Multiple Taxation

Multiple Taxation

A situation in which the same earnings are taxed more than twice. For example, multiple taxation may occur 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 a capital gains tax at the federal level and then again at the state level. Various means exist to reduce multiple taxation. See also: Tax avoidance.
References in periodicals archive ?
Human and consumer rights groups have criticised the road tolling plan saying since motorists pay normal taxes and the fuel levy, compelling them to part with a toll for road use would amount to the government engaging in multiple taxation.
When we met with him recently, we received a very good hearing from the new Tourism Minister who understood our concerns over high industry costs, punitive business rates rises and existing multiple taxation.
The adoption of this regulation aims to prevent ECOWAS Member States from being forced to sign bilateral agreements, and also encourage the free movement of persons and goods within the Community for commercial and non-commercial purposes while guaranteeing against multiple taxation.
The minister added that a common solution that covers the entire European Union is also important, because different tax rules in member states can create multiple taxation and lead to a belief that doing business outside of the EU is more lucrative than inside.
Commerce Clause restricts the states' taxing power in interstate and foreign commerce and prohibits the enactment of state taxes that create a substantial risk of international multiple taxation.
However, this industry has gone moribund due to high production cost, inadequate power supply, multiple taxation and influx of cheaper and fake textile materials.
It was suggested that tax structure should be reformed that ensures avoidance of multiple taxation by Provinces and / or Federal Government.
Pakistan Telecommunication Authority (PTA) has recommended the Federal Board of Revenue (FBR) that sales tax being charged at the time of registration of IMEI numbers by cellular mobile operators may result in multiple taxation on same mobile phone sets.
But steps meant to alleviate the multiple taxation of savings and investment are more than mere handouts to special interests; without them the economy suffers, and that hurts everyone.
200 (1935), a Supreme Court case permitting tax-free liquidations to allow taxpayers to avoid potential multiple taxation of the same economic gain.
Thus, a state cannot tax interstate transactions more heavily than intrastate transactions or impose a tax that discriminates against interstate commerce by providing a direct commercial advantage to local businesses or by subjecting interstate commerce to multiple taxation.
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