The Research On Tax Planning Of Enterprise Merger And Acquisition

The economy within the whole world is developing globally,and the competition is more and more intense.M&A is being favored by many companies because it is an important approach to allocating resources,reconstructing strategies,involving in multi-Industry,increasing the market share and developing by leaps and bounds.Almost every economy body that tries to pick up the developing pace has participated the M&A upsurge from the late 19th century.Successful merger can save the cost(e.g.money and time)for the development of the company,enjoy the synergies brought by the scale economy.However,M&A itself is a cruel war of resource consuming and integrating,which needs the sense of cost controlling and risk management.Hence,tax planning is playing a more and more important role in M&A because it is one of the most effective ways to decrease the cost.On the basis of this,the tax planning problem in M&A is researched systematically,the trilogy of tax planning for merger is proposed based on others' previous work.This paper aims to establish the comprehensive network of tax planning for merger,help mergers to earn as much benefits as possible by using the tax policy properly to make tax planning scientifically.This thesis is composed of three parts.In the first part,the concept,motivation,purpose,characteristics of M&A and tax planning are introduced,which helps the companies to have a essentially thorough understanding of the M&A and tax planning.In the second part,the tax planning for merger is explained systematically.Firstly,the importance,basic idea,actual operation of the tax planning for merger and the influence of the tax policy on it is introduced.Secondly,the trilogy of tax planning for merger is proposed.The tax planning of merger operating technology,merger taxes and merger processes are combined,aiming to establish the dimensional thinking of tax planning for merger,help the mergers to catch every planning point and thus save tax cost as much as possible.In the third part,practical tax planning for merger is analyzed in a case study of Lenovo merging the PC business of IBM.This thesis also points out that tax planning is not omnipotent.The company should have a full view of planning when merging.The tax planning too should not damage overall interests of the company.This thesis contributes to help companies establish the subjective consciousness and dimensional thinking of tax planning,decrease tax and cost as much as possible,making the M&A successful.