Tax Risk Analysis And Countermeasure Research Of Backdoor Listing

Nowadays,with the rapid development of the global economy,China has become the main driving force of the world economic growth.China's economy in the high or medium speed development is inseparable from the expansion of capital markets and the growth of corporate capital.In the intense market competition,the enterprises' better survival and development will inevitably seek the help of capital markets to provide funding support in its early stage in order to exploit the market.Listing and financing is a convenient way for enterprises to obtain large amount of funds.Through the listing,enterprises can get more efficient financing support as excellent preparation for its rapid development in a later stage.The listing models available for the enterprises to choose generally include the direct model of initial public offering(IPO)and the indirect model of backdoor listing.As the IPO model requires more stringent conditions,some companies eager to achieve the listing objectives have chosen backdoor listing in succession,for example among the four major leading companies in the express delivery industry,Shunfeng and Shentong got backdoor listed successfully through Dingtai New Materials and Ai Di Xi respectively,and have achieved greater benefits for the companies.In this economic behavior,a lot of capital replacement will inevitably occur,a large number of shares will be transferred,which involve corporate income tax,capital gain tax,land value gain tax,deed tax,stamp duty,etc.According to the current tax policies,in order to promote the sustainable and healthy development of economy and society,China has set up a series of special tax policies for the re-structure business,providing tax benefit for eligible re-structure.In the process of backdoor listing,combined with the actual situation of the two sides of the transaction,according to the provisions of the current tax policies,making effective and appropriate tax planning will save a lot of capital costs for enterprises.On the contrary,improper tax planning may make enterprises face huge tax risk of violating the laws.How to identify,prevent and deal with the tax risk during backdoor listing is exactly the starting point of this article.This article mainly begins from the occurrence of taxable behavior in the process of backdoor listing,it analyzes one by one the tax related behavior and the corresponding taxation type for each step of backdoor listing.Using the case of Shenwu Group'sbackdoor listing through Jincheng Paper Making Corporation,it analyzes the corresponding tax planning for the specific taxable behaviors in this case,and the resulting tax related risk.Based on the experience and lessons learned from this case,this article provides reference for the follow-up listing of enterprises,improves the efficiency of tax planning and reduce the tax related risk for enterprises planning to get backdoor listed,so to promote enterprises to achieve the goal of successful backdoor listing.