19公司税.pptVIP

CHAPTER 19 THE CORPORATION TAX Corporations Corporation – A state-chartered form of business organization, usually with limited liability for shareholders (owners) and an independent legal status Limited liability Corporations are “artificial legal persons” Why Tax Corporations? Only real people can pay a tax Justifications Corporations are distinct entities Corporations receive special privileges from society Protects integrity of personal income tax Structure Treatment of Dividends versus Retained Earnings Double taxation Effective Tax Rate on Corporate Capital Statutory rate versus effec