| In recent years, large-scale enterprise mergers and acquisitions (M&A)are quite popular globally. The problem which can not be ignored in theprocess of M&A is taxation. Taxation plays an important role in M&A and italso has an important influence on M&A. Tax effect, especially the taxdeduction is a key factor to be considered during M&A. With hundreds ofyeas' development, the U.S.A. and Britain have both formed a comparativelycompleted M&A tax system which regulates and inspires the development ofthe M&A market. Taxation system is the prime law environment and thenecessary outside condition to the M&A market's operation and development.With short history, M&A is developing very fast in China. However, becauseof the short developing period of domestic M&A market, although China hasalready set up the taxation system in the behavior of M&A, great deals ofpitfalls still exist in current taxation system. Then it is an urgent andmeaningful issue to use advanced M&A taxation experience of otherdeveloped countries as reference and discuss the taxation system's reform inorder to inspire the improvement of M&A taxation system. Firstly, this thesis chiefly states M&A, including its concept, type,internal and external causes for tax, taxation effect and four aspects of taxbenefits' source. Secondly, it emphatically introduces other countries' M&Ataxation situation, using the American's and British's as reference. Thirdly,this thesis reviews the history of domestic M&A, analyses its causes for taxand sums up stipulations on M&A taxation in various documents. Then, thethesis explains the influence of taxation on M&A, proposes the principles itshould follow, and evaluates the pitfalls existing in current M&A taxationpolicy in detail. In the end, basing on the evaluation of the domestic M&Ataxation system, the thesis comes to the main conclusions and proposes thesuggestions to improve the domestic M&A taxation system.The main suggestions are as follows: setting up complete capital gaintax, levying the social security tax, equalizing the taxation burden in domesticand foreign investment enterprises, accelerating the legislation work to perfectthe rules and regulations of tax-free M&A, perfecting tax shelter rules, settingup and amplifying the regulations of M&A tax accounting and relevanttaxation system which help to improve economic efficiency. |
