Purchase Solution

How does double taxation of corporate income occur?

Not what you're looking for?

Ask Custom Question

How does double taxation of corporate income occur?

Purchase this Solution
Solution Summary

The solution provides detailed explanations and answer for the problem.

Solution Preview

International double taxation, narrowly defined, occurs when two different states impose a comparable tax on the same potential taxpayer on the same taxable item. The concept has been defined more broadly, but with less precision, as the result of overlapping tax claims of two or more states. For example, someone who is resident for tax purposes in France and who makes an ...

Purchase this Solution
Free BrainMass Quizzes
Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

View More Free Quizzes
Related BrainMass Solutions

  • Double Taxation referring to Corporations

    The response addresses the queries posted in 297 Words, APA References Double Taxation referring to Corporations Double Taxation: Double taxation is the enforcement of two or more taxes on the same income.

  • Business tax law

    Its one class of stock is owned by twelve members of a single family. Ordinarily, corporate income is taxed at the corporate and shareholder levels. Is there a way for Northwest Brands to avoid this double-income taxation?

  • Corporate Distributions - Factors in Taxation

    From the corporation's perspective: Does the distribution result in (1) a tax deduction (generally it will not, as tax deduction would result in double taxation), (2) the recognition of any gain or loss From the shareholder's perspective: Does

  • Kim had the following transactions for 2006: Salary: $48,000

    Shareholders in closely held C-corporations often pay themselves large salaries in order to avoid double taxation on corporate income. Briefly explain the double taxation problem and how paying large salaries to owners avoids it. b.

  • Double Taxation of Corporations

    Whether or not double taxation is good or bad arguable. It depends on your position. For example, corporations pay tax on their income just like any other entity does. Furthermore, individuals pay income tax on the income they earn.

  • Business Structure from a Tax Perspective

    The greatest disadvantage of a C Corporation from the point of view of taxation is that the corporate profits will be subjected to 'double taxation', first as corporate tax and then as personal tax when dividends are received by the shareholder.

  • Equity and Ownership Questions

    Question 2 Serrie and Al and their two daughters have operated a business out of their home for years and are thinking about incorporating. They would like to avoid the "double taxation" of corporate income.

  • Three advantages of an S Corp. over a Partnership

    For example, S Corp enables owners avoid a second tax called double tax and avoiding double tax means that S Corp saves business owners a substantial amount of income tax. iii. S Corp saves corporate income taxes and payroll tax.

  • Corporate Taxation

    In general corporation double taxation leads to a high level of taxation on the people. 4. Double taxation because of corporate taxes affects the market for capital. The capital market becomes more costly. Business factors: 1.

View More Related Solutions