The Role of Tax Law in Mergers and Acquisitions

Series on International Taxation, Volume 82

About this book:

The Role of Tax Law in Mergers and Acquisitions is a unique book based on empirical studies providing a hands-on understanding of the context in which the tax law operates. The book examines in depth China's income tax regime for mergers and acquisitions (M&A) and, based upon this examination, sets out reform proposals. Only the United States exceeds the economic value of China's M&A market. However, considering China's accelerated and rather chaotic economic transformation, the task of taxing M&A transactions consistently and judiciously has become difficult, leading to a patchwork of fragmented rules that are tough to comprehend for taxpayers as well as tax professionals and tax officials. This complex situation has effected this revolutionary book which explores in detail how income derived from M&A transactions is taxed in China.

What's in this book:

The six informative chapters of great pragmatic relevance give a detailed explanation and description of the intersection of the following aspects:

• M&A transactions in the eyes of tax law;
• disparities between ordinary and special tax treatment;
• eligibility for special tax treatment;
• applying taxation principles such as neutrality and equity;
• continuity of interest doctrine;
• stock acquisition versus asset acquisition; and
• adjustment to tax basis.

In addition to its practical research, the book utilizes the examination of the rules and theories on taxing M&A in other jurisdictions such as Australia and the United States as part of its proposed blueprint for refining China's M&A taxation.

How this will help you:

This nonpareil book, based on commonly recognized taxation principles, establishes the normative criteria for evaluating the income taxation of M&A and divulges the fundamental issues that China's current regime is battling. It is a comprehensive compendium of the Chinese income tax rules for M&A and a detailed revelation of how they are both divergent from and convergent with that of some other major economies. It will be highly appreciated by in-house counsel for multinational corporations, business enterprises with interests in China, taxation consultants, taxation academics, and tax authorities across the globe.