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Law enforcement searching for docs related to Cat's Swiss business

Friday, March 10, 2017

Update:
On March 2, 2017, law enforcement authorities entered three Peoria-area Caterpillar Inc. facilities, including the corporate headquarters, to execute a search and seizure warrant. The warrant is focused on the collection of documents and electronic information. Caterpillar is cooperating with law enforcement.

While the warrant is broadly drafted, we believe the execution of this search warrant is regarding, among other things, export filings that relate to the CSARL matter first disclosed in Caterpillar’s Form 10-K filed on February 17, 2015, and updated in Caterpillar’s most recent Form 10-K filed with the SEC on February 15, 2017.

Original:
Law enforcement searched Peoria-area Caterpillar facilities seeking any documents related to the company's business in Switzerland. The search warrant allowed law enforcement to search Caterpillar's headquarters building in downtown Peoria, the Morton logistics center and Caterpillar Building AD in East Peoria.

The warrant signed by Judge Harold J. Baker out of the Central District of Illinois in Urbana authorize law enforcement to seize any documents related to the movement of Caterpillar products between the U.S. and Switzerland, any documents related to sales outside the U.S., and a variety of documents related to Cat's Swiss subsidiary, CSARL.

A Senate hearing in 2014 investigated Caterpillar's alleged shifting of profits on foreign sales to CSARL. Media reports at the time said Caterpillar paid an effective tax rate of 4 to 6 percent on profits in Switzerland, versus 35 percent in the U.S. The Internal Revenue Service launched an investigation into the alleged practices.

The warrant signed by Judge Harold J. Baker out of the Central District of Illinois in Urbana authorize law enforcement to seize any documents related to the movement of Caterpillar products between the U.S. and Switzerland, any documents related to sales outside the U.S., and a variety of documents related to Cat's Swiss subsidiary, CSARL.

A Senate hearing in 2014 investigated Caterpillar's alleged shifting of profits on foreign sales to CSARL. Media reports at the time said Caterpillar paid an effective tax rate of 4 to 6 percent on profits in Switzerland, versus 35 percent in the U.S. The Internal Revenue Service launched an investigation into the alleged practices.

As reported by 25News

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