Name : Muhammad Raihan

Adzdzikrulloh Class :
1A/Taxation
NIM : 2102033009

Tax Accounting Exercise STARTER There are some types of tax in the boxes below, but some
letters are missing. Can you complete the words?

Answer
1. Income
2. Sales
3. Inheritance
4. Corporate
5. Property
6. Value Added
7. Excise

Letter in the meeting the CEO questions asks more questions. Match them to the
accountan's answer.

1. Will this also be checked?

f. It should be. I`ll ask Jurgen to make sure it's done.
2. Could you just go over it again?
e. Yes, of course. let me try to explain is differently this time.
3. How is the profit calculated?
d. It's basically income minus expenses.
4. How much is your fee?
a. 600 euro per hour.
5. How often do they check?
c. Every three months.
6. Who'll handle the presentation?
g. Susanne.
7. How about if we send it in next week?
b. I'm afraid that will be too late.
Use the words from the box to complete the following conversation. Depends so clarify
mean basically exactly

Kathy : Hi Javier. How's it going?

Javier : It's not easy, all this English. We didn't do any of this on my course.
Kathy : Can I help?
Javier : Well, maybe you could clarify a couple of things. Let's see. Ah, here we are. Provision
for income taxes. What does that mean?
Kathy : 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.
Javier : Like provisional?
Kathy : Not exactly. Provisional just means temporary, you know, not final. Like a provisional
budget. It's not the final version.
Javier : I see. And what about deferred income tax balances. What does deferred mean?
Kathy : Basically 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.
Javier : OK. How does that affect associated companies?
Kathy : Well, it depends. 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.
Javier : So if we don't invest the profits, we pay tax.
Kathy : Exactly.

Match these expressions with tax to their definitions.

1. tax avoidance
g. trying not to pay tax (legal)

2. tax bracket
f. tells you what amount of tax to pay based on income

3. tax evasion
h. trying not to pay tax (illegal)

4. tax exempt
d. when you don't have to pay tax on certain income

5. tax exile
a. someone who lives in another country for tax reasons

6. to abolish tax
e. to cancel a tax

7. to impose tax
b. to introduce a new tax on something
8. to increase tax
c. to make the tax go up

Use words from the box to fill in the gaps.

Abolish bracket breaks exempt exile increase property return
1. The government needs more money. so it is planning to increase taxes.
2. He earns a lot of money - he must be in the highest tax bracket.
3. She lives there because she has to - she's a tax exile.
4. They are planning to abolish on all company cars, and replace it with a tax on all
company cars.
5. She is a student, so she is tax exempt.
6. The government is planning to introduce new tax breaks for IT companies.
7. Don't buy a house this year- the property taxes are being abolished next March.
8. A tax return is the same as a tax declaration - it's a list of income and tax deductible
expenditure for the tax authority