Double and Multiple Taxation

Double taxation- both taxes where imposed in the same year for the same purpose, upon property owned by the same person and by the same taxing authority.

Kinds:

Direct duplicate taxation- the same property is taxed twice when it should only be taxed once.

Indirect duplicate taxation- not prohibited and usually allowed provided no violation of equal protection and uniformity clauses in the constitution.

Remedies of Double or Multiple Taxation

1. Provide for exemption;

2. Allowance for tax deduction

3. Allowance for tax credit for foreign taxes

4. Enter into treaties with other states

5. Allowance of the principle of reciprocity.