To call it a loophole makes no sense to me. Also, smarter policy would be like what Estonia does - CIT should only be applicable when dividends are paid. So c

To call it a loophole makes no sense to me. Also, smarter policy would be like what Estonia does - CIT should only be applicable when dividends are paid. So corporations can reinvest that money in the business and not be taxed on it. - PIT on dividend income should be 0, since that amount has already been taxed(CIT) and the stock holder has paid his due share on that income as a owner of corporation.