Sentences with phrase «paying dividends to shareholders again»

Not exact matches

Double taxation occurs when a company is taxed once on profits, and again on the dividends paid to shareholders.

Because dividends are not tax free (as they are in pass through entities once tax on entity level earning has been paid by the owners - which would look politically ugly in a publicly held company context letting people receive millions in dividends and pay not taxes on it), and there is no deduction for dividends paid to the corporation (in most contexts), and there is no tax credit for taxes paid at the corporate level against income tax liability on dividends, the end result is that there is double taxation of corporate profits both when the profits are earned by the corporation and again when they are distributed to shareholders.

From what i understand it is all about reducing the effect of double - taxation since if i recall dividends are paid to shareholders after the business has been taxed on their profit and then we the recipients of these dividends have to go about being taxed again?

As soon as you're leaving companies to decide whether they should offer to pay more tax, or enable voluntary disclosures, it might go down well with the public, but again we're back at the catch - 22: what happens when the institutional shareholders demand a particular return or dividend, they're not going to be happy when the Director turns around and says «well we can't do that because we voluntarily paid more tax this year».