Senate panel to hold hearing on Caterpillar offshore taxes

|About: Caterpillar Inc. (CAT)|By:, SA News Editor

A U.S. Senate panel known for investigating corporate tax avoidance has scheduled a hearing for April 1 to examine offshore tax strategies of Caterpillar (CAT).

It's the latest in a series of efforts by the Senate's Permanent Subcommittee on Investigations to examine how U.S.-based companies allocate income among their foreign subsidiaries and how those decisions are influenced by federal tax rules; CAT said in a securities filing last month that it has received notices from the IRS saying it owes more in federal taxes.

CAT says its effective tax rate averages about 29%, "relatively high for a company with substantial earnings generated from business activities outside the U.S."