From the Editorial Board

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The tax deductibility of interest expenses is an issue for companies. However, the interest limitation rule may restrict the tax-effective deduction for interest expenses of a business to 30% of the EBITDA. The German Supreme Tax Court (BFH) has submitted the interest limitation to the German Federal Constitutional Court to examine its constitutionality (BFH I R 20/15; 2 BvL 1/16). Since the interest limitation has been introduced by European secondary legislation (Art. 4 ATAD; Anti-Tax-Avoidance Directive) in all EU Member States, and the German rule corresponds exactly to Art. 4 ATAD, the decision of the German Federal Constitutional Court (BVerfG) will have a great signaling effect. The unconstitutionality of the interest limitation rule may prevent important tax policy goals of limiting tax-related debt financing of businesses and corporations from being achieved. According to the BFH, the German Federal Bar Association and the predominant opinion in the German literature, the interest limitation rule violates the ability-to-pay principle under Article 3 (1) of the German Basic Law. However, the existing analysis falls short. An economic and legal analysis of the interest limitation shows that it does not violate constitutional law. Under constitutional law, the legislator may limit the amount of the tax-effective deduction of business expenses to interest expenses that are customary in the market. In doing so, the legislator can use recognized financial ratios, such as the interest-coverage ratio (ICR) that stands behind the 30% EBITDA limit. Constitutional law does not provide for an unlimited tax deduction of interest expenses.
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Unconstitutionality of the Interest Limitation? Evidence from Germany: Adequate amount of interest expense in an enterprise and interest coverage ratio

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For more than half a century scenario planning has been part of the toolbox for many strategic planners. The usefulness of the scenario approach is emphasized in turbulent times, as the ones we are living at present. Besides having proven its role in traditional strategic decision making, scenario planning can create value for a number of different purposes. In this article we briefly describe the history of scenario planning and its application in the field of strategy. Our main contribution is in highlighting other application areas for scenarios, like innovation, leadership, branding etc. Scenarios are in our opinion an excellent method to create appreciation for alternatives. And, at best, they contribute to exploration and learning of strategic territories that the decision maker has not been paying attention to. From “thinking the unthinkable” we now use scenarios to spot opportunities and build road maps to preferable futures. A proper scenario process allows disagreement of potential developments become an asset for the organization, fostering a constructive strategic discussion. And uncertainty becomes a friend, not a risk.
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Scenarios – the art of bringing the future into today’s decision making!

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The importance of innovation has always been important for the economic growth and the quality of life of the humankind. But in the latest years the awareness of its importance is growing and has led to systematic study of the process and the characteristics of innovation. The paper is first giving an overview of the science of innovation, partly with the help of an innovation, the Artificial Intelligence. Then the paper focuses on differences in the level of innovation and tries to explain them by comparing innovative solutions to a well-known problem from the field of construction.
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The innovativeness of innovations

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Industrial transformation is occurring now; the world is in the era of rapid industry movement into a collaborative robot (Cobot), empowering the human workforce, improving the project management processes, and optimizing manufacturing and supply chain procedures by utilizing the supercomputer and Generative Artificial Intelligence (GenAI) capability. GenAI is advancing and gaining traction in various economic sectors and the routine operations of businesses and people. The Fourth Industry Revolution (Industry 4.0), which focused on technical innovation, efficiency, profitability, and quality (driven by information technology (IT) and automation), gradually gave way to the Fifth Industry Revolution (Industry 5.0), which built on Industry 4.0's achievements but placed a stronger emphasis on human wellbeing, and resilience environmental sustainability. Industry 5.0 carries more societal responsibility for human-centric matters while maintaining economic growth objectives, complementing the current Industry 4.0 and together creating what is called the “Techno-Social Revolution.” The role of GenAI is positive in project management and would generate tremendous benefits to project managers, especially in large data analysis, decision-making, and automation of processes, yet GenAI is probably faced with many legal arguments against its deployment. Some of these are accountability for errors and omissions, misguided actions, data privacy, and proprietary information security. However, implementing a governance policy of tracking and auditing processes on GenAI decisions would establish proper accountability and responsibility. Additionally, adopting a multi-layered strategy that involves extensive risk assessments, strong security implementation, ongoing monitoring, training, machine learning, and evaluation of GenAI outputs mitigates these issues. Close collaboration between project managers, IT, and cybersecurity in setting up best practices and rules for employing GenAI will mitigate the legal challenges. Lastly, being open and clear with stakeholders regarding the usage of GenAI and the security and privacy precautions adopted assists in reaching agreeable legal terms and conditions.
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The Role of Generative AI in Managing Industry Projects: Transforming Industry 4.0 Into Industry 5.0 Driven Economy

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In an era where the transformation of knowledge into innovation and its successful commercialisation holds paramount significance, this paper explores how universities can turn their research into valuable products and impact the global market. It highlights the substantial impact of collaboration across different phases on innovative concepts, accentuating its influence on the quality of commercialisation. Data collection and market research findings indicate the pressing need for an efficient platform to facilitate collaborative endeavours. As a proposed solution, SCIONS encourages collaboration, sparks creativity, augments commercial prospects, and nurtures practical problem-solving. As a seamless, community-driven platform, it empowers academia to proffer scientific solutions to industry requirements and fosters a competitive marketplace for academic research solutions.
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Fraunhofer Innovation Platform for Advanced Manufacturing at the University of Twente

Unlocking the Commercialisation Process for Academic Ideas and Their Global Market Impact

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Volume 3 (2023): Issue 1 (January 2023)

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Law and Business

 Law and Business is a peer-reviewed, fully open access online journal, that publishes research papers, reviews and news on a broad range of business law topics, including corporate governance, securities regulation, market regulation, employment law, the law of mergers and acquisitions, economics, international trade, law and new technologies, ADR law, environmental protection, issues of business ethics and socially involved business.  Our mission is to make scholarly contribution to all areas of law that impact business theory and practice. In particular, we want to promote legal concepts and solutions supporting the development of business based on social dialogue and responsible cooperation of partners in economic relations, in accordance with the principles of corporate social responsibility.  We are confident that Law and Business will become an essential resource for students and provide a meaningful contribution directly relevant to scholars and practitioners of business law and an inspiration for further research and scientific discussions.  Academics, judges, and practicing lawyers are invited to submit research papers, studies or comments that correspond to the journal's profile.  Archiving  Sciendo archives the contents of this journal in Portico - digital long-term preservation service of scholarly books, journals and collections.  Plagiarism Policy  The editorial board is participating in a growing community of Similarity Check System's users in order to ensure that the content published is original and trustworthy. Similarity Check is a medium that allows for comprehensive manuscripts screening, aimed to eliminate plagiarism and provide a high standard and quality peer-review process. 

Law and Business

Volume 3 (2023): Issue 1 (January 2023)

Editorial

From the Editorial Board

Articles

Unconstitutionality of the Interest Limitation? Evidence from Germany: Adequate amount of interest expense in an enterprise and interest coverage ratio

Scenarios – the art of bringing the future into today’s decision making!

The innovativeness of innovations

The Role of Generative AI in Managing Industry Projects: Transforming Industry 4.0 Into Industry 5.0 Driven Economy

Unlocking the Commercialisation Process for Academic Ideas and Their Global Market Impact

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