double taxation

Definition

Taxation of the same earnings at two levels. One common example is taxation of earnings at the corporate level and then again at the shareholder dividend level. Another example is taxation of foreign investments in the country of origin and then again upon repatriation, although many countries have signed agreements to prevent this latter type of double taxation.

Use double taxation in a sentence

The double taxation hit our bottom line harder than we thought, and we were rethinking our previous outlook for the quarter.

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The double taxation was experienced by the company who was unhappy with the government's taxation policy as it felt it was unfair.

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An argument could be made to eliminate the current income tax imposed on corporate dividends as income from which they are derived have been taxed at the corporate level resulting in double taxation.

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