double taxation takes place when: group of answer choices shareholders are forced to pay a dividend tax corporations pay a federal, state and local tax rate double that of individuals corporations are forced to pay taxes twice in one calendar year past tax payments are credited to current tax bills shareholders pay a fee to the government for selling their stock prior to an agreed-upon date.

Paying income taxes twice on the same source of income is known as "double taxation" in tax law. It may occur when income is liable to both corporate and individual taxes.

Double taxation occurs when the same income is taxed for the same investment or transaction in two distinct countries. With 401k loans, it is doable. Double taxation frequently occurs because firms are seen as separate legal entities from their stockholders.

As a result, businesses are subject to taxation on their annual revenue just like individuals. When firms deliver dividends to shareholders, they create income-tax liabilities for the owners even though the earnings that provided the funds to pay the dividends were previously taxed at the corporate level.

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