Tax Risk Analysis And Countermeasures Of Enterprises' Cross-border M&A Structure

With the rapid development of the global economy,the ability of Chinese enterprises to "going out" investment development has gradually improved.Along with this,there has also been a large demand for capital and resource allocation on a global scale,and one of the current overseas investments cannot be ignored The form is cross-border mergers and acquisitions(M&A).In recent years,the upsurge of cross-border mergers and acquisitions by Chinese companies has also reflected the changes in the current development of the Chinese economy from the supernormal to the new normal.However,it is still on the international starting line.For Chinese companies above,when conducting cross-border mergers and acquisitions,they need to understand the potential tax risks in the merger and acquisition process in advance in an unfamiliar tax environment.Based on the current domestic and foreign tax environment facing Chinese enterprises,this article will focus on the tax risk issues in the construction of corporate cross-border M&A.The scientific construction of the holding structure and the rational design of financing subject will reduce the tax of corporate cross-border mergers and acquisitions.For this reason,the author selected a typical case of cross-border M&A of Chinese enterprises--the M&A case of T Company,and analyzed the tax risk of different M&A architecture designs in this case.Finally,based on the case analysis,the author aimed at the cross-border M&A of Chinese enterprises,put forward rationalization suggestions and risk tips from the perspective of taxation.In the design of the holding structure,we need to pay attention to the determination of resident qualifications,restrictions on overseas income credit,and the tax planning risks of controlled foreign companies.On the other hand,attention should be paid to the regulations on the thin capitalization of target country,while strengthening the commercial substance of the intermediate holding company to avoid review by the tax authorities in abusing tax treaties.