Bloomberg: Senate digs into possible Caterpillar tax avoidance

|About: Caterpillar Inc. (CAT)|By:, SA News Editor

A Senate panel is looking into whether Caterpillar (CAT) improperly dodged U.S. taxes, Bloomberg reports, with the Permanent Subcommittee on Investigations planning to hold hearings early next month.

The probe comes after a Caterpillar employee accused the company in 2009 of avoiding over $2B in U.S. taxes by using a "Swiss structure" to move profits to offshore companies. The firm would then return the money to America via a "Bermuda structure" that involved shell companies, again paying no tax.