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CIMAPRA19-F01-1 Exam - Topic 3 Question 112 Discussion

Which of the following is a feature of a direct tax?
A) The formal incidence and effective incidence are usually the same.
B) It is levied on one part of the economy with the intention that it will be passed on to another.
C) It is not levied on the eventual payer of the tax.
D) It cannot be related to the individual circumstances of the tax payer.

CIMAPRA19-F01-1 Exam - Topic 3 Question 112 Discussion

Actual exam question for CIMA's CIMAPRA19-F01-1 exam
Question #: 112
Topic #: 3
[All CIMAPRA19-F01-1 Questions]

Which of the following is a feature of a direct tax?

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Suggested Answer: A

by Jolanda at Jun 15, 2025, 11:34 AM

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Corrinne
9 months ago
B is definitely not a feature of direct taxes!
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Lashaun
9 months ago
D seems off to me, taxes are often based on individual circumstances.
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Leah
9 months ago
Wait, what? I thought direct taxes could be passed on.
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Janna
9 months ago
Totally agree, A makes the most sense here.
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Lenny
10 months ago
A is correct! The incidence is the same.
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Reuben
10 months ago
I’m a bit confused, but I recall that direct taxes are based on individual circumstances, so maybe option C is the right choice?
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Leonora
10 months ago
I feel like I’ve seen a question like this before, and I think option B is more about indirect taxes since they can be passed on.
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Martha
10 months ago
I'm not entirely sure, but I remember something about direct taxes being related to personal income, which might make option D seem incorrect.
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Pansy
10 months ago
I think option A sounds familiar because we discussed how direct taxes are usually paid directly by the individual, so the incidence is the same.
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Belen
11 months ago
I'm a little confused by the wording of the options. I'll need to re-read them carefully and think through the differences between direct and indirect taxes to determine the correct answer.
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Whitley
11 months ago
Okay, I've got this. The key is that with a direct tax, the formal incidence and effective incidence are usually the same, unlike with an indirect tax. I'm confident I can get this right.
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Benedict
11 months ago
Hmm, I'm a bit unsure about this one. I know direct taxes are levied directly on the individual, but I'm not sure about the specifics of how the incidence and formal incidence differ. I'll have to review my notes.
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Carma
11 months ago
This looks like a straightforward question about the features of a direct tax. I'll need to think carefully about the differences between direct and indirect taxes.
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In
1 year ago
Ah, the joys of tax law. It's like a never-ending maze of loopholes and exceptions. Good luck to whoever has to navigate this stuff!
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Vashti
12 months ago
B) It is levied on one part of the economy with the intention that it will be passed on to another.
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Estrella
12 months ago
A) The formal incidence and effective incidence are usually the same.
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Derick
1 year ago
B) It is levied on one part of the economy with the intention that it will be passed on to another.
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Sang
1 year ago
A) The formal incidence and effective incidence are usually the same.
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Theresia
1 year ago
Wait, is this a tax question? I thought we were studying for the culinary exam. I'm so confused right now.
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Rebbecca
1 year ago
D is the way to go. Direct taxes are tailored to the individual's situation, unlike indirect taxes.
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Justine
1 year ago
I agree, direct taxes are designed to take into account the specific situation of the taxpayer.
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Justine
1 year ago
D is the correct answer. Direct taxes are indeed related to the individual circumstances of the tax payer.
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Adelaide
1 year ago
C seems like the obvious choice. Direct taxes are all about taxing the actual payer, not passing it on.
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Alex
1 year ago
I'm going with B. That's how a lot of indirect taxes work, right?
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Talia
1 year ago
User 3: I'm going with B. It is levied on one part of the economy with the intention that it will be passed on to another.
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Ollie
1 year ago
User 2: I disagree, I believe D is the correct answer. Direct taxes can be related to the individual circumstances of the tax payer.
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Glen
1 year ago
User 1: I think A is the correct answer. The formal and effective incidence are usually the same.
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William
1 year ago
Hmm, I see your point. But I still think A) makes more sense because direct taxes are usually borne by the person they are imposed on.
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Cassi
1 year ago
I disagree, I believe the answer is C) It is not levied on the eventual payer of the tax.
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Bette
1 year ago
Option A is definitely the correct answer. The formal and effective incidence of a direct tax are usually the same.
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Ivan
1 year ago
User 4: That's true, direct taxes cannot be shifted to another party.
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Aleta
1 year ago
User 3: Direct taxes are typically paid by the person on whom they are imposed.
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Tashia
1 year ago
User 2: I agree, the formal and effective incidence of a direct tax are usually the same.
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Clorinda
1 year ago
User 1: Option A is definitely the correct answer.
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William
1 year ago
I think the answer is A) The formal incidence and effective incidence are usually the same.
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