Study On Legal Issues Of Income Tax Law Of Corporate Acquisitions In China

In the 21st Century, corporate acquisitions have become a way of direct investment and almost as important as"Green Field"investment, turning into an un-ignorable economic pattern. The tax law problem plays a significant role in the process of corporate acquisitions, which is important planning targets not ignored either in decision and implementation of corporate acquisitions. Tax effect, especially tax-free activities or taxable activities is a key factor to be considered during corporate acquisitions. With hundreds of years' development, the U.S and Britain have both formed a comparatively completed corporate acquisitions tax law to regulate and inspire the development of corporate acquisitions market. Tax law is the prime law environment and the necessary outside condition to the development of corporate acquisitions market. With short history, corporate acquisitions activities are developing very fast in China, However, in view of the short developing period of domestic corporate acquisitions, although China has already set up some tax law to regulate the corporate acquisitions, great deals of pitfalls still exist in current tax law system. Therefore, it is an urgent and meaningful task to use the advanced experience of corporate acquisitions'tax law from other developed countries as reference to perfect our current relevant tax law. This dissertation consists of four chapters, except for an introduction.Chapter one discusses the basic theory concerning the relationship between corporate acquisitions and tax law. The chapter first explains the concept of corporate acquisitions and differentiates the corporate acquisitions in point of economic aspects and legal aspects, then discusses the relevant theory with regard to regulating the corporate acquisitions by tax law, finally points out what the taxability of corporate acquisitions is, and expounds what the tax-regulating motive of corporate acquisitions is.Chapter two briefly introduces the U.S income tax law of corporate acquisitions and that of other developed countries and divides the corporate acquisitions into two categories: taxable acquisitions and tax-free acquisitions. The chapter places particular emphasis on the U.S income tax law of corporate acquisitions, discussing the U.S income tax regime of corporate acquisitions and the legislative principles. Finally, the chapter summarizes the income tax regimes of corporate acquisitions of main developed countries as our reference.Chapter three analyzes Chinese income tax regime of corporate acquisitions, introduces the different regulation on the corporate acquisition paid by different payment term. By comparison of the different tax treatment of taxable acquisitions and tax-free acquisitions, the chapter concludes the disparity between Chinese income tax law concerning corporate acquisitions and that of foreign developed counties.Chapter four constructs the legislative principles of income tax law concerning corporate acquisitions and establishes its legal value orientation, points out its legislative deficiencies, and advices on improving the income tax legal environment of corporate acquisitions by means of using the foreign relevant tax legislation as reference.