Factbox-How the Trump Organization cheated on taxes
Reuters
Published Dec 06, 2022 07:36PM ET
Updated Dec 07, 2022 04:51AM ET
By Karen Freifeld
(Reuters) - Former President Donald Trump's namesake company was found guilty on Tuesday of scheming to defraud tax authorities.
Alan Futerfas, a lawyer for the Trump Organization, said the verdict would be appealed.
Here are some of the way in which prosecutors said the company and executives cheated on their taxes.
- The Trump Organization gave executives free, cheap and reduced-rent apartments that were not reported as income.
- Bonuses were paid as if executives were independent contractors, not salaried employees.
- Trump himself signed bonus checks from his Mar-a-Lago club in Florida, the Trump International Golf Club in Florida, and other Trump entities that could benefit from the deductions. Trump was not charged in the case and has called it politically motivated.
- The Trump Organization leased luxury cars for executives and their wives.
- The company paid for beds, TVs, carpeting and furniture for the Florida home of Chief Financial Officer Allen Weisselberg, and for utilities, cable and parking garage fees in Manhattan.
- Trump himself paid the private school tuition for his chief financial officer's grandchildren.
- Checks were made out to an employee in the mailroom to cash and were booked as "Holiday Entertainment" but given to the CFO for personal tips.
- Tax statements were issued that did not disclose executives' Manhattan living quarters so they did not pay city taxes.
- The personal expenses were not added to employees' taxable income. But some expenses were subtracted from salaries and bonuses, leaving the executives with less taxable income and the company with less payroll taxes.
- The scheme was a way to limit raises, while giving executives more money.
- CFO Weisselberg estimated that $100,000 worth of personal expenses he received was worth double that to him - $200,000 - in salary.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.