Should Interest Free Financing Be Taxable?

< p > there is no way to collect or occupy funds between the affiliated enterprises, nor do they charge for capital occupation.

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< p > < strong > think that the basis of business tax and income tax should be: < /strong > /p >

< p > 1, the thirty-sixth provision of the tax administration law stipulates that business pactions between establishments and establishments established by enterprises or foreign enterprises in China within the territory of China shall be charged or paid according to the business pactions between independent enterprises, and the tax authorities shall have the right to make reasonable adjustments if they do not collect or pay the price and expenses in accordance with the business pactions between independent enterprises and reduce their taxable income or income.

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< p > 2, the fifty-fourth section of the detailed rules for the implementation of the tax administration law stipulates that there are several business situations between taxpayers and their associated enterprises, and that the tax authorities can adjust their tax payable amount, including the amount that can be agreed between the funds paid or charged by the financing fund or the enterprises that have no related relationship, or the interest rate exceeds or below the normal interest rate standard for similar businesses.

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< p > 3, the seventh provision of the Provisional Regulations on business tax stipulates that taxpayers who provide taxable services, pfer intangible assets or sell real estate are obviously low in price and have no justifiable reasons, and the competent tax authorities shall check their turnover.

Article twentieth of the detailed rules for the implementation of the Provisional Regulations on business tax stipulates that taxpayers have the obvious low price as stipulated in regulation seventh, and there is no justification or fifth taxis listed in the detailed rules shall be regarded as taxable activities without any turnover.

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< p > 4, enterprise income tax is based on the forty-first chapter of the sixth chapter of the enterprise income tax law, that is, the business pactions between enterprises and their affiliates, which do not conform to the principle of independent pactions and reduce the taxable income or the amount paid by enterprises or their affiliates. The tax authorities have the right to adjust them in a reasonable way.

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< p > < strong > think that the income tax should not be levied less than a href= "http://www.91se91.com/news/index_cj.asp" > business tax < /a > the basis is: < /strong > /p >

< < p > < third rules for the implementation of the Interim Regulations on business tax > stipulates that the provision of labor services, the pfer of intangible assets or the sale of immovable property under the provisions of Article 1 of the regulations refer to the acts of providing the labor provided for in the regulations, paid intangible assets or paid pfer of real property with compensation, hereinafter referred to as taxable activities.

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< p > according to the existing Provisional Regulations on business tax and the detailed rules for its implementation, an economic act accords with the scope of business tax levy, while the business tax law emphasizes that business tax should be levied on the condition of paid acquisition.

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< p > < fifth rules for the implementation of the Provisional Regulations on business tax > stipulates that taxpayers shall be regarded as taxable in any of the following circumstances: (1) a unit or individual will give the real estate or the right to the use of the land to other units or individuals without compensation; (two) the sale of buildings built by the units or individuals themselves (hereinafter referred to as "self built"), and the self construction actions taken by them; (three) other situations stipulated by the Ministry of Finance and the State Administration of taxation.

The above stipulates that the sales tax for gratuitous acts is the only case.

The act of gratuitous financing does not belong to the above enumeration, and no business tax should be levied.

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< p > < < a href= > http://www.91se91.com/news/index_cj.asp > > < < /a > > principle. The Provisional Regulations on business tax belong to the substantive law of Taxation and the law of tax collection and management belongs to the tax procedural law.

One of the functions of the tax procedural law is to guarantee the implementation of the substantive law and make up for the deficiency of the substantive law. If the economic behavior of interest free lending is directly dealt with according to the tax collection and management law, it is open to question.

In terms of legal practice, it is generally applicable to the entity law to collect taxes for an economic act. The rights and obligations of the tax authorities and taxpayers are generally prescribed by the procedural law.

Directly using the provisions of the tax collection and administration law to calculate tax collection is obviously not in line with its legislative intent.

In accordance with the principle that the law specifically stipulates that it is higher than the general stipulations, the thirty-sixth section of the tax collection and administration law is a general tax provision, while the fifth section of the Provisional Regulations on business tax and the detailed rules for the implementation of the Provisional Regulations on business tax are fifth special provisions on business tax.

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< p > < strong > think that should not be collected on the basis of: < /strong > < /p >.

< p > < thirtieth notice for issuing and Issuing the notice of < < a href= > http://www.91se91.com/news/index_cj.asp > > tax adjustment > /a > ([2009]2). The paction between domestic parties with the same tax burden only requires that the paction does not directly or indirectly lead to the reduction of the total tax revenue of the state, and in principle, no pfer pricing investigation and adjustment are made.

The article clearly indicates that, in the absence of a reduction in state tax revenue in general, the pactions between domestic parties with the same actual tax burden can not be pferred to price investigation and adjustment in principle.

In related party pactions, because the borrower is free to lend funds for the related party to use, and does not earn interest income, the income is not recognized in the accounting. At the same time, the user of the fund has not been deducted as the cost of capital before the tax deduction. Therefore, the overall amount of taxable income has not been reduced and the enterprise income tax has been paid less.

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< p > I personally think that indirect reduction in the overall tax revenue of the state can be investigated and adjusted, which basically can collect income tax, because the adjustment of income tax will inevitably lead to the profit sharing of all related party shareholders, which will lead to changes in the amount of tax payable by shareholders.

Even more widely, until we find the change of tax amount.

Therefore, income tax should be imposed.

But business tax should not be levied.

Business tax is clearly provided with compensation, and it should not be imposed without explicit compensation.

As for the provisions of the tax collection and management law, I support the view that it is not applicable that the thirty-sixth section of the tax administration law is a general tax provision, while the third section of the Provisional Regulations on business tax and the detailed rules for the implementation of the Provisional Regulations on business tax are fifth special regulations on business tax.

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