Caterpillar Inc. CAT he reportedly managed to navigate through a potentially crippling federal investigation with a combination of legal skill and strategic connections.
The case, which began with allegations of tax evasion by transferring profits to a Swiss subsidiary, took a sudden and unexpected turn in December 2018, when the Justice Department abruptly ended an interview with a key witness in Amsterdam just as the former president Donald Trump he was about to run William P. Barr as attorney general, the New York Times reported.
Barr, former Attorney General below George HW Bush and a key figure in Caterpillar’s defense, along with other well-connected lawyers, had met with senior federal officials, criticizing the basis and conduct of the investigation.
The investigation, which could have cost Caterpillar billions in back taxes, ended with the IRS settling less than a quarter of the amount initially requested without imposing any penalties.
This finding raises questions about the influence of high-profile legal representation and its impact on the justice system.
“It appears that Caterpillar has been given special political treatment that the average American citizen cannot get,” Jason LeBeauone of the agents who worked on the investigation wrote to the Justice Department’s inspector general in late 2023.
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In response to a request for comment from The New York Times, Go to Cea company spokesperson said, “Caterpillar has cooperated with the government in reviewing the issues and we are pleased to have reached a resolution with the IRS.”
However, the sequence of events, from the discontinuation of the investigation to the eventual settlement, apparently raised concerns among federal officials and prompted an internal investigation into potential political interference, according to the New York Times.
The case highlights the challenges and complexities of prosecuting corporate tax evasion, especially when powerful legal figures are involved.
Based on emails, interviews, and internal DOJ regulatory documents, this account sheds light on the opaque mechanisms of legal and political influence that can alter the course of federal investigations.
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This content was partially produced with the help of artificial intelligence tools and was reviewed and published by Benzinga editors.
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