Caterpillar slides following a report that accuses it of tax and accounting fraud (CAT)

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March 8, 2017 1:08 PM

Caterpillar failed to comply with US tax and financial reporting rules in an effort to keep its stock price high, according to The New York Times.

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Caterpillar failed to comply with US tax and financial reporting rules in an effort to keep its stock price high, according to a government-commissioned report reviewed by The New York Times.

The story cited a report prepared by Dartmouth College that investigated the heavy machinery-maker's tax practices.

Its main finding was that Caterpillar avoided reporting on billions of dollars it McDonalds joins the mobile order-ahead craze (MCD)

brought to the US from its Swiss units and affiliates. Caterpillar returned $7.9 billion in funds structured as loans but did not report them for tax or accounting purposes, The Times reported.

Multinationals like Caterpillar face a 35% tax rate in the US, steeper than the prevailing rates in most other developed economies. This discourages them from repatriating overseas earnings and facing US taxes. President Donald Trump has proposed that companies with large stashes of overseas cash be able to return them at a 10% rate.

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