Ireland’s Supreme Court rules Subway sandwiches have too much sugar to meet legal definition of breadhttps://www.marketwatch.com/story/irelands-supreme-court-rules-subway-sandwiches-have-too-much-sugar-to-meet-legal-definition-of-bread-2020-10-01?mod=home-pageIreland's Supreme Court ruled this week that Subway sandwiches are more pastry than bread.
The nation’s highest court ruled on Tuesday that bread in the franchise’s sandwiches do not meet the legal definition of bread and are, therefore, subject to a value added tax of 13.5%. Ireland’s VAT Act of 1972 states that ingredients in bread such as sugar and fat should not exceed 2% of the weight of flour in the dough, the five-judge bench said. In Subway sandwiches, that weight hovers at 10%.
Irish Subway franchisee Bookfinders Ltd. appealed a decision by a lower court. The Supreme Court’s decision ends a 14-year-long court battle. “The argument depends on the acceptance of the prior contention that the Subway heated sandwich contains ‘bread’ as defined, and therefore can be said to be food for the purposes of the Second Schedule rather than confectionery,†the court ruled.
A spokeswoman for the U.S.-based franchise chain told MarketWatch: “Subway’s bread is, of course, bread. We have been baking fresh bread in our restaurants for more than three decades and our guests return each day for sandwiches made on bread that smells as good as it tastes.†The company is currently reviewing the tax ruling.
I realize the law does not target Subway, but it's clearly arbitrary and dumb. My guess is that Subway adds a bit of extra sugar in their recipe to help the yeastie-beasties multiply and thus enable their in-store-baked-bread business model.
