Research On The Prevention On Tax Risk In The Overseas M&a Of Chinese Enterprises Under The Background Of The Belt And Road

In the context of China’s "Go Global " and "Belt and Road" strategies,Chinese enterprises are actively using cross-border M & A to invest abroad in order to obtain funds and operating experience in a short time And rapid penetration into untapped markets and industries.But the fact that the success rate of cross-border M & A is not high makes all kinds of M & A risk concerned.In order to improve the success rate of cross-border M & A and maintain the international competitiveness of enterprises,this paper focuses on the overseas tax risks of cross-border M & A.and on the basis of comprehensively sorting out the theories and countermeasures about the tax risks of cross-border M & A,from the perspective of cross-border M & A companies and China’s tax authorities,combined with specific cases of cross-border M& A companies will be faced with a variety of foreign tax risk points,according to the proposed enterprises and China’s tax authorities to guard against tax risk countermeasures.Based on the theory of M & A,this paper firstly defines the probability of M & A,risk and tax risk,and then introduces the concept and types of tax risk of cross-border M & A There are four types: the risk of overlapping of tax jurisdiction,the difference of tax system,the risk of investment structure and the risk of tax agreement.In the past 30 years of cross-border M & A in China,the cross-border M & A has entered a rapid development stage since 2009.After the implementation of the "Belt and Road" strategy in 2013,the number of cross-border mergers and acquisitions(M & A)between Chinese companies and their counterparts in countries along the "Belt and Road" has increased significantly.The tax environment is further complicated by the fact that most of the countries along the "Belt and Road" are developing countries with unstable tax systems and greater autonomy in law enforcement Therefore,the research on the tax risk of M & A destination countries is more useful.So this paper chooses Kazakhstan,a developing country as well as a country along the "Belt and Road line",as a case study.This paper introduces the basic situation of cross-border M & A case,and analyzes the tax risk of each link in the case One is the need for companies to do thorough due diligence before cross border M & A to stop the risk of overpaying taxes because they don’t understand the tax regime in their destination country.The other is to follow international tax rules at All Times.Thirdly,tax authorities should be consulted in time when tax disputes occur in the target countries of M & A,and tax services should be optimized to protect the interests of cross-border M & A enterprises.Therefore,in order to deal with the tax risks faced by cross-border M & A enterprises abroad,this paper puts forward corresponding countermeasures in the light of the new development of domestic and foreign economic situation.First,from the perspective of enterprises,enterprises should establish a three-dimensional tax risk control system,due diligence before M & A,M & A continue to follow up changes in the tax system.Second,from the government level,to optimize tax services,improve tax policies,and actively assist enterprises to resolve tax disputes.