finance solution

rmhein · #1 Mar 20, 2007, 04:30 PM

How does double taxation of corporate income occur?

delite · Mar 21, 2007, 07:04 AM

A corporation (inc) is taxed first on its net income. Shareholders who receive dividends from corporate proifts (above income) are taxed on such dividends on their personal income tax returns. Ergo, income is taxed twice; once at the corporate level and secondly at the shareholder level.



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