The Research of Double Taxation, Optimal Taxation for New Companies and Chapter 11 Bankruptcy-reorganization Process

For C-Corporation, when a company generates a profit, it needs to pay a corporate income tax. However, when the after-tax profit is distributed to shareholders, the shareholders need to pay personal income tax again. Corporate income tax and personal income tax form a double taxation. Investors hope to reduce the double taxation of corporate profits as much as possible through a form of credit like tax treaties. When taxation policies are made for new companies, equal attention should be paid to both relieving the tax burden of new companies and the fairness. The method of deferral tax can be a good choice. When a company goes bankrupt, the interests of some creditors may be damaged due to the priority order of debt repayment. If some companies continue to operate, the interests of all creditors may be better protected.