The Case Study On Tax Planning Methods In The Process Of M&A

Since the late nineteenth century,the world has occurred five times of mergers and acquisitions waves,with China's economic development and progress,mergers and acquisitions transactions are also active in the capital market,especially in 2008 after the outbreak of the financial crisis,more and more enterprises quickly expand and adjust the industrial structure at low cost,optimize the allocation of resources to eliminate barriers to entry into the new industry and enhance the overall competitive advantage through the mergers and acquisitions.In the M&A transaction,the choice of different M&A programs will usually produce different taxable income.The income tax is one of the expenses that must be borne in the process of M&A,which is directly related to whether the company's financial cash flow is abundant.If the merger and acquisition process produces a large amount of applicable income tax,and if the tax can not be effectively deferred,which will give enterprises a heavy burden of mergers and acquisitions and may affect the normal production and business activities.Therefore,how to choose the optimal M&A program to reduce the cost of mergers and acquisitions becomes particularly important.In order to standardize the management of the income tax involved in the process of mergers and acquisitions,the State Administration of Taxation and the Ministry of Finance and other relevant departments are also in full swing in the introduction of a series of mergers and acquisitions,the increasing complexity of mergers and acquisitions,mergers and acquisitions are increasingly complex,policies and regulations to regulate the growing prosperity of the emerging market.Among them,the Ministry of Finance in 2009 promulgated the corporate restructuring business income tax on a number of issues notice,the notice clear and supplement the use of different forms of mergers and acquisitions under the company's income tax treatment approach,according to the notice of the merger and reorganization before,during and after the entire link to carry out tax planning,reduce the company tax burden,thereby enhancing the overall value of mergers and acquisitions after the company.This paper focuses on the analysis of how to combine the mergers and acquisitions in the mergers and acquisitions,how to make full use of policy tendencies and tax incentives in the process of mergers and acquisitions,and choose the appropriate way of mergers and acquisitions,combined with the case summary of the merger and reorganization of the alternative tax planning program.From the point of view of practice,this paper analyzes the plan of M&A in BesTV from the acquisition of Oriental Pearl as an example,and sums up the difference of the amount of income tax in different M&A modes in M&A.Under the general tax treatment of the assets of the acquisition,equity acquisition and absorption of the merger of these three M&A program,the asset acquisition of the current income tax generated the smallest,the merger due to the double taxation of the largest amount of income tax,in determining the appropriate M&A program,The payment of the way has become the most important part of the plan,the higher the proportion of equity payment,the more favorable tax planning,and the payment of the way to a large extent affected the enterprise's current income tax payable,but also the most practical significance of the tax planning technical means for the acquisition of the organization after the form of choice,if the enterprise has a tax concessions or enterprises and a few years ago no loss,the form of organization after the acquisition can choose the form of subsidiaries.Finally,this paper puts forward some opinions and suggestions on the tax planning plan of M&A,so as to help the company to carry out tax planning reasonably on the basis of compliance with relevant tax policies and regulations,so as to effectively reduce the tax burden.