Reuters — Caterpillar Inc. said Friday it was compliant with tax laws, a week after federal law enforcement officials raided three of the company’s buildings in connection with a probe into the heavy machinery manufacturer’s offshore tax practices.
The Internal Revenue Service (IRS) has challenged the company’s taxes for the years 2007-2012, the company said in a statement on Friday.
“We disagree with the IRS’ position, have co-operated for requests for information,” Caterpillar said.
A New York Times article on Tuesday said a report commissioned by the U.S. government accused the company of carrying out tax and accounting fraud.
“I believe that the company’s noncompliance with these rules was deliberate and primarily with the intention of maintaining a higher share price. These actions were fraudulent rather than negligent,” said Leslie Robinson, an accounting professor and the author of the report, according to the Times article.
Caterpillar said it had received the report on Thursday and was reviewing it.
— Reporting for Reuters by Arunima Banerjee in Bangalore.