© 2023 WGLT
A public service of Illinois State University
Play Live Radio
Next Up:
0:00 0:00
Available On Air Stations

Caterpillar Tax Fraud Allegations Surface, Not Just Negligence


The New York Times is raising the question of Tax and Accounting Fraud by Peoria-based Caterpillar, Incorporated, not just negligence in taxes owed. Citing a confidential report to federal investigators, the Times alleges Caterpillar did not comply with either U.S. tax law or U.S. financial reporting rules.

Leslie Robinson of the Accounting Department at Dartmouth is the author of the report. The story quoted Robinson saying she believed the company's non compliance was deliberate and primarily with the intention of maintaining a higher share price.

The report outlines an alleged strategy by Caterpillar for bringing into this country billions of dollars in profits made overseas by calling them short term loans insteadf of earnings, to avoid income taxes.

Caterpillar declined comment saying it had not been provided a copy of the report.

Numerous federal agencies raided Caterpillar facilities in the Peoria area last week using search warrants for financial documents focusing on the Cat subsidiary in Switzerland.

Caterpillar has referred to tax practices in the past as prudent and appropriate.

A 2014 Senate hearing found Caterpillar cut its taxes by more than $2 billion per year by sending earnings to Switzerland. The Internal Revenue Service has been seeking that sum and the issue has been in dispute.

WGLT depends on financial support from users to bring you stories and interviews like this one. As someone who values experienced, knowledgeable, and award-winning journalists covering meaningful stories in central Illinois, please consider making a contribution.”

WGLT Senior Reporter Charlie Schlenker has spent more than three award-winning decades in radio. He lives in Normal with his family.
Related Content