how can i answer this question?

Question

How does double taxation of corporate income occur?

Answer 1

Through taxation of dividends. The corporation pays tax on its profits, then distributes some to shareholders as dividends which are then taxed again to the shareholders. The corporation can't deduct the dividends they pay out like they deduct salaries.

Answer 2

Once in the form of the corporate income tax and again in income to the employees or as capital gains when shares are bought and sold