PwC’s Clever Tax Advice for Caterpillar a Little Too Clever

Caterpillar, maker of enormous sandbox toys, has received some unfun news. After poking around some old tax returns, the IRS has proposed that the company pay tax increases and penalties of $1 billion. They plan to "vigorously contest" the findings in the appeals process. 

This all began with some international transactions, designed by PwC, that got some extra special attention in a Senate hearing last year. This kerfuffle has also gotten the attention of the PCAOB who is looking into whether PwC's independence as CAT's auditor was compromised. We look forward to the fallout.

[Bloomberg, CT, WSJ]   

Related articles

Auditor Swap: Bubble Popped On EY’s Engagement with Sealed Air Corp.

Bubble Wrap maker Sealed Air Corp. disclosed in a securities filing earlier this week that it dumped EY as its external auditor and hired PwC, the Wall Street Journal reported yesterday. Now, EY losing an audit client isn’t all that shocking. According to Audit Anaytics’ recent analysis of auditor changes in the second quarter of […]