When is a cake really a cake? When a court says so

Many people are happy to have cake, a cookie or a biscuit, but as UK-based Jaffa Cakes discovered in the early 1990s, the precise definition determined exposure to the UK’s value-added tax. Fortunately for manufacturer McVitie’s, a British court ruled that the snack was a cake rather than a biscuit, and thus no VAT tax could be levied.