Skip to main content

Senate report says Caterpillar avoided billions in taxes

A new report from U.S. Sen. Carl Levin, chairman of the Senate Permanent Subcommittee on Investigation, says Caterpillar Inc. avoided paying $2.4 billion in taxes by shifting billions of dollars in profits to a wholly owned Swiss affiliate.

The report, which was compiled by the subcommittee’s majority staff, concluded that Caterpillar shifted $8 billion in profits from its parts manufacturing division in the United States to Switzerland, ABC News reported.

Caterpillar negotiated a tax rate of 4 percent to 6 percent with Switzerland, whose federal statutory tax rate is typically 8.5 percent.

“In the fantasyland of international tax, Caterpillar waved a magic wand to make billions of dollars in U.S. taxes disappear,” Levin told ABC. “This is a prime example of a tax avoided strategy that cost the U.S. Treasury billions of dollars.”

In a statement sent to ABC News Monday, Caterpillar said it has complied with tax laws.

“Caterpillar takes very seriously its obligation to follow tax law and pay what it owes,” Julie Lagacy, vice president with responsibility for the finance services division, said in the statement to ABC. “In fact, Caterpillar’s effective income tax rate averages about 29 percent, which is one of the highest for a U.S. multinational manufacturing company.”

Related

1_LCIEARNS

LCI Reports Increased Sales, Profit

The company said net income more than doubled in the first quarter, and sales to marine manufacturers rose 49 percent.

1_MRAAGRANT

MRAA Proposes ‘BOAT Jobs’ Apprenticeships

The association, backed by 26 marine organizations, is seeking a federal grant to fund the workforce development program.

1_NAUTICALVENTURES

Nautical Ventures Receives Dealer Recognitions

The retailer recently was recognized as dealer of the year by Axopar Boats, Flite and NautiBuoy Marine.

1_TRIGG

NMMA Hands Out Leadership Award

Hammond Marine Industry Leadership Award recipient and former Dometic executive Ned Trigg was recognized for his service to the boating industry.

1_MALIBUEARNSusethisone

Malibu Reports Record Sales, Profit

The company said revenue and net income climbed, aided by increased selling prices and an unexpectedly high number of boats delivered.

norm

New Jersey MTA Celebrates 50 years of Advocacy

As the association marks its Golden Anniversary, recalling its successes is a reminder of the important work MTAs do and why you should be a member of one.

1_ABC

American Boating Congress Begins Tomorrow

The recreational boating and fishing advocacy event is being held in-person for the first time since 2019.

1_BRUNSWICK

Brunswick Corp. Appoints Senior VP, CFO

Neha Clark fills Brent Dahl’s position as senior vice president of Enterprise Finance following Dahl’s appointment to chief financial officer of the Boat Group.

1_DIAMONDBACK

Patrick Completes Acquisition of Diamondback

The wakeboard and ski tower manufacturer will continue to operate independently under the Diamondback Marine brand.