ISSUES ON TAXATION ARISING FROM ACQUISITIONS, MERGERS AND TAKEOVERS
Authors:
TAIWO Adetayo
Publication Type: Journal article
Journal:
ISSN Number:
0
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Abstract
Abstract
Mergers, acquisitions and takeovers are common phenomena in the corporate world, the essence of which is to boost the corporate strength of the emerging company involved. There are some inevitable attendant factors involved in these corporate phenomena. One of such factors is fiscal in nature. Emerging tax issues have a major impact on the successful completion of transactions and post-deal integration of companies. Early involvement and development of an efficient tax plan/structure will maximize the return on acquisitions, mergers and takeovers. An acquisition, merger and takeover transaction presents a unique opportunity to implement tax planning and creates substantial synergies which are unlikely to have been taken into account when evaluating the merger ab initio. These opportunities are, therefore, all upside. However, if not planned and implemented properly, a merger can create huge costs which are also not planned for and unexpected by the stakeholders in the exercise. The main objective of this paper is to keep abreast of, and examine, the taxation issues that may likely arise as a result of mergers, acquisitions and takeovers. It also examines the tax approaches to the principles of mergers, acquisitions and takeovers. The paper also addresses the problem of the applicable tax laws or statutes in cases of merger, acquisition or takeover.
Key words; Taxation, Mergers, Acquisitions, Takeovers.