In summer 2018 PKS Germany received an urgent requirement from TC Group UK, both members of the BOKS network.
Within 24 hours the client of TC was contacted by PKS Germany to solve the following problem:
A major supplier of Superior UK Ltd had fallen into insolvency. A number of high class vehicles of Superior UK, had been in the process of a complete conversion at their German supplier in insolvency.
Together with the client and TC a plan was set up to keep as many vehicles in production as possible. Furthermore, it was of utmost importance to safeguard the client's ownership of the vehicles and supervise the processing speed at the insolvent company since the delivery of the vehicles had already been delayed for several weeks.
Due to the need of the insolvency administrator for cash a way had to be found to secure the prepayments required by the administrator to finish the vehicles in favour of Superior UK. In a first strategic meeting at site the interests of the client were made clear to the administrator who accepted most of the requirements set up in corporation with Superior UK and TC. When it became visible that the search for an investor by the administrator would not be successful, alternative measures had to be thought upon.
At the end of the process only three of the vehicles were not completed. The uncompleted vehicles were in a non-driveable condition and therefore alternative solutions had to be found to minimise the damage to Superior. PKS took the challenge to sell the vehicles through multiple channels in order to reduce the loss of the client.
After six weeks of negotiations the vehicles were successfully sold within Germany, leading to some international tax questions regarding VAT. Since BOKS TC and PKS are offering a one-stop shopping, this problem was also addressed and solved in a joint manner.
Therefore, the joint work was setup and Steve McIntyre, VAT Partner at TC-Group, and Sven Semmler, Tax Partner at PKS, started collaborating on the question, if a cross-border VAT situation arose through the bankruptcy of Superior´s German business partner and the current location of the goods in Germany (temporary intra-Community movement). This work involved the registration process with the German tax authority, the punctual submission of advance VAT returns and the submission of yearly VAT returns, as well as the communication with the tax authority and the insolvency administrator.
Working together closely with Superior and TC was a great pleasure and supported by the following testimonial of Superior UK:
“Just to say thank you all very much for all your help and assistance over the past year, I will certainly feedback to TC what great asset you have been.”