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Questions and Answers
What is a dividend tax?
What is a dividend tax?
- A tax imposed on capital gains
- A tax imposed on shareholders (correct)
- A tax imposed on profits
- A tax imposed on corporations
Who is primarily responsible for the dividend tax?
Who is primarily responsible for the dividend tax?
- The government
- The tax authority
- The shareholder (correct)
- The corporation
What is the purpose of a withholding tax in relation to a dividend tax?
What is the purpose of a withholding tax in relation to a dividend tax?
- To avoid a dividend tax being levied
- To reduce the tax liability of the shareholder
- To distribute surplus funds to shareholders
- To impose a tax obligation on the corporation (correct)
In some jurisdictions, dividends are not subject to tax.
In some jurisdictions, dividends are not subject to tax.
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What is a potential strategy for a corporation to avoid a dividend tax?
What is a potential strategy for a corporation to avoid a dividend tax?
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