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classifying the sale as something which has favorable tax treatment

The UK, with a VAT/sales tax rate of about 15% has similar cases. A popular biscuit (Jaffa Cakes) are legally classed as a cake (and hence have lower VAT rate), as opposed to a biscuit that have higher VAT rates. cf. http://en.wikipedia.org/wiki/Jaffa_Cakes




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