Cat ‘Likely’ to Win Tax Case, Company Says

July 22, 2014

According to a Marketwatch report, Caterpillar believes it is “more likely than not” to win its tax case against the IRS, which has audited the company’s tax returns from 2007 through 2009.

In April, the Senate's Permanent Subcommittee on Investigations released a report that says the company diverted profits from a parts business to a Swiss subsidiary, allowing Cat to avoid paying $2.4 billion in U.S. taxes.

"We believe that the relevant transactions complied with all applicable provisions of the U.S. Internal Revenue Code," the company said in a securities filing.

The IRS will likely make a decision within the next year, the report says.

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Source: Marketwatch