Subway bread isn't bread, Irish court says

LONDON (AP) " Ireland's Supreme Court has ruled that bread sold by the fast food chain Subway contains so much sugar that it cannot be legally defined as bread.

The ruling came in a tax dispute brought by Bookfinders Ltd., an Irish Subway franchisee, which argued that some of its takeaway products - including teas, coffees and heated sandwiches - were not liable for value-added tax.

A panel of judges rejected the appeal Tuesday, ruling that the bread sold by Subway contains too much sugar to be categorized as a 'staple food,' which is not taxed.

'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, and thus exceeds the 2% specified,' the judgement read.

The law makes a distinction between 'bread as a staple food' and other baked goods 'which are, or approach, confectionery or fancy baked goods,' the judgement said.

Bookfinders was appealing a 2006 decision by authorities who refused to refund value-added tax payments. Lower courts had dismissed the case before it reached the Supreme Court.