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Taxable Person
(redirected from Taxable Persons)

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Taxable Person
The person or company from whom a government collects a value-added tax. A value-added tax is a tax on the new value of a good or service at each stage of the production process. The taxable person is thus assessed a tax on the value added to the product, rather than the total value of the sale. The taxable person is always the seller, though the tax is almost always passed on to the customer in the form of a higher price.


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Under current law, taxable persons that invest in an entity treated as a corporation for tax purposes indirectly bear their share of tax imposed on the corporation at an entity level (136) and also are liable for tax on dividend income or gain from sale of shares in the corporation.
Then last June the Legislature, relying on the advice of the commissioner of revenue administration, enacted a far-reaching amendment that removed all partnerships, associations and LLCs--regardless of whether or not their shares are freely transferable--from the list of taxable persons.
 
 
 
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