Tax incidence  refers to the person who actually  bears the  burden of a tax. i.e. it refers to the  final resting place  of a tax.

The impact of the  tax  refers to the effect  of a tax on a person who actually bears to burden of a tax. The incidence  of a tax  depends on the type of tax either  direct  or indirect, and it  is also related to the elasticity  of demand and  supply of the product.

The incidence  of a direct tax can't  be shifted  hence it falls only on a particular individual or company.

The incidence of  an indirect tax can be shifted  and shared between the producer and the consumer depending on the  elasticity of demand and supply.

Generally the  more elastic  the demand  for the commodity, the greater will be  the incidence of taxation on the  producer.