The Contrastive Study And Perfection Of The Tax Preference In Mergers And Acquisitions Legal Institutions

Mergers and acquisitions has developed for more than one hundred years, andbecoming a remarkable tread in the modern time because of economical globalization.Both sides of the Strait successively turn to the members of WTO (world tradeorganization). Under the structure of new international order, enterprises from both side ofthe Strait are facing the fact that business operation is breaking though the nationalboundaries. Elevating international competition strength of enterprises and the country hasbecome one of the essential government economic policies. Government should alsoprovide preferential tax to encourage and help enterprise or local economic development inorder to achieve the goal of economic policies. The enterprise mergers and acquisitionsbehavior resulted from policy or market issues has been an inevitable tread, Governmentmust stand up for the coming impact of economical market modification and to adoptappropriate regulations in order to comply with the benefits of the country. Both sides ofthe Strait imitated the regulations from developed countries and modified it. However,there are enormous legal affairs involved in the enterprise merging activities. The design ofregulations should concern the legal issue to elevate the efficiency of regulationestablishment. Therefore government must establish an appropriate enterprise mergingregulations, provide preferential tax policy to ensure the merging activity taking placeunder a reasonable and smooth condition, save merging cost, achieve the goal ofeconomical policy, and comply with spirit of legislation to avoid market monopolizationand imbalance due to over-protecting policy which is not complied with justice.In the era of innovation, economics related laws should be dynamic and establishedbased on legalization principles. The regulations of mergers and acquisitions preferentialtax are the regulations resulted from the needs of economical activities. We must see thefunction of regulations as re-allocation of legal rights under rational recognition, becausewhat we are facing is the new creativity of the market and we should accept diverseexchange model instead of original model to create a new order our of these innovation.Also we should use the help of environment to validate indirectly and to provide newregulations in the economical field.Companied with less discussion of merging regulation globalization, to integrityfinance and economics regulations, Taiwan area is walking toward simplification ofmerging program, diversity of merging methods, elimination of obstacles and provision ofencouraging preferential tax. Taiwan has also modified the original law of enterprise mergeto allow the enterprise to possess the preferential tax. The regulations of mergers andacquisitions in our country now are diverted into several regulations. I hereby think wehave to follow the long-term development of the market to establish appropriate specificlaw of enterprise merge to ensure the principles of legislation. To understand whatsubstantial problems are at once, provided the way to solve the problems, and put forwarda constructive and concrete suggestion for imperfection of legal institutions. That reason ismy purpose of research. This study analyzed the evolvement, motivation and types ofenterprise merging, and to provide the comparison of preferential tax and the affect toenterprise merging behavior among existing regulation structure of mergers andacquisitions preferential tax law, financial institute merge law, finical holding stock lawand corporation law. From the study of enterprise merge preferential tax in our country, Ihope we can provide appropriate suggestions to legislators and investigators regardingenterprise merge preferential tax legislation in China area.