Xiong Jinqiu: Restricted Stock Tax Loopholes Need To Plug Up

Recently, Jiaxin silk (quotation, inquiry) director and deputy general manager Han Shuo, through bulk trading, reduced 342 thousand and 500 shares and 420 thousand shares respectively in September 26th and 29, and the other party was his wife, Cao Liping.

In fact, as early as last year, Han Shuo, a "senior executive", reduced 1 million 950 thousand shares, of which 1 million 845 thousand shares were sold by his wife, Cao Liping, through two big deals. The average purchase price was about 6.495 yuan per share. After buying shares at a low price, Cao Liping began to sell through two level markets in May, and sold 1 million 495 thousand shares as of September 24th. The reduction price ranged from 8.2 yuan to 9.97 yuan per share.

What is the purpose of their own? The main factor is tax avoidance.

Individual pfer of restricted stock proceeds should be collected by 20% of personal income tax. In the four pairs of pactions, Han and Shuo's trading price is the same day limit price, which virtually reduces Han's tax payable.

Although there are only about 10% of the tax avoidance space in this area, if the restricted shares are lifted after the lifting of the ban, the stock price will rise after the "restricted sale" shares are "washed".

In addition, there will be a certain proportion of individual tax returns in some places. The local tax authorities of the Han and Shuo couples have this preferential policy, which also reduces the tax burden on the restricted shareholders.

The sale of restricted shares is also more justifiable.

The method is to implement the scheme of convertible capital as soon as possible after the lifting of the ban.

The notice on personal income tax on the pfer of restricted shares by Listed Companies in 2009 (hereinafter referred to as the notice) stipulates that the restricted shares included in the scope of Taxation shall include the restricted shares formed by the companies that are listed on the initial public offering and listed companies, and the pfer and pfer of shares arising from the above shares between the first day and the lifting date.

That is to say, after the lifting of the restricted shares, the pfer and pfer of shares are not the object of individual income tax collection.

Aiming at this tax loophole, some listed companies will immediately increase their capital stock after the lifting of the restricted shares. If the share capital of the company is increased by 10, it will increase by 10.

For the loopholes in the income tax system of the cap up sale, I put forward the following suggestions:

The first is to stipulate that the pfer price of the restricted shares can be calculated according to the closing price of the previous day.

In order to avoid tax, the pfer price of restricted shares in bulk trading platform is much more than that of the previous day, which is obviously unfair.

In 2010, the supplementary notice on the issue of personal income tax on the pfer of shares restricted by listed companies to individual listed companies stipulates that the pfer price is obviously low and without justifiable reasons.

The pfer income can be approved according to the closing price of the stock or other reasonable ways on the previous trading day of the agreement signing date.

However, there is no similar policy for tax avoidance through bulk trading platforms. It is suggested that this policy should cover the bulk trading platform.

Two, we should prohibit unfair competition from preferential taxation.

It is unfair that part of the income tax on restricted stock is partially returned to some parts of the region.

Generally speaking, the cost of restricted stock is very low, and the profit reduction of restricted shares is huge. The income tax collected on the expropriation tax will be sped back. The function and effect of Taxation will naturally be discounted.

Three is the inclusion.

The scope of Taxation shall include "restricted shares and the pfer and pfer of shares arising from the above shares during the period of reduction."

At present, the scope of Taxation on restricted shares includes only the pfer and pfer of shares from the stock to the lifting date, which is contrary to the relevant laws and regulations.

The "personal income tax law" stipulates that "the tax rate for property pfer is twenty percent", and in accordance with the regulations on the implementation of the personal income tax law, the pfer of property proceeds refers to the proceeds obtained by individuals pferring securities and shares, and the income of the pferred property is deducted from the balance of the original value of the property and the reasonable cost, and the tax is calculated.

After the lifting of the restrictions on the sale of shares, the increase in income should be the difference between the pfer price of all shares and the elimination of reasonable taxes and fees. This is the amount of taxable income. Otherwise, the concept of "pfer of property" is incomplete.