this question is about "Financial Accounting".please tell me the detail~thanks!stockholders participating in dividend reinvestment programs pay taxes on dividends not really received.if a company would refain from paying dividends only to take them b

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this question is about "Financial Accounting".please tell me the detail~thanks!
stockholders participating in dividend reinvestment programs pay taxes on dividends not really received.if a company would refain from paying dividends only to take them back as reinvestments,it would save paperwork,and the stockholders wold save income tax.

You said,It is issuing stock dividend to shareholders of listed companies,Shareholders of the company is to generation withholding income tax.This kind of behavior conducive to the development of the company.