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Howard Schultz CEO of Starbucks poses during an interview with Reuters in Shanghai April 19, 2012. REUTERS/Carlos Barria

Starbucks CEO says in talks on UK tax payment: paper
Starbucks CEO says in talks on UK tax payment: paper
Posted : Wednesday, 05 December 2012 05:20PM

(Reuters) - Starbucks Corp <SBUX.O> Chief Executive Howard Schultz on Wednesday said the coffee chain is in talks about paying income taxes in the UK, despite the fact the company has not made a profit in that market for many years.

"We are engaged in discussions to make a contribution - despite the fact that we have not made a profit - that would legally put us in a position to pay income taxes," Schultz said in an interview with Reuters.

The Independent newspaper on Wednesday reported that Starbucks is close to a deal with HM Revenue & Customs that could see it pay between 5 million and 6 million pounds ($8.05 to $9.66 million) in corporate tax this year.

Starbucks repeatedly has said that it has been in compliance with UK tax laws.

Schultz did not elaborate and the company is expected to make a formal announcement on Thursday.

($1 = 0.6241 British pounds)

(Reporting by Lisa Baertlein in New York, editing by G Crosse)

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