Tax management on corporate restructuring activities in enterprises of Minas Gerais

Abstract

The objective of this paper was to investigate the use of corporate restructuring (CR) practices as a tax management (TM) strategy in Minas Gerais industrial companies. The research was carried out by means of a four comparative case study of qualitative and explanatory approach in industrial companies of Minas Gerais. Based on finance, accounting and taxes theories, it was concluded that the companies investigated have made CR processes, adopting corporate models different from those defined in its original organizational plans, doing it in a planned way aligned with the business strategy. It was possible to conclude that the tax planning consists of (i) a means to reduce tax costs lawfully. It helps to maximize business performance, increasing competitiveness and sustainability thereof, and (ii) consists in an important basis for the development of tax governance by adopting mechanisms to ensure compliance and promote the avoidance of taxes. Overall, it was found that (iii) the effectiveness of these processes depends on a careful analysis of financial, legal, economic, financial, organizational and managerial aspects, and even if the tax planning through the CR (iv) promoting the reduction, postponement and/or the elimination of tax costs, (v) collaborating to increase in the TM efficiency and in the profits, (vi) increasing thereby the value generation.