India is one of the many countries who are known for their high tax brackets. Hence different companies just like us individuals try to find tactics to avoid these taxes. One of the most notable example here is of Kitkat.
The story begins during 1999 when the taxes for chocolate were quite high at 20%. However the taxes for wafers were only 10%. So Kitkat decided to file for only 10% since they are a wafer coated with chocolate. But the tax officials were not quite happy about this. But finally the court decided that chocolate must have cocoa to be considered a chocolate however one without cocoa is not chocolate, whereby Kitkat at that time proved that they were only using chocolate as a flavouring and also marketing it as a wafer. Hence Kitkat only had to pay 10% taxes.
However in 2013, Kitkat was fined by the the Central Excise Duty due to the same reason where the officials pointed put that Kitkat was using milk chocolate as their coating and even marketing themselves as chocolate.