Tax Implications Arising from Mergers and Acquisitions - An Investigation of Australian Firms

Abstract

The article is written by Amna Tariq Shah and Ken Devos and critically investigates the tax implications arising from mergers and acquisitions of Australian firms. The article investigates the presence of potential tax advantages obtained by Australian-based firms through M&A transactions. The authors made ninety-seven observations, comprising M&A deals completed between 2005 and 2015. These transactions were investigated to statistically support and explain the potential link between M&A decisions and certain corporate tax advantages gained. The authors contend that the findings of their research suggests that when firms make profit-maximising decisions as part of an M&A deal, a potential reduction in tax can transpire from such transactions.

Keywords: Mergers, acquisitions, Australian firms, corporate, tax implications