Caterpillar — the construction equipment company — is accused of tax fraud by a government report.
Federal investigators have been looking at them and their practices of moving billions of dollars from European and overseas operations to the U.S. without paying federal income taxes.
Apparently the company did this as fraud rather than being negligent, and if the company is convicted, it could cost them heavy penalties of over $2 billion.
There are no charges yet but the investigation is ongoing. The FBI raided the Caterpillar headquarters buildings in Illinois last week and seized documents and electronic records.
A 2014 Senate hearing found that Caterpillar saved $2.4 billion in taxes over 13 years by moving earnings made in countries outside of the U.S. into a Swiss Caterpillar organization — then avoided taxes when brining the money into the U.S.
Federal law says U.S. companies who make profits overseas owe a 35% tax rate when bringing the money back to the U.S. The government report estimates Caterpillar has brought almost $8 billion back to the U.S. in the form of loans and avoided taxes on those.
We will see what happens — on if Caterpillar will be charged with tax crimes.
News Article: http://nyti.ms/2lDr2kA
Caterpillar Raided: http://fxn.ws/2n7o30N