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Double Taxation

 
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Double taxation is the process by which two or more taxes are levied paid for the same asset or financial transaction. Double taxation can occur in several ways; at the
international level, it may occur between two countries due to the overlap of their tax laws or else at the corporate dividend level.


Double Taxation terminology

The euphemism double taxation is a loaded term in the sense that at it's root, it is accurate in that the same cash stream or asset is what is referred to, but it also is inaccurate in it's implication that it is a limited taxation phenomenon. While considering the life of an asset or cash stream, there are many transactions between distinct entities in which taxation comes into place. The usage of the word double hence implies excess and redundancy. It is generally used in a limited manner in order to highlight the taxed transaction as being an excess, when the same asset or cash stream has been taxed many times prior to that and, in many cases, will be further taxed when changing between distinct entities.