WASHINGTON — Caterpillar Inc. executives defended a tax strategy Tuesday that has saved the manufacturing giant billions in US taxes. They got support from Republican senators, including one who said the company deserves an award.
Caterpillar has avoided paying $2.4 billion in US taxes since 2000 by shifting profits to a wholly controlled affiliate in Switzerland, according to a report released by Senator Carl Levin, Democrat of Michigan.
Levin chairs the Senate investigations subcommittee. On Tuesday, Levin grilled Caterpillar executives and their accountants at a hearing on the company’s tax strategy.
‘‘Caterpillar is an American success story that produces iconic industrial machines,’’ Levin said. ‘‘But it is also a member of the corporate profit-shifting club that has transferred billions of dollars offshore to avoid paying US taxes.’’
Caterpillar got support from Senator Rand Paul, Republican of Kentucky.
‘‘I think rather than having an inquisition, we should probably bring Caterpillar here and give them an award,’’ Paul said.
Caterpillar is the world’s leading maker of construction and mining equipment, with revenue last year of nearly $56 billion last year.