R.D. Vishnupriyan, BBA LLB (Hons.), Vellore Institute of Technology, Chennai (VIT)
ABSTRACT
Cross-border mergers and acquisitions is a vital strategy for a corporation that seeks global expansion in order to remain competitive with their competition. These transactions give rise to complex legal and tax issues that can affect the design of a deal and post integration post-merger. This paper will analyze the different tax implications of cross border mergers and acquisitions from jurisdictional differences, interpretations of tax treaties, and transfer pricing problems. It analyzes the international tax regulations by analyzing the international framework on cross-border corporate transactions. Furthermore, the paper identifies legal risks associated with double taxation, indirect tax liabilities, and compliance requirements in both host and home countries. In this paper we will be analyzing recent tax
reforms, such as the OECD’S initiative toward Base Erosion and Profit Shifting, and how they impact cross border Mergers and acquisition strategies. It also highlights that the overall tax due diligence and structuring strategy plans plays an important role in order to mitigate risks and maximize post mereger interrogation this paper we will also delve into the effective management of the implication of tax considerations and how it would generate the value of a cross border merger and acquisition transaction
without violating the law and mitigate legal disputes. Overall, the paper provides insight into how corporations might leverage global tax planning as a strategic tool to improve the prospects for successful cross-border mergers in an increasingly complex international tax landscape.
Keywords: Cross-Border Mergers & Acquisition, International Taxation, Base Erosion And Profit Shifitng, Tax Treaties And Legal Compliance, Post- Merger Integration Strategy
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