What is the difference between statutory incidence vs actual incidence of a tax?

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Enlighten_me

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Statutory incidence refers to who is legally responsible for paying the tax while
Actual incidence of a tax is the person who bears the cost of the tax through an increase in the price paid or decrease in the price received.
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Please point out to me the difference between the two and give an example. Thank you
 
Suppose that there’s a tax on a supplier: $5 on a $100 good. The statutory incidence is $5 being paid by the supplier.
They try to raise the price to $105 to pass it along to the customer, but the customer won’t pay that much. Eventually they settle on a price of $103: so the customer is paying $3 of the tax and th supplier is paying (net) $2 of the tax. So the actual incidence is $3 paid by the customer ane $2 paid by the supplier.
 
Ok. So in any situation,
The suppliers/sellers are the ones who are suppose to pay for the tax. Therefore, they pay for the statutory incidence.
And whoever actually pays for the tax in the end is the one(regardless if the person is a supplier or buyer) who pays for the actual incidence.
Did I get it right?
 
Wow! You really have a knack of making things simple.
Thanks again S2000magician
 
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