Company M's acceptance of H Fund investment 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 pre-tax interest expenses. (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 the announcement number. 4 1. In this case, after the investment expires or certain investment conditions are met, the original shareholder repurchases the equity held by H Fund instead of M Company redeems the investment or repays the principal, which does not meet the requirements of announcement 1. 4 1.(2) In this case, if Company M is liquidated, the old shareholders of H Fund have the priority to liquidate, which is inconsistent with the stipulation that "the investing enterprise has no ownership of the net assets of the invested enterprise" in Announcement No.4 1.

Policy basis: Announcement on the Treatment of Enterprise Income Tax for Mixed Investment Business (People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Announcement No.413) states: "According to the provisions of the Enterprise Income Tax Law and its implementing regulations (hereinafter referred to as the" Tax Law "), we hereby announce the treatment of enterprise income tax for mixed investment business as follows:

"The mixed investment business of an enterprise refers to the investment business with dual characteristics of rights and interests and creditor's rights. At the same time, the mixed investment business that meets the following conditions should 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) The invested enterprise needs to redeem its investment or repay its principal after it has a definite investment term or specific investment conditions and the investment expires or meets the specific investment conditions; (3) The investing enterprise does not own the net assets of the invested enterprise. (4) Investment enterprises have no 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. "

"2. Mixed investment businesses that meet the requirements of Article 1 of this announcement shall be subject to enterprise income tax treatment in accordance with the following provisions: (1) The interest paid by the invested enterprise shall be recognized by the investing enterprise on the day when the invested enterprise pays the interest, and shall be included in the taxable income of the current period; The invested enterprise shall confirm the interest expense on the interest payable date, and make the pre-tax deduction in accordance with the provisions of the tax law and Article 1 of the Announcement of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China on Several Issues Concerning Enterprise Income Tax (No.2011No.34).