Research On Tax Planning And Risk Control In Merger And Acquisition

Tax planning is a financial management technique that maximizes the economic benefits of an enterprise or minimizes its tax liability under the circumstances permitted by law.A company will inevitably encounter tax risks in any merger and acquisition("M&A").Rational use of tax policy for tax planning could help enterprises reduce the tax burden,decrease transaction costs and ensure the normal operation of the company in a compliant way.This paper first analyses the concept and significance of tax planning,and studies the case of Rolls-Royce,with the purpose of mitigating and managing the tax exposures in the M&A.In the aspect of research,this paper analyses the role of tax planning,the conditions of its control and the methods of risk mitigation by combining the tax laws and regulations and the risk factors in tax planning,analyses the conditions and restrictions under China tax laws and regulations,and adopts reasonable methods to conduct theoretical research on how to carry out tax planning in each step of M&A and company reorganization.This paper studies the actual financial of a company and examines the investment,controlling and exit strategies respectively,and makes recommendations based on the company's current tax planning and risk status.This paper uses special tax treatment to study the tax planning in the investment stage;internal control law in the controlling stage;and government and social supervision laws and regulations in the exit stage.It will help company mitigate the risks in M&A and ease the development crisis by better tax planning and tax risk management through comprehensive information gathering,paying attention to changes in tax laws and regulations.