Corporate profits distributed as dividends are
A)tax free.
B)taxed once.
C)double taxed.
D)triple taxed.

Name: Corporate profits distributed as dividends are A)tax free. B)taxed once. C)double taxed. D)triple taxed.
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Question

Quizplus · Accepted Answer

Corporate profits are first taxed at the corporate level and then again when distributed as dividends to shareholders at their individual tax rates. This results in double taxation of the profits.

Corporate Profits Distributed as Dividends Are