Research On The Taxing Issues Of Enterprises’ Backdoor Listing

Since the beginning of the 21st century,China’s economy has been developing rapidly.While a large number of new industries have been rising rapidly,the reform of state-owned enterprises has been accelerated.Enterprise reorganization is an effective measure to strengthen the integration of resources and achieve the rapid development of the enterprises,which will improve the competitiveness in the industries.Under the background of economic globalization,enterprise reorganization is more and more frequent,and the reorganization scale becomes larger and larger with more and more ways.Backdoor listing is one of the ways of enterprise reorganization.More and more enterprises choose the way of backdoor listing to achieve listing,because backdoor listing can save time compared with IPO listing.They can expand financing channels for enterprises after the listing,and they also can seek more sustainable and stable financial support seek for the follow-up development of the enterprises.Backdoor listing is the product of accelerated economic development.Those that allows companies to go public through backdoor listing only care about post-listing resource allocation and other issues,but pay little attention to tax issues.The process of backdoor listing is very complicated for enterprises,and there are many problems in its tax-related treatments.The tax issue in the process is also an issue that enterprises should focus on.When designing the backdoor reorganization scheme,the enterprise must do a serious and comprehensive tax-related analysis.At present,China’s regulations on backdoor listing are not perfect and have not formed a unified approach.This study also hopes that the country can introduce clear policies to solve controversial issues.Firstly,this paper explains the concepts of backdoor listing as well as merger,acquisition and reorganization.This paper introduces the concept of M&A and backdoor listing in details,that is,backdoor listing is a special way of M&A.Then,the motivation,ways,steps and advantages of backdoor listing are summarized and sorted out,and the tax-ability theory,tax fairness principles and synergistic effect theory involved in backdoor listing of enterprises are studied,which provides a basis for subsequent theoretical research.Then it summarizes and interprets the laws and regulations of various kinds of taxes,such as corporate income tax,involved in backdoor listing of enterprises,which provides a strong policy support for later case analysis.Under the strong support of theory and policy,this paper mainly studies the four main ways of backdoor listing of CRM Stock.With the case study of CRM stock backdoor Faw Xiali,the paper makes an analysis on every step of the transaction,and then put forward controversial issues to remind enterprises of paying more attentions to the tax problems after the listing.Finally,through the previous research and analysis of the main problems existing in backdoor listing,it is suggested that enterprises should choose the appropriate backdoor mode.With the help of agencies,the enterprises shall take the initiative to communicate with tax companies,and use various fiscal and tax policies legitimately to reduce tax risks and make a better tax planning.