What does double taxation mean?
A)Both wage income and interest income are taxed, which is currently the case in Canada.
B)Both wage income and interest income are taxed, which is not currently the case in Canada.
C)Both the profits of corporations and the dividends shareholders receive are taxed, which is not currently the case in Canada.
D)Both the profits of corporations and the dividends shareholders receive are taxed, which is currently the case in Canada.

Question

Quizplus · Accepted Answer

Double taxation refers to the taxation of both the profits of corporations and the dividends paid out to shareholders. This is currently the case in Canada, where corporations are subject to corporate income tax and shareholders are subject to personal income tax on their dividends. This is considered to be a disadvantage for shareholders, as their income is effectively taxed twice.

What Does Double Taxation Mean