CFOSnafu.com » Exemptions have never been so delicious

Exemptions have never been so delicious

July 10, 2008 by Shane Borer
Posted in: "They're saying WHAT is exempt??", Assessments, Compliance, In this week's e-newsletter, Latest news & views

Navigating state and local taxes can be exhausting. Luckily, you now have an exempt snack to help ease the burden.

After a lengthy tax dispute in a London courtroom, Procter & Gamble lawyers were able to successfully argue that Pringles are not potato chips.

Potato chips and potato-derived snacks (made from potato flour, potato starch, etc.) are subject to a 17.5% London sales tax. Pringles’ key defense — the “crisps” aren’t even made from potato — they’re slices of baked dough.

The snack eventually met the judge’s very “technical” three-pronged requirement for exemption:

  1. They don’t look like a chip
  2. They don’t feel like a chip, and
  3. They don’t taste like a chip.

For purposes of tax exemption, Pringles aren’t “made from the potato,” said the judge. He didn’t specifically say what Pringles were, other than “tax-exempt.”

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One Response to “Exemptions have never been so delicious”

  1. Michael Says:

    It isn’t just a London Sales tax. The wonderful tax is charged where ever you are in the UK.
    In fact ‘Value Added Tax’ as it is called is charged all over the European Union, at differing rates per Country so all you American tourists be sure to take your tax exemption certificates as it is only levied on those unfortunates that live in the ‘Union’

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