Explain Taxation and also how corporation is distinct
Explain Taxation also how corporation is distinct from its Shareholders?
Expert
Taxation: A corporation is a separate taxpayer, although special rates apply to corporations. Shareholders pay tax only on dividends (cash or property) received as a return on their investment.
A corporation is a distinct entity from its shareholders. Shareholders may enter into contracts with the corporation, be employed by it, and make loans to it. They owe no duty of good faith to the other owners and can deal with the corporation as though they were strangers.
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