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But you are forgetting the fact that the corporation will have to pay corporate income tax on that money before they can use it to pay your dividend.
by jjeaff 7y ago
But you are forgetting the fact that the corporation will have to pay corporate income tax on that money before they can use it to pay your dividend.
- wahern 7y agoThat's true, regardless. They paid tax earning that $100M. What they do after is irrelevant, as neither dividends nor buybacks are tax deductible.
- jjeaff 7y agoNo, they didn't necessarily pay tax earning that 100m. See double irish sandwich and other modern tax avoidance strategies allowing companies like apple to hold infinite amounts of cash in overseas accounts tax free.