Study On Tax Planning Based On Diversification Strategy Of Enterprises

Diversification strategy is an important way for enterprises to realize its accelerated growth. However, not all businesses have a smooth successful diversification strategy. Among numerous factors that affect the diversification strategy of a business, tax bearing, as an important expenditure, exerts a considerable effect without any doubt. Then how to reduce tax burden scientifically in order to gain the upper hand in a successful implementation of businesses diversification strategy becomes a serious concern. This paper, from the perspective of enterprises as a micro-economic entity, attempts to test the factor of tax planning into the consideration of corporate diversification strategic management. Based on theories of strategic management, financial management, and taxation, this study tries to shape initially the theory and methodology of corporate tax planning activities under the guidance of enterprise diversification strategy, in order to enrich the current theory of corporate tax planning activities from diversification strategic management perspective, thus provide practical methodological guidance in tax planning to enable enterprises to avoid risks, and obtain the overall interests in tax-planning activities.This dissertation consists of six chapters. The central arguments lie in Chapter Four and Five. Chapter Four has developed a full range of procedures for tax planning carried out in diversification strategy. These procedures can increase the operability of tax planning in diversification strategy and the integrity of procedures also ensures the success of tax planning. In Chapter Five, the paper anatomizes a variety of approaches of diversification strategy and all links and aspects of tax planning. The detailed elaboration in this part adopts a wide range of analysis methods from various angles with a belief that it can provide a necessary assistance in tax planning for enterprises. In Chapter Six, the paper explores the risks faced in tax planning and whereupon propose an effective way to control these risks. The Conclusion summarizes theoretical innovations of the paper which engendered from practical demand. Apart from it, this part also takes a glance into the future doable research based on this study. By combining theory with practice, this dissertation, in the form of cases studies, together with theoretical analysis of tax planning, exploits an integrated manipulation of tax planning in all links of corporate diversification strategy on the grounds of latest tax laws and policies. It can be said that there is a strong reference value towards actual operations of enterprises.