The Research On Tax-Planning In Enterprises M&A Case Analysis Of Haier Acquisition Of GE

As China’s economy enters the stage of "new normal",both opportunities and challenges confront enterprises.The waved rise of enterprises implementing mergers and acquisitions(M&A)to increase core competitiveness,brings the growth of the scale and number of transactions in China’s M&A market.M&A are not only a way for companies to expand market share and achieve diversified development,but also an important means to revitalize assets and integrate the industry.Tax activities run through the entire process of corporate M&A,which will affect the cost and the success of implementing.Reasonable tax planning not only helps the smooth conduct of M&A,but also contributes to play the regulative role of tax.Therefore,this article focuses on how to carry out tax planning in the process of corporate M&A,so as to lessen tax burden and reduce M&A-related costs.Based on the above considerations,this paper employs the research method combining theory with case study to sort out the tax issues involved in M&A and provide planning ideas at different stages.Firstly,the article summarizes previous researches on corporate M&A and tax planning by scholars at home and abroad,elaborates the motivations of corporate M&A and the vital role of tax planning playing in the process.Then the overall taxation environment of China is analyzed and insights in tax planning are provided;By dividing three-phase implement of the process of M&A,this paper discusses and compares different planning methods in three stages respectively.This article selected that "Haier acquired GE Appliances" as the case.The background and actual situation of this acquisition are firstly detailed.Some ideas for planning from four aspects of motivation,payment methods,financing methods and subsequent integration are put forward,and are compared with the actual situation.Through this case,the paper aims to raise enterprises’ concern over tax issues involved in M&A,and provideinsightful ideas for tax planning in the process.