1, tax takes precedence over unsecured claims. It is conditional that the tax here takes precedence over unsecured creditor's rights, that is to say, it does not take precedence over all unsecured creditor's rights. For unsecured creditor's rights otherwise stipulated by law, tax priority cannot be exercised.

2. If the taxpayer owes tax, the tax shall take precedence over the execution of mortgage, pledge and lien. There are two preconditions here: first, taxpayers owe taxes; Second, tax arrears occurred before.

3. Taxes take precedence over fines and confiscate illegal income. Among them:

(1) If the taxpayer fails to pay taxes and is decided by the tax authorities to impose a fine and confiscate the illegal income, the tax shall take precedence over the fine and confiscate the illegal income.

(2) If the taxpayer fails to pay taxes and is fined or confiscated by other administrative departments other than the tax authorities, the tax shall take precedence over the fine and confiscation of illegal income.

Second, give a simple example:

An enterprise owes taxes of150,000 yuan, of which one property has a value of150,000 yuan, which has been used for mortgage, pledge loan or the enterprise has a debt dispute with a third party, and has applied to the court to retain the ownership of the property.

However, the enterprise has no other property available for execution (or other property is of great value and cannot be split), so the real estate tax authorities have the priority to seize and auction the tax payable, which is the popular interpretation of this clause.

Extended data

Tax priority means that when tax and other creditor's rights coexist, tax has the priority to be compensated. Tax priority means that when the state's right to tax coexists with other creditor's rights, tax collection should take precedence over other creditor's rights in principle, which is also called general priority of tax.

This is an important principle to protect national tax revenue. When the taxpayer's property is insufficient to pay taxes and pay other creditor's rights at the same time, the taxpayer should give priority to paying taxes according to the provisions of the law.

Bankruptcy liquidation refers to a judicial debt repayment procedure in which all the debtor's property is not enough to pay off his debts, or he is unable to pay off his debts due.

The basic purpose of this debt repayment procedure is to forcibly sell the debtor's property and realize fair distribution among creditors. Generally speaking, on the occasion of the debtor's bankruptcy liquidation, the debts owed by the debtor are various, which will also involve tax debts.

Because the creditor of tax debt is the state, in order to protect the national interests, the traditional bankruptcy law theory and system generally give priority to tax creditor's rights, that is, when tax creditor's rights coexist with other creditor's rights, the state, as the creditor of tax creditor's rights, has the right to be compensated for the debtor's property before other creditors.

In China, the current bankruptcy law and tax administration law have similar provisions. However, due to some theoretical misunderstandings and unclear and imperfect legal provisions, there are many practical obstacles to the realization of tax priority.

Baidu Encyclopedia-Tax Priority