Research On The Risk Of Land Value-added Tax In Transferring Land Use Right Through Equity Transaction

After the boom in the real estate market in 2016 and the government’s repeated policy emphasis that "houses are for living in,not for speculation," investment growth in the real estate sector has gradually slowed down.Some real estate companies currently face difficulties in withdrawing funds and other problems,and want to transfer the shares of idle land,projects under construction and project companies in the form of equity transactions.In practice,there are a large number of cases in which land use right transfer transactions are planned into equity transfer transactions.Due to its inconsistency with the formal requirements of land use right transfer,land value-added tax,enterprise income tax,value-added tax and other related taxes and fees are avoided to some extent,and land transfer income can be obtained in essence.Therefore,since 2018,tax authorities across the country have begun to purchase land value-added tax settlement and review services from third-party intermediaries on a large scale,and have joined forces with eight departments to jointly regulate the market order.However,there are still some problems and disputes in the practical operation.First of all,this article discusses the relevant concepts and theoretical basis of the transfer of land use right in equity transaction.On the one hand,the concept of the transfer of land use right in equity transaction is defined and the overview of tax risk is summarized.On the other hand,the theoretical basis is introduced from the principle of substantial taxation,the principle of tax legality and the principle of tax fairness.Secondly,starting from the existing anti-tax avoidance policies and regulations,it sorts out the loopholes in the policy itself and points out the irrationality.On this basis,combined with the existing practical cases,analysis and summary,pointed out that the transfer of land use right behavior planning for equity transaction is easy to cause risks,and with the help of Suzhou Jade Real Estate Company tax case,systematically concluded that the transfer of land use right by equity transaction mainly has land value-added tax risks.Finally,on the basis of the tax-related risk points and controversial points analyzed in the previous article,the author adopts the typical to general analysis idea and puts forward targeted risk prevention suggestions for each risk point.