The Research On The Improvement Of Enterprise Income Tax System In Merger And Consolidation

The essence of the merger and consolidation of the enterprise is the transfer of property rights,and the ownership of the assets of the merged enterprise shall be transferred to the merged enterprise,so as to realize the allocation of social and economic resources among enterprises.The consolidation of enterprises rose in the late 19 th century in western countries.Taking the United States as an example,it has experienced five waves of mergers and acquisitions.The income tax system of M & A in western countries has been developed for more than 100 years,and a complete legal system has been established.The legislation on the consolidation of income tax system in China is gradually complete and established.A set of enterprise consolidation income tax system with six forms of consolidation,including general tax treatment and special tax treatment has been set up,which provides a good tax legal system environment for enterprise consolidation transactions in China.According to the taxable theory,the enterprise merger transaction has not only the economic possibility and feasibility,but also the legal legitimacy and rationality.Furthermore,according to the principle of income realization,the enterprise merger and consolidation transaction should be recognized as income,and pay enterprise income tax according to law.To judge which kind of tax system rules an enterprise belongs to,we need to consider the principle of continuous benefit,and judge whether the tax system is the standard of good law,then we need to rely on tax neutrality and tax fairness principle.Combined with the above theory and practice,there are the following problems in the income tax system of merger and consolidation in China.For example,we do not distinguish the payment method and confirm the taxable income without exception in the current period;the tax preferential limit is improper,and short period of multistage transaction;the requirements of business continuity are too absolute,and the requirements of consideration for eligible equity are insufficient.In the tax carry-over treatment,the adjustment rules of tax basis are not clear and the inheritance regulations of tax preferential treatment are insufficient.We can learn from the relatively complete enterprise merger and consolidation income tax system in the United States and combine with the reality of our country.Some suggestions are put forward to improve the income tax system of the merger and consolidation of enterprises in our country.