Legislation roundup: Labour disputes, beneficial tax owners and debt claims
July 20, 2012 | BY
clpstaff &clp articles &The SPC has released an Interpretation on the Law during employment disputes and an Official Reply on accepting debt claims from tax arrears of bankrupt enterprises. The State Administration of Taxation also produced an announcement on the beneficial owner in tax agreements.
Employment disputes
Supreme People's Court, Interpretation on Several Issues Concerning the Application of the Law in Trials of Employment Disputes (4) (Draft for Comments)
The Draft suggests that if a foreigner without an employment permit signs an employment contract with an employer and requests for recognition of an employment relationship based on such a contract, the people's court will not uphold the request.
Further reading:
Tax agreements
State Administration of Taxation, Announcement on the Recognition of the “Beneficial Owner” in Tax Agreements
This is the first time the SAT provides for the direct recognition of a beneficial owner without references and analysis. It applies to a resident listed company of a contracting country applying for the treatment under the relevant tax agreement for its dividends derived from China.
See full translation.
Further reading:
Measures for the Administration of the Treatment for Which Non-tax-residents are Eligible Under Tax Agreements (Trial Implementation), Dec 2009/Jan 2010
Debt claims
Supreme People's Court, Official Reply on the Issue of Whether to Accept Suits Instituted by Tax Authorities on the Recognition of Debt Claims Regarding Fines Arising from Tax Arrears of Bankrupt Enterprises
The Official Reply clarifies that only fines on tax arrears arising before the acceptance of the bankruptcy case will be treated as bankruptcy claims.
Further reading:
PRC Enterprise Bankruptcy Law, Oct 2006
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