Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The report highlights the increasing trend of bankruptcy cases in China, with a significant rise in the number of cases from 2021 to 2024, indicating ongoing economic challenges for enterprises [9][13] - Tax disputes during bankruptcy proceedings are identified as a critical factor hindering the smooth progress of bankruptcy processes, with various stages of tax-related disputes outlined [4][20] - The report aims to provide guidance for bankruptcy enterprises to prevent tax risks and resolve tax disputes through an analysis of policies and typical cases [4] Summary by Sections 1. Trends in Bankruptcy Tax Disputes - The number of bankruptcy cases adjudicated has shown a consistent increase, with 13,000 cases in 2021, 17,000 in 2022 (up 30.7%), 29,000 in 2023 (up 68.8%), and 30,000 in 2024 (up 6.5%) [9] - As of March 10, 2025, bankruptcy liquidation cases account for 82.5% of ongoing bankruptcy cases [13] 2. Nature and Priority of Bankruptcy Tax Claims - Bankruptcy claims must be settled in a legally defined order, with employee claims and tax claims prioritized over ordinary claims [30] - Tax claims are categorized as either priority claims (employee and tax claims) or ordinary claims, with the order of payment being employee claims first, followed by tax claims, and then ordinary claims [30] 3. Summary of Tax Regulations and Judicial Policies Related to Bankruptcy - The report compiles relevant tax regulations and judicial policies that govern tax claims in bankruptcy proceedings, emphasizing the need for clarity in the relationship between bankruptcy law and tax law [4] 4. Key Tax Dispute Focuses and Case Analysis - The report identifies several key focuses of tax disputes in bankruptcy cases, including the nature of tax debts, the classification of late fees, and the treatment of new tax liabilities arising during bankruptcy [20][21] - A total of 17 cases from 2022 to 2024 were analyzed, revealing a mix of outcomes where tax authorities were both partially and fully supported in their claims [18] 5. Strategies for Resolving Tax Disputes in Bankruptcy - The report discusses effective strategies for resolving tax disputes and ensuring tax compliance during bankruptcy, aiming to provide practical recommendations for stakeholders involved in bankruptcy proceedings [4]