Caterpillar Inc. (NYSE:CAT) on Friday denied it had engaged in any wrongdoing in respect to its federal tax requirements, responding to both a scathing report submitted this week by independent investigators and a recent raid on its corporate headquarters.
Written by StockNews.com
“The IRS has challenged Caterpillar’s taxes for years 2007 – 2012,” the company in a statement. “We disagree with the IRS’ position, have cooperated for requests for information, and believe that we are compliant with tax laws and stand by our financial reporting.”
“Caterpillar takes very seriously its obligation to follow tax law and pay what it owes,” CAT added.
Last week, the company’s corporate headquarters was raided by federal agencies, including the Internal Revenue Service, which informed CAT that it owed some $2 billion in additional taxes stemming from profits it had allegedly hidden in a Swiss subsidiary.
Earlier this week, a damning report was delivered to federal regulators indicating Caterpillar’s actions were “deliberate and primarily with the intention of maintaining a higher share price.” It also found the actions “were fraudulent rather than negligent.”
The federal raids recently conducted on three CAT properties also included the U.S. Department of Commerce Office of Export Enforcement, and the Federal Deposit Insurance Corp.’s office of inspector general, along with the IRS.
Caterpillar Inc. shares were trading at $92.31 per share on Friday afternoon, up $0.92 (+1.01%). Year-to-date, CAT has gained 0.36%, versus a 6.15% rise in the benchmark S&P 500 index during the same period.
CAT currently has a StockNews.com POWR Rating of B (Buy), and is ranked #25 of 58 stocks in the Industrial – Machinery category.
