Actual dividends paid to shareholders result in double taxation. Likewise, deemed dividends (e.g., free use of corporate assets by a shareholder) result in double taxation.

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Actual dividends paid to shareholders are first taxed at the corporate level as part of the company's income, and then again at the individual level as part of the shareholder's income. Deemed dividends, such as the free use of corporate assets by a shareholder, are also subject to double taxation.

Actual Dividends Paid to Shareholders Result in Double Taxation