Caterpillar Inc. facilities raided by IRS and other agencies in investigation over possible tax evasion using offshore shell companies

Multiple federal agencies including the Internal Revenue Service’s Criminal Investigation Division and the Commerce Department, raided  and searched three of Caterpillar’s facilities in Illinois — including its headquarters . The search warrant, issued by Justice Harold Baker, United States District Court Judge from the Central District Federal Court in Illinois, specified a search for evidence of misleading reports related to the company’s exports. It included requests for documents regarding the export of any product from the United States or from any U.S. company and also sought documents regarding the relationship between Caterpillar Inc. and CSARL or any other foreign country.

The investigation may relate to a Report issued by the United States Senate In 2014,  titled ‘Caterpillar’s Offshore Tax Strategy.’ The report alleges Caterpillar used the subsidiary to avoid paying $2.4 billion in taxes over a period of 13 years. It discusses the details of which Caterpillar has shifted much of its profits to Switzerland and references dealings of Caterpillar subsidiary CSARL in Switzerland was the focus of the search, agents were authorized to collect documents about Caterpillar’s sales outside the U.S. and shipments to any other foreign country.

Also in a related event, in a lawsuit filed by Daniel Schlicksup alleging wrongful termination, allegations were made that the company shifted profits overseas to offshore shell companies in order to avoid paying more than $2 billion in U.S. Taxes.

 

Jeffrey Newman represents whistleblowers