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Trump Organization receives $1.6mln fine for evading taxes

  • By Al Mayadeen English
  • Source: Agencies
  • 13 Jan 2023 20:00
3 Min Read

The sum, while insignificant to the rich real estate developer, is symbolic as the ex-President considers a return to the White House amid a slew of legal issues.

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  • US flags fly over the Trump International Hotel in Washington, US, August 3, 2018. (REUTERS)
    US flags fly over the Trump International Hotel in Washington, US, August 3, 2018. (Reuters)

A New York judge penalized Donald Trump's family firm the maximum penalty of $1.6 million for tax evasion on Friday.

The sum, while insignificant to the rich real estate developer, is symbolic as the ex-President considers a return to the White House amid a slew of legal issues.

Last month, the Trump Organization's businesses, the Trump Corporation, and Trump Payroll Corp. were found guilty of executing a multi-year operation to cheat and escape taxes by fabricating company records.

Following a trial, they were found guilty on all 17 counts, marking the first time the firms had ever been convicted of a crime.

Trump was not charged, but the verdict has reportedly harmed his reputation as he seeks the Republican presidential nomination in 2024.

"While corporations can't serve jail time, this consequential conviction and sentencing serves as a reminder to corporations and executives that you cannot defraud tax authorities and get away with it," said Manhattan District Attorney Alvin Bragg, who prosecuted the case, as quoted by AFP.

The Trump Organization, which is now led by Trump's two adult sons, Donald Jr. and Eric, concealed remuneration given to top employees between 2005 and 2021.

On Tuesday, longtime CFO Allen Weisselberg was sentenced to five months in prison and agreed to pay a $2 million fine for his role in the swindle.

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He pleaded guilty to conspiring with the corporation to obtain undisclosed perks such as a rent-free condominium in a beautiful neighborhood, luxury automobiles for him and his wife, and tuition for his grandchildren at an expensive private school.

The 75-year-old also confessed that 15 counts of tax fraud and testified against the Trump Organization as part of a plea bargain. He did not implicate Trump during the trial.

It is worth noting that Trump branded the Manhattan District Attorney's case a "witch hunt" and claimed that Weisselberg acted alone.

The former President's legal woes are far from over since he has been accused of several violations of the law.

Trump was impeached twice during his presidency, once for abuse of authority and obstruction of justice and once for incitement to insurgency, following his followers' January 6, 2021 assault on the US Congress.

The congressional investigation into January 6 determined in December that he should be charged with insurrection and conspiracy to defraud the United States.

Furthermore, Trump is also under investigation for allegedly illegally keeping highly classified documents at his Florida Mar-a-Lago home and obstructing the investigation into the case.

In Georgia, he might face indictment for meddling with votes during the November 2020 election, which Trump lost to President Joe Biden.

In New York, state Attorney General Letitia James has filed a civil claim against Trump and three of his children, accusing them of defrauding the state by overvaluing assets to acquire loans and then undervaluing them to reduce taxes.

James is seeking $250 million in penalties in addition to banning Trump and his children from serving as executives at companies in New York.

  • Trump Organization
  • Taxes
  • Donald Trump
  • white house

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