What causes double taxation?

Question

Quizplus · Accepted Answer

Double taxation occurs when a taxpayer is subject to tax laws in multiple jurisdictions, meaning that they must pay taxes in both jurisdictions on the same income or asset. This often occurs when a company operates in multiple countries and is taxed on its global income by each country. It can also occur when an individual or business earns income from sources in different states or provinces that have their own tax laws. This results in the same income being taxed twice, leading to higher tax liabilities and reduced profits.

What Causes Double Taxation