The Construction Of Tax Benefits Legal System Of China's Bankruptcy Reorganization

The purpose of the reorganization process is not to distribute the assets of the debtor fairly,but to save those debtors worthy of salvation and being able to be rescued so that they can get out of their predicament and rejuvenate.The success of bankruptcy and restructuring procedure benefited from the concessions of all parties involved,including tax authorities.The amount of tax revenue arising from the debtor's tax debts and bankruptcy reorganization procedures before entering the bankruptcy and restructuring process is the sum of the bankruptcy expenses and the co-benefits.The amount of funds available to the debtor is limited,and the tax creditor's rights and liabilities will be substantially reduced on time.The debtor's use of funds for repayment of common claims and recovery of operations has affected the effect of bankruptcy and restructuring.Whether the bankruptcy and reorganization procedures apply special tax preference and what kind of tax benefits apply to them have become an urgent issue in the stage of social industry transformation and upgrading.This article will discuss this topic in depth and try to propose applicable scheme of tax benefits.This article advocates building a legal system for bankruptcy and reorganization of tax benefits,and elaborates on this proposition in three parts.The first part elaborates the current status of the application of tax benefits for bankruptcy and reorganization.It first discusses the types and nature of taxes involved in different stages of bankruptcy and restructuring,and determines that most of bankruptcy and restructuring taxes are prioritized for repayment,bringing about a better result for the arrangement of reformed funds.After that,it discusses the current status of China's bankruptcy and reorganization tax benefits legal system from three aspects: the conflict between the legislation purpose of bankruptcy law and tax law,the low level of tax benefits legislation in bankruptcy reorganization,and the difficulty of applying the bankruptcy reformation tax benefits.From the first part,it can be concluded that the current status of bankruptcy and restructuring tax preference is not satisfactory.The second part elaborates the necessity and feasibility of constructing the legal system of bankruptcy and reorganization of tax benefits in China.It discusses the necessity of bankruptcy and reorganization of tax benefits and the urgency of constructing tax benefits system by referring to the legislation experiences in China and abroad,demonstrate that bankruptcy and reorganization of tax benefits are consistent with the purpose of taxation and the principle of tax benefits to illustrate the feasibility of establishing such a system.The third part proposes the concept of constructing a legal system of bankruptcy and reorganization of tax benefits in China.With respect of system concept,it states that it advocates the integration of the bankruptcy law and the tax law.And tax benefits provisions should comply with the statutory principles of taxation.And the characteristics of bankruptcy and reorganization procedures should be fully considered.At last,it discussed the reason why tax breaks and deferred are the most suitable method for tax benefit.At the aspect of main stipulation,it is proposed that attention should be paid to the main body to which the system applies,the scope of tax types,and tax adjustment methods;at the specific implementation level,it is proposed that tax authorities should be given relevant powers to implement the pre-remodeling model and that tax preferences should be reformed.Plan confirmation,regulate the application of tax benefits.Make the bankruptcy law and the tax law harmonize the two levels together to ease the contradiction of bankruptcy and reorganization of taxation,enhance the power of all sectors of society to save valuable debtors,effectively eliminate backward production capacity,and achieve supply-side reform.