double taxation
noun[U]
TAXukusasituationin which two or moregovernmentschargetaxon the sameincomeorproperty:
Developerscomplainedthat thefactoryfacesdoubletaxation, by thestateandfederalgovernments.
asituationin which agovernmentchargestaxon a company'sprofits, which itpaystoitsshareholdersasdividends, and thenchargestheshareholderstaxon thedividends:
Doubletaxationoccursbecausecorporationsareconsideredseparatelegalentitiesfromtheirshareholders.