M company accepts H fund investment, which does not meet the conditions of "mixed investment" stipulated in Announcement No.41, and there is a risk that the tax authorities will not recognize the paid fixed profits as interest expenses before tax deduction. (1) After the investment expires or certain investment conditions are met, the subject who redeems the investment or repays the principal does not meet the requirements of Announcement No.41.. In this case, after the investment expires or certain investment conditions are met, the original shareholders buy back the equity held by H Fund instead of M Company redeeming the investment or repaying the principal, which is not in line with the provisions of Announcement No.41. (2) In this case, if Company M is liquidated, the older shareholders of H Fund have priority in liquidation, which is inconsistent with the provision of Announcement No.41 that "the investing enterprise has no ownership of the net assets of the invested enterprise".

policy basis: the announcement on the treatment of enterprise income tax for mixed investment business of enterprises (State Taxation Administration of The People's Republic of China Announcement No.41, 213) states: "According to the provisions of the Enterprise Income Tax Law and its Implementation Regulations (hereinafter referred to as the" Tax Law "), the announcement on the treatment of enterprise income tax for mixed investment business of enterprises is as follows:

" 1. Mixed investment business of enterprises refers to both rights and interests. The mixed investment business that meets the following conditions at the same time shall be treated as enterprise income tax according to this announcement: (1) After the invested enterprise accepts the investment, it needs to pay the interest regularly according to the interest rate agreed in the investment contract or agreement (or pay the guaranteed interest, fixed profit and fixed dividend regularly, the same below); (2) Having a definite investment period or specific investment conditions, and after the investment expires or the specific investment conditions are met, the invested enterprise needs to redeem its investment or repay its principal; (3) The investing enterprise does not own the net assets of the invested enterprise; (four) investment enterprises do not have the right to vote and stand for election; (5) The investing enterprise does not participate in the daily production and operation activities of the invested enterprise. "

"II. Mixed investment businesses that meet the requirements of Article 1 of this announcement shall be treated as enterprise income tax according to the following provisions: (1) For the interest paid by the invested enterprise, the investing enterprise shall confirm the realization of the income on the date when the invested enterprise pays the interest, and include it in the taxable income of the current period; The invested enterprise shall confirm the interest expense on the date when the interest is payable, and make pre-tax deduction according to the provisions of the tax law and Article 1 of the Announcement of State Taxation Administration of The People's Republic of China on Several Issues concerning Enterprise Income Tax (No.34, 211).