MILFORD, CONN. — Subway responded to a Sept. 29 ruling from Ireland’s Supreme Court that its bread in Ireland does not meet the country’s definition of bread because the dough contains too much sugar.
“Subway’s bread is, of course, bread,” a Subway spokesperson said.
The court denied an appeal from Bookfinders Ltd., a Subway franchisee, that sought a refund from tax payments in 2004 and 2005, arguing in part that its bread is a staple food and thus exempt from Ireland’s Value Added Tax Act 1972.
The 1972 act gave a definition for bread. One part of the definition said sugar should not exceed 2% of the weight of the flour in the dough.
“In this case, there is no dispute that the bread supplied by Subway in its heated sandwiches has a sugar content of 10% of the weight of the flour included in the dough …” the Sept. 29 Supreme Court ruling said.
Bookfinders made VAT payments from January/February 2004 to November/December 2005 at a composite rate of 9.2%.