Concept:Direct taxes are imposed directly on a person’s income, profits, or wealth, and they cannot be shifted to someone else.
Explanation:Direct taxes include personal income tax, company income tax, and capital gains tax.
The burden of these taxes falls on the taxpayer who earns the income or owns the wealth.
A major problem with direct taxes is that some people deliberately hide their income or understate their profits.
This illegal act of refusing to pay due tax or paying less tax is known as tax evasion.
Tax evasion reduces government revenue and makes the tax system unfair to honest taxpayers.
Although direct taxes can be progressive, that is not a disadvantage.
Direct taxes are also not described as allocating scarce resources or being non-rigid in this context.
Therefore, among the given options, the clearest disadvantage is that direct taxes can be evaded.
Answer:D. can be evaded