Study On Income Tax In The Course Of Enterprise Merger

With the reform of economic system,our country's capital market has grown up gradually,which leads to the frequent enterprise restructuring and one of those restructuring methods is enterprise merger.Concerning theoretical research and policy making,our country is still on the groping stage about how to levy income tax on the income derived from the process of the merger. The main purpose of this article is to elaborate the opinion about this topic and put forward some modification suggestions for the present policy.There are five parts in the article.The first part makes an overall exposition of the defmition,procedures and realization patterns of enterprise merger and analyses its impact on economic life of the society form two points of view.The second part mainly introduces the theoretical basis of the income tax administration of enterprise merger and cites three principles in policy making.such as economic reasonability principle.neutrality principle and anti-tax avoidance principle.The third part analyses the present income tax policy with the combination of case study and puts forward reform proposals in view of the shortcomings of policy's complexity and its poor operation ability in order to narrow the gap between tax and account treatments and enforce the utility in the course of tax practice.The fourth part analyses the tax policy for other patterns of enterprise merger,putting the stress on Pooling of interests method.The fifth part studies tax-planning methods in the course of enterprise merger in order to lessen the combination cost and the tax burden.It serves some counter measures to the existing problems of tax administration combining the merger practice.At present,owing to the poor theoretical preparation and lack of administrative experience,there are some defects concerning the policy making.In order to perfect the income tax administration in the course of merger, protect the country's tax interest and ensure the smooth enforcement of restructuring,this article tries to point out the existing problems and advance some improving methods on the basis of the research into present policy.