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To: Shane M who wrote (12043)	8/18/1998 5:43:00 PM
From: Flint	Respond to of 13925

US tax law is confusing to me. I'm a Singaporean. One of the basic philosophies of the tax law here is that earnings income is not taxed twice whether it is: 1. retained 2. returned to shareholders ... e.g. if a corporate pays you net of tax dividends from earnings which they accrue after paying 26% tax on it, the way the tax computation works is that u first gross up the dividend paid to you pre-tax-retained and you then impute ur income tax bracket and subtract the tax paid.... etc Bottomline ? if you r in the 10% tax bracket, u can effectively get back a claim of 16% (26-10%) from the tax authorities. I'm sure that given the confusing tax code in the US, there must be a way to structure cash repayments better.. What if it's not a dividend ? WHat if it is a capital repayment ? Capital returns/gains r still taxed in the US ? Or not ? Any tax experts out there ?