PRC-3 · Chapter 16 · Question 5 of 20
Which of the following is the defining characteristic of a 'Direct Tax' (such as corporate tax or personal income tax)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) The burden of the tax cannot be shifted to another person
Explanation
A direct tax is levied directly on an individual's or organization's income or wealth, and the legal burden to pay it cannot be transferred or shifted to someone else.
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