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Fundamentals of Financial Manageme...

14th Edition
Eugene F. Brigham + 1 other
ISBN: 9781285867977

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BuyFindarrow_forward

Fundamentals of Financial Manageme...

14th Edition
Eugene F. Brigham + 1 other
ISBN: 9781285867977
Textbook Problem

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

Summary Introduction

To explain: The double taxation and possibilities of triple taxation of corporate income.

Introduction:

Double Taxation: The double taxation is a result of taxes applicable on corporate and individual levels. A corporation pays tax on its earnings and then distributes the dividends. Now the individual investors need to pay the tax on dividends received on their investment.

Explanation
  • A corporation needs to pay taxes on the earnings during a financial year.
  • The dividends are distributed after the taxes are paid.
  • Individuals who have received the di...

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