Thesis: M.S., Massachusetts Institute of Technology, Sloan School of Management, 1976 / Includes bibliographical references. / by Angelika M. Ch. Esser. / M.S. / M.S. Massachusetts Institute of Technology, Sloan School of Management

Universiẗat, Diss., 2004--Köln. / Includes bibliographical references (p. 269-284).

The Internal Revenue Code invokes the concept of reasonableness as the major qualification for the stockholder executive compensation deduction for federal income tax purposes. However, neither the Code nor Regulations contain general guidelines for determining reasonable compensation. Consequently, disputes with the IRS are frequent, resulting in substantial litigation. The primary hypothesis of the study was that the IRS guideline variables were incapable of discriminating taxpayers who have won litigated reasonable compensation cases from those who have lost. The secondary hypothesis was that the IRS guideline variable group, the court case variable group, or the two groups combined were equally powerful in discriminating taxpayers who have won litigated reasonable compensation cases from taxpayers who have lost. The study included all unreasonable compensation cases litigated in the Tax Court from 195^ to September, 1980. Only cases related to the reasonableness of officer-shareholder compensation of closely-held corporations were included.

With the increasing volatility on electricity markets and a growing emphasis on sustainability, renewable electricity has gained significant attention from corporate entities seeking to secure their green energy supply. Among the various methods available for securing green electricity, one method on the rise is Power Purchase Agreements (PPA). The purpose of entering a PPA from a generator perspective is to secure future revenues and from an offtaker perspective it is to secure future electricity costs. This research aims to assess the feasibility of PPAs as a green electricity sourcing method for a large industrial company with specific requirements. The research comprises a case study focused on a specific company. It involves qualitative interviews with nine company representatives, analysis of internal documents, and a review of relevant literature on PPAs. Additionally, four external experts knowledgeable about the company's electricity sourcing method and the PPA market were interviewed. This approach provides insights into the company's practices and ensures a comprehensive understanding of PPAs. The study demonstrates that PPAs can be structured in various ways. To organize the results and strengthen the arguments and conclusions drawn, Kraljic's sourcing framework has been utilized. Importantly, the findings indicate that implementing a PPA is a highly viable green electricity sourcing method for the company given their current structure andmission for the future. The findings suggest that adopting a PPA to source green electricity can be a viable option for companies if they prioritize renewable electricity,value price predictability highly, and can leverage the agreement for sustainability and marketing efforts. It is important to note that while the risks associated with a PPA can be mitigated to a large extent through a price premium, it is crucial to tailor the PPA setup to align with the specific needs of the company. Furthermore, it would be intriguing for the research community to investigate or propose an optimal PPA structure that maximizes benefits for both sides of the value chain, considering the interdependence highlighted in this study. / Med den ökande volatiliteten på elmarknaderna och det växande fokuset på hållbarhet har förnybar el fått betydande uppmärksamhet från företag som vill säkra sin framtida gröna energiförsörjning. Bland de olika metoderna för att säkra grön elförsörjning har en metod blivit allt vanligare, nämligen Power Purchase Agreement (PPA). Syftet med att ingå en PPA ur en generators perspektiv är att säkra framtida intäkter, och från ett bolags perspektiv är det att säkra framtida elkostnader. Denna forskning syftar till att bedöma genomförbarheten av PPAs som en metod för att säkra grön el för ett stort industrielltföretag med specifika krav. Undersökningen omfattar en fallstudie fokuserad på ett specifikt företag. Den innefattar kvalitativa intervjuer med nio representanter från företaget, analys av interna dokument och en översikt av relevant litteratur om PPAs. Dessutom intervjuades fyra externa experter som har kunskap om företagets nuvarande strategi gällande elförsörjningen och PPA-marknaden. Denna ansats ger insikter i företagets verksamhet och säkerställer en omfattande förståelse för PPAs. Studien visar att PPAs kan struktureras på olika sätt. För att organisera resultaten och stärka argument och slutsatser har Kraljics inköpsramverk använts. Resultaten indikerar att införandet av en PPA är en mycket genomförbar metod för att säkra grön el för företaget med hänsyn till deras nuvarande struktur och framtida målsättningar. Resultaten antyder att användning av en PPA för att förse sig med grön el kan vara genomförbart för ett företag om de prioriterar förnybar el, värderar prisförutsägbarhet högt och kan dra nytta av avtalet för hållbarhets- och marknadsföringsinsatser. Det är viktigt att notera att medan riskerna med en PPA till stor del kan minskas genom att betala ett prispåslag, är det avgörande att skräddarsy PPA-upplägget för att passa företagets specifika behov. Vidare skulle det vara intressant för forskarsamhället att undersöka eller föreslå en optimal PPA-struktur som maximerar fördelarna för båda sidor av värdekedjan med tanke på det beroendeförhållande som lyfts fram i denna studie.

Submitted by Mariana Monte Alegre de Paiva (mmapaiva@hotmail.com) on 2018-01-16T15:25:28Z No. of bitstreams: 1 tese.pdf: 1826581 bytes, checksum: a1ad1d51ebdcc40ec1744c71de92b05e (MD5) / Approved for entry into archive by Thais Oliveira (thais.oliveira@fgv.br) on 2018-01-16T16:24:43Z (GMT) No. of bitstreams: 1 tese.pdf: 1826581 bytes, checksum: a1ad1d51ebdcc40ec1744c71de92b05e (MD5) / Made available in DSpace on 2018-01-16T19:05:27Z (GMT). No. of bitstreams: 1 tese.pdf: 1826581 bytes, checksum: a1ad1d51ebdcc40ec1744c71de92b05e (MD5) Previous issue date: 2017-12-18 / O trabalho pretende examinar as principais controvérsias tributárias decorrentes dos mecanismos contratuais de ajuste de preço, usualmente utilizados em contratos de aquisição de participação societária, no contexto de operações societárias de fusões e aquisições (também denominadas em conjunto como “transações”). Especialmente em grandes transações, é bastante comum que as partes envolvidas, com base nos resultados da auditoria e da diligência legal, discordem em relação a alguns aspectos da própria avaliação financeira da empresa (“empresa-alvo”) ou a respeito de passivos e contingências específicos envolvidos no negócio. Para alcançar um consenso, as partes podem estabelecer condições, ajustes e limitações ao pagamento do preço. Assim, o preço poderá variar dependendo de certos eventos, sofrendo alterações – complementações ou até reduções – conforme as cláusulas contratuais acordadas. Existem diversos mecanismos contratuais que vem sendo aprimorados ao longo do tempo para flexibilizar a determinação do preço, dentre os quais destacamos aqueles utilizados com mais frequência na prática: earn out; holdback e escrow, ajustes de preço e indenizações. No caso brasileiro, é possível verificar que esses mecanismos contratuais são usados, às vezes, sem tanta atenção aos seus desdobramentos no campo tributário. Como a legislação tributária existente não regulamenta de forma totalmente precisa e completa os impactos desses mecanismos contratuais, a sua implementação pode eventualmente gerar problemas para o comprador e o vendedor perante o Fisco. Diante disso, a intenção desse trabalho é abordar as principais controvérsias tributárias envolvendo tais mecanismos. Para tanto, é preciso comentar a respeito do propósito e do funcionamento desses mecanismos, abordar sua natureza jurídica e determinar os seus respectivos impactos no campo tributário, levando em consideração a legislação vigente e a jurisprudência. O trabalho destacará as questões polêmicas envolvidas, indicando pontos de atenção que podem gerar possíveis questionamentos pelo Fisco. O trabalho ainda propõe sugestões e recomendações práticas na utilização de cada mecanismo contratual e aponta alguns cuidados essenciais na redação dos contratos e nos procedimentos adotados para mitigar os riscos tributários. / This thesis aims to examine the main tax controversies related to the contractual mechanisms of price adjustment commonly used in share sales and purchase agreements in the context of merger and acquisition transactions (“M&A transactions”). Especially in large transactions, based on the due diligence results, the parties usually disagree in relation to some aspects of the valuation of the target company or in respect to certain liabilities involved in the deal. In order to reach an agreement, the parties may establish some conditions, adjustments or restrictions in respect to the purchase price payment. Hence, the purchase price may be modified, either through increases or reductions, depending on certain events and considering the actual clauses agreed by the parties. There are several contractual mechanisms that have been improved over time to enable the purchase price determination, among which we stress those used more frequently, namely: earn out, holdback / escrow account, other price adjustments and indemnification. In Brazil, these contractual mechanisms are often used without much attention to the tax impacts. Their use may lead to disputes between Tax Authorities and the parties to the acquisition, mainly because the current tax legislation does not address the impacts of such mechanisms in a precise and complete manner. In view of the above, this thesis aims to examine the main tax controversies involved in those contractual mechanisms. For that purpose, it is relevant to first comment on the business and economic purpose and the function of these main mechanisms, and then analyze their legal nature, considering the current tax legislation and case law. Finally, the thesis covers the contentious tax aspects involved, highlighting the issues that may eventually be challenged by Tax Authorities. The thesis also provides some practical suggestions and recommendations on the use of each contractual mechanism, as well as points out some aspects to be considered when drafting clauses and procedures to be adopted to mitigate additional tax risks.