A Study of Taxes Problem on Mergers and Acquisitions

• Main Authors: Shen, Lu, 沈綠
• Other Authors: Chang, Jin-De
• Format: Others
• Language: zh-TW
• Published: 2017
• Online Access: http://ndltd.ncl.edu.tw/handle/prn7g8

碩士 === 亞洲大學 === 會計與資訊學系 === 105 === Taiwan enterprises are facing with challenges of transformation and upgrading, there is a need to breakthrough in revitalizing Taiwan's economy. The growth transformation is the biggest challenge faced by Taiwan's industry, which is the same as to many other countries. Taiwan cannot ignore that. Sometimes crisis may bring opportunities. If Taiwan businesses take it seriously and deal with it progressively, they may conquer difficulties and reach another high peak. Business growth can be achieved through two ways, mergers and adjustment within the organization. However mergers can grow a company quickly, but it is not easy to adopt the corporate culture by the acquired company. Only can a strong executive power unite the organization. Taiwanese companies need to grasp the opportunity of using merger and acquisition to restructure and upgrade themselves. Success by mergers and acquisitions may only have 26%. Other 74% failed is due to returns on acquisitions below the cost of capital. The main reason for the poor performance is usually resulted from wrongly implemented acquisition strategy by paying high cost, not having the right one, or integration failure after acquisitions Therefore, to be successful, strategies of merger and acquisition must have a rigorous review process, effective implementation, and to be well-rounded. Losses incurrence, goodwill recognition, losses deductions, stock exchange taxes, or linked taxes after the implements of related rules and guidelines of enterprise merger and acquisition, as well as, additional problems from multinational enterprise merger and acquisition are issues important to Taiwan enterprises. As such,by applying content analysis of literature, this study aims to explore these issues and compares the policies and related regulations and rules among local and international mergers and acquisitions. Moreover, the reasons, types, and process for the merger and acquisition are analyzed. Finally, means of tax neutrality is provided. Hopefully, the insights will help business practitioners and government in decreasing the obstacles and achieving synergy in the enterprise merge and acquisition, and in turn leads to the development and globalization of enterprises.