What aspect of the tax structure for corporations is commonly referred to as double taxation?
A) The fact that the corporation pays both federal and state taxes
B) The requirement of shareholders to personal income tax on dividends after the corporation pays corporate income tax on the same money
C) The fact that both partners of the business are taxed
D) The concept of both Shareholders and Directors being taxed on the business

Question

Quizplus · Accepted Answer

Double taxation refers to the requirement of shareholders to pay personal income tax on dividends after the corporation pays corporate income tax on the same money. This is considered double taxation because the income is taxed twice - once at the corporate level and once at the shareholder level.

What Aspect of the Tax Structure for Corporations Is Commonly