Asked by Kaity Hernandez on Jul 20, 2024
Verified
Double taxation refers to which of the following scenarios?
A) Both bondholders and shareholders must pay taxes.
B) The corporation pays taxes on earnings, and creditors pay taxes on interest received.
C) The corporation pays taxes on its earnings, and shareholders pay taxes on dividends.
D) The corporation pays taxes on revenues and expenses.
E) The corporation pays taxes on revenues and earnings.
Double Taxation
A taxation principle where income is taxed at both the corporate level and again at the individual level on dividends received.
- Understand the taxation of corporations and double taxation.
Verified Answer
1G
18. Galuh Mafela Mutiara SujakJul 25, 2024
Final Answer :
C
Explanation :
Double taxation typically refers to the scenario where a corporation pays taxes on its earnings, and then shareholders also pay taxes on the dividends they receive from those earnings.
Learning Objectives
- Understand the taxation of corporations and double taxation.