The "double taxation" of corporate income refers to the taxation of corporate income at both the entity-level and the shareholder-level. T/F

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Business

Jamal Lopez

9 November, 22:33

The "double taxation" of corporate income refers to the taxation of corporate income at both the entity-level and the shareholder-level. T/F

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River · Answer 1

The correct answer to the following question is true.

Explanation:

Double taxation refers to a tax principle, according to which income taxes are paid twice from the same source of income. This taxation occurs at both the personal and corporate level and also in the situations when international trade takes place, where income would be taxed twice in two different countries. The reason why double taxation occurs is because a corporation is considered as a separate legal entity from its shareholders.