Double taxation refers to a corporation's income being taxed twice-first when the company earns it and pays corporate income taxes on it,and then again when stockholders pay personal income taxes on any amounts the firm distributes to them as dividends.

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Double taxation occurs when corporate income is taxed at the corporate level and then again at the individual level when distributed to shareholders as dividends. This is a common tax treatment in many countries, including the United States.

Double Taxation Refers to a Corporation's Income Being Taxed Twice-First