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September 20, 2021
International

Caterpillar seeks ex-U.S. attorney general’s help over govt probe

Image: The CAT logo is seen on the back of a Caterpillar machine on a lot at Milton CAT in North Reading, Massachusetts January 23, 2013. REUTERS/Jessica Rinaldi

(Reuters) – Caterpillar Inc  has tapped former U.S. Attorney General William Barr to help the company address an ongoing government investigation of its import and export practices.

Earlier this month, U.S. law enforcement officials raided three of the heavy machinery manufacturer’s Illinois facilities as part of an Internal Revenue Service probe related to profits earned by the company’s Swiss parts unit, Caterpillar SARL.

The IRS has demand that the company pay $2 billion in taxes and penalties for profits assigned to the Swiss unit.

The unit was also the subject of a 2014 Senate committee report that concluded Caterpillar shifted billions in profits abroad and had $2.4 billion in taxes deferred or avoided from 2012.

“I have asked Bill – who has no prior connection with Caterpillar – to draw on his experience … to take a fresh look at Caterpillar’s disputes with the government,” Chief Executive Jim Umpleby said in a statement on Thursday.

Barr served as the 77th attorney general when George H.W. Bush was president. Before that he was the deputy attorney general and assistant attorney general in charge of the U.S. Department of Justice’s Office of Legal Counsel.

He also served for over 14 years as executive vice president and general counsel of Verizon Communications Inc <VZ.N>.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Maju Samuel)

Copyright 2017 Thomson Reuters. Click for Restrictions.

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