Caterpillar lands in US govt crosshairs

Company has been accused of using offshore subsidiaries to avoid taxes worth $2 bn

Caterpillar, the bellwether US equipment maker praised just last week by President Donald Trump, now finds itself a government target as federal tax and banking authorities raided its Illinois offices.

The investigation comes as new Chief Executive Officer Jim Umpleby shifts its global headquarters to Chicago to bolster the machinery maker’s push into foreign markets. Last week, Doug Oberhelman, the company’s chairman, participated in discussions at the White House, where President Donald Trump said: “I love Caterpillar.”

The Internal Revenue Service, the Federal Deposit Insurance and the Commerce Department’s Bureau of Industry and Security Export Enforcement on Thursday raided Caterpillar’s Peoria headquarters