Monday, June 1, 2009

Pringles argues that they're NOT potato chips to avoid taxes.

Damn, I love Pringles, but what the hell are they?? Based on the below, I don't even think they could be classified as a food... From the NY Times:
Britain’s Supreme Court of Judicature has answered a question that has long puzzled late-night dorm-room snackers: What, exactly, is a Pringle? With citations ranging from Baroness Hale of Richmond to Oliver Wendell Holmes, Lord Justice Robin Jacob concluded that, legally, it is a potato chip.

The decision is bad news for Procter & Gamble U.K., which now owes $160 million in taxes. It is good news for Her Majesty’s Revenue and Customs — and for fans of no-nonsense legal opinions. It is also a reminder, as conservatives begin attacking Judge Sonia Sotomayor for not being a “strict constructionist,” of the pointlessness of labels like that.

In Britain, most foods are exempt from the value-added tax, but potato chips — known as crisps — and “similar products made from the potato, or from potato flour,” are taxable. Procter & Gamble, in what could be considered a plea for strict construction, argued that Pringles — which are about 40 percent potato flour, but also contain corn, rice and wheat — should not be considered potato chips or “similar products.” Rather, they are “savory snacks.”

The VAT and Duties Tribunal disagreed, ruling that Pringles — which have been marketed in the United States as “potato chips” — are taxable. “There are other ingredients,” the tribunal said, but a Pringle is “made from potato flour in the sense that one cannot say that it is not made from potato flour, and the proportion of potato flour is significant being over 40 percent.”

An appeals court reversed, in a convoluted opinion that considered four interpretations of the law before ultimately rejecting three of them. In the end, it decided that Pringles are exempt from the tax, mainly because they have less potato content than a potato chip.

The Supreme Court of Judicature reversed again, in an eloquent decision. Lord Justice Jacob, in an apparent swipe at the midlevel court, insisted the question was “not one calling for or justifying overelaborate, almost mind-numbing legal analysis.”

No comments: