Thesis (MComm)--Stellenbosch University, 2000. / ENGLISH ABSTRACT: TAX CONSIDERATIONS OF MERGERS AND ACQUISITIONS
During the past few years the South African business environment experienced a
considerable increase in corporate mergers and acquisitions. At a corporate tax
rate of thirty per cent, the tax implications of mergers and acquisitions have an
important impact on the financial success thereof.
By way of background information, a short exposition of the characteristics, the
various forms and the reasons for the increase, of mergers and acquisitions is
provided.
Essentially a merger or acquisition entails the acquisition of either the business
of, or the shares in, the target company. A comparison is drawn between the tax
consequences of the above two options for both parties to mergers and
acquisitions.
The composition of the purchase price payable by an acquiring company in
respect of the acquisition of the target company's business or shares may have
far reaching tax consequences. Consequently, the most commonly used
arrangements relating to payment of the purchase price are scrutinized from a
tax point of view.
The bulk of the study consists of an analysis of particular aspects of mergers and
acquisitions, which may, depending on how a particular transaction is structured,
result in important tax benefits. The analysis is directed towards, firstly,
establishing the tax consequences arising from mergers and acquisitions and,
secondly, suggesting tax efficient structuring methods or alerting against
structuring options that may have detrimental tax results.
Some of the proposed tax structuring techniques have tax efficient results for one
party to the merger or acquisition, but result in corresponding negative tax effects
for the other. There are, however, opportunities to structure a tax efficient
transaction in such a way to ensure that both parties share in the tax benefit. lt is
even possible to, in respect of certain aspects of mergers and acquisitions,
achieve a tax efficient result for both parties to the transaction without any
commensurate disadvantage, or without them having to share the benefits
thereof.
lt is important to evaluate tax planning strategies against the general antiavoidance
measures contained in the doctrine of substance over form and in tax
legislation. Consequently, in the final analysis, the applicability of the antiavoidance
measures to the tax planning strategies proposed in this study, is
considered. / AFRIKAANSE OPSOMMING: BELASTINGOORWEGINGS OM IN GEDAGTE TE HOU BY
SAMESMEL TINGS EN OORNAMES VAN SUID-AFRIKAANSE
MAATSKAPPYE
Korporatiewe samesmeltings en oornames is 'n dinamiese en immer groeiende
area van die Suid-Afrikaanse besigheidsomgewing. Teen 'n korporatiewe
belastingkoers van dertig persent is die belastinggevolge van 'n samesmelting of
oorname 'n belangrike faktor in die finansiele sukses daarvan.
Ter agtergrondinligting word daar in hierdie studie 'n kort uiteensetting van wat 'n
samesmelting en oorname behels, die verskillende vorme wat dit kan aanneem
en die redes waarom samesmeltings en oornames plaasvind, gegee.
In wese kan 'n samesmelting of oorname geskied deur die verkryging van of die
besigheid of die aandele van 'n teikenmaatskappy. 'n Vergelyking tussen die
belastingimplikasies van genoemde twee opsies word uit die perspektief van
beide die verkrygende maatskappy en die teikenmaatskappy, getref.
Die samestelling van die koopprys wat ingevolge 'n oorname of 'n samesmelting
betaalbaar is, kan verreikende belastingimplikasies inhou. Die mees algemene
wyses van betaling, en die belastinggevolge wat daaruit voortvloei, word dus
geanaliseer.
Die studie behels hoofsaaklik 'n ontleding van spesifieke aspekte inherent aan
samesmeltings en oornames wat, afhangend van die strukturering van die
transaksie, verskillende belastinggevolge inhou. Die doel met die ontleding is
tweeledig, naamlik om, eerstens, die belastinggevolge van samesmeltings en
oornames vas te stel en om, tweedens, enersyds voorstelle te maak vir
effektiewe belastingstrukturering, en andersins te waarsku teen
struktureringsopsies wat negatiewe belastinggevolge mag inhou.
Sommige struktureringstegnieke hou voordelige belastinggevolge vir een party
tot 'n samesmelting of oorname in, maar lei tot korresponderende nadelige
belastinggevolge vir die ander party. In sommige gevalle is dit egter moontlik om
'n middeweg tussen die voordeel en korresponderende nadeel te vind, sodat die
partye in die voordeel kan deel. Daar word ook aangetoon dat sommige aspekte
van samesmeltings en oornames, indien dit noukeurig beplan word,
belastingvoordele sonder enige korresponderende nadele vir beide partye kan
inhou.
Belastingbeplanningstegnieke moet egter aan die algemene
teenvermydingsmaatreels wat in die leerstuk van wese bo vorm, asook in
belastingwetgewing, vervat word, gemeet word. Die studie word dus afgesluit
met 'n bespreking van die toepaslikheid van die algemene
teenvermydingsmaatreels op die voorstelle wat gemaak word ten opsigte van
belastingstruktureringsopsies.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/51634 |
| Date | 12 1900 |
| Creators | De Bruin, Magdalena Maria |
| Contributors | Van Schalkwyk, C. J., Stellenbosch University. Faculty of Economic & Management Sciences. Dept. of Economics. |
| Publisher | Stellenbosch : Stellenbosch University |
| Source Sets | South African National ETD Portal |
| Language | af_ZA |
| Detected Language | English |
| Type | Thesis |
| Format | 90 p. |
| Rights | Stellenbosch University |
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