Paul L. Caron
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Friday, July 4, 2008

Judge: Pringles Are Not Potato Chips, So Are Exempt From U.K. 17.5% Potato Chip Tax

Pringles_2

What better fodder for the 4th of July than Pringles and a British tax decision:  Procter & Gamble UK v. Revenue & Customs, [2008] EWHC 1558 (Ch) (7/4/08).  As reported in Bloomberg:  Pringles Are Not Potato Chips, Judge Says in Tax Case, by James Lumley:

Pringles, Procter & Gamble Co.'s salty snack stacked in a tube, are not potato chips, a London judge ruled today in a tax dispute.

Pringles don't fulfill the legal definition of ``potato crisp,'' the British word for "chip," allowing them to be sold tax free in the U.K., Justice Nicholas Warren at the High Court in London ruled. Under U.K. law, most food is exempt from Britain's 17.5% sales tax. Even so, the national tax office claimed that Pringles were covered by an exception for products such as potato chips, sticks or puffs "and similar products made from the potato, or from potato flour, or from potato starch.'"

Procter & Gamble's lawyers claimed at a May hearing that Pringles don't look like a chip, don't feel like a chip, and don't taste like a chip, according to the judgment. They also claim the snack isn't made like a chip since it is cooked from baked dough, not potato slices. Potato chips "give a sharply crunchy sensation under the tooth and have to be broken down into jagged pieces when chewed," the Cincinnati-based company's lawyers argued. "It is totally different with a Pringle, indeed a Pringle is designed to melt down on the tongue."

Warren agreed. Pringles aren't "made from the potato" for the purposes of the tax office's exemption, he said. He didn't say what Pringles are, other than that they're tax-exempt.

https://taxprof.typepad.com/taxprof_blog/2008/07/bloomberg-pring.html

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Comments

"He [Justice Nicholas Warren at the High Court in London] didn't say what Pringles are, other than that they're tax-exempt."

The answer is simple: delicious.

-ATP

Posted by: Adjunct Law Prof. | Jul 4, 2008 4:36:55 PM

This reminded me of the debate about whether the chocolate covered Jaffa Cakes are cakes (exempt) or biscuits (taxed) http://en.wikipedia.org/wiki/Jaffa_Cake#Cake_or_biscuit.3F

Posted by: Fan of the Blog | Jul 5, 2008 8:13:30 AM

There was a case in MA over whether a burrito is a sandwich. http://www.boston.com/business/globe/articles/2006/11/10/arguments_spread_thick/

Posted by: Matt | Jul 8, 2008 6:19:30 AM