A High Tax Bracket Individual Can Enhance the Avoidance of Income

question 41

True/False

A high tax bracket individual can enhance the avoidance of income taxes through a C corporation by having the corporation retain its after tax earnings rather than paying them out as a dividend.

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Definitions:

Transaction

An instance of buying or selling something; a business deal or action.

Currency Exchange

The process of exchanging one country's currency for another country's currency, typically at a rate determined by the foreign exchange market.

Exchange Rate

The amount of one currency required to purchase one unit of another currency.

Exchange Rates

The value of one currency for the purpose of conversion to another, determining how much one currency is worth in terms of another.