‘That money talks I’ll not deny, I heard it once: It said, Goodbye.’ –Richard Armour
Food intended to be eaten hot, and supplied hot, is subject to 20 per cent VAT. Food intended to be eaten hot, but not supplied hot – fish and chips bought in a supermarket – is zero rated. But what of food supplied hot and intended to be eaten cold such as freshly baked bread? (…)
Fine, but arbitrary, distinctions, are endemic in tax systems. But problems such as these are not confined to tax policy. When we regulate bank capital, we observe that a loan to another financial institution differs from a mortgage. But what of a loan to another financial institution whose repayment depends on the performance of a mortgage?
photo { Bill Owens }
