I do not agree with BS that why dividend income to any person should not be taxed. It is fine that Govt should not tax dividend income from any company to corporate on double taxation argument. Dividend income to any individual should be taxed, as we tax income from Fixed Deposit and Postal Savings. Equity and Fixed Income should be treated at par. In UK, Dividend Income to any person is taxed.
Suppose a company earns income, pays corporation tax on it, then pays out dividend, then the shareholder pays income tax on it. So the shareholders who came together to create the company are taxed twice merely because they made the mistake of pooling their capital to form a company. This is wrong from first principles of tax policy, even if it's done in some countries.
True. Double taxation. Thats why it was done away with in the first place.
Please note: Comments are moderated. Only civilised conversation is permitted on this blog. Criticising me is perfectly okay; uncivilised language is not. I delete any comment which is spam, has personal attacks against anyone, or uses foul language. I delete any comment which does not contribute to the intellectual discussion about the blog article in question.Please note: LaTeX mathematics works. This means that if you want to say $10 you have to say \$10.