What is related party fund borrowing?

Legal analysis: capital lending is a temporary swap lending business, which borrows funds from banks or other financial institutions in multiple positions. The loan period is generally short, and some only need one or two days. In western countries, exchange brokers usually borrow money from banks in this way. This kind of lending activity often needs stocks, bonds, etc. as guarantees. , and must be repaid on the second day after receiving the notice from the lender. If the borrower fails to return it on time, the lender has the right to dispose of the collateral. China's capital lending has not been carried out for a long time, mainly interbank lending between financial institutions.

The so-called interbank lending refers to the temporary swap lending behavior between banks and non-bank financial institutions. All banks and non-bank financial institutions approved by the People's Bank of China and registered in the administrative department for industry and commerce can participate in interbank lending. People's Bank of China, insurance companies, non-financial institutions or individuals

Legal basis: Detailed Rules for the Implementation of People's Republic of China (PRC) Tax Collection and Management Law.

Article 51 The affiliated enterprises mentioned in Article 36 of the Tax Administration Law refer to companies, enterprises and other economic organizations that have one of the following relationships:

(a) there is a direct or indirect ownership or control relationship in terms of capital, operation, purchase and sale, etc. ;

(2) It is directly or indirectly owned or controlled by a third party;

(three) there are other interests. Taxpayers are obliged to provide the local tax authorities with relevant information such as the price and expense standard of their business dealings with affiliated enterprises. The specific measures shall be formulated by State Taxation Administration of The People's Republic of China, People's Republic of China (PRC).