On the Issue of Exempting Dividends Received from the Participation of Individuals in Company Capital from Taxation

Abstract

The article discusses the economic consequences arising within the context of disproportionate double taxation of corporate profits under legal regulation. These consequences are associated with investment transparency, risk factors in investment promotion, and specifically with the accumulation of unsubstantiated capital reflected in corporate financial statements. This is especially relevant in situations where limited alternative investment opportunities lead to the distribution of profits (dividend payments) and reinvestment in charter capital without proper documentation of these operations, as prescribed by regulation. The avoidance of taxing (withholding tax on) dividends paid to individuals participating in a company’s capital may become grounds for legal regulation violations. This could lead to forensic financial-economic expertises within criminal or judicial proceedings through the submission of special questions. However, in the subtext of presenting an expert opinion in this article, it is argued that companies and individuals accountable under current legal regulations is unjust, given the inadequacies in tax policy and existing legal frameworks. Discussions on the methodology for clarifying the above issue in financial and economic expert investigations are currently important, as the effective and targeted reinvestment of capital directly impacts both the company’s ability to meet obligations and maintain financial stability, as well as the protection of shareholder interests and the organization’s future development goals. Scientific methods (analysis and synthesis, generalization, logical and structural, etc.) have been applied.