Read the two statements and choose the correct option.
I. Corporation tax is an indirect tax.
II. The burden of an indirect tax can be shifted to the buyer.

Only ICorrect answerYour answerOnly IICorrect answerYour answerBoth I and IICorrect answerYour answerNeither I nor IICorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

Corporation tax is levied on and paid from company profits: a direct tax. I is false.
Sellers add indirect taxes to prices. II is true.

Ten questions from Government Budget: Receipts & Expenditure, at your own pace.

Ten questions from Government Budget: Receipts & Expenditure, at your own pace.

Read the two statements and choose the correct option.I. Corporation tax is an indirect tax.II. The burden of an indirect tax can be shifted to the buyer.