The ________ approach to corporate taxation is considered double taxation.

Question

Quizplus · Accepted Answer

In the separate entity approach to corporate taxation, the corporation is viewed as a separate legal entity from its owners. This means that the corporation is taxed on its profits at the corporate tax rate and any profits distributed to shareholders as dividends are taxed again at the individual tax rate. This is considered double taxation because the same profits are being taxed twice - once at the corporate level and again at the individual level.

The ________ Approach to Corporate Taxation Is Considered Double Taxation