How KitKat Saved 10% Taxes

Jay Kakade

How KitKat Saved 10% Taxes ?

In 1999, KitKat fooled Government and saved about 10% tax on their Government. At this time there was 20% tax on Chocolate and 10% on Wafers. KitKat said our product is not chocolate, It is wafer only covered with Chocolate.

But Tax Department said, as it's covered with Chocolate so you need pay 20% tax.
Later this case was passed to Customs and Excise Department, who said all chocolate is cocoa but not all cocoa is chocolate. And gave judgement in favour of KitKat. 
In this way KitKat Saved 10% tax !
KitKat is mainly wafers covered with layer of chocolate but according to government KitKat was chocolate product.

Later on, KitKat company used very smart tactics and declared KitKat as wafers with contains very small amount of chocolate. KitKat bought very strong point which was favourable to their side, Company said, There is provision of 20% tax not on the chocolate products but on the Cocoa substance. 

KitKat further proved of having very less contain of Cocoa and quantity of wafers was about 70% in the KitKat and rest had were chocolate. Still it contain only 3% to 4% of Cocoa, This case was won by KitKat as the evidences were on their side.

Now, KitKat was considered as Wafers, which had tax of 10% unlike chocolate which has tax of 20%. By this intelligent tactic, KitKat was able to save its 10% tax going to government. This can be clearly understood that, KitKat pays the tax half the tax which it was supposed to be paid to government. 

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