Tax consequences of acquisitions regarding: (a) most-favorable tax way
What are the tax consequences of acquisitions regarding: (a) most-favorable tax way for the selling shareholder and (b) the most-favorable tax way for the acquirer?
Firstly, Vittola argues after a war, it is the responsibility of the leader to judge what to do with the enemy (Begby et al (2006b), Page 332).. Again, proportionality is emphasised. For example, the Versailles treaty imposed after the First World War is questionably too harsh, as it was not all Germany’s fault for the war. This is supported by Frowe, who expresses two views in jus post bellum: Minimalism and Maximalism, which are very differing views. Minimalists suggest a more lenient approach while maximalist, supporting the above example, provides a harsher approach, punishing the enemy both economically and politically (Frowe (2010), Page 208). At the last instance, however, the aim of war is to establish peace security, so whatever needs to be done can be morally justified, if it follows the rules of jus ad bellum.
In conclusion, just war theory is very contestable and can argue in different ways. However, the establishment of a just peace is crucial, making all war type situation to have different ways of approaching (Frowe (2010), Page 227). Nevertheless, the just war theory comprises of jus ad bellum, jus in bello and jus post bellum, and it can be either morally controversial or justifiable depending on the proportionality of the circumstance. Therefore, there cannot be one definitive theory of the just war but only a theoretical guide to show how wars should be fought, showing normativity in its account, which answers the question to what a just war theory is.
Sample Solution
When it comes to acquisitions, there are several tax consequences that must be considered in order for a deal to be beneficial for the selling shareholder. For example, one of the most important factors is understanding the most-favorable tax way for them when it comes to receiving payment from a potential buyer (Ranney & Thompson, 2019). There are two primary options available which include cash or stock of the acquiring company with their respective advantages and disadvantages.
Receiving cash has several benefits such as not having to worry about market fluctuations influencing their payoff amount (Ranney & Thompson, 2019). In addition, cash also allows shareholders to avoid double taxation if they choose to reinvest those funds elsewhere (Ranney & Thompson, 2019). On the other hand there is typically more paperwork associated with this option due to reporting requirements and taxes may be higher than if they received stock instead.
On the other hand taking stock will allow sellers to defer paying taxes on any gains until such time that they decide to sell off those shares at a later date but can also present additional risks if those shares drop in value (Lau et al., 2018). In addition shareholders who opt for this option may also benefit from certain tax credits depending on circumstances such as whether or not losses occurred during sale process (Greene et al., 2020).
Overall, both options have their pros and cons but ultimately it is best for each seller individually determine what works best based on their current financial situation and goals. By considering these factors along with any applicable laws they should be able make an informed decision that leads towards satisfactory outcome.