Caterpillar faces tax adjustment on profits from spare-parts business


Caterpillar (CAT) has received a notice that the Internal Revenue Service is proposing to adjust the amount of tax that the company should pay on profits earned by its Swiss subsidiary for transactions involving its spare-parts business.

The notice comes after a Senate report found that Caterpillar avoided paying $2.4B in taxes from 2000 to 2012 by shifting $8B in profit from its parts-manufacturing division in the U.S. to Switzerland, although the IRS's notice covers tax returns for 2007-2009 only.

Caterpillar intends to appeal any changes to the tax it must pay. (10-K)

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Comments (3)
  • jmswaldo
    , contributor
    Comments (48) | Send Message
     
    this obama administration, with their TAX,TAX,TAX is going to run everybody out of the USA !
    4 May 2014, 03:02 PM Reply Like
  • Robert 7809591
    , contributor
    Comments (958) | Send Message
     
    The IRS can propose anything they want. This is news for the yahoo front page??? Foreign companies have been doing this for DECADES. They set up a foreign subsidiary in some zero tax country, then recognize all the profit there, while the U.S subsidiary shows losses or just breaks even. Why should Cat be any different. Do liberals want to pay more when they don't have to? Show me. I have a crazy idea. Don't have the highest corporate tax rate in the world and with only tax deductions like this the very largest companies can take advantage of. But when you say this to a liberal they just don get it. They think well if we lower the rates (and get rid of these deductions) that means business is getting a break. They just want rates to go up AND get rid of the deductions. Lets just confiscate Cats property in the U.S. They want Obama to break business not hand out breaks. They don't get the more transactions an economy produces the more tax revenue government will collect. Tax rates can only go up, never down. Meanwhile the Obama recovery is half as good as previous recoveries with one tenth of a percent economic growth. 288 thousand jobs were created but 800 thousand people quit looking for work. What an economic success story.
    4 May 2014, 04:02 PM Reply Like
  • skipmac
    , contributor
    Comments (55) | Send Message
     
    AMEN. Give Obama and his administration a steel ball with a piece of cotton, and the odds are 100 to 1 that they will scratch it up instead of shining it up.
    4 May 2014, 07:25 PM Reply Like
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