Research On The Construction Of Personal Bankruptcy Tax System In China

At present,China’s bankruptcy law is only an enterprise bankruptcy law,and no bankruptcy system has been established that applies to the liquidation of natural persons’ debts.However,with the formal trial implementation of the personal bankruptcy system in Shenzhen,the establishment of a personal bankruptcy system has been put on the agenda.The establishment of a personal insolvency regime is important in favour of fair payment for creditors of natural persons and in a way that facilitates a fresh start for debtors.On the other hand,in recent years,the state has been strengthening the management of natural person taxation,carried out a major revision of the Individual Income Tax Law,and also launched the natural person tax management system,and set up special individual income tax management departments within the provincial and municipal tax authorities,and the management of natural person taxation is in a trend of continuous strengthening and standardization.Personal bankruptcy means to forgive debts according to law,and taxation,as a special national"public debt",whether it can be exempted,what scope can be exempted,and the tax authorities’ follow-up procedures for personal bankruptcy will play a very key role in whether personal bankruptcy can be smooth.With the establishment of the personal bankruptcy system,taxation is an unavoidable issue.From the legislative and practical experience of the enterprise bankruptcy law,due to the difference in attention between the bankruptcy law and the tax law,there have been many gaps and conflicts between the enterprise bankruptcy system and the tax law for a long time in the legislation,and it often happens that the smooth progress of enterprise bankruptcy is affected by tax issues.Although in recent years the State Administration of Taxation and other departments have solved some problems by issuing many normative documents to coordinate the two laws,there are still many conflicts that need to be bridged urgently.The formal establishment of the personal bankruptcy system needs to draw experience and lessons,explore the supporting tax system in advance,fully consider tax issues at the beginning of personal bankruptcy legislation,and avoid legal conflicts.The construction of the supporting tax system for personal bankruptcy should not only draw on the experience and lessons of enterprise bankruptcy in taxation,but also refer to the theories of "special tax zone" and "tax forbidden area" proposed by the theoretical circles in enterprise bankruptcy to provide guidance for the construction of the personal bankruptcy system.At the same time,from the perspective of extraterritorial legislation,developed countries such as Europe and the United States have established relatively mature personal bankruptcy systems,and at the same time,they also have the construction of supporting mechanisms for the tax system,which has strong reference significance.Finally,on the basis of comprehensive consideration of the interests of the state,creditors and debtors,the establishment of China’s personal bankruptcy tax claim settlement system,tax preferential system and tax management system is explored.