China's Mergers And Acquisitions, Tax Planning

The trend of economic globalization in the world forces companies to expand and unite business continuously, in order to become competitive and firm their status in the market. M&A is an efficient way to realize the expansion. Since 90s in 20th century, "the M&A wave" appears for the fifth time in the world. Under the socialism market economic condition, M&A also became the best way for the enterprises to expand in China. From 2001 to 2005, the M&A trade of China was increasing in the speed of 70% every year. China is becoming one of the most active country in M&A trading in the Pacific Asia area. After joining WTO, China has sped up the progress of the economic globalization, and M&A which has greatly developed is playing a more and more important role in the economy development of China.The success of M&A is determined by various factors, one of the most important factors is M&A cost. Tax as an important factor which effect enterprises' activities also effect the M&A cost. In the planning and carrying out of M&A, tax should be paid great attention. Sometimes it is even the direct motive of M&A. Whatever the motive is, tax-planning is necessary. Because it can not only lower the cost for M&A, but also can make the decision more scientific and systematic and increase the chances to success. Recently, the research to M&A and tax-planning is thorough and deep, but the research to the Tax-planning of M&A is few. According to the above reasons, this thesis makes the research to the Tax-planning of M&A, which combines theory and practice. Try to provide the theoretic and technique instructions, offer thinking and methods for companies. Guide the companies to make use of tax-planning strategy into M&A actively and reduce the cost, finally, maximize the company value.This thesis used the method that combines theory with practice. The first part of this thesis is about the basic theories of M&A and tax-planning. Firstly, this part introduced the definition and type and procedure of M&A, then, defined what is Tax-planning of M&A, and analyze the feasibility and necessity of tax-planning in the course of M&A. This part laid theoretic foundation for the next part. The second part of the thesis is the strategy analysis of tax-planning in the course of the M&A, which is the central content of the thesis. Using the theory about M&A procedure and other theories, the second part analyzes the strategy in four stages: the selection of target, the choice of the way to pay, the choice of the way to collect money, and the arrangement of business. The third part of the thesis is about the risk analysis and avoiding. Against the problem that the method taken to avoid risk isn't enough, this part first analyze the risk in the tax-planning, then, write about how to avoid the risks. In order to avoid risks more efficiently, this part put the statistics' method into analysis.