was a greater need for taxes. Citizens who earned
a certain amount of money were taxed to pay for the Civil War. This was the first federal
income tax. It lasted until the 1870's when it was withdrawn, but new federal taxes, taxes
imposed by the national government, went into effect again in 1894.
Today some of our taxes go for protecting our country, helping those in need, keeping
us healthy, paying off debts our country owes, and taking care of those who have fought
in our wars. Without taxes, governments could not exist. But as history shows us, it is
always important for each one of us to make sure that taxes are just, fair and necessary.
1) Which of the following defines taxes?
A: Extra costs of things
B: Part of what people owe
C: Money people don't want to pay
D: Money that goes to support the government
2) How long have taxes been in existence?
A: 200 years
B: Six thousand years
C: 500 years
D: Since the Middle Ages
3) Which of the following tells why the nobles revolted against King John?
A: He took their land
B: He made them pay taxes they hated
C: He didn't give them enough freedom
D: He wouldn't fight in any wars
4) Which of the following was the battle cry of the American Revolution?
A: Down with Britain
B: No tea for me
C: No taxation without representation
D: One if by land, two if by sea
5) Which of the following was the first war paid for by taxes in the United States?
A: The Spanish-American War
B: The Civil War
C: The Revolutionary War
D: The French and Indian War
6) Which of the following years was the first income tax imposed by Great Britain?
A: 1215
 B: 1870
C: 1750
D: 1776

READING 1: TAXATION
I> According to the text, are the following statements are TRUE or FALSE? Give the
evidences.
1. T 2. F 3. F 4. T 5. F 6. F 7. F 8. T
II> Find words in the text that mean the following
1. accelerated depreciation 2. Disincentive 3. progressive
4. proponents 5. self-employed 6. money laundering
7. perks 8. tax shelter 9. deductive
10. a tax haven

READING 2
Read the following text and choose the best answer A, B, C or D
1 D 2 B 3B 4C 5B 6D

WRITING
I. Write about the following topics:
1> What are different functions of taxation?
2> What is tax evasion? How do individuals and firms evade taxes?
3> What is tax avoidance? How do individuals and firms avoid paying taxes?

II. Translate the following text into Vietnamese

Today we will examine the different types of tax which are in effect today. There
are many kinds of tax, each with a different mechanism of when and how the tax is due.
In business, it is vital to understand when and how each of these taxes are calculated.
Due (adj): expected to happen, arrive, etc. at a particular time:
- The next meeting is due to be held in three months' time. – Cuộc họp lần tới dự
kiến sẽ được tổ chức sau 3 tháng nữa.
 - Their first baby is due in January.
- The present chairman is due to retire next month.
- They backed out of the deal the day before they were due to sign the contract.

Let's start with sales tax. In the US, this tax is often used as a method for states to
generate revenue. Purchases at the retail level (not wholesale) are subject to sales tax,
which is a percentage of the sales price. Sales tax is not standardized, as individual states
can set the applicable rates - these rates generally vary depending on the product. Sales
tax is an indirect tax, as the taxes are collected by the merchant who then, at the
appropriate time pays the tax to the appropriate organ. Sales tax, is also referred to
as consumption tax.

Sales tax (n) in some countries and in some US states, a tax that you pay when you buy
goods or services, calculated as a percentage of their price: - thuế doanh thu
- a local/national/state sales tax
- The regional plan calls for a 2% sales tax on gasoline.
- In the UK VAT was introduced in 1973, replacing purchase tax.
Consuption tax (n) a tax that is added to the price of goods and services bought by the
general public:
- Under a consumption tax, those who spend more would be taxed more.

Moving on to capital gains tax. Capital gains tax, is the tax which is levied against any
profits from the sale of an asset which was sold for more than it was bought. This could
be, for example, profit made when selling your house, a car, or any stocks. This is a per
annum tax which means that loss from a sale later in the year can be offset against the
profit from an earlier sale. The great thing about this tax is it only taxes people with
enough excess income to actually invest. In other words, it's a tax the poor don't have to
think about.

Capital gain tax – thuế tăng vốn

Offset (v) to balance one effect against an opposing effect, so that there is no great
difference as a result: bù lại
- The price of petrol products was offset by a decline in motor vehicle prices.
offset sth against sth – bù lại cái gì bằng gì
- Offset any losses against your overall income.
- The extra cost of travelling to work is offset by the lower price of houses here.
- (UK) He keeps his petrol receipts because petrol is one of the expenses that he can
offset against tax (= can show to the government as being a business cost, and so
not pay tax).
Offset – offset – offset

Thuế môn bài tiếng Anh là “Business-license tax” có nghĩa là thuế cấp phép kinh doanh,
thuế môn bài phải đóng khi đi vào kinh doanh, hiện nay theo luật Việt Nam đã sử dụng
thuật ngữ “lệ phí môn bài”, để phù hợp về mặt ngữ nghĩa của từ hiện tại thì cụm từ tiếng
anh tương ứng là “licensing fee”.
Thuật ngữ “licensing fee” có thể được sử dụng trong một số bối cảnh, trong đó nó được
sử dụng phổ biến nhất để mô tả một số tiền được trả cho một thực thể cho một quyền
hoặc khả năng nhất định.
“Licensing fee” cũng có thể là một khoản tiền được trả bởi một cá nhân hoặc doanh
nghiệp cho cơ quan chính phủ vì đặc quyền thực hiện một dịch vụ nhất định hoặc tham
gia vào một ngành kinh doanh cụ thể.

Like most taxes, property tax is self-explanatory. It's a tax based on the value of an asset.
The most common occurrence of this is tax on your home, but it could also include your
car and anything else the government wishes to tax. Interestingly, the focus of property
tax is on private assets in public view, such as your home or car. But if you lend a work
of art to a museum it can now be subject to the property tax, as this piece of art is now in
the public eye. Similar to the capital gains tax, property tax generally generates revenue
from people who earn enough to have assets worth taxing.

Income tax, needs no introduction. Everyone of us is aware of this tax and aware of how
much it costs. It taxes the financial income of individuals and companies alike. Most
countries operate a bracketed income tax system, so a person making $25,000 a year will
pay a lower percentage of their income than someone making $80,000 a year. People are
taxed on gross income, while companies generally are taxed on net income.
Bracket (n) a group with fixed upper and lower limits: khung, định mức
- Her pay rise brought her into a new tax bracket.

Value Added Tax is another consumption tax, similar to sales tax in the US but with a
key difference. It's more complicated as it's applicable at every point in the supply chain.
Generally, each step in the chain of a product being converted from raw materials to
something worth buying, has value added to it. So in the gas industry you might have 3
steps. The first group pumps oil and sells it to the refiner - tax. The refiner converts the
oil to gasoline and sells it to gas station - tax. You pump the gas and pay the station - tax.
This system is also considered the most fair, since everyone gets taxed based on the
contribution they make to the economy.

You will probably be familiar with most of the taxes talked about today, but there are
some other terms in taxation that you have probably not heard about or don't understand
either what they are or why they exist.

Regressive tax is a tax that is less strenuous on the rich than it is on the poor. Sales taxes
like that used in the US and the VAT in Europe are regressive taxes as everyone will
have to pay an amount of this tax, but it will be easier for a richer person to do so. Income
tax is the opposite in that it is a progressive tax; the more you earn, the larger your tax
burden is.

Strenuous (adj) - needing or using a lot of physical or mental effort or energy: vất vả
- He rarely does anything more strenuous than changing the channels on the
television.
- His doctor advised him not to do any strenuous exercise. – bài tập tiêu hao nhiều
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