The Research About Tax-related Issues Based On Foreign Shareholders Reducing Stocks Of Dunlop Medical

A company will face ma ny ta xation r isks in process of production, Whic htax-related iss ues is especia lly noteworthy for enterpr ises with foreign investme ntestablis hed in the background of Foreign Enterpr ise Income Ta x Law. After the newCorporate Income Tax Law was put into practice, we integrated taxation syste m andcarr ied out taxation s ystem o f le ga l person. But for the company whic h was enjoyedtax benefits in the Foreign Enterprise Income Tax Law, it still is restr icted by thereleva nt tax regulations. Because of the comp lexity of tax laws and regulatio ns anddivers ity of the enterprise bus iness during convers ion from o ld tax regime to new, thefor mer enterprises with fore ign investment ofte n cannot grasp the ta x regula tions andpolic ies exhaustive ly, therefore, they o ften have tax-related questions. With theopenness of China’s capita l market, especia lly recent years the sma ll p late coming atide of lifting of the ban, the fore ign s hareholders of the for mer enterpr ises withforeign investment continue to reduce their stocks. It has beco me a new kind oftax-related risks that co mpany ha ve to replenis h le vy, since that the fore ignshareholders reduction their stocks make the company does not comply with the termsof tax incentives. But, currently, there is few stud ies regarding the mecha nis m ofreplenish levy and the impact on the company.Choosing Med ical Dunlop as a case, this paper attempt to find out the genera lregular ity, through the stud y of the Case. This paper carries out the study about thebehavior of the company’s tax-related issues. Firstly, the paper describes cond itions oftax incentives for enterprises with fore ign investment, before and after consolidationof the two taxes. Secondly the paper describe cond itions of the back taxes issuesresulted by fore ign shareho lders reduc ing the ir stocks, the n based on the aboveanalys is, the paper ana lyze and summary the tax issues, tax treatment, impact on thecompa ny of back taxes and so on, dur ing in process of production. Finally, based onanalys is of the case, thispaper give pr inc ip les and recommendations, which can guidecompany to use tax regulations correctly and to prevent tax risks.