What does double taxation of corporate income mean? Could income ever

QUESTION

What does double taxation of corporate income mean? Could income ever be subject to triple taxation? Explain your answer.
Double taxation of corporate income means the taxation of corporate income twice, once in the hands of the company and second, in the hands of the shareholders when they receive it. This is particularly relevant in the case of dividend payment by the company. if an amount of such payment is taxed first in the¦

hands of the company when it earns it in the form of its profits and then when it is distributed to its shareholders as dividend and taxed in their hands, it is a case of double taxation of corporate income.

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