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Tax incidence can be separated into-
1. Formal incidence: the party liable to the tax 2. Informal incidence: party, who really pays the tax
The tax incidence is decided by the elasticity of demand and supply for a good or service.
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I have MCQ In corp. Tax area ?
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T ax Shields A tax shield is defining any reduction in a corporation's tax bill which can be brought about by management. Depreciation, for example create a tax shield
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