Caterpillar Said to be Focus of Senate Tax Probe-Bloomberg

Published 03/21 2014 09:15PM

Updated 03/21 2014 09:26PM

A U S Senate investigate panel is examining Caterpillar and whether the company improperly avoided U S taxes by moving profits outside the country, according to a report Friday at Bloomberg cites sources familiar with the probe but who spoke on the condition of anonymity before an official announcement. The Senate Permanent Subcommittee on Investigations will hold a hearing in early April, according to the news report. Rachel Potts, a spokeswoman for Caterpillar declined to comment and a spokesman for chairman Carl Levin also declined to comment, according to Bloomberg. In 2009, the article says an employee who had worked on Caterpillar's tax strategy alleged in a federal lawsuit the company used a "Swiss structure" to shift profits to offshore companies and avoid more than $2 billion in U.S. taxes. He also alleged Caterpillar used a "Bermuda structure" involving shell companies to return profits to the U.S. without paying required taxes. The lawsuit was settled according to court filings, Bloomberg said. The company denied the allegations.

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