Research On The Issue Of Individual Income Tax For Natural Person Shareholders In Special Restructuring

In order to better play the important role of enterprise restructuring in optimizing resource allocation and industrial structure,and to reduce the impact of tax burden on enterprise restructuring,China’s enterprise income tax system divides enterprise restructuring into general restructuring and special restructuring.For restructuring acts that meet certain conditions,special tax treatment is applied,and tax deferral is deferred.However,the system applies only to corporate shareholders,and only general tax treatment can be applied to natural person shareholders participating in special reorganizations.The current individual tax system seriously hinders natural persons from participating in enterprise restructuring,and even directly leads to the termination of enterprise restructuring transactions.This paper first starts with a failed reorganization case in practice,analyzes the reasons for the failure of the transaction,and points out the problems of personal income tax for natural person shareholders in the special restructuring,including the difficulty of determining the income from equity transfer,the lack of necessary funds for taxpayers to pay taxes,and the inconsistencies in the tax treatment of natural person shareholders and corporate shareholders,which seriously deviate from the principles of tax fairness and tax efficiency.Secondly,the reasons for the many problems in the individual tax system are analyzed based on the constituent elements of income.The criteria for determining taxable income include two levels: the profitability of the spatial dimension and the income realization of the time dimension.The principle of realization is an important criterion for judging whether the constituent elements of the income are satisfied,which requires that the proceeds before and after the transaction behavior must have changed substantially.In the special reorganization transaction,the equity interests of the natural person shareholders continue after the transaction,and the risks they face are still continuing,and the transaction behavior only leads to changes in the form of the equity rights and interests of the natural person shareholders,but no substantive changes have occurred,so the personal income of the natural person shareholders in the special reorganization does not meet the principle of realization,so the constituent elements of the income are not met,and the tax liability naturally does not arise.In order to solve these problems,a special tax treatment system for natural person shareholders should be established on the basis of improving China’s special tax treatment system with the help of extraterritorial experience,and the tax treatment between natural person shareholders and legal person shareholders should be coordinated.The nature of deferred taxation under special tax treatment provisions is actually non-taxation that does not meet the conditions of taxation,rather than tax incentives based on policy considerations.Of course,theory and reality are difficult to fit perfectly,and the current individual tax system is actually based on the practical consideration of the low level of tax collection and management of natural persons.Therefore,in order to establish a special tax treatment system for natural person shareholders,it is also necessary to think about how to further improve the level of individual tax collection and management in combination with the current development situation and the use of big data technology.