What does double taxation of corporate income mean?

What does double taxation of corporate income mean? Could income ever be subject to triple taxation? Explain your answer.

Expert Solution

Double taxation of corporate income means company paying income tax on its earnings and tax is collected from shareholders on dividend received by them as personal tax. Government is taking actions to reduce double taxation. Double taxation can also take place in different countries.

Yes, Income can also subject to triple taxation. Triple taxation occurs when (1) the parent corporation is first taxed, (2) the subsidiary corporation is then taxed on the dividends it received, and (3) the individuals who receive the final dividends are taxed again. Therefore, corporations that receive dividend income can exclude some of the dividends from its taxable income.

jeff jeffy answered 1 year ago

We've all heard that corporate income is subject to double taxation; once at the corporate level...

We've all heard that corporate income is subject to double taxation; once at the corporate level and again at the individual level after dividends are distributed. Congress has put in place a dividends received deduction to mitigate a similar problem at the corporate level. In what situations does this deduction apply? How many times is such income subject to taxation? If double/triple/etc. taxation is so onerous, why are limits in place on this deduction? If this is okay at the...

We've all heard that corporate income is subject to double taxation; once at the corporate level...

We've all heard that corporate income is subject to double taxation; once at the corporate level and again at the individual level after dividends are distributed. Congress has put in place a dividends received deduction to mitigate a similar problem at the corporate level. In what situations does this deduction apply? How many times is such income subject to taxation? If double/triple/etc. taxation is so onerous, why are limits in place on this deduction? If this is okay at the...

We've all heard that corporate income is subject to double taxation; once at the corporate level...

We've all heard that corporate income is subject to double taxation; once at the corporate level and again at the individual level after dividends are distributed. Congress has put in place a dividends received deduction to mitigate a similar problem at the corporate level. In what situations does this deduction apply? How many times is such income subject to taxation? If double/triple/etc. taxation is so onerous, why are limits in place on this deduction? If this is okay at the...

What is meant by the term "double taxation" as applied to the corporate form of business...

What is meant by the term "double taxation" as applied to the corporate form of business organization? Question 6 options: A) Corporate income is taxed, and then shareholders are taxed on the corporate dividends they receive. B) Corporations pay both income tax and sales taxes on their goods. C) Corporate income is taxed at twice the rate of partnership income. D) Corporations pay both Federal income tax and state income tax on their earnings.

6. a) How to the personnel income tax and corporate tax cause economic double taxation? b) How...

6. a) How to the personnel income tax and corporate tax cause economic double taxation? b) How to eliminate the economic double taxation? Explain the corporate tax systems.

What does the author mean by Dubois' Double Consciousness?  

1. How is corporate income double taxed? 2. What is the major advantage of an S...

1. How is corporate income double taxed? 2. What is the major advantage of an S Corporation?

What is the effect of the pledge rule? a. the seller is subject to double taxation....

What is the effect of the pledge rule? a. the seller is subject to double taxation. b, the recognition of gain is accelerated .c. the OID interest rate rule applies d. The unstated interest rate rule applies

the heart is considered a double pump, what does that mean? how does this pumping become...

the heart is considered a double pump, what does that mean? how does this pumping become impaired during congestive heart failure? what the stages of congestive heart failure? how can congestive heart failure cause a person to be susceptible to disease during this this time

As a student of corporate governance what does it mean when we say that corporate governance...

As a student of corporate governance what does it mean when we say that corporate governance is about ‘Individuals, companies, society, governments, controls, investments, efficiency and transparency?

Question

What does double taxation of corporate income mean?

Solutions

Expert Solution

Related Solutions

We've all heard that corporate income is subject to double taxation; once at the corporate level...

We've all heard that corporate income is subject to double taxation; once at the corporate level...

We've all heard that corporate income is subject to double taxation; once at the corporate level...

What is meant by the term "double taxation" as applied to the corporate form of business...

6. a) How to the personnel income tax and corporate tax cause economic double taxation? b) How...

What does the author mean by Dubois' Double Consciousness?

1. How is corporate income double taxed? 2. What is the major advantage of an S...

What is the effect of the pledge rule? a. the seller is subject to double taxation....

the heart is considered a double pump, what does that mean? how does this pumping become...

As a student of corporate governance what does it mean when we say that corporate governance...