Trump Organization Fined $1.6 Million for Tax Fraud

Donald Trump’s business was fined $1.6 million on Friday for a plan in which the former president’s senior employees avoided paying personal income taxes while receiving opulent benefits. This is a symbolic, very small setback for a corporation with billions of dollars in assets.

After the Trump Organization was found guilty of 17 tax offenses, including conspiracy and fabricating company records, last month, the judge could only impose a punishment on it.

The amount ordered by Judge Juan Manuel Merchan was double the taxes that a select group of executives was able to dodge on advantages like rent-free residences in Trump buildings, high-end vehicles, and private school tuition. It was the maximum amount permitted by law.

Trump denied any knowledge of his executives’ tax evasion and was not the subject of a trial. The Trump Organization declared in a statement following the sentence that it did nothing wrong and that it will file an appeal.

The statement added that “these politically motivated prosecutors will do whatever it takes to bring charges against President Trump and to continue the never-ending witch-hunt that started the day he launched his candidacy.”

The former president and his kids, who assisted in managing and promoting the Trump Organization, were not present in the courtroom.

14 days were allotted by Merchan for payment.

The conviction is a stain on the Republican’s reputation as a shrewd businessman as he prepares a campaign to win back the White House, even though the fines, which are less than the price of a Trump Tower apartment, aren’t significant enough to affect the company’s operations or future.

Democratic Manhattan District Attorney Alvin Bragg said he wished the statute had provided for a more severe punishment outside of the courtroom.

Only one officer, the former Trump Organization Chief Financial Officer Allen Weisselberg, who pled guilty to tax evasion on $1.7 million in salary last summer, was accused in the case in addition to the business.

He was given a five-month prison term on Tuesday.

When Trump was elected president in 2016, the business stopped using certain financial procedures and pay arrangements, which were the subject of criminal investigation.

Weisselberg had been given a rent-free apartment in a Trump-branded building in Manhattan with a view of the Hudson River during the course of his years as the business’s top financier. He and his wife rented Mercedes-Benz vehicles from the business. Trump paid the fees for his grandchildren to attend an elite private school.

A few other executives also received comparable benefits.

Weisselberg admitted during his deposition that he didn’t pay taxes on the money received from the Trump Organization and that he and the vice president of the business colluded to have the business produce phony W-2 forms in order to conceal the benefits.

As he seeks to win the presidency back in 2024, Trump also has to contend with a number of legal issues.

When trying to overturn his Georgia 2020 election loss, Trump and his aides may have committed felonies, according to an investigation by a special grand jury in Atlanta.

The House Jan. 6 committee decided last month to refer a criminal case to the Justice Department due to Trump’s involvement in inciting the bloody uprising at the U.S. Capitol. Additionally, the FBI is looking into Trump’s retention of sensitive information.

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