Analysis And Case Study Of Tax Planning In Corporate Merger And Acquisition Behaviors

With the development of economic globalization, corporate mergerand acquisition phenomena emerge all over the world. Accompanyingwith China’s deepening economy system reforms and the growingdevelopment of market economy, more and more merger&acquisitionbehaviors commence between companies, followed with greatopportunities and challenges as well.Tax is an important factor to consider during the merger andacquisition process among companies, reasonable tax planning caneffectively reduce company cost and lead to benefit maximization duringthe process. Tax planning plays an even more important role with thedevelopment of social economy, especially in nowadays’ spring tide ofcorporate merger and acquisition, there are more demanding requirementsfor the further development of tax planning.This article studies Company DTT’s acquisition behavior ofCompany Lian’xun through the combination method of theory analysisand case study. It comprises of five sections. The first section isintroduction, it introduces the commencement of tax planning issues during merger process and generalizes its significance in practice; thesecond section is document summarization, it summarizes relevantresearch and studies in and outside China; the third section of this articleintroduces theories about enterprise merger and acquisition as well as taxplanning; the forth section is a strategy study analysis of tax planning,which has two parts: one is to analyze the tax planning of main tax typesduring merger and acquisition process; another is to analyze the taxplanning of different stages in the merger and acquisition process, withmore emphasis on target company selection, merger payments, financingtypes and organization formations afterwards; the fifth section of thisarticles is case study on company DTT’s merger and acquisition processof Company Lian’xun.This article conducts a thorough research on the tax planning duringCompany DTT’s merger and acquisition process, in the hope that it willgive some constructive contributions for reasonable and lawful taxplanning as well as proper utilization of tax policies during corporatemerger and acquisition processes, and eventually, to obtain tax profit andrealize economic benefit maximization.