Business
1:38 pm
Fri March 21, 2014

Caterpillar reportedly under investigation by Senate panel

Bloomberg is reporting a U.S. Senate investigative panel is examining Caterpillar.  The investigative panel is reportedly examining whether the company avoided U.S. taxes by moving profits outside the country. 

The report cites three people familiar with the inquiry. The Senate panel is expected to hold a hearing on the subject next month. A spokesman for the subcommittee declined confirmation.  

Caterpillar spokeswoman Rachel Potts declined to comment in the report. However, a former employee familiar with Caterpillar’s tax strategy alleged in a 2009 lawsuit the company used a “Swiss structure” to shift profits to offshore companies and avoid more than $2 billion in U.S. taxes. Former employee Daniel Schlicksup also alleged the company took other actions involving shell companies to return profits to the U.S. without paying required taxes.