Tax Plaza
The Tax system explained!
Indirect tax
The term indirect tax has more than one meaning.
In the colloquial sense, an indirect tax (such as sales tax,
value added tax (VAT), or goods and services tax (GST)) is a tax
collected by an intermediary (such as a retail store) from the
person who bears the ultimate economic burden of the tax (such
as the customer). The intermediary later files a tax return and
forwards the tax proceeds to government with the return. In this
sense, the term indirect tax is contrasted with a direct tax
which is collected directly by government from the persons
(legal or natural) on which it is imposed.
The term indirect tax has a different meaning for U.S. constitutional law purposes. See Direct tax; see also Excise. In addition, the U.S. Government deems VAT to be a direct tax for purposes of the Vienna Convention on Diplomatic Privileges and Immunities, as it does the London Congestion Charge. The U.S. Department of State's Office of Foreign Missions operates a reciprocity policy in the matter of sales tax exemption. Another important definitional conflict has simmered at the World Trade Organization in the context of the granting of export tax rebates by the United States (FSC and DISC corporations).
In the early years of the United States, there was strong opposition to the federal government levying direct taxes. As a result, the government resorted to tariffs, an indirect tax.
Another definition of an indirect tax is a tax that is initially paid by one individual but the burden of which is passed over to some other individual who ultimately bears that burden.[citation needed] For example: An excise duty on motor cars is paid in the first instance by the manufacturer of the cars; ultimately the manufacturer transfers the burden of this duty to the buyer of the car in form of a higher price. Thus, an indirect tax is such which can be shifted or passed on.
Taxation in the News
Big medical bills may add up to qualified tax breaks
(Detroit news photo illustration / Photos from isto) Taxpayers swamped by big medical bills in 2011 can get some relief when they file income tax forms this spring thanks to an overlooked deduction that is hard to reach in a typical year. The IRS lets
Feds targeting tax return fraud
Maybe you had a lapse of memory but most likely you have become the latest victim of tax fraud. The Internal Revenue Service and the Justice Department have been cracking down on suspected identity theft perpetrators to curb the growing issue of refund
China bars airlines from EU tax plan
Chinese airlines had previously said they would not pay the EU carbon tax, but the formal prohibition by the State Council, or cabinet, pits Beijing in direct opposition to Brussels. The announcement, published on Monday by Xinhua, the official news
Tax tips for February
Folks who have been victims of tax identity theft should have gotten a special Identity Protection PIN (personal identification number) by now, according to David Mellem, an enrolled agent in Green Bay, Wis. Julianne Breitbeil, an IRS spokeswoman,
EU Transactions Tax Will Hit Hardest in London, ITEM Club Says
6 (Bloomberg) -- A proposed European tax on financial transactions may cost British-based companies as much as 22 billion euros ($29 billion) a year and cause 4500 job losses whether the UK agrees to it or not, according to Ernst & Young LLP's ITEM
A Salve for a Taxing Moment: The Vodafone Ins...
The two judges did not think that Vodafone's purchase of Hutch's business was done in a manner to avoid taxes. The two judges also said that the shares that gave Vodafone control over Hutch's telecom business in India were registered outside the
Paper tax forms getting harder to find
But increased usage of online tax-preparation software has changed the way people file their taxes, IRS spokeswoman Peggy Riley said. 'When more and more people are using electronic filing, you don't need to have that paper tax document anymore,' Riley
Taxes
What is tax?
A tax is a financial charge or other levy imposed on an individual or a legal entity by a state or a functional equivalent of a state (for example, secessionist movements or revolutionary movements). Taxes could also be imposed by a subnational entity. Taxes consist of direct tax or indirect tax, and may be paid in money or as unpaid labourInteresting articles
IRS Holding 2 Billion In Unclaimed Tax RefundsTax Strategist Advises IRS Extensions Due to National Tragedy
IRS Holding 2 Billion In Unclaimed Tax Refunds
Writing Off Vehicles as Tax Deductions
Non-Comps To Tax Or Not To Tax
Innocent Spouses - Relief from Taxes
Federal Income Tax
The Complete Story on Aircraft and Yacht Sales Tax