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LSDefine

Simple English definitions for legal terms

undistributed-earnings tax

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A quick definition of undistributed-earnings tax:

An undistributed-earnings tax is a penalty tax that a corporation may have to pay if it retains its earnings instead of distributing them to shareholders as dividends. This tax is imposed by the government to prevent corporations from avoiding income tax liability. A tax is a charge imposed by the government on people, entities, transactions, or property to generate public revenue. It can be in the form of money or other contributions.

A more thorough explanation:

An undistributed-earnings tax is a penalty tax imposed on a corporation that has retained its earnings in an effort to avoid the income-tax liability arising once the earnings are distributed to shareholders as dividends.

For example, if a corporation earns $1 million in profits but decides not to distribute any dividends to its shareholders, it may be subject to an undistributed-earnings tax. This tax is meant to discourage corporations from hoarding profits and not sharing them with their shareholders.

Overall, a tax is a monetary charge imposed by the government on persons, entities, transactions, or property to yield public revenue. It can take many forms, including duties, imposts, and excises, and is used to support government and public needs.

undisputed fact | undistributed profit

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General

General chat about the legal profession.
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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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