The Research On Individual Income Tax Policy In Corporate Reorganization

With the development of capital markets,reorganization has become an essential way for companies to modify and improve their capital structure and product structure,in order to achieve strategic objectives.At present,It is very common for individuals to make invest decisions and involved in capital transactions and corporate's reorganizations.While,China's personal income tax policy in corporate's reorganizations still have many problems remaining solved.Quite a lot of listed companies had announced to stop their reorganization with their counterparties,like SDIC ZhongLu Fruit Juice CO.LTD.and BEWINNER Technology CO.LTD.Their also has a lot of listed companies that have the risk of being taxed by tax authorities.Therefore,it is very urgent and important for our country to improve the individual income tax policy related to corporate reorganization.Based on the detailed analysis of different types and aspects of the corporate reorganization,this paper analyzed the individual income tax policy that may related to the process of reorganizations,including the content,legislative intent and economic effect.Then,the paper focused on the case of SDIC Zhonglu Reorganization and points out the underlying reason of why this reorganization had failed.So that readers can understand how vital it is to improve the present individual income tax policy related to corporate reorganization.Next,the paper analyzed the problems that exist in different aspects of corporate reorganization,like non-tax reorganizations,non-monetary assets investments and so on.Finally,this paper shows how the individual income tax policy should improve under the principles of taxation.The topic of this research is the individual income tax policy in corporate reorganization by using the method of case studies.Compared to previous studies,this paper focuses on the analysis of the principle of taxation.