Study Of The Tax Priority In Bankruptcy And Liquidation

Originated from the U. S. sub-prime mortgage crisis, the financial crisis is still sweeping the world and become the terminator to a large number of business in the financial crisis, many companies can not resisted the storm and went bankrupt at the same time, then entered bankruptcy reorganization and bankruptcy liquidation proceedings. How to protect the bankruptcy tax claims to maintain the tax priority in bankruptcy liquidation, this question has become an important theoretical and practical issue.Bankruptcy liquidation refers to the debtors'property is insufficient to satisfy his liabilities, or inability to discharge his due debts circumstances, then according to the law, all the property of the debtor's creditors could get a fair settlement of a judicial debt-servicing procedures. On the one hand, bankruptcy liquidation system has been established to regulate the insolvency system to assist a debtor whose liquidation of debt is not insolvent yet, so that to protecting the interests of creditors bankruptcy. But, on the other hand, based on the practice of China's bankruptcy liquidation system, the tax creditor protection system still has many deficiencies. To achieve full protection of the interests of creditors tax receivership liquidation in bankruptcy practice, a good system is necessary, but also needs a smooth implementation system of the social environment.Although China has initially established a priority system for taxation, while also gradually regulate the insolvency regime. In bankruptcy liquidation, the tax priority is in a disadvantageous position in the status quo, to solve this problem, the legal and practical methods are needed to regulating and safeguarding the rights of creditors tax to protect the normal social and economic order.