James F. McDonough
Of Counsel
732-568-8360 jmcdonough@sh-law.comKey Contacts
Back
A number of companies have coming under scrutiny in recent months, as the U.S. reconsiders its corporate tax policy. The latest of these companies is the Peoria-based construction equipment manufacturer Caterpillar Inc., which is being probed by a U.S. Senate investigative panel to find out whether it avoided taxes by improperly moving profits overseas, according to Bloomberg. Two people familiar with the matter told the news source that the Senate’s Permanent Subcommittee on Investigations will hold a hearing in early April. Rachel Potts, a spokeswoman for Caterpillar, and Gordon Trowbridge, a spokesman for Subcommittee Chairman Carl Levin, both declined to comment.
Caterpillar’s overall tax rate has fallen steadily over the last 14 years, as it has moved more of its profits outside the U.S., according to Financial Times. The company was paying a tax rate of 32 percent in 1999, a number that fell to 25.7 percent in 2013. Over the same period of time, Caterpillar’s activities outside of the U.S. fell from 26 percent of its profits to 62 percent.
In 2009, Caterpillar Inc. was accused by then tax strategy employee Daniel Schlicksup of using a “Swiss structure” to offshore profits resulting in a $2 billion reduction in the companies tax rate, according to Bloomberg. According to the complaint, the Swiss structure involved “many shell corporations with no business operations,” in which management was shifted to offshore companies while in actuality continuing in the U.S. Schlicksup’s complaint also alleged that Caterpillar used a “Bermuda structure” to repatriate profits without paying U.S. taxes.
Schlicksup’s lawsuit, including the allegation that Caterpillar executives had retaliated against him, was settled in 2012, according to the news source. Caterpillar executives denied the allegations.
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
BESS Interconnection: Managing Grid, Cost, and Schedule Risk
For battery energy storage system (BESS) developers, securing equipment and site control is only part of the development equation. A project must also connect to the electric grid, and increasingly, BESS interconnection is one of the biggest sources of schedule, cost, and contractual risk. Key Takeaways This article is Part 3 of our Battery Storage […]
Author: Nicholas Wall
Navigating Director and Officer Liability in Times of Financial Distress
Director and officer liability increases sharply when a company is in financial distress. Decisions that would draw little attention in a healthy business can later be challenged by creditors, shareholders, bankruptcy trustees, and regulators as breaches of fiduciary duty, fraudulent transfers, or oversight failures. Understanding where that exposure comes from, and how to manage it, […]
Author: Michael Mietlicki
Before You Buy: Managing Real Estate and Permitting Risk for BESS Projects in New York and New Jersey
For developers pursuing battery energy storage system (BESS) projects, finding the right property is only the beginning. BESS site selection is as much a legal and transactional exercise as a real estate decision, with risk analysis central to the project’s ultimate success. Key Takeaways The core questions for BESS site selection in New York and […]
Author: Nicholas Wall
What Business Owners Get Wrong Before Meeting a Litigation Attorney
What should you expect when meeting a litigation attorney about a business dispute? You should expect to describe the dispute in your own words, hand over the most important documents, flag any deadlines or immediate threats, and leave with a clearer picture of the problem, what information is still needed, and the likely next steps. […]
Author: Michael Mietlicki
Arbitration vs. Litigation vs. Mediation: What New Jersey Businesses Should Know Before Signing a Contract
Arbitration resolves disputes privately before an arbitrator whose decision is usually final, while litigation resolves them in court with full rights of appeal. Whether a business ends up in arbitration or litigation is often decided when it signs the contract, long before any dispute arises. Key Takeaways When facing a contract dispute, carefully consider your […]
Author: Graham Staton
Can You Own Part of a New Jersey Business Without a Written Agreement?
Can you own part of a business in New Jersey without a written agreement? Yes, it is possible. Under New Jersey’s Uniform Partnership Act, a partnership can arise when two or more people carry on a business as co-owners for profit, whether or not they ever intended to form one. Ownership doesn’t necessarily depend on […]
Author: Michael Mietlicki
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.