What is the theory of leadership?

pipe theory is an understanding that has to do with taxation applied to an investment company. The management theory basically states that if the company normally hand over interest, dividend revenue and capital profits to the client base and shareholders of the company, the company should not be responsible for taxes on this money. Instead, the recipients of the funds should only be responsible for taxes and not the investment company.

The basic principle of leadership theory is to reject an event that effectively represents double taxation on the relevant funds. Given that the investment company does not fit dividends or capital gains, it is perceived that there is no long -term advantage of these funds. Therefore, there is no reason for the investment company to pay taxes from funds that are not available, and in fact they are already subject to taxes and to the company's shareholders and clients. In short, the Uit Condteory claims that two different entities should not spend tax liability for the same funds.

Because the management theory is mainly about the ability to avoid double taxation, several different types of investment companies have supported the legislation to be possible. Mutual fund companies support management theory, as well as credible investments in real estate or REIT. The idea is that the structure of double taxation, which is common to most types of businesses, has a greater impact on these types of organizations. While the retail or manufacturing company has resources to create the double taxation resources, investment companies can be considered more limited in how they can draw on the tax sources.

There is no agreement on the fairness of the theory of leadership. Supporters consider the theory not only to give good business meaning, but common sense. Individuals and entities that oppose the concept of management theory sometimes consider access to the provision of investment companiesEM and other forms of financial institutions with a preferred status that is not sent.