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Income to the corporation, as a legal "person", is taxable against the corporation. When the treasury pays dividends from its income to its shareholders, the dividend is taxable again as "income" to the shareholders.
A "subchapter S-corporation" avoids this by skipping the corporate taxes and directly taxing the shareholders for any corporate income.
Wiki User
∙ 16y ago
Wiki User
∙ 9y agoDouble taxation occurs because corporations are entities. As such, they have to pay taxes and shareholders have to pay taxes on the income distributed by the corporation.
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When did taxation without representation occur?
it started in 2013
What is corporate failure and how does it occur?
misguidance
What are the basic principles of taxation in Islam?
Islam has a completely different perspective on the economy and tax as the Islamic basis is different to that of capitalism. Fundamentally taxation in Islam and under the khilafah puts the emphasis of taxation on wealth rather than income. The Islamic taxation system does not tax income, but taxes wealth.
What a the crimes that occur in corporate company and the solution?
Identical.
How does income get from businesses to consumers?
The transfer and redistribution of capital happens through multiple mechanisms and directional flows. Transfers of income from businesses to consumers can occur through the economic redistribution from taxation. Businesses can also sell to consumers who in-turn resell. Businesses also have what is known as a 'trickle down effect' where their income is paid out to workers, who are also consumers themselves.
How does taxation contribute to economic growth and development?
It doesn't. Rather, taxation removes capital from the private sector where all economic growth and development occur.
Where in the world do the measles occur?
In most low-income countries.
Does seeing double occur if you drink too much alcohol?
It can occur.
When will a double displacement reaction not occur?
A double displacement reaction not occur when an element replace another element only in one molecule.
What must be produced for a double displacement reaction to occur?
A precipitate, water, or a gas must be produced for a double displacement reaction to occur.
How can an increase in nominal income and a decrease in real income occur simultaneously?
real income is the change with inflation taken into account, nominal income is purely the change of income therefore if inflation was to be 5% and nominal income increased by 2% there would be a real income decrease of 3%
When did the double v campaign occur?
1941
