double taxation

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Double taxation

Government taxation of the same money twice; specifically, earnings taxed first at the corporate level and then again as dividends at the stockholder level.

Double Taxation

A situation in which the same earnings are taxed twice. One of the most common examples of double taxation occurs when a publicly-traded company pays corporate taxes on its earnings. It then passes on some of those earnings to shareholders as dividends, on which they must pay individual income tax or capital gains tax. Various means exist to reduce double taxation. See also: Tax avoidance.

double taxation

Taxation of the same income twice by the same taxing authority. It is generally used to refer to the taxation of dividends that are taxed once at the corporate level (as income before dividends are declared) and again at the personal level (when the dividends are received).

double taxation

the TAXATION of INCOMES and PROFITS in both the country where they arise, and again where these incomes and profits are remitted to the income earner's home country. Such double taxation can be a significant deterrent to international labour and capital movements. For this reason many countries have negotiated double taxation agreements which limit taxation liability to the country in which the income is earned. Compare UNITARY TAXATION, WITHHOLDING TAX.

double taxation

the TAXATION OF INCOMES and PROFITS, first in the country where they arise and again when these incomes and profits are remitted to the income earner's home country. Such double taxation can be a significant deterrent to international labour and capital movements. For this reason,

many countries have negotiated double taxation agreements, which limit taxation liability to the country in which the income is earned. See UNITARY TAXATION, MIXER COMPANY.

double taxation

A situation said to exist when a corporation must pay taxes on income, make dividend payments to shareholders on after-tax dollars, and then the shareholders must again pay taxes on the dividends. This is the situation with normal corporations, called C-corporations, that do not qualify for S-corporation (small corporation) status. S-corporations file reports allocating pro rata shares of all income to the individual shareholders, who then pay taxes on that number. The corporation itself does not pay any taxes.

References in periodicals archive ?
Strickland recently introduced Assembly Bill 1315, which would eliminate this double taxing of gasoline.
Their bill, AB 1315, will eliminate a double taxing of gasoline - the state sales tax charged on federal and state gas excise taxes.