Study On The Tax Incentives In Bankruptcy Restructuring And Its Institutional Construction

Bankruptcy reorganization proceedings do not exist simply to take troubled businesses out of the marketplace,but to help those businesses with salvage value get out of trouble and into rebirth.The key to a successful reorganization process is whether the debtor has enough money left over for its own reorganization after paying off its bankruptcy claims.However,debtors in bankruptcy reorganization proceedings are often insolvent and have very limited funds,and these limited funds not only have to be used to rehabilitate their business,but also to pay off their equally large tax debts.This is a direct result of reorganization.Is it possible to solve this problem through tax incentives for reorganization? This article will examine this issue and provide a suitable solution for the construction of a tax incentive system for bankruptcy reorganization in China.This paper advocates the construction of a legal system of tax incentives for bankruptcy reorganization,and will elaborate this idea from the following levels.Firstly,we will start from the basic theory of tax incentives for bankruptcy reorganization,and introduce and analyze the theories of tax incentives such as field jurisprudence and special taxation zone to introduce the theoretical basis of tax incentives for bankruptcy reorganization in China,and at the same time,we will elaborate and argue the necessity of tax incentives for bankruptcy reorganization from various perspectives such as the social concept of taxation,the need to protect the right to survival of reorganized debtors,the need to protect public interest and the need to realize the value of reorganization system.In addition,we analyze the local laws and regulations in practice.In addition,the feasibility of tax incentives for bankruptcy reorganization is demonstrated by analyzing the useful explorations and attempts of local courts and taxation authorities on tax incentives in practice.Secondly,by analyzing the current situation and problems of tax preferences in China,we can find out the problems of tax preferences in bankruptcy reorganization and the reasons behind them,and we can find that the problems of tax preferences in the field of bankruptcy reorganization in China include legal barriers to the application of tax preferences,low level of effectiveness and limited scope of application of tax preferences,and lack of supervision of tax preferences.The root cause of these problems lies in the conflict of concepts and rules between China’s tax law and bankruptcy law in the field of bankruptcy restructuring,and the lack of legalization and systematization of tax incentives for restructuring.The paper also aims to analyze the legislative achievements of tax preferences in bankruptcy restructuring in developed countries and regions,and to learn from and absorb those achievements such as unified legislation on tax preferences,relative tax priority and deferred settlement of tax claims.Finally,the ultimate goal of this paper is to provide feasible suggestions for the establishment of a unified legal system of tax incentives for bankruptcy restructuring.From promoting the integration of bankruptcy law and tax law,to improving the specific provisions of the tax preference legal system and improving the supporting system,the paper provides concrete suggestions for the improvement of the tax preference system of bankruptcy restructuring enterprises in China.With the rapid development of society and industrial transformation and upgrading,the issue of tax preferences in bankruptcy restructuring has become a major obstacle to promote the stable and sustainable development of social economy and the optimization and upgrading of backward industries.In order to achieve this,we should develop a scientific and efficient tax incentive system for bankruptcy restructuring enterprises,and save enterprises with high rescue value through tax incentive measures.