Question

Which of the following statements is incorrect?

A Impact refers to the initial burden of the tax, while incidence refers to the ultimate burden of the tax. Correct Answer Incorrect Answer
B Incidence is at the point of imposition; impact occurs at the point of settlement. Correct Answer Incorrect Answer
C The impact of a tax falls upon the person from whom the tax is collected and the incidence rests on the person who pays it eventually. Correct Answer Incorrect Answer
D All of these Correct Answer Incorrect Answer
E None of these Correct Answer Incorrect Answer

Solution

Impact is at the point of imposition; incidence occurs at the point of settlement.

Practice Next
×
×