Answered: S1: In indirect tax, the impact of… | bartleby

SWFT Corp Partner Estates Trusts

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter14: Taxes On The Financial Statements

Section: Chapter Questions

Problem 49P

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9.)

S1: In indirect tax, the impact of taxation and incidence of taxation lie on the same subject.
S2: In direct tax, the impact of taxation lies on one person while the incidence of taxation lies on
another person.
S3: Value added tax is an example of an indirect tax as the impact of taxation lies on the seller,
while the incidence of taxation may be shifted to the buyer.
a. Only S1 is true
O b. Only S2 is true
O c. Only S3 is true
O d. All is false

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