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Senate Investigating Caterpillar Tax Strategy

Tue, 01 Apr 2014 06:21:28 CDT
By: AP

Senate Investigating Caterpillar Tax Strategy Executives from manufacturing giant Caterpillar are heading to Capitol Hill to explain what one senator calls an aggressive strategy to avoid paying billions in US taxes. Senator Carl Levin says Caterpillar has avoided paying $2.4 billion in US taxes since 2000 by shifting profits to a wholly-controlled affiliate in Switzerland. Levin chairs the Senate investigations subcommittee. His panel is holding a hearing on Caterpillar's taxes. Representatives from Caterpillar and accounting firm PricewaterhouseCoopers LLP are scheduled to testify. A report released by Levin says Caterpillar paid PricewaterhouseCoopers $55 million to develop its tax strategy. Julie Lagacy, a Caterpillar vice president, says the company complies with all tax laws. She said Caterpillar pays an effective income tax rate of 29 percent, among the highest for multinational manufacturers.

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