Caterpillar Inc. (CAT) tax evasion news is now a major area of discussion on all the financial news. It is very important topic and very hot area of debate as it is likely to affect the company in a tragic way. There is a report regarding this which says that Caterpillar has paid PricewaterhouseCoopers $55 to develop its strategy to avoid taxes. Democratic staff of committee produced this report, and it is compiled in the investigation that was held for the last nine months. The report has raised concerns about strategy of the company about taxation. But it is not accusing the producer in terms of breaching the law.
It is being speculated that Caterpillar will get support of some Republicans. It is expected that Caterpillar will get out of this. But this does not go well it will be really bad for the company, profits will go down substantially and company will lose trust of many shareholders. This can be a major dent for CAT share price. If this case goes against Caterpillar it will have to pay these taxes which will reduce the total earning, as a result of this CAT earnings will also go down