Question

Double taxation means :

a. if the corporation doubles its profits from the previous year, the firm's tax rate (the percentage it pays in taxes) will also double.
b. as the owner of the company, you pay twice the amount in employment taxes on yourself, as you do on your employees.
c. if stockholders decide to sell their shares, they are subject to paying twice the amount of taxes on any capital gains.
d. corporations pay taxes on their profits.
e. If they distribute after-tax profits to the stockholders, the stockholders also pay taxes on the distribution.

Answer 1

e. If they distribute after-tax profits to the stockholders, the stockholders also pay taxes on the distribution.

Step-by-step explanation:

In double taxation, the shareholder is taxed twice. When the revenue of the firm is taxed and when the sjareholders pay tax on the distributions they receive.

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