The Tax Risk Management In The Process Of Acquisitions Of State-owned Enterprise Groups

Owing to the specialties of the state-owned enterprises and the fiercer market competitions nowadays,most of the state-owned enterprises,especially for those local state-owned enterprises,have been at the forefront of the market competitions,bearing market regulations and undertaking national interest and people's livelihood.However,their social responsibilities are always greater than their corporate responsibilities.Acquisitions have become some state-owned enterprises' indispensable decisions so as to achieve their strategic targets and satisfy their social responsibilities.Taking the current national taxation environment into consideration,there might be fatal blows if no tax risk management is implemented in the process of acquisitions.This essay aims to resolve and control the tax risks in the process of acquisitions of enterprise groups from the standpoint of theory and by means of researching the tax-risk-controlling theory on the enterprise acquisitions,based on the situations that more and more enterprise acquisitions are implemented and that more and more enterprises lay more emphasis on tax risk managements.In addition,this essay makes an illustration on the factors that might generate tax risks in the early stage of acquisitions,in the process of acquisitions and in the later stage of acquisitions,namely asymmetric acquisition information,defective accounting information,unclear or irregular terms and conditions in the acquisition agreements,unscientific decision-making process concerning acquisitions,irregular internal business process,and etc.Meanwhile,this essay,which takes the state-owned enterprise named A merging an enterprise as an example,makes a discussion in-depth that how the state-owned enterprise groups control the tax risks in the early stage of acquisitions,in the process of acquisitions and in the later stage of acquisitions from the aspects of policies,the responsibility separations between the old and new shareholders,and the acquisition processes,to explain that the tax risk management should be penetrated in the whole process of acquisitions so as to minimize the impacts from tax risks.