I read somewhere that dividends are taxed twice. Is this really true?
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- eAnswers...Mar 21, 2013
Yes, what you have read is correct, a dividend income is the income which is the distribution of excess of cash by the company to the company's owners and the shareholders, in the form of a dividend. In this case the earnings are taxed twice by the government because of this transfer of money. So, for the first time taxation occurs at the company's financial year-end, and then the second taxation occurs when the shareholders receive the dividends.
- AnonymMar 21, 2013
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