Income tax is a direct tax on personal and corporate income, imposed by the government. It is directly levied on the income or profits of individuals, businesses, or other legal entities. Option A refers to the concept of double taxation, and option C refers to Value Added Tax (VAT), which is a different type of tax. Option D is not accurate as income tax is a direct tax, and not an indirect tax.

Solved

Income Tax Is

Question 22

Multiple Choice

Income tax is:

A) a tax levied on passive income earned by an individual or corporation of one country within the jurisdiction of another country.
B) a direct tax on personal and corporate income.
C) an indirect national tax levied on the value added in the production of a good or service.
D) an indirect national tax levied on personal and corporate income.

Correct Answer: