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 ?
For example, in the eighteenth century, capitations were common, land was the most important capital asset, and direct tax statutes that actually levied on a range of items often were referred to as the "land tax"--hence capitations and land levies often were presented as examples of direct taxes.
Amounts collected in the name of WHT are classified as direct taxes but these collections are any thing but direct taxes.
Farmers Loan and Trust Company, the court ruled that a tax on rent or income from real estate is a direct tax, because "the whole beneficial interest in the land consisted in the right to take the rents and profits." In addition, the court ruled that taxes on stock and municipal bonds were direct as well.
According to the provisional revenue collection during July-June 23 (2009-2010), direct tax collection stood at Rs 481.895 billion against Rs 405 billion in same period last fiscal year, showing an increase of 18.8 percent.
VAT tribunals (indirect tax) and General and Special Commissioners (direct taxes) are both replaced.
But he has a more serious claim as well, that the founders unknowingly created a monster that, if given free rein, would devour Texas: (51) "Apportionment of direct tax turned out to be a rule too silly to enforce, in those cases in which the tax base is not equal per capita among the states." (52) Presented with two badly broken constitutional clauses that would inevitably have produced bizarre results, he says, the Hylton Court acted in a statesmanlike way by slaying the monster.
''I think the ratio of direct tax to indirect tax should be fifty-fifty,'' Shiokawa told the House of Councillors' Committee on Financial Affairs.
"Mr Major's claim that direct tax is falling has now been confirmed to be untrue by the Treasury."
[b.sub.i] = Buoyancy of the taxes (total tax, direct tax, indirect tax), [lambda] assumed to be 1 in our study;
For a corporation in the 40 percent tax bracket (state and federal), that means about $400,000 in direct tax savings from the passive losses.
Direct taxes. The most common direct tax is the income or profits tax.
On the other hand, the share of direct tax has gone down to 15.6 per cent.