Which tax is collected from an intermediary who attempts to pass on the tax to consumers?

Prepare for the ACCA F1 Certification Exam with detailed quizzes featuring multiple choice questions and explanations. Enhance your understanding and ensure success in your exam!

The correct choice is an indirect tax. This type of tax is collected from intermediaries, such as retailers or service providers, who have the ability to pass on the cost of the tax to the final consumers through higher prices. Examples of indirect taxes include value-added tax (VAT) and sales tax. Intermediate entities collect these taxes on behalf of the government at the point of sale, effectively transferring the burden of the tax to the end consumers.

In contrast, direct taxes are levied directly on individuals or organizations, such as income tax or corporate tax, where the taxpayer is responsible for paying the tax directly to the government without the option of passing it along. Donations, on the other hand, are voluntary contributions and are not categorized as taxes, nor are they collected on behalf of the government for public revenue. Thus, the characteristic of indirect tax as one that can be transferred to consumers is what makes it the correct answer.

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