Pringles: Crisp or Biscuit

[jackosotc]

Well those damn tax dodgers down at the pringle factory have been claiming that pringles are infact biscuits not crisps therefore being exempt from VAT however a court ruling has found that they believe it is infact a crisp therefore forcing them to cough up. What do you recon?

story here

Pringles lose Appeal Court case

Procter & Gamble will be forced to pay tens of millions of pounds in VAT after losing a legal battle with the taxman over its Pringles snack.

The Court of Appeal ruled in favour of the Revenue, which has long maintained that Pringles constitute a potato snack and are, therefore, liable for VAT.

A High Court judge ruled last summer that the snack was exempt from the tax.

Foods are usually exempt from VAT, but one of the few exceptions is the humble potato crisp.

'Reasonable view'

A High Court judge ruled last July that Pringles' packaging, "unnatural shape" and the fact that the potato content is less than 50% meant the snack was exempt from VAT.

The Appeal Court judges disagreed.

"There is more than enough potato content for it to be a reasonable view that it is made from potato," said Lord Justice Jacob.

Potatoes make up 42% of the Pringles' ingredients.

He added that the lawyer acting for the Revenue advised him the VAT due on the sale of Pringles was "as much as £100m of tax for the past and about £20m a year for the future."

But a spokesperson for Procter & Gamble said the company had been paying VAT on the snack pending the appeal process, and so was not liable for any back taxes.

Unnatural

While praising the "simplicity and common sense" of the judges, Toby O'Reilly, director in indirect tax at Ernst & Young, said an opportunity had been missed to provide "coherent guidance" on which snacks are, and which are not, subject to VAT.

At last year's High Court hearing, Procter & Gamble insisted that their best-selling product was not similar to potato crisps, because of their "mouth melt" taste, "uniform colour" and "regular shape" which "is not found in nature".

It also argued that potato crisps - unlike Pringles - did not contain non-potato flours, and were not packaged in tubes.

Pringles are more like a cake or a biscuit, it claimed, because they are manufactured from dough.

[Santa_Rosa]

Crisp. And orrible.

[Genie]

100% crisp..... Jaffa cakes however, biscuit or cake? (I am aware there is a clue in the name but for there is no way it is a cake).

[El Zen]

Crisp. Used to love them as a kid, but when I bouth i tube a few weeks ago I realised they are crap.

[bickster]

100% crisp..... Jaffa cakes however, biscuit or cake? (I am aware there is a clue in the name but for there is no way it is a cake).

Obviously its a crisp.

But on the other point if something is made of sponge and has a chocolate and fruit topping it is clearly a cake, as the courts eventually correctly ruled much to the ire of Her Mag's revenue boys

But proctor and gamble having to pay the govt millions of quids amuses me greatly

[jackosotc]

I thought jaffa cakes were infact biscuits as though go softer when stale, i presumed it was like this a cake when stale goes from soft to hard, a biscuit when stale goes from hard to soft

[Stevo985]

A cake goes hard when it goes stale and a biscuit goes soft. A jaffa cake goes hard therefore is a cake.

[mjmooney]

I thought jaffa cakes were infact biscuits as though go softer when stale, i presumed it was like this a cake when stale goes from soft to hard, a biscuit when stale goes from hard to soft

You obviously haven't eaten stale jaffa cakes lately; they go hard.

Jaffa cakes and Pringles do share one property, which is that "Once you pop you can't stop". In both cases, once I open the packet I HAVE to eat the lot in one go.

I'm pretty sure that (in Pringles at least) this is due to the massive amount of MSG in them. One of our cats loves them as well - he usually begs quite politely, but with Pringles he loses all control and will try and snatch them out of your hand before they get to your mouth.

EDIT: He can also hear a tube being opened from a VERY long way off.

[rjw63]

Crisp - so pay up Proctor and Gamble you tax dodging words removed

[jackosotc]

I thought jaffa cakes were infact biscuits as though go softer when stale, i presumed it was like this a cake when stale goes from soft to hard, a biscuit when stale goes from hard to soft

You obviously haven't eaten stale jaffa cakes lately; they go hard.

Jaffa cakes and Pringles do share one property, which is that "Once you pop you can't stop". In both cases, once I open the packet I HAVE to eat the lot in one go.

I'm pretty sure that (in Pringles at least) this is due to the massive amount of MSG in them. One of our cats loves them as well - he usually begs quite politely, but with Pringles he loses all control and will try and snatch them out of your hand before they get to your mouth.

ha do they? i havent had a jaffa cake in years oops ok right then jaffa cakes are indeed a cake

hmm i must try this giving pringles to an animal to see the results it sounds like fun

[TheDon]

I can see their point, they aren't crisps in the traditional sense, you don't cut a pringle from a potato, potato is just used in the dough used to make them. In law it's not as simple as if it looks like a crisp it is a crisp, it has to actually be one as well.

People seem to lack reading comprehension as well, they won't be forced to pay millions in back taxes because:

But a spokesperson for Procter & Gamble said the company had been paying VAT on the snack pending the appeal process, and so was not liable for any back taxes.

[NulliSecundus]

Crisp - so pay up Proctor and Gamble you tax dodging words removed

This

[Straggler]

Is a cow cut in half art? Is a crisp made of dough a cake? It's a silly argument to say that the shape and packaging make a difference. Hula Hoops don't look like potatoe neither do skips. I'm darn sure monster munch and onion rings are crisps too, despite names that would suggest otherwise. I could stick a tampax up my arse and call it a vagina, but the same sh*t would still come out.

[Jondaken]

All cakes are cakes.

That is all I know.

[TheDon]

I'm darn sure monster munch and onion rings are crisps too, despite names that would suggest otherwise.

Well, technically they are corn snacks, but still subject to vat as they are made from swelling cereals.

Doritos on the other hand, are VAT free as they're made from non-swelling corn.

[bickster]

I can see their point, they aren't crisps in the traditional sense, you don't cut a pringle from a potato, potato is just used in the dough used to make them. In law it's not as simple as if it looks like a crisp it is a crisp, it has to actually be one as well.

People seem to lack reading comprehension as well, they won't be forced to pay millions in back taxes because:

But a spokesperson for Procter & Gamble said the company had been paying VAT on the snack pending the appeal process, and so was not liable for any back taxes.

And others obviously also lack reading comprehension because the revenues point was that a Pringle was a potato snack not a crisp, so I can see their point too, it is a snack food and it is made from potato ;-)

[jackosotc]

I'm darn sure monster munch and onion rings are crisps too, despite names that would suggest otherwise.

Well, technically they are corn snacks, but still subject to vat as they are made from swelling cereals.

Doritos on the other hand, are VAT free as they're made from non-swelling corn.

Ive just also found out that mini cheddars, wheat crunchies and twiglets are also excempt from VAT

[jonno_2004]

Crisp.

[LondonLax]

Why are biscuits exempt from VAT anyway? They are junk food snacks also...

[rjw63]

Pringle?

Crisp

97%

97% [ 44 ]

Biscuit

2%

2% [ 1 ]

Total Votes : 45

Just HAS to be one doesn't there? :-)