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An additional tax is assessed on Personal holding companies (PHC) if owners of a personal holding company uses it to shelter investment income to be
An additional tax is assessed on Personal holding companies (PHC) if owners of a personal holding company uses it to shelter investment income to be taxed at the corporate rate (21%) from their individual higher tax brackets and subject to the individual investment income surcharge. A PHC is defined as having over 60% of the adjusted ordinary gross income consisting of all of the following except: a. Business Income Net rent b. Royalties Dividends d Interest
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