IRS may increase interest in Caterpillar tax strategy - experts

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

Caterpillar (CAT) could receive more scrutiny from the Internal Revenue Service following hearings at a Senate subcommittee last week into the company's tax-avoidance strategy, some experts say.

The hearings followed a nine-month probe that dug up information that wasn't available to the IRS in the past.

The panel found that Caterpillar recorded 85% of the profits from its overseas parts sales in Switzerland, where the company's effective tax rate was 4-6%.

Caterpillar could strengthen the defense of its strategy if it were to increase its presence in Switzerland.