Case Study On The Realization Of Bankruptcy Tax Creditor's Debts

The National People's Congress Conference held in early 2016 will set the supply front structure reformation as a main line during the 13 th Five-Year Plan.The reform of the supply front will be conducive to the transformation of the new mechanism and new model of China's economic development.The major aspect of the implementation of the supply front reformation is to use of bankruptcy procedures rationally to optimize the market competition environment and to promote resource allocation under the premise of respecting the market.Against the background of today,it is quite important to utilize the bankruptcy mechanism and the tax mechanism in a comprehensive way.Taxation,which is way for the realization of its state power and the provision of public goods and services,is the material basis for the state to obtain fiscal revenue by complying with established standards to obtain property revenues from its nationals.The state can regulate the operation of the market economy by means of tax laws and policies.In order to protect the national tax security to stabilize the fiscal revenue and protect the legitimate rights and interests of taxpayers,the state uses legal approaches to carries out a series of provisions.The insolvency proceedings are the property handling mechanisms that operate according to the bankruptcy code,and bankruptcy itself is the ultimate protection of the interests of the creditors who play in the market activity.The tax law issues of bankruptcy proceedings are complex and various that runs through all the aspects of the whole bankruptcy proceedings.It is important to know how to deal with the relationship between the two.Credit of bankruptcy is established before the bankruptcy proceedings,which the applicant declares according to the law and then the court confirms.Credit of bankruptcy is a kind of property claim that must be realized from the bankruptcy of the property by means of satisfaction and enforcement.The tax debt is the important content of this credit of bankruptcy.The proper realization of tax claims has a significant impact on tax security and other bankruptcy creditors.However,in the practice of bankruptcy,there are still some problems in the realization of credit of tax in the process of bankruptcy proceedings,like if the tax authorities should declare their claims on behalf of the state in time for the declaration of creditor's rights in the target enterprise bankruptcy announcementor not? What procedure rules should be followed in this tax declaration and what particular subject should take this responsibility of declaration? What is the scope of these claims and is there any better practice of tax credit satisfaction order and so on.This paper focuses on the declaration,confirmation and satisfaction in the bankruptcy proceedings.And through the analysis of three cases and the discussion of relevant theories,this paper seeks to find the practical solution to the problem of tax law in bankruptcy proceedings.Thus,this paper is divided into three parts to demonstrate the abovementioned issues:The first part is the case study of the bankruptcy tax claims declaration stage.Through the case study of Wenzhou State Taxation Bureau takes the initiative to apply for an enterprise bankruptcy,the author seeks to demonstrate the legitimacy and necessity of this practice that whether the tax authorities can declare the bankruptcy for the enterprise or not.And the following discussion focuses on whether such kind of taxation authority can be the subject of declaration or not,whether it can take the initiative to declare or not and how to declare.It is concluded after the discussion that the tax claims should be the same as the general bankruptcy claims to declare.The suggestion is about the time and procedures in detail.The second part is the case study of some typical cases of bankruptcy tax claims.In this part,the scope and content of the tax claims are confirmed.Due to the rank and status of tax claims are related to the realization of state revenue,the scope of tax claims should be appropriate in place.On the one hand,the Treasury can be fully taxed and not being influced by the improper behavior resulting the loss of financial revenue,on the other hand,the interests of other creditors can be balanced which is not to fight for the profit in the bankruptcy of with civils excessively,in order to ensure that other creditors bankruptcy claims in the insolvency proceedings can also be settled in a reasonable way.The third part is the case study about the bankruptcy tax credit satisfaction order.We discuss the tax claims in this part of bankruptcy claims like necessity of tax priority in the status,by studying the relevant evidence of both litigation and court decisions.The order of the bankruptcy claims is a process of game and a process of measuring the interests of all aspects.Through the discussion of foreign institutions of priority system and the experience of foreign practice and legislation tendency,particular suggestions are put forward towards China's tax priority system.The concept of bankruptcy law should be affirmed in the context of the current reform: the respect for the rights of workers,the first practice of exemption rights and The priority of secured claims should be guaranteed;the respect for the living rights,the priority of employee claims should not be easily adjusted;the respect for the purpose of the state to protect the income of the tax.At the mean time,the optimization of procedures and means can be achieved through a stable and non-flexible mechanism to coordinate the relationship between tax claims and general claims in bankruptcy proceedings in a better way.Hence,the bankruptcy debts in the insolvency proceedings can be satisfied fairly and each parties' interest can get the right protection.