The reasons why companies require adequate tax staff are as follows. Firstly, government has different and complex tax policies target on corporate. Secondly, transactions, merger, and acquisitions make companies enter into more intricate situation, as companies have to distinguish their tax responsibilities after the transaction from old situation. Thirdly, since tax policy has been regarded as a macro adjustment approach to adjust the economy, tax policies sometimes are changeable. Moreover, the U.S. tax code is too complex and hard to read for one without certain tax policy knowledge. For instance, the Title 26 U.S. Code (Internal Revenue Code of 1968), including more than 9000 tax items, among which around 1400 items concern corporate tax. Staff from other department might find themselves at a loss when dealing with intricate tax issues, especially, if transactions, mergers, and acquisitions happened, the company would face up with more complicated tax situation (26 U.S.C. § 368). Therefore, a company, in order to avoid tax risks and pursue profit maximization, has to hire and maintain adequate tax staff to research into current corporate tax policy and its trends.

Tax planning is the process of arranging individual or business’s financial affair to optimize tax liability (Raabe, Whittenburg, Sanders, & Sawyers, 2011). During a sale or acquisition of a company, there are many process and duties to be clear. Conducting tax planning, on the one hand, could ensure tax efficiency; while on the other hand, can help identify issues, opportunities, and look into alternatives that can allow companies to make informed decision in advance throughout the transaction process. Namely, tax planning can enhance tax efficiency and, furthermore, ensure the efficiency and profitability of the deal process. Given that it is legal to minimize corporate tax through tax planning, and there are many uncertainties during a transaction, it is important for corporate to take tax planning during the deal, so that the deal process could be more efficient and profitable.