direct tax


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Related to direct tax: indirect tax, income tax

Direct Tax

A tax that cannot be shifted to another person or entity. For example, taxes on income or assets are direct taxes, as the person or organization on whom they are levied must pay them directly. Direct taxes differ from indirect taxes, such as sales tax, which is levied on a seller but is paid by buyers. There is disagreement as to whether a corporate tax is a direct tax or indirect tax.

direct tax

A tax paid by the individual or organization on which it is levied. For example, the personal income tax is levied on individuals, who end up bearing the entire burden of the tax. A direct tax cannot be shifted from the entity on which it is levied. Compare indirect tax.

direct tax

a TAX imposed by the government on the income and wealth of persons and businesses in order to raise revenue, redistribute income and wealth, and as an instrument of FISCAL POLICY in managing the economy. The main forms of direct tax in the UK are INCOME TAX, CORPORATION TAX, NATIONAL INSURANCE CONTRIBUTIONS and INHERITANCE TAX. See BUDGET (GOVERNMENT).

direct tax

a TAX levied by the government on the income and wealth received by individuals (households) and businesses in order to raise revenue and as an instrument of FISCAL POLICY. Examples of a direct tax are INCOME TAX, NATIONAL INSURANCE CONTRIBUTIONS, CORPORATION TAX and WEALTH TAX.

Direct taxes are incurred on income received, unlike indirect taxes, such as value-added taxes, that are incurred when income is spent Direct taxes are progressive, insofar as the amount paid varies according to the income and wealth of the taxpayer. By contrast, INDIRECT TAX is regressive, insofar as the same amount is paid by each tax-paying consumer regardless of his or her income. See TAXATION, PROGRESSIVE TAXATION, REGRESSIVE TAXATION.

References in periodicals archive ?
He said 30 lac people could be brought into direct tax net.
He said even most of the direct tax is collected in indirect mode as withholding tax and advance taxes account for more than 90 percent of total direct tax collection while only withholding tax constitutes 65 percent of net direct tax collection.
New Delhi : Finance Minister P Chidambaram today said work on the Direct Tax Code (DTC) Bill, which seeks to overhaul income tax laws, is in progress and the amended Bill will be introduced in the ongoing Budget session.
The day began with a spirited speech by former Chair of TEI's European Direct Tax Committee, Johann Muller, who is now a Chief Advisor with the Danish Tax Authority.
At the same time, direct tax collection (personal income tax, corporate tax) in the first six months of 2011 inches up to slightly over BGN 2 B, compared to BGN 1.
FBR Member Direct Tax Policy said that the direct tax collection stood at Rs 481 billion against the target of Rs 540 billion, sales tax collection stood at Rs 501 billion against the target of Rs 540 billion, federal excise duty (FED) collection was Rs 116 billion as compared to target of Rs 135 billion, and customs duty collection amounted to Rs 152 billion against target of Rs 165 billion.
Mr Holly went on: "For VAT the number of tribunal centres increases from less then five to more than 100 in line with the old direct tax system, so people will get a more local service.
132) Taking the avoidability argument seriously means that the only unavoidable direct tax is a head tax.
Coliseum General Manager Pat Lynch said the NFL owners questioned Tuesday how a team owner could make money with a stadium built with no direct tax subsidy.
30 /PRNewswire/ -- John Garrison, prominent tax law historian and legal specialist at Florida's Office of the Attorney General, today announced that the income tax is being erroneously enforced on employees as a direct tax rather than as the excise mandated by the Sixteenth Constitutional Amendment.
India Direct Tax Code: Special Economic Zone (SEZ) The DTC has also cancelled the proposal of the original discussion paper about scrapping the tax benefit to units in SEZs.

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