没看懂什么意思？问需要征两次税的情况？

问题如下：

In which of the following situations does the double taxation of the corporate organizational form matter the least?

选项：

A.The company expects to pay all its after-tax income as a dividend to shareholders each year.

B.The company’s shareholders reside in a tax jurisdiction with a high tax rate on dividend income.

C.The company is expecting to reinvest all its after-tax profits each year into growth of the business.

解释：

Correct Answer: C

C is correct. Reinvestment of all profits implies that the company pays no dividend to shareholders, and thus, no double taxation occurs.

A is incorrect. Double taxation occurs because dividend income is taxed at both the corporate level and the shareholders’ personal levels. If all after-tax profits are distributed, shareholders are taxed twice on the business’s income.

B is incorrect because a high tax rate on shareholders’ dividend income received would be a strong impetus to retain profits, find alternative means of distributing profits, or change the organizational form.