Indirect Tax

An indirect tax is paid by the consumer with the purchase of a product. The tax is indirect because the consumer is not paying it directly to the government, as is the case with income taxes. Instead, the consumer pays the tax indirectly as part of their product purchase. Supply chain entities or those selling products collect the tax. It is up to the selling entity to charge the correct amount of tax and submit those taxes to the government. As the price of a product increases, so does the tax paid on it. The tax is levied regardless of income, making it more burdensome to lower-wage earners than those with a higher income.

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Hypothetical example(s) are for illustrative purposes only and are not intended to represent the past or future performance of any specific investment.

Investing in alternative assets involves higher risks than traditional investments and is suitable only for sophisticated investors. Alternative investments are often sold by prospectus that discloses all risks, fees, and expenses. They are not tax efficient and an investor should consult with his/her tax advisor prior to investing. Alternative investments have higher fees than traditional investments and they may also be highly leveraged and engage in speculative investment techniques, which can magnify the potential for investment loss or gain and should not be deemed a complete investment program. The value of the investment may fall as well as rise and investors may get back less than they invested.

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Indirect Tax

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