Earnings and Profits Law and Legal Definition
In corporate taxation, earnings and profits refers to the measure of a corporation's economic capacity to make a distribution to the shareholders which is not a return of capital. The distribution will constitute a taxable dividend to the shareholders to the extent of the corporation's current and accumulated earnings and profits. The amount in the earnings and profits account resembles the inflow and outflow of wealth.
Legal Definition list
Related Legal Terms
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- Abandon
- Abandon [Shipping]
- Abandoned Infant
- Abandoned Mark
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