Fidelity's plan to reduce its ranks of private shareholders in order to take advantage of a tax loophole has some tax policy advocates and a Massachusetts union official expressing their displeasure, The Boston Globe reports. The report also stated that in light of Governor Deval Patrick's vow to close corporate tax loopholes, Fidelity's plan to skirt through one may be under closer scrutiny by the legislators. Under Subchapter S of Internal Revenue Service rules, corporations avoid a system of double taxation by avoiding corporate taxes and taxes on dividends. Profits are instead passed directly to shareholders and taxed as personal income.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE