Research On The Tax-related Issues In The Bankruptcy And Reorganization Of Enterprises

In recent years,the number of bankrupt enterprises in our country has dramatically increased.Among bankruptcy cases,the bankruptcy reorganization of enterprises plays a significant role.Bankruptcy reorganization is an important solution for companies facing difficulties and can to some extent protect the interests of the company and its employees.However,in the process of bankruptcy reorganization,dealing with tax-related issues often becomes a major challenge.Tax-related issues in corporate bankruptcy reorganization include the eligibility of the tax authorities as bankruptcy applicants,the adjustment of tax collection rights during the bankruptcy reorganization process,and the taxation treatment of the company after the bankruptcy reorganization.These issues not only affect the interests and survival of the company itself but also relate to the stability of national tax revenue and the harmonious development of society.Therefore,conducting in-depth research on tax-related issues in corporate bankruptcy reorganization is of significant importance in safeguarding the common interests of companies and the nation.The article first reviews the research literature on tax-related issues in corporate bankruptcy reorganization both domestically and internationally.It then combines the judicial practices in our country and,based on an analysis of tax-related cases in corporate bankruptcy reorganization in recent years,outlines the common tax issues in our country’s practical implementation of corporate bankruptcy reorganization.Furthermore,it proposes that the handling of current tax issues in practice requires the adoption of a coordinated approach between financial and tax law and bankruptcy law,as these issues exhibit an overlap of legal concepts between the two laws in practice.Then,the article divides the bankruptcy reorganization process into three stages:pre-commencement,in-progress,and post-conclusion,covering the entire process of corporate bankruptcy reorganization.For each stage,a typical case is introduced and analyzed.The main focus of the analysis includes the eligibility of the tax authorities as applicants,whether the tax authorities should actively declare tax claims,the scope of tax priority rights,and the handling of new tax liabilities and non-tax revenues.Additionally,the article analyzes how bankrupt reorganized companies can restore their tax credit and how they can apply tax incentives to obtain better operating conditions after the conclusion of the reorganization process.Finally,through the analysis of bankruptcy reorganization cases,reasonable practices for tax-related issues applicable to practical situations are summarized.It is proposed that tax authorities should have equal participation rights as other creditors in the bankruptcy reorganization process and the right to initiate bankruptcy applications.At the same time,in order to minimize the impact on the interests of other creditors,the scope of tax priority rights in bankruptcy reorganization should be strictly limited.For example,fines or penalties incurred during the bankruptcy reorganization should be treated as subordinated debts,and late payment fees should be treated differently based on their nature and function.Furthermore,new tax liabilities are not suitable as bankruptcy claims but are more appropriate as bankruptcy expenses or shared obligations.The article also proposes the establishment of a coordinated mechanism between the government and the judiciary to restore tax credit and the development of a comprehensive system of tax incentives specifically designed for bankrupt reorganized companies.This is aimed at promoting corporate restructuring and the resolution of zombie enterprises.Based on the analysis above,it can be concluded that the root cause of tax issues in the process of corporate bankruptcy reorganization lies in the differences in the legal domain positioning of the "Enterprise Bankruptcy Law" and the "Tax Collection and Administration Law," resulting in incompatibility between the rules.Building upon this viewpoint,it is proposed that in order to address tax-related issues in corporate bankruptcy reorganization,it is necessary not only to strengthen the integration and coordination between different laws at the legislative level,and deepen the mutual recognition of rules but also to further improve the coordinated mechanism between tax authorities and the judiciary.This includes enhancing the collaborative capacity among different departments to ensure the effective implementation of laws.