Caterpillar To Pay No Penalties As Settlement Of Tax Dispute

Loading...
Loading...
  • In an SEC filingCaterpillar Inc CAT revealed settling with the U.S. Internal Revenue Service (IRS), which resolves all issues for 2007 through 2016 without any penalties.
  • The company's settlement includes the resolution of the disputed tax treatment of profits earned by its Switzerland subsidiary, Caterpillar SARL, from certain parts transactions. 
  • "We vigorously contested the IRS's application of the "substance-over-form" or "assignment-of-income" judicial doctrines and its proposed increases in tax and imposition of accuracy-related penalties." the company said. 
  • Related: Caterpillar Shares Slip On Q2 Revenue Miss; Registers 11% Revenue Growth.
  • The settlement does not include any increases to tax in the U.S. based on those judicial doctrines and does not include any penalties. The settlement is within the total amount of gross unrecognized tax benefits for uncertain tax positions, preventing the costs and burdens of further disputes with the IRS. 
  • Analysts had estimated that Caterpillar faced potential tax increases and penalties from the IRS that could total more than $2 billion, Wall Journal reported.
  • Price Action: CAT shares are up 1.28% at $185.50 during the premarket session on the last check Friday.
  • Photo Via Wikimedia Commons
Market News and Data brought to you by Benzinga APIs
Posted In: Large CapNewsLegalMoversMediaTrading IdeasGeneralBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...