Th2.6: Indirect and Direct Taxation Flashcards
1
Q
What are direct taxes?
A
paid directly to the government by the individual taxpayer
2
Q
What is an indirect tax?
A
where the person charged with paying the money to the government is able to pass on the cost to someone else
3
Q
What are the four highest revenue raising taxes?
A
income tax, national insurance, VAT and corporation tax
4
Q
What kind of tax is VAT?
A
indirect tax
5
Q
What kind of tax is income tax?
A
direct tax
