Trump Helped Parents Shield Millions From Taxes: New York Times

The Times alleges that Trump set up a fake corporation to disguise millions of dollars in gifts from their parents.
Ron Galella via Getty Images

WASHINGTON (Reuters) - U.S. President Donald Trump engaged in tax schemes that included cases of fraud in which he and his siblings helped their parents dodge millions in taxes, the New York Times reported on Tuesday.

The Times investigation, which the White House said was “misleading,” showed Trump received the equivalent today of at least $413 million from his father’s real estate business.

The Times, citing a “vast trove” of confidential tax return and financial records, reported that much of that fortune came to Trump because he helped his parents evade taxes, setting up a fake corporation with his siblings to disguise millions of dollars in gifts from their parents.

During his presidential campaign, Trump promoted himself as a self-made real estate mogul who started out with only a “very small” loan from his businessman father, Fred Trump.

Reuters has not been able to verify the report.

In a statement, White House spokeswoman Sarah Sanders called the story “misleading” and said that “many decades ago the IRS reviewed and signed off on these transactions.”

White House reaction to @nytimes investigation of Trump family’s long history of avoiding taxes is a classic non-denial denial: pic.twitter.com/FOYSdN4pZ6

— Paul Farhi (@farhip) October 3, 2018

Trump lawyer Charles Harder told the Times: “President Trump had virtually no involvement whatsoever with these matters.”

Harder added: “The affairs were handled by other Trump family members who were not experts themselves and therefore relied entirely upon the aforementioned licensed professionals to ensure full compliance with the law.”

James Gazzale, a spokesman for the New York State Department of Taxation and Finance, said the department “is reviewing the allegations in the New York Times article and is vigorously pursuing all appropriate avenues of investigation.”

The U.S. Internal Revenue Service did not immediately reply to a request for comment.

Citing tax experts, the Times reported it was unlikely Trump would face criminal prosecution because the acts were past the statute of limitations. There is no time limit, however, on civil fines for tax fraud, according to the paper.

Statement from the NY State Taxation authority, regarding this blockbuster NYT story: "The Tax Department is reviewing the allegations in the NYT article and is vigorously pursuing all appropriate avenues of investigation." https://t.co/rACzwJPPx0

— David Fahrenthold (@Fahrenthold) October 2, 2018

The Times reported that its findings were based on more than 200 tax returns from Fred Trump, his companies and various Trump partnerships and trusts. The records did not include Donald Trump’s personal tax returns. Unlike other White House candidates and presidents in recent decades, Trump has declined to release his tax returns.

According to the newspaper, the report was also based on interviews with Fred Trump’s former employees and advisers and more than 100,000 pages of documents describing the inner workings of his business empire.

“The investigation also draws on tens of thousands of pages of confidential records - bank statements, financial audits, accounting ledgers, cash disbursement reports, invoices and canceled checks,” according to the Times.

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