NY probes payments that reduced US President Donald Trump's taxes

New York authorities investigating millions in tax write-offs from the Trump Organization

Donald Trump tax probes to include write-offs after $784k Ivanka sum

It is worth mentioning that the origin of the investigations are consulting expenses worth more than 740,000 dollars that Trump would have deducted through his businesses and that would have gone to a company in the name of his daughter and presidential adviser Ivanka Trump. But both offices issued subpoenas to the Trump Organization in recent weeks for records related to the fees, the people said.

The Times noted that there is "no indication" that Ivanka is the "focus" of either investigation, but the arrangement has raised questions about whether the payments were a "tax-deductible way for [Trump] to compensate his children or avoid gift taxes he might incur from transferring wealth to them".

'This "inquiry" by NYC democrats is 100% motivated by politics, publicity and rage. "These politicians are simply ruthless", Ivanka tweeted Thursday.

Vance is conducting a criminal probe into the company, while James is conducting a civil investigation. The estimated $30 million in Trump tax write-offs nearly match fees paid to Ivanka's firm.

The civil investigation in NY came after Michael Cohen, once the president's personal lawyer, testified in Congress that the president inflated his assets while seeking loans only to later underreport them while trying to lower his tax burden.

The offices of the district attorney and the attorney general declined to comment.

The New York attorney general's investigation is focusing on whether the Trump Organization or Trump improperly inflated the value of certain assets in violation of tax laws or when seeking loans and the forgiveness of a $100 million loan. Among the expenses that allowed Trump to avoid paying the U.S. treasury were deductions worth $ 26 million in business expenses with unidentified consultants.

Some of those fees appear to have been paid to Ivanka Trump, The Times found.

The Times linked the fees to Ivanka's 2017 financial disclosure, which showed a consulting company she co-owned had received $747,622 in consulting fees - the same number that the Trump Organization claimed as tax deductions for its hotel projects in Hawaii and Canada.

The probes are two of several legal entanglements likely to intensify when Trump leaves office and loses immunity from prosecution.

However, according to the report, some of the consultancy fees were paid to Ivanka Trump, who served as an executive at the Trump Organisation before her father appointed her to be a senior White House advisor.

The IRS at times rejects write off consulting fees if they were made to avoid taxes and don't reflect distant, professional business relationships. It is not known if the IRS has ever questioned the Trump Organization about the practice.

Alan Garten, general counsel of the Trump Organization, told the Times, "Everything was done in strict compliance with applicable law and under the advice of counsel and tax experts".

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