Government report in NYT calls tax fraud ‘deliberate’
A week after federal law enforcement raided its Peoria, Ill., headquarters, the scope of Caterpillar’s alleged fraudulent tax practices is becoming clearer.
A Dartmouth professor commissioned by a yet-to-be specified government organization to investigate the company’s actions labeled them ‘deliberate’, saying it intentionally manipulated its bookkeeping and accounting records to keep a higher share price.
The report also found that the scheme was facilitated through a ‘network of foreign subsidiaries’. It claims a company-wide strategy for bringing home billions of dollars from offshore affiliates while avoiding federal income taxes on those earnings. The document is 85 pages in full, and has not been released to Caterpillar or the public yet.
In the meantime, Caterpillar stock has suffered dramatically to the point of weighing down the Dow Jones Industrial Average.
On the same day of last week’s raid, at least one of the company’s branches had something to celebrate. A Clayton, N.C., Caterpillar plant reached its 25-year anniversary on March 2.