A probe has been opened into the allegations in a New York Times report that U.S President Donald Trump and his family created their real estate empire through “instances of outright fraud” and evading taxes on hundreds of millions of dollars, Bloomberg reported.
On Tuesday, the report stated that Trump received vastly more from his father, Fred Trump, than he has previously stated and that his father backstopped his son’s businesses during times of financial distress, including the usage of potentially illegal schemes to minimize taxes.
“The Tax Department is reviewing the allegations in the New York Times article and is vigorously pursuing all appropriate avenues of investigation,” said James Gazzale, spokesman for Department of Taxation and Finance.
“The New York Times’ allegations of fraud and tax evasion are 100 per cent false,” Charles J. Harder, a lawyer for President Trump, said in a statement. “There was no fraud or tax evasion by anyone. The facts upon which the Times bases its false allegations are extremely inaccurate.”
In a statement released Tuesday night, White House Press Secretary Sarah Huckabee Sanders said “Fred Trump has been gone for nearly twenty years and it’s sad to witness this misleading attack against the Trump family by the failing New York Times.” She added that “many decades ago the IRS reviewed and signed off on these transactions.”
The newspaper said its findings show that Trump’s claims that he’s a self-made billionaire, who had received $1 million from his father, are false. The newspaper said it had reviewed 100,000 documents, including the elder Trump’s tax returns, to calculate that Trump and his siblings had received the equivalent in today’s dollars of $413 million worth of assets.
The state tax department had previously opened an investigation into the president’s charity, the Trump Foundation. Earlier, CNBC first broke the news of the tax review.