Inquiry: Caterpillar Dodged $2.4B Tax in Swiss Move

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March 31 (Bloomberg) -- Caterpillar avoided paying $2.4 billion in U.S. taxes by shifting profits from a parts business to a subsidiary in Switzerland, according to a report released today by a Senate investigative committee. Phil Mattingly reports on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Worst place.

Phil mattingly did the report.

He joins me now.

What did senator levin and the reporters find?

Senator levinor to these investigations and now what they have found is caterpillar.

The company was able to either avoid or deferred to point $4 billion of taxes over the last her teen years.

They did this with the help of price waterhouse cooper.

-- price waterhouse coopers.

That is the big top line number, pimm.

$2.4 billion over the last 13 years.

The senator looking into this report.

What happens next?

Tomorrow, what does caterpillar do?

Do they come back and rebut this report?

We have a statement from caterpillar.

They have known that the senate committee was looking into this.

Their point is this -- nothing we did was illegal.

The structure is entirely in line with u.s. tax policy, u.s. tax law.

They say, we pay a rate of 29%, the highest on long international companies.

They are standing by what they did.

I think the key point is senator levin is going to go after them.

The way it works is they have a subsidiary in switzerland where they are using third-party vendors to purchase some parts of equipment.

Even though it is linked to the u.s., they are booking it entirely in switzerland's. because of that, they were

This text has been automatically generated. It may not be 100% accurate.

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