The interim judgment of the judge in New York threatens Donald Trump with what he calls ‘a fiscal death penalty’. Trump is in court today. He ruled last week that the former president had exaggerated the value of his assets and his assets. As a result, he and his company The Trump Organization were able to obtain favorable tax rates, low insurance premiums and loans on favorable terms.
“The case he is taking to court is very simple,” says BNR’s foreign commentator Bernard Hammelburg. “He has greatly increased the value of his real estate to obtain loans mainly from Deutsche Bank.” For example, the Trump Tower in New York has an area of 930 square meters. The balance sheet shows it with an area of 2,800 square meters.
And that gives the apartment a value that real estate agents in New York say cannot possibly exist. This overvaluation is structural and also relates to other real estate and golf courses. He also made his country house in Mar-a-Lago much larger than it is. The judge is clear about this: Trump has committed fraud and that is a criminal offense.
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This is an interim judgment, but today it concerns six other related cases. However, the opposite is the case here: Trump undervalued his assets and real estate when filing his income taxes. So much so that he didn’t have to pay income tax last year and only $720 the year before. According to Hammelburg, it is not unusual in business circles to cheat a little with the declaration, but this goes all the way.
‘Trump committed fraud and that is a criminal offense’
It won’t make any difference to his supporters. There have now been 93 charges filed against Trump, and each charge increases his popularity. ‘He is now already forty percent ahead of his competitor Ron DeSantis within the Republican Party – who is no longer statistically participating.’
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Possible penalties
According to United States expert Raymond Mens, it is still unclear what punishment Trump may face, although a multi-million fine from the local government of New York would not be a surprise to him. ‘That New York says it wants some of the lost taxes back, and there has also been talk of expelling the Trump family from New York. In other words: ensure that they are no longer allowed to do business in New York.’
That could possibly be a painful measure, although according to Mens it mainly depends on the extent to which his existing activities are affected. “If he can continue this and not develop new activities, the disaster will still be manageable,” he concludes. “Second, he’s long gone from New York. He calls it a “mess” and “filled with rats – both in politics and on the streets.”