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What does it mean when they say that dividends enjoy a preferential tax rate?

April 26, 2017dividends enjoy mean preferential rate tax

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What does it mean when they say that dividends enjoy a preferential tax rate?

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Dividends paid to shareholders have already been taxed at the corporate level. To prevent double taxation, a dividend tax credit can be claimed by an individual who receives the dividend, to allow the offsetting of some or all of the corporate tax paid.