Refers to the imposition of taxes on the same income, assets or financial transaction at two different points of time. A common example is the taxing of shareholder dividends after taxation as corporate earnings. Another common example is taxes on income imposed by one country, after the same income has already been taxed by another country. However, many countries have signed treaties to prevent this form of double taxation from occuring to foreign corporations.
Definition from Nolo’s Plain-English Law Dictionary
1) Taxation of corporate dividends twice: once to the corporation as corporate income and then once to the shareholders, if corporate profits are distributed as dividends. 2) Taxation of the same property for the same purpose twice in one year.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:15 pm