Inland Revenue tax is collected by Inland Revenue Department. These taxes can be classified on the basis of what is generally termed as the “Impact of tax”.
The impact of tax-refers to the individual on whose the tax is imposed and who bears the burden of the same (tax). In accordance with this criteria taxes are divided as under:
Direct tax: The impact and incidence of the tax is the same person e.g. personal income tax, corporate income tax, property income tax
Indirect tax: The impact of the tax is on one person and Incidence is on another person e.g. sales tax