What if shareholders borrow money from the company and don't pay it back?

Legal analysis: individual investors borrow money from their investment enterprises (except sole proprietorship enterprises and partnership enterprises) during the tax year, and if the loan is neither returned nor used for the production and operation of the enterprise after the tax year, the unpaid loan can be regarded as the dividend distribution of the enterprise to individual investors, and personal income tax should be levied according to the items of "interest, dividend and dividend income". Later, State Taxation Administration of The People's Republic of China also issued an announcement, emphasizing the strengthening of the management of individual investors' borrowing from their investment enterprises, and collecting personal income tax on loans with a term exceeding 1 year but not used for the production and operation of enterprises in strict accordance with relevant regulations. In other words, shareholders who have borrowed money for more than one year have to pay a tax. Because they earn it as dividends, the tax rate is 20% instead of 25%.

Legal basis: Article 675 of the Civil Code of People's Republic of China (PRC) stipulates that the borrower shall repay the loan within the agreed time limit. If the term of the loan is not agreed or clearly agreed, and cannot be determined according to the provisions of Article 510 of this Law, the borrower may return it at any time; The lender may urge the borrower to return it within a reasonable period of time.