A Study Of Tax Planning In Domestic Enterprises Merger And Acquisition

Under going the baptism of market economy for decades,Some government not restricted trades have come into full competition. Enterprises have to face severe competitions not only from home markets but also from global markets. Being a important approach or a method to realize low cost expand rapidly, to eliminate the barriers to go into a new field, to optimize the resource deploying and industry constructs, to conduct control and anti-control and to enhance the market competition, the enterprises Mergers &Acquisitions(M&A) must become a new upsurge in our country.M&A involves a series of variations in the change of the owner of enterprises, transfer of property right and change of the way of organization and relationship of subordination. Therefore, it results in the tax revenue problems. Reasonably employing government tax policies not only could lighten the revenue burden of enterprises and make the enterprise values maximum but also could help the projects of M&A to bring into effect. Otherwise, if disregarding the tax revenue problems, it probable brings unnecessary troubles during aggravating the revenue burden to enterprises.It has all ready been used abroad that tax planning could be used as a means to lighten the revenue burden of enterprises reasonable and to realize the value maximum. Although it is not early to study the tax planning in our country, the tax planning receives more and more abroad attentions in all circles of society with the progress of market economy and enhancement of legal system of tax revenue.In point of view of M&A, aiming reasonable tax planning and employing the way of tax planning the paper analyzes the problems related to all aspects concerning tax in M&A through a combined study from theory and verification. The purpose is to provide a thinking and a method for enterprises to tax planning legally, scientifically and fully during M&A, to lead enterprises to use the tax tool initiatively to incorporate the lightening the tax during M&A activity, to renovate the concept of ratepaying, to lower the cost of M&A reasonable, to achieve the revenue benefit legally and to realize maximally the goal of the M&A.The full paper is composed of three chapters.The chapter one is a summary of enterprise M&A. It includes the concept and motivation of enterprise M&A, the classification concerning tax planning and flow chart. First, it explained the concept of the enterprise M&A. The enterprise M&A is a way of enterprise recombination, which means a action of a enterprise obtaining managing control right and partial or all ownership of one or several independent enterprises by a certain price and cost (such as cash or stock right).Second, the paper analyzed the motivation of enterprise M&A. There are lot of motivations of enterprise M&A. But the main purpose is to realize the goal of development and to increase the competition. Thirdly, the paper introduced the classification of enterprise M&A. The enterprise M&A can be classified according to enterprise standards. Here the paper introduced mainly the classification concerning tax planning. Finally, the flow chart of the enterprise M&A was introduced. The chapter two introduced theoretical knowledge related to tax planning. It includes the meanings and theoretical background of tax planning, restriction and encouragement from tax planning to the behavior of enterprise M&A and resolutions on the policies and laws concerning enterprise M&A. On the base of differentiation and analyses to the meaning of tax planning, it explained the inner requirement of enterprise to conduct tax planning from point of view of finance and revenue macro-control theories. From law point of view it explained that tax planning is the way of taxpayers to protect their vested interest with the suitable right granted by laws under the conditions of performing their legal duty which should be. In order to reach the effect of tax planning, it requires the enterprises to program the burdens caused by different tax policies faced with all aspects before making decision to conduct enterprise mergers. In the process of enterprise M&A and tax planning, it needs to consider not only revenue burden but also non taxpaying cost, it needs to consider tax planning in the place of enterprise developing and avoid conducting taxpaying of the tax types in related to enterprise mergers and revenues in all links in a separated way. Finally, the paper combs the revenue policies in related to enterprise M&A issued past years and provides basis of policies for tax planning of later part of the paper.The chapter three is of the analysis of tax planning for enterprise M&A and it is also the emphasis of the paper. It has been divided into five parts. In the frame of nation laws andpolicies in related to enterprise recombination, combining concrete cases and following the main trace of enterprise M&A, the paper analyzed systematically the basic thought and concrete ways of tax planning during enterprise M&A. Because tax planning run through almost all aspects of enterprise M&A, following such a logical clue for the choices of enterprise merger goal, the way of funding, the way of financing, accounting policies and enterprise conformity after mergers the chapter explained tax planning which should be considered in all aspects in five parts, in which each part carried out the analysis on tax planning principle accordingly and assisted by typical cases, which makes the planning way to be operated and to be used as reference.