Speaking. Task 22. a) Read and translate the text

Task 22. a) Read and translate the text.

TEACAKE WRANGLE

The European Court of Justice has ruled that British retailer, Marks & Spencer, can claim back £3.5m in overpaid VAT on teacakes.

For years, the British tax authorities defined a chocolate teacake as a biscuit - which attracts a sales tax - rather than a cake, which does not. So when is a cake not a biscuit?

Teacakes are not made out of tea but many British people enjoy eating them while drinking a cup of tea. The chocolate teacake, which has been discussed by international lawyers for more than a decade now, is made by a leading supermarket chain, Marks & Spencer. It’s got a shortbread base, a marshmallow type filling and a chocolate shell. So the key question has been - does that make it a cake or a biscuit? Long ago the British tax authorities decided it was a biscuit, a luxury food eligible for sales tax. The supermarket insisted it was a cake, a basic food which is exempt from tax.

The argument has been through many courts and the latest ruling from the European Court of Justice seems to come down on the cake side of the argument. Marks & Spencer should get a tax refund, said the judges. But it’s not over yet. The European Court says - “Ultimately, it’s for the British authorities to decide the matter…”

Marks & Spencer gave the decision a cautious welcome; in the meantime it continues to sell the teacakes and its customers can go on enjoying them regardless of the bitter legal argument that they have caused. (from the British press)

b) Answer the questions:

1. What is a teacake? What is it made of?

2. How do British authorities define the teacake?

3. How is it classified by the producer?

4. What is VAT?

5. How much VAT do Marks & Spencer claim back?

6. What is the latest decision of the court?

7. Do you agree with the decision of the court?

8. Do you think it is a common or a rare case?

c) Comment on the problem. Say which side you support in this dispute and why?

Task 23. Get ready to speak on the topic. Use the vocabulary of the unit.