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The home of the toasted sub just got roasted.
Yesterday, Ireland's Supreme Court ruled the starch used in Subway sandwiches is too sugary to meet the legal definition of "bread."
And the decision is expected to cost Subway some dough.
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The controversial ruling relates to a tax dispute that began in 2006 when a Subway franchisee operating in Galway sought a refund for taxes paid during the previous two years.
Under Ireland's Value-Added Tax Act of 1972, sugar can comprise no more than 2% of the weight of the flour used for the dough to be considered a "staple" food item. The sugar content in the dough baked for Subway sandwiches comes in at 10%.
All six of the company’s bread options were deemed too sugary by the court to qualify as bread.
- Ireland Justice Donal O’Donnell (perfect) said his interpretation was "consistent with common sense."
- A statement from Subway asserted that its bread "is, of course, bread.” It went on, "We have been baking fresh bread in our stores for more than three decades and our guests return each day for sandwiches made on bread that smells as good as it tastes.”
The Takeaway: This is not Subway's first ingredient mishap. In 2014, Subway removed the flour whitening agent azodicarbonamide from its products after an online petition. Azodicarbonamide is commonly used to manufacture yoga mats and carpets and has been banned by the European Union and Australia.