A JOURNEY THROUGH PROVENANCE

WHY BUSINESSCARE? :: We let our results do the talking

Whisky Galore
A famous distillery was placed into receivership by its bankers.

The receivers advertised the assets for sale, announcing that trading had ceased – with the result that the substantial accumulated tax losses were no longer available. These losses were crucial to our client's proposed purchase. Following a visit to the distillery and learning that “whisky” cannot be so described until it has matured in the cask for a minimum of three years, we were able – without involving the receivers – to persuade the Inspector of Taxes that the maturation process formed an essential part of production and hence the company's trading activity. The Inspector of Taxes conceded the point on the proviso that distillation recommenced within the three-year period.

Our client acquired the assets from the receivers (who remained in blissful ignorance of our agreement with the Inland Revenue) came to terms with the company's creditors to acquire their debts, bought up all the shares for a nominal consideration from the numerous members – who like the creditors would otherwise have received nothing from the receivership – and, within the required time-scale, recommenced distillation. Thereafter our client's investment matured alongside the whisky.

The distillery continues to produce a wonderful single malt.