Tax Planning Research On M&A Payment Methods

In most modern market economies,M&A(Merger and Acquisition)is regarded as an important and prevalent method for enterprise to go beyond its development limitation,and to optimize resources allocation from a broader perspective.Especially in "Decision on deepening reform of the overall number of major issues" passed by the Eighteen Plenary Third Session,M&A activity is treated as an important way to accelerate industrial optimization&upgrading,improve core competition power of industry,and a substantial mean in promoting the sustained and healthy development of mixed ownership economy.In recent years,legal environment is gradually perfect and unified in our country in terms of enterprise merger,acquisition and reorganization,by forming a more comprehensive tax system covering the whole process of M&A activities.This provides a certainty environment for tax planning arrangement on M&A activities.In order to optimize M&A plan,calculation and comparison of tax burden induced by various alternatives is necessary.This is beneficial for enterprise to carry on prompt adjustment scheme,to realize reduced tax burden under the premise of in compliance with the tax laws and regulations,and thus enhanced the potential value of mergers and acquisitions to enterprise.The structure of this paper is organized as follows:In the first part,this article first introduced the domestic and foreign research background about the tax planning and tax planning in the research of M&A,historical evolution of tax planning theory and specifically the M&A tax planning theory.In the second part,by using theoretical analysis method,this article has reviewed the literature from the angle of theories of M&A motivation,classification,mode of payment and other relevant concepts and characteristics.In the third part,under the existing tax law system,this paper combined with the real case of M&A from a listed company,quantitative calculates and comparative analyzes the tax cost,total cost and of various M&A payment methods.In the fourth part,it summarizes and analyzes the tax treatments in different M&A payment methods and related tax risks and countermeasures to deal with them.The paper concludes in Part 5.Based on the problem of tax planning in M&A activity as the research object,the paper summarizes the basic theory on enterprise M&A and tax planning.Due to the limitation of the author's theoretical level and the research ability,the research on the space and method of M&A activity needs to be further studied.