Caterpillar faces tax adjustment on profits from spare-parts business

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

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)