Double taxation refers to :?

Double Taxation refers to:


A) All partners paying equal taxes on profits


b) Corporations paying taxes on both dividends and retained earnings.


c) Paying taxes on profits at the corporate level and dividends at the personal level


d) The fact that marginal tax rates are doubled for corporations.

Double taxation refers to :?
C.....I just covered this in my Intermediate Accounting class at college
Reply:none of the above but this example is double taxation. Say a shipment comes in from Britian (ok colonial era but its best example) Fat George decries a tax on the enire cargo when it leaves England. Once it hits into the colnial port another tax is added to it just cause. In otherwords you are paying taxes on the same item more than once for whatever reason. that's what put the colonies into revolt.
Reply:None of the above. If a company pays corporate tax and then is forced to pay personal tax on the profit it is called double taxation. Corporations do have double taxation where as prtnerships don't.