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    Question

    Which of the following statements is incorrect?

    A Impact refers to the initial burden of the tax, while incidence refers to the ultimate burden of the tax. Correct Answer Incorrect Answer
    B Incidence is at the point of imposition; impact occurs at the point of settlement. Correct Answer Incorrect Answer
    C The impact of a tax falls upon the person from whom the tax is collected and the incidence rests on the person who pays it eventually. Correct Answer Incorrect Answer
    D All of these Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    Impact is at the point of imposition; incidence occurs at the point of settlement.

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