July 2000

5 July 2000

Dear Mr Lee

Herewith we are informing you that on 7-8 September, 2000 an International Conference "New Prospects of scientific and technological and production cooperation of Russia with foreign states" is to be held in Nizhny Novgorod.

To participate in the forthcoming Conference we are glad to invite a representative from your Ministry and two persons representing business circles.

The working languages of the Conference are Russian, German and English. For further information please contact Ms Golovina (tel.: 456 899 01)

Looking forward for your prompt reply, I remain

Sincerely yours,

Vladimir Yugin

Minister

аспирантура (канд. экз.)

Экзаменационный билет (на 2 листах) по дисциплине

английский язык

(специальность: экономика и управление н/х)

Task I. Translate from English into Russian in writing using a dictionary. Your time is 45 minutes

The profits of a company on which corporation tax is levied comprise the aggregate of its income from all sources, and capital gains. Whilst a company's accounts normally reflect such profits, unfortunately (or perhaps fortunately!) it does not simply pay corporation tax on the figure of net profit before taxation as shown by its statutory accounts. The profits are specially adjusted for tax purposes, with different rules applying to different sources of income and capital gains.

It is therefore necessary to analyse the profits shown in the accounts to establish the various sources of income and capital gains, and then to apply the special rules for each source in order to determine the company's taxable profits for that period. These rules are described briefly below.

Dividends paid or payable are not of course deductible for tax purposes, but the existence of other 'below the line' items (such as extraordinary or exceptional items) must not be overlooked when computing taxable profits (or losses).

(a) General principles

The rules for ascertaining taxable trading income are complex and it is outside the scope of this chapter to describe them in detail.

The basic principles as regards tax deductibility of expenditure are:

(i) it must be wholly and exclusively incurred for trading purposes: and

(ii) it must not comprise capital expenditure. The definition of capital expenditure is perhaps best expressed in the old tax case of Atherton British Insulated & Helsby Cables Ltd. ((1925) 10 TC 155) as . . . expenditure . . . incurred not only once and for all but with a view to bringing into existence an asset or an advantage for the enduring benefit of a trade . . .

Broadly, however, trading income is ascertained by taking the accounts profit before taxation, eliminating any non-trading deductions or sources of income and capital gains, and making adjustments for items of a capital nature (e.g. depreciation, profits or losses on disposals of fixed assets), items specifically deductible (e.g. capital allowances - see chapter 5) or specifically disallowable (e.g. business entertaining, general bad capital where the latter is an integral feature of the trading activity.

Task II. Translate the letter from English into Russian without a dictionary. Your time is 5-7 minutes

Sadovaya'Kudrinskaya str.

Russian Federation

Dear Minister

Thank you for your interest to meet representatives of the Brandenburg State Government, especially Prime Minister Dr. Manfred Stoipe, during your stay in the Federal Republic of Germany from April 25"' to April 26"' 2000.

It is my pleasure to invite you to the state of Brandenburg. A copy of your request has been.mailed to the office of the Prime Minister for coordinating purposes.

Sincerely yours

Dr. Wolfgang FьrniЯ

аспирантура (канд. экз.)

Экзаменационный билет (на 2 листах) по дисциплине

английский язык

(специальность: экономика и управление н/х)

Task I. Translate from English into Russian in writing using a dictionary. Your time is 45 minutes

(b) Foreign exchange gains and losses

In general, exchange gains and losses arising on revenue account from normal trading transactions form part of the taxable trading income, whereas transactions on capital account (i.e. those relating to the fixed asset base or financing structure) either fall outside the scope of the tax system or are treated as capital gains or losses. In other words, the distinction between capital and current liabilities is between loans which add to the capital base of the business and loans providing temporary financial accommodation. The dividing line is often difficult to draw and the answer in any individual case will turn on its particular facts. The House of Lords decided in a recent case (Beauchamp v F. W. Woolworth pie ([1989] STC 510)) that five year loans raised for the general purposes of a company's trade represented a permanent addition to its capital so that exchange differences arising on their repayment were not tax deductible. The position is complex and reference should be made to a Statement of Practice on the subject published by the Inland Revenue in 1987 (SP1/87) and also to a consultative document ('Tax Treatment of Foreign Exchange Gains and Losses') published in March 1989 which discusses how the present tax position might be reformed. The Inland Revenue's views on the tax treatment of transactions in financial futures and options is set out in Statement of Practice 4/88.

Task II. Translate the letter from English into Russian without a dictionary. Your time is 5-7 minutes

July 18,2000

Dear Mr. Petrov

I would like to inform you that I left my position as Minister of International Trade and Industry on July 4.

Mr. Hiranuma has been appointed as my successor. I hope that you will accord him the same goodwill and assistance you have granted me.

Please accept my best wishes. Respectfully yours,

Takashi Fukaya

Ministry of International Trade and Industry

аспирантура (канд. экз.)

Экзаменационный билет (на 2 листах) по дисциплине

английский язык

(специальность: экономика и управление н/х)

Task I. Translate from English into Russian in writing using a dictionary. Your time is 45 minutes

Payments to charity

To encourage charitable giving, a non close company can make charit­able donations in cash (not in kind) on or after 1 April 1986 of up to 3% of its net ordinary dividends paid in an accounting period and treat them as allowable charges on income, deducting income tax in the normal way. These rules also apply to dividends paid by subsidiary companies.

As regards accounting periods ending on or after 1 October 1990, the above position has been relaxed in that any company can make tax deductible cash donations to charity on or after that date. For a close company, each payment must be at least Ј600 (net of basic rate income tax), must be made without strings attached, no benefit must be received in return for the payment (except certain de minimis benefits), and the total payments for a 12 month accounting period must not exceed Ј5 million (net of basic rate income tax) otherwise the excess is not deductible. This figure of Ј5 million (which also applies to non close companies) is reduced proportionately where there are active associated companies for any part of the accounting period and where it is less than 12 months, but if the company is not close the gross amount allowable cannot be less than 3% of its net ordinary dividends paid in the accounting period. Income tax must, as before, be deducted from each payment, the gross amount of which is treated as a charge on income.

Task II. Translate the letter from English into Russian without a dictionary. Your time is 5-7 minutes

Dear Mrs. Fonaryova:

The 37^th World Advertising Congress, "London 2000", will be held in London from 6 June through 9 June. This biennial Congress, is very the traditional gathering place of top professionals.

We believe that your participation in this event of world importance will be important.

Considering your great contribution to the development of the Russian advertising business, we are confident that your contacts with leaders of the advertising industry from around the world will have a positive effect on the further development of the advertising market in Russia.

Sincerely,

аспирантура (канд. экз.)

Экзаменационный билет (на 2 листах) по дисциплине

английский язык

(специальность: экономика и управление н/х)

Task I. Translate from English into Russian in writing using a dictionary. Your time is 45 minutes

An investment company, which is, broadly, a company whose income over a representative period is principally derived from the making or holding of investments, which is the company's purpose or objective, can deduct the expenses of managing its investments, together with any charges on income paid for business purposes, from its total profits for corporation tax purposes. Any excess forms part of the management expenses of the next accounting period. Its management expenses and charges on income (after deducting current profits) can also be sur­rendered by way of group relief.

As in the case of a trading company, remuneration is not deductible as a management expense in the period it is charged unless paid within nine months (18 months in the transitional period) following the end of the period. The rules relating to trading companies in this context apply equally to investment companies.

An investment company cannot obtain tax relief for short interest (i.e. interest paid on a loan not capable of exceeding 12 months), unless paid to a UK bank, although relief is available for discounts on bills of exchange drawn by a company and accepted by a bank and discounted by a bank or discount house. Relief is also available as charges on income for recurrent payments under currency and interest rate swaps (see also 3.8 above).

In view of the somewhat restricted meaning of the term 'management expenses', it is normally preferable for the expenses of a group manage­ment company to be recovered (at an uplift) from the subsidiaries by way of a service fee.

Task II. Translate the letter from English into Russian without a dictionary. Your time is 5-7 minutes

To: Mr Takashi KOEZUKA

Deputy Secretary General

Re: 10^th Anniversary of Antimonopoly Bodies.