double taxation


Definitions (2)

1.Situation where a country levies tax on an income that has already been taxed in the same or another country. For example, corporate profits are taxed when they are earned, and then taxed again as personal income when distributed to stockholders (shareholders) as dividend or (in case of an owner-manager) as salary.
2.Tax on tax. Sales tax (unlike a value added tax) is imposed on the gross price (seller's net cost price + sale tax paid on net price + seller's profit) of an item as it moves from one seller to the next purchaser.

Use double taxation in a sentence

  • Double taxation can have a strongly negative impact on the economy if care is not taken to ensure that all taxes are fairly and equally taken.

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  • The double taxation was a huge problem for company as they had yet to fully understand their optimal accounting operations.

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  • I was against double taxation, because I thought it was too much and it made me think that it was just due to government greed.

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