Two decisions issued in July, one by the Court of Federal Claims (Greiner v. United States)1 and the other by the Tax Court (Qinetiq U.S. Holdings v. Commissioner),2 address situations where, in the context of a sale or other disposition of a business conducted by a corporation, amounts were paid with respect to stock or stock options previously issued to an executive of the corporation, and either the executive or the corporation sought more favorable tax treatment with respect to the amounts paid than would have been expected based on prior tax reporting positions by the same or related taxpayers. In both cases the government prevailed.
‘Greiner’
Jeffrey Greiner was president of Advanced Bionics Corporation and received stock options as part of his overall compensation. In 2004, Advanced Bionics became a subsidiary of Boston Scientific Corporation through a merger.
