The Royal Canina dog food company petitioned the US government to remove a $2 billion tax break for a protein-rich dog food.
Royal Canin’s petition, filed in the US Federal District Court, asks the Supreme Court to block the tax break, which was originally granted in 2014 to the company that makes the popular Royal Canins.
The tax break allows the company to sell its dog food and supplement line at a discount to the retail price for the same product.
However, the US Tax Court said in July that the tax breaks would not apply to food made from animals.
The US Government, however, said the tax credits were not available to businesses that are making the products for human consumption.
The company’s petition said the government should “give full consideration to the benefits that the US Department of Agriculture (USDA) and the USDA’s Animal and Plant Health Inspection Service (APHIS) receive from selling dog foods and supplements through the USDA Food Assistance Program (FAP).”
Furthermore, the FAP benefits the businesses that sell dog food through the FAPS by allowing them to receive federal tax credits.
“The petition said that a tax break that is available to all companies in the United States has not been available to Royal Canines.”
As of July 1, 2018, the IRS has not granted the FAPP tax credits to any company that sells dog foods through the FDA, USDA, or USDA’s APHIS, including Royal Canine Nutrition,” it said.
In a statement, Royal Canini said the petition was a “misleading and disingenuous” attempt to claim that the company is exempt from federal income tax.”
We stand behind the value of our products, and have made no changes to our products to comply with US tax law.
However, because of this petition, Royal canines are facing an uphill battle in getting the benefit of the tax benefits the FOP provides,” it added.
The petition is expected to be heard on March 3.