Which of the following describes when a corporation pays income tax on its profits,and when the corporation distributes the after-tax profits as dividends,the shareholders may tax on the dividends?

Question

Quizplus · Accepted Answer

Double taxation occurs when the corporation pays income tax on its profits,and when the corporation distributes the after-tax profits as dividends,the shareholders pay tax on the dividends.

Which of the Following Describes When a Corporation Pays Income