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Question 1
The concept of double taxation means that
Correct
Incorrect!
Correct
Incorrect!
Correct When a company earns money, the government taxes the corporation. When a company later distributes money to shareholders, the government taxes the distribution made to shareholders. Thus, the concept of double taxation means that any distribution from a company has already been taxed once, and on the distribution, is taxed again.
Incorrect! When a company earns money, the government taxes the corporation. When a company later distributes money to shareholders, the government taxes the distribution made to shareholders. Thus, the concept of double taxation means that any distribution from a company has already been taxed once, and on the distribution, is taxed again.