Research On The Choice Of Enterprise Cancellation Mode From The Perspective Of Tax Planning

As an economic organization that has an impact on society,enterprises must implement the statutory cancellation procedures when they terminate their operations and withdraw from the market.Although different cancellation modes can achieve the purpose of the enterprises be cancelled,different cancellation modes have different procedure enterprises need to execute,which can bring different impacts on enterprises such as tax and finance.Therefore,the choice of cancellation modes will be involved when the enterprise is planned to be cancelled.There are two kinds of cancellation modes allowed by the current legal provisions on cancellation of enterprises in China,one is merger or division,the other is liquidation cancellation.There are many factors that enterprises should consider when choosing the cancellation modes,such as policy,personnel,corporate strategy,cancellation process,taxation,finance and so on.Among them,tax factors have a great impact on the choice of enterprise cancellation modes.For enterprises,if there are many kinds of cancellation modes to choose under the existing conditions,then choosing the most cost-saving cancellation mode can help enterprises achieve tax synergy and maximize the benefits of tax cancellation.Based on sorting out the concept,types and tax-related regulations of cancellation modes,this paper adopts the case study method and takes the DL Logistics Company which is planned to be cancelled by H Coal Industry Group as the research object.This paper also develops two different cancellation modes for H Coal Industry Group,namely,the absorption merge mode and the liquidation cancellation mode.From the perspective of tax planning,this paper calculates and compares the tax costs of these two cancellation modes,and chooses the most tax-saving cancellation mode for H Coal Group to cancel DL Logistics Company.Through case analysis,this paper summarizes the influencing factors of tax planning on the choice of two cancellation modes.In addition,the following conclusions are summarized by comparing the two cancellation modes.First,if the fair value of the net assets of the cancelled enterprise is negative and the investment loss of the parent company is large,the adoption of liquidation cancellation mode will save more income tax for the group enterprise.Second,regardless of the cancellation mode,the amount of VAT input tax that has not yet been deducted by the cancelled enterprise can bring tax savings to the group.Third,stamp duty is a tax expenditure that needs to be paid in cash under both cancellation modes.Fourth,the scale of the loss of the cancelled enterprise does not directly affect the choice of the enterprise's cancellation modes.Finally,based on the conclusions of this research,this paper gives relevant suggestions and provides new ideas for enterprises to choose the cancellation mode.