Question

The burden of tax cannot be shifted from one person to another. What type of tax is this?

• A. Indirect tax
• B. Goods and services tax
• C. Direct tax
• D. Entertainment tax

Answer 1

The correct option is C Direct tax

Taxes can be classified into two types: indirect tax and direct tax. Direct tax is the one that is imposed on the income of individuals or companies. This means that direct taxes can be only paid by the company or the individual. It cannot be transferred to another person. Direct taxes are of two types: income tax and corporate tax.