Research On The Individual Income Tax Problems Of Natural Person Shareholders In Tax-Free Reorganization

Tax-free reorganization is also known as special tax treatment in Chinese enterprise reorganization.The deferred tax is implemented because the profit or loss caused by the disposal of assets or equity is not recognized for the time being.It can reduce the tax burden of the tax-free reorganization transaction parties,help optimize the allocation of resources,and promote the rapid economic development.Since 2009,the state has issued preferential tax policies including special tax treatment,etc.,gradually forming a relatively complete set of tax rules system to encourage the tax-free reorganization.However,in reality,some tax-free reorganization transactions fail due to the heavy tax burden of natural person shareholders.The main reason is that natural person shareholders cannot apply the special tax treatment as legal person shareholders and enjoy deferred tax.Many scholars prove the rationality of the individual income tax of natural person shareholders in the tax-free reorganization by comparing it with the deferred tax treatment applicable to the legal person shareholders.The article selects a new angle of view,starting from the specific tax rules on the basis of cost applicable to the individual income tax of natural person shareholders in the tax-free reorganization,in-depth analysis the problems in the calculation of individual income tax,such as the income from equity transfer and the confirmation of original value of equity,and ultimately results a departure from the principles of tax equity and tax efficiency.However,the tax basis applied in America and Britain is different from that in China,which pays more attention to the realization of profits and takes it as the standard for the change of tax basis.According to this calculation method,in the tax-free reorganization,natural person shareholders and legal person shareholders are applicable to the same special tax treatment,and there is no need to specially make a different distinction between the two shareholders.Based on the experience of American and British tax basis,the article suggests that the individual income tax treatment of natural person shareholders and legal person shareholders are synergistic,and improve the level of tax collection and administration,clarify the tax treatment of partnerships,and maintain the coordination of the overall tax system and so on,to ensure that deferred tax treatment is applied by natural person shareholders and legal person shareholders in tax-free reorganization,so as to encourage the tax-free reorganuization and fully improve the efficiency of market resource allocation.