The Importance to Argue on Reasonable Grounds in Tax Disputes

——A Lesson from a Success Case

By Zhang Qianlin

I. The case and dispute

Several years ago, Mr. Liu and Mr. Chen jointly bought two realties, which were registered as joint ownership. Afterwards, disputes occurred and a lawsuit was initiated to claim for partition. The final judgment of second instance decides that two realities belong to Mr. Liu and Mr. Liu shall compensate Mr. Chen RMB 1.28 million.

Then, Mr. Liu, according to the final judgment, filed an application for execution to demand for registration for change. However, when Mr. Liu filed tax returns to the taxation authority, tax disputes arisen.

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