NEW YORK – US President Donald Trump participated in “dubious” taxstrategies in the 1990s that allowed him to accrue millions of dollars inadditional wealth from his father’s real estate empire, according to a NewYork Times investigation report, which drew a sharp denial from the WhiteHouse hours later.
The newspaper reported that Trump and his siblings set up a “sham”corporation to help disguise otherwise taxable income that came from giftsfrom their parents.Trump’s parents left more than $1 billion to their children, which wouldhave resulted in a roughly $550 million tax bill at the time, the Timesreported. However, the Trumps paid a total of $52.2 million on that sourceof income.
The newspaper cited records that showed Trump helped undervalue hisfather’s real estate holdings, which led to a lower tax bill when he andhis siblings inherited the properties.The Internal Revenue Service (IRS) reportedly provided little pushbackagainst the Trumps’ tactics.
In total, The New York Times found that Trump received the equivalent of atleast $413 million from his father’s real estate empire. The newspaperwrote that Trump’s behaviour amounted to fraud in some cases.President Trump declined to comment on the story. The White House laterissued a statement slamming The New York Times and calling for an apology,without refuting the details in the story.
“Fred Trump has been gone for nearly twenty years and it’s sad to witnessthis misleading attack against the Trump family by the failing New YorkTimes,” White House press secretary Sarah Huckabee Sanders said in astatement, referring to Trump’s late father — a powerful New York realestate develloper and housing magnate.
“Many decades ago the IRS reviewed and signed off on these transactions,”Sanders said. “The New York Times – and other media outlets – credibilitywith the American people is at an all time low because they are consumedwith attacking the president and his family 24/7 instead of reporting thenews.”
The president’s spokeswoman went on highlight various economicaccomplishments that she said Trump had realized in his administration,remarking that the Times “can rarely find anything positive about thepresident and his tremendous record of success to report.”
Sanders added: “Perhaps another apology from the New York Times, like theone they had to issue after they got the 2016 election so embarrassinglywrong, is in order.”In total, The New York Times investigation found that Trump received theequivalent of at least $413 million from his father’s real estate empire.The newspaper wrote that Trump’s behavior amounted to fraud in some cases.
Charles Harder, an attorney for the president, said in a statement to TheNew York Times that allegations of tax evasion are “100 percent false,”adding that Trump “had virtually no involvement” with the tax strategiesused by his family, and instead delegated those tasks to others.Harder went on to imply that the newspaper would face a defamation lawsuitif it suggested Trump participated in a fraudulent tax scheme.
Read Top Stories
The president’s brother, Robert, issued a statement to The New York Timeson behalf of the family that did not directly comment on reports ofquestionable tax practices.Robert Trump said his father’s estate was closed in 2001 by the IRS, andthat his mother’s account was closed in 2004.“All appropriate gift and estate tax returns were filed, and the requiredtaxes were paid,” he said.
Trump drew criticism during the 2016 presidential campaign for his refusalto release his tax returns. The decision marked a break with tradition frompresidential candidates dating back decades.
The New York Times’s story prompted Democrats to renew their calls forTrump to release his returns, or, if he doesn’t, for Congress to requestthem. Under federal tax law, the chairmen of Congress’s tax committees canrequest tax returns from the Treasury Department, which can then bereviewed in a closed session.
“Only last month, Republicans rejected for 7th time my motions to obtainthe returns,” Democratic Congressman Lloyd Doggett, a senior member of theHouse Ways and Means Committee, tweeted. “But with a new Congress, we willhold Trump to [the] Nixon standard: Even Nixon invited Congress to reviewhis returns, explaining, ‘people have got to know whether or not theirPresident is a crook.’ ”
The president’s broader financial dealings have come under scrutiny as partof special counsel Robert Mueller’s investigation into Russian interferencein the 2016 election, and as his former attorney, Michael Cohen, faceslegal woes.
The special counsel’s office has reportedly asked about Trump’s pastfinancial dealings in Russia, while prosecutors have said Cohen falsifiedinvoice statements while working for the Trump Organization.When The New York Times story appeared on Tuesday, Trump was speaking atthe annual National Electrical Contractors Association convention inPhiladelphia.
“America will always be a nation of great builders, because in America wehonor work. We honour grit. We honour craftsmanship,” Trump said. “We honorthe men and women who turn dreams into reality with their own two beautifulhands.” – APP
