PRC-3 · Chapter 16 · Question 14 of 20
Which of the following is the defining characteristic of a 'Direct Tax' (like Corporate Tax)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The financial burden to pay it cannot be legally shifted or passed on to someone else
Explanation
A direct tax is levied directly on the person or entity meant to pay it, and the incidence (burden) cannot be transferred.
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