Los Angeles, July 20 - Yum Brands Inc., parent of the KFC, Taco Bell and Pizza Hut fast-food chains, said Friday it could have to make some additional material tax payments stemming from a dispute with the Internal Revenue Service.
In a regulatory filing, Yum said the IRS had proposed certain tax adjustments, claiming the company did not file gain recognition agreements in connection with certain transfers of foreign subsidiaries.
Yum said it will contest any proposed adjustment and that it could not give a meaningful estimate for any potential payments. It added, however, that "given our strong defenses to the IRS' position, that any payments we would make ... would not have a significant adverse impact on the company's financial results or condition."