Abstract

The purpose of this study is empirically to analyze the impacts of reformation on merger taxsystem, to tax effects on merged companies. To do so, we have positively analyzed；a) thedifferences of the tax effects on merged enterprises before/after the reformation of merger taxsystem, b) the differences of the tax effects between the firms with/without deficit carried forward,before/after the reformation of merger tax system. The study, first, the taxation system for corporate merger before/after the tax effect is discussedwhether the differences result, the taxation system for corporate merger before/after taxadjustments (BTD) I’ve shown the difference, it does not have a statistically significant,respectively. Second, when one－way ANOVA was conducted, for the differences in tax effects on mergertax system, in 5 year time line from 2 years prior to the merger to 2 years after the merger, theBTD for the ones merged with the companies with deficit carried forward were higher than theones merged with the companies without deficit carried forward. Third, when effectiveness of the tax effects before and after the tax reform, for the mergingfirms with/without deficit carried forward, there were differences in ETR1 and BTD patterns；which confirm the differences in the merger tax systems before/after the reform.

Keywords

• Reformation of merger tax system
• Merged company
• Tax effect

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