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Current Affairs

Trump Organization indictment

Date: 03 July 2021 Tags: Miscellaneous

Issue

Criminal charges were framed by a Manhattan Attorney’s office against Donald Trump’s family business, the Trump Organization.

 

Background

Trump organization has been attracting federal investigations for its tax evasion measures, including its officials.

 

Details

  • The Attorney’s office accuses some of company’s officials of not paying taxes on certain gifts and valuable perks receiving from the company.

  • The indictment says that Trump organization ran several schemes for its employees so that they can save money on taxes.

  • Instead of monetary benefits they were paid perks and these were kept away from the official records to allow employees to evade taxes.

  • The company allowed certain employee to claim he lived outside New York to reduce tax burden. There were also perks such as free rent, cars and tuition fees for relatives.

  • Using these perks they were able to evade taxes at all levels. This had led to loss of millions of Dollars in taxes.

 

Involvement of Trump

  • Donald Trump may be associated with organization but he has not been named in the charges. Only Weisselberg, an employee, has been charged.

  • The initial investigations are appearing to be targeted on Donald Trump. Large resources have been used in identifying tax fraud by the former President.

 

Indictment of companies

  • Like individuals, companies can also be charged with criminal actions. They will face steep fines or penalties if they are found guilty.

  • Trump organization is a private entity and not publicly traded. It may not face much of scrutiny as normal citizens are not involved. They can face issues with their partners.