double taxationnoun [ U ]
ukusTAXa situation in which two or more governments charge tax on the same income or property:
Developers complained that the factory faces double taxation, by the state and federal governments.
a situation in which a government charges tax on a company's profits, which it pays to its shareholders as dividends, and then charges the shareholders tax on the dividends:
Double taxation occurs because corporations are considered separate legal entities from their shareholders.