A corporation is said to have double taxation.What is meant by this statement?
A)The corporation pays double the tax rate of individuals.
B)The corporation pays taxes on its income and its shareholders pay taxes on their dividends from the corporation.
C)both a and b
D)none of the above

Question

Quizplus · Accepted Answer

Double taxation refers to the fact that corporations pay taxes on their income, and then shareholders also pay taxes on the dividends they receive from those corporations.

A Corporation Is Said to Have Double Taxation