Senate panel to hold hearing on Caterpillar offshore taxes
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[March 25, 2014]
WASHINGTON (Reuters) — A U.S. Senate
subcommittee known for investigating corporate tax avoidance said on
Monday it will hold a hearing on April 1 to examine the offshore tax
strategies of Caterpillar Inc, the world's largest mining and
construction equipment maker.
Witnesses at the hearing will include officials from Caterpillar and
Big Four accounting firm PricewaterhouseCoopers LLP, which gave the
company tax advice, the Permanent Subcommittee on Investigations
said in a statement.
The names of specific individuals slated to testify will be
announced on Friday, according to the statement from the
subcommittee, which is chaired by Democratic Senator Carl Levin of
Levin is expected to release a report on Caterpillar's taxes to
coincide with the hearing. "The subcommittee will continue its
examination of the structures and methods employed by multinational
corporations to allocate income outside of the United States," the
panel statement said.
Peoria, Illinois-based Caterpillar has been cooperating with the
committee's investigation, a spokeswoman said on Monday.
"We look forward to a meaningful and respectful conversation with
the senators," said company spokeswoman Rachel Potts.
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The subcommittee will probe advice that PwC gave Caterpillar during
the late 1990s and early 2000s in connection with a corporate
reorganization, a PwC spokeswoman said in a statement.
The reorganization recommended by PwC and an unidentified law firm
was "was fully compliant with U.S. international tax laws," PwC
spokeswoman Maggie O'Donovan-Bolton said on Monday.
(Reporting by Patrick Temple-West; editing by Kevin Drawbaugh and
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