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Taxes

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"Let's talk about dividend distributions and how they can be affected by tax laws. As a knowledgeable finance professor, I'm sure you're aware of the concept of double taxation. This occurs when a company pays taxes on its profits and then its shareholders must also pay taxes on the dividends they receive. However, there is a solution to this issue in the form of tax relief or exemption for dividend distributions. This applies to resident subsidiary companies that distribute dividends to their parent company, provided the parent company owns a certain minimum percentage of shares. This helps to mitigate double taxation and can be an important factor in a company's financial planning."
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