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The issue of excessive compensation remains to be of great concern in closely held corporations since it can be a lee way for avoiding paying taxes. It is usually the case that any dividend paid to shareholders attract taxes while compensations do not. In closely held organizations, management tries to reduce the amount they pay as tax by paying much compensation to executives rather than paying dividend hence avoiding paying taxes. This makes it continue to be an issue to IRS.
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Oct 15th, 2015
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