Research On Tax-related Issues Of Bankruptcy Cancellation Of Zombie Enterprises

Zombie companies often lose their ability to continue to operate,but rely on government policy support,direct or indirect financial subsidies,as well as low-interest loans or even private lending by banks.The existence of zombie enterprises not only caused a lot of waste of social resources,but also hindered the normal market fair competition system.The intricate debt-debt relationship of zombie companies has brought huge credit risks to banks and financial markets.The existence of zombie companies has no real economic and social significance.However,local governments often maintain the appearance of economic prosperity.In order to prevent the social instability caused by the unemployment of workers due to the bankruptcy of zombie enterprises,zombie enterprises are forced to continue their lives in accordance with the tax and late payment fees.According to China’s current "Bankruptcy Law","Company Law" and other laws,insolvent enterprises must go through bankruptcy procedures for bankruptcy liquidation,bankruptcy settlement or bankruptcy reorganization.The zombie enterprise wants to cancel smoothly to exit the market,and the bankruptcy process is the only way.In the process of applying for bankruptcy by zombie enterprises,many local courts in our country often occupy a large amount of judicial resources becauseof bankruptcy procedures.The relationship between creditor’s rights and debts is complicated and unreasonable for various reasons,so that the zombie enterprises have no way to go bankrupt.Even if the court accepts the bankruptcy application,the zombie company will have to face complicated and complicated bankruptcy procedures.The bankruptcy liquidation procedure that is continuously delayed is undoubtedly worse for the insolvent zombie enterprises.Because the zombie enterprise is insolvent,its bankruptcy administrators often cannot get reasonable remuneration,and even the basic expenses of maintaining bankruptcy management cannot be guaranteed,which makes the case process continue to be delayed.In addition,even after liquidation,the court ruled that the end of bankruptcy,zombie enterprises must face the two thresholds of tax cancellation and industrial and commercial cancellation in order to realize the demise of legal persons in real sense.Tax authorities in many places are reluctant to clean up tax owed by zombie enterprises.The zombie enterprise has been written off for a long time.Around 2011,there was a local private lending crisis in Wenzhou.The active private enterprise base turned into a “land of paradise” for zombie enterprises in the blink of an eye.Many private bosses ran away,“escaped enterprises” and “dead enterprises” emerged endlessly.The local economy is facing a major test.In 2014,Wenzhou Intermediate People’s Court became the first batch of pilot courts for the reform of bankruptcy cases in the country.The Wenzhou people who dare to be the first in the world are facing the increasingly rigid local economy.They have the determination to break the wrist and open up the courage of the unknown.Zombie companies often face a large number of complex debt and debt disputes and historical tax arrears.Due to the boss’ s running,the possibility of zombie companies actively cleaning up the tax owed is very small,so zombie companies often generate huge tax late fees.Once the zombie enterprise enters the bankruptcy process,due to the priority of the tax creditor’s provisions in the tax collection and management law,the remaining assets of the bankruptcy liquidation cannot even repay the taxes and late payment fees owed by the zombie enterprise,and the creditor’s rights of the ordinarybankruptcy creditors of the enterprise are even one cent per cent.It is difficult to get paid,which is one of the important reasons why zombie corporate creditors are unwilling to apply to the court for zombie bankruptcy.In the face of the zombie enterprise bankruptcy tax recovery problem,in order to balance the national tax creditor’s rights and the legitimate interests of the enterprise’s ordinary bankrupt creditors,the Wenzhou tax authorities took the lead in the country to take the initiative to apply for tax owed zombie bankruptcy as a tax creditor.First,the tax authorities clarified the nature of tax claims in the bankruptcy claims of zombie enterprises according to the tax collection and administration laws,bankruptcy laws,etc.,and actively communicated with the courts to establish that the tax authorities can apply for the state as tax creditors to apply for zombie enterprises.Liquidation.Secondly,the tax authorities established a systematic clearing enterprise screening mechanism by setting scientific and reasonable conditions for systematic screening and combined with on-the-spot investigation.Through strict system screening and field verification procedures,Wenzhou Binmai Clothing Co.,Ltd.was finally determined.A group of typical zombie companies such as the company came to the People’s Court to file a bankruptcy application according to law.The successful clearing of Zombie apparel and other zombie companies proves that the Wenzhou tax authorities’ initiative to apply for zombie bankruptcy is scientifically reasonable and effective.This approach can not only guarantee the country’s tax claims under the framework of the current tax system,but also actively balance the conflicts of interest between tax claims and ordinary bankrupt creditors.The success of the zombie company cleared,releasing the vitality of the market and revitalizing the economy of Wenzhou.This article is divided into four parts.The first part is based on Wenzhou Yongjia National Tax application for the bankruptcy case of Wenzhou Binmai Clothing Co.,Ltd.,which is the first case in the country where the tax authorities took the initiative to file a bankruptcy liquidation with the people’s court.The author will introduce Based on the basic situation of the case,the concept of zombie enterprise,the cause ofzombie enterprise and the necessity of clearing zombie enterprise are clearly defined.The second part is closely related to the taxation problem of bankruptcy and cancellation of zombie enterprise,and analyzes in depth the process of zombie enterprise cancellation.The focus of several major disputes is to clarify the connection between bankruptcy liquidation and tax cancellation and industrial and commercial cancellation of zombie enterprises.The third part introduces the disposal experience of bankruptcy and cancellation of zombie enterprises in the United States and Japan,and compares the tax-related laws of bankruptcy and cancellation of foreign zombie enterprises.The regulations and the treatment of zombie enterprises provide a reference for the study of the tax-related issues of Chinese zombie enterprises.The fourth part puts forward the suggestions for standardizing the tax-related issues of the bankruptcy and write-off of zombie enterprises analyzed in the above-mentioned research,including improving the legislative work and clarifying the subject of responsibility;strengthening the management of tax arrears and actively intervening in bankruptcy and liquidation;clarifying the order of liquidation and reasonably handling the tax arrears;Strengthen tax collection and management,and do a good job in bankruptcy and cancellation of supporting services.