Abstract
M.Comm.
The purpose of this study is to determine the tax implications of mergers and acquisitions. and more
specifically the tax implications of the selling and purchasing of assets and shares.
Mergers and acquisitions
Mergers and acquisitions are two methods to combine companies. Both will lead to a business
combination. It can mean that either the assets or the shares of the acquiree are purchased.
The sale and purchase of assets or shares
When two or more companies decide to merge. the one company can acquire the assets of the other
compan). The purchase and sale of intellectual property and goodwill are important during mergers
and acquisitions. Other assets like trading stock. debtors and bad debts and fixed assets will also be
purchased and sold.