Dividend Taxes
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Questions and Answers

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?

  • The government
  • The tax authority
  • The shareholder (correct)
  • The corporation
  • 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.

    <p>True</p> Signup and view all the answers

    What is a potential strategy for a corporation to avoid a dividend tax?

    <p>Distributing surplus funds to shareholders</p> Signup and view all the answers

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