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Trump Companies Accused of Tax Evasion in Panama (www.propublica.org)

submitted 3 months ago by tardigrada@beehaw.org to c/usnews@beehaw.org

6 comments fedilink hide all child comments

Archived version

The owners of a 70-story Panama City hotel tower formerly managed by President Donald Trump’s companies are accusing them of stiffing the Panamanian government.

In a legal filing Monday in an ongoing lawsuit in Manhattan federal court, private equity manager Orestes Fintiklis and the company he leads, Ithaca Capital Partners, claimed that two Trump companies failed to pay Panamanian taxes equal to 12.5% of the management fees they drew from the hotel.

The Trump entities were allegedly supposed to withhold those fees in advance and pay them to the government regardless of whether the property was profitable or not. Instead, the Trump companies simply kept the money, the suit claims, “thus intentionally evading taxes.” That and other financial irregularities exposed Fintiklis and the companies he represents “to millions of dollars in liability,” according to the suit, which also claims Trump companies sought to cover up their actions. The filing does not say whether a tax penalty has been levied by Panamanian authorities.

[...]

Trump companies also “artificially deflated” the hotel’s expenses and underreported Trump’s management fees in financial statements presented to Ithaca, the suit alleged, leading the hotel to appear to be in a better financial position than it was.

The suit alleged other improper financial behavior, saying that instead of making the necessary distributions to hotel room owners, “Trump hoarded their cash.” It said Trump companies failed to make appropriate financial disclosures and drained reserve accounts to pay operational costs, “all the while Trump lined its pockets with ill-gotten management fees.”

[...]

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[–] Quexotic@beehaw.org 12 points 3 months ago* (last edited 3 months ago) (3 children)

So is this why he's trying to reclaim the Panama canal? https://www.cnn.com/2024/12/23/politics/panama-canal-history-trump/index.html

Seems like a good way to bury the story in the search results and bully Panama into making the story go away.

[–] jarfil@beehaw.org 1 points 3 months ago (2 children)

Alternatively, it might've been a bribe, they started investigating once Trump wasn't president... and now he's reminding them of the consequences of stopping to pay, once he's been reelected.

[–] Quexotic@beehaw.org 1 points 3 months ago (1 children)

Ooh, interesting angle. I hadn't considered that at all. Thanks internet stranger!

[–] jarfil@beehaw.org 1 points 3 months ago

You're welcome, fellow stranger 😃