An issue in corporate taxation is the taxation of shareholders who receive dividends or distributions from a company out of profits which have already been taxed. This contrasts with a partnership or sole proprietorship, where the owner of the business is usually taxed only on the profits of the business and not on distributions of profits. Different solutions are adopted for this problem:

* The company may not be taxed, and instead the shareholders are taxed on the profits of the business, not on distributions. This method is adopted by the United States, but only for companies owned by a small number of shareholders, so-called S corporations.
* Under an imputation tax system, some or all of the tax paid by the company may be attributed pro rata to the shareholders by way of a tax credit to reduce the income tax payable on a distribution. Australia and New Zealand have imputation systems. From 1973 to 1999, the UK operated a partial imputation system, with shareholders......

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Title: Tax And Sexuality
Approximate Word Count: 330
Approximate Pages: 2 (250 words per double-spaced page)

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