Why is the incidence of a tax independent of legal liability for the tax?
Incidence of tax is independent of legal liability for the tax. The legal liability for tax is on the person or entity that is bound by law to pay to the government. For example, firms are required to deduct tax from the salaries of employees. The legal liability of paying tax is on the employer but the incidence of tax is on the employee.
The incidence of tax is independent of legal liability for the tax in case of indirect taxes. The ...
Incidence of a tax is explained in a structured manner in this response. The answer includes references used.