Case Analysis On Tax Avoidance Under Negotiating Transfer In The New Three Board

As an important part of China’s multi-level capital market,providing service for small and medium enterprises is the starting point of the New Three Board market.It has been facilitating SMEs to have access to financing.Negotiating transfer is a special trading rule of the New Three Board market,but NEEQ(National Equities Exchange and Quotations)has disclosed a large number of abnormal stock exchanges under negotiating transfer in recent years.Because of abnormal stock exchanges,the New Three Board has witnessed exceptional phenomena of stock price fluctuation:the stock price rises 99%or falls 99%.Relevant analysis reckons that the emergence of abnormal transactions may result from tax avoidance design with negotiating transfer of investors.Therefore,the research on the tax avoidance problem under the negotiating transfer trading rules in the New Three Board market is related to the healthy development of our country’s multi-level capital market and the better improvement of our country’s tax legal system.Firstly,this paper expounds the rules of the New Three Board market transaction,especially the negotiating transfer rules,and classifies the status of abnormal transaction under the negotiating transfer rules in the last two years.Then,it analyzes the causes and impacts of abnormal transaction and tax costs of stock exchange.On the above basis,tax avoidance operations under the negotiating transfer in the New Three Board market are divided into four categories:restricted shares transfer of low-cost to avoid individual income tax,equity transfer of low-cost to avoid corporate income tax,book loses by directional add-issuance to avoid corporate income tax and high-priced transfer of equity to avoid corporate income tax.Then,the paper chooses the typical cases to study the four kinds of tax avoidance problems in the way of case analysis.Through the above research,this paper finally draws the following conclusions:first,negotiating transfer is legal tool to avoid tax in the New Three Board market,and such operations widely exist;second,there are flaws of negotiating transfer itself and relevant matching system;third,the tax law system of the New Three Board is not sound,especially the corporate income tax and individual income tax,and the intensity of law enforcement is not enough in the New Three Board market.Therefore,this paper puts forward some suggestions on how to reform and optimize the negotiating transfer system,perfect the tax legal system of the New Three Board market and strengthen the follow-up supervision of the abnormal transactions.