What is a direct tax?

Q: What is a direct tax?


A: A direct tax is a tax paid directly to the government by a person or organization.

Q: Can a direct tax be passed on to another person or entity?


A: No, a direct tax may not be passed on to another person or entity but must be paid by the entity responsible for the tax.

Q: How is a direct tax different from an indirect tax?


A: A direct tax is different from an indirect tax, which is paid by someone other than the person or entity who would normally be responsible for it.

Q: What is an example of a direct tax?


A: An example of a direct tax is a tax owed on a piece of property.

Q: What is an example of an indirect tax?


A: An example of an indirect tax is a tax on the sale of a property.

Q: Who is responsible for paying a direct tax?


A: The entity responsible for the tax is responsible for paying a direct tax.

Q: Can an indirect tax be passed on to another person or entity?


A: Yes, an indirect tax can be passed on to another person or entity who would normally be responsible for it.

AlegsaOnline.com - 2020 / 2023 - License CC3