Posted September 04, 2019 07:14:51The Trump Organization and its affiliates, the Trump International Resorts Corporation and the Trump Organization Resorts Worldwide, have agreed to pay $5 billion to settle federal and state tax and asset claims, the US Treasury Department said on Thursday.
The agreement comes as the estate of the late Donald Trump, whose business empire is worth $US10 billion, enters the final stages of a bankruptcy proceeding.
The Trump International Properties Inc is expected to make a $US1.4 billion payment, which will cover its federal income tax liability, and $US400 million to cover its state and local taxes.
The US government said the deal includes a penalty of $US750 million in fines for individuals and businesses.
It also includes a $100 million payment to be paid to the Federal Housing Finance Agency (FHFA), which provides housing finance to the federal government.
The Trump Organisation and the two affiliates that control its businesses are expected to pay the rest.
The settlement, which is not expected to have an impact on the value of the assets owned by the Trump Organisation, is the latest move by the US government to hold Trump accountable for his business dealings.
Taxpayers will still be on the hook for the Trump name, he added, adding that the real estate mogul has “no business” in the United States.
“He’s not going to be a billionaire,” Trump said in an interview with the US broadcaster ABC News.
“He can’t do anything in the world that we don’t want him to do.”
He added: “I’ve got to do everything I can.”
In a statement, Trump said the agreement is the result of “years of diligent litigation” by the Treasury Department and the Department of Justice.
“It is my hope that the Trump family and their representatives can make a full and fair settlement with the United State and its tax authorities, and that this will be a success for all parties,” he said.
The deal with the FHFA is one of several cases in which the Trump organization and his companies have been accused of tax evasion and mismanagement.
In May, the Treasury announced a civil forfeiture proceeding against the Trump group and two of its affiliates over alleged fraud and tax avoidance.
In November, Trump’s businesses and associates were fined $US2.3 billion by the federal Department of the Treasury for allegedly failing to pay taxes on more than $USUS1 billion in profits, and for failing to file required reports on more that $US5 billion of their business losses.
Trump and his associates also face a criminal investigation by the Department, which has accused them of violating federal tax laws by avoiding taxes and making false statements about their wealth.
In January, Trump was fined $5 million for violating the estate tax and a fine of $50 million was imposed on him by the Federal Deposit Insurance Corp.
Trump’s businesses have been embroiled in a series of controversies since he entered the White House, including his handling of his business empire.
The President has also been a target of attacks from fellow Republicans.
Trump has been under scrutiny in recent months for allegedly misusing his private jet to fly around the world and for the size of his golf club.
As part of the settlement, the Justice Department said the government would provide a financial audit of the Trump organisation, as well as an independent accounting firm.
Meanwhile, Trump and his attorneys will continue to have access to their client’s financial records, including the company records of its subsidiaries.
“I think they’re going to go through with the audit,” Trump told ABC News on Thursday, adding he has “great confidence” that the government will get it right.
“We’re going through a very tough process and it’s going to end up being very good for the country,” he added.
“And I’m sure they’re not going do anything to hurt us.”
The settlement comes just days after the Treasury confirmed it had obtained a court order in the case of Trump’s eldest son, Donald Trump Jr., who is also a member of the Trumps’ business team.
On Monday, the court ordered the Trump administration to provide documents relating to Trump Jr’s meeting with Russian lawyer Natalia Veselnitskaya and a Russian lobbyist.
The Treasury Department is also seeking the release of any financial documents related to the Trump companies dealings with foreign governments.