The Determination Logic Of Stocks And Debts In The Tax Law

Both equity investment and debt investment are corporate investment and financing methods.In view of the difference in the nature of equity investment and debt investment,the tax law provides different tax treatment methods for investors and investees.However,the development of the modern economic market has blurred the seemingly clear dividing line between debt investment and equity investment.The typical equity investment or debt investment method can no longer meet the requirements of all parties in the market,and some mixed investment methods between equity investment and debt investment have developed.Therefore,from the perspective of corporate income tax,this article analyzes and demonstrates the logic of determining equity and debt rights.In the first part,this article will introduce the tax policy differences between equity investment and debt investment,as well as the current situation of mixed investment,and point out the difficulty of distinguishing equity and debt in practice.This article collects and analyzes laws and common investment behaviors,and points out the deficiencies of the existing regulations and the possible negative consequences.In the second part,this article clarifies the different taxation rules that should be applied to different transaction behaviors in general and special situations.In the general case,the transaction behavior is not to take tax avoidance as the whole or main transaction purpose.It should not directly ignore the choice of transaction form by the transaction subject.At the same time,it is necessary to consider the impact of the legal concept of the private law field on tax law.Judgment criteria at this time include the right to recover principal,the right to receive fixed income,the order of property distribution after liquidation of the company,and the right to claim judicial relief.In the third part,this article believes that only in the transaction with tax avoidance as the transaction purpose,the essence of the transaction behavior can be taxed according to the independent value pursuit of anti-tax avoidance of the tax law.For substantive identification of the nature of equity investment or debt investment in tax avoidance transactions,the judgment criteria include the four criteria in the form of taxation.In addition,additional three criteria such as the investor 's decision-making power over the invested enterprise,the invested company 's own asset-liability ratio,and the relationship between the investor and theinvested enterprise 's shareholders should be considered.And the seven standards are not divided into major and minor.