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Trump engaged in tax fraud, dubious schemes in 1990s

Trump engaged in tax fraud, dubious schemes in 1990s

To minimize taxes as Fred Trump passed that money to his children, he reportedly made them stakeholders in a shell company, All County Building Supply & Maintenance. And the report says much of that wealth was possible because the Mr. Trump and his siblings allegedly set up a sham corporation to disguise gifts from their father.

The Times' investigation also found that Donald Trump received at least $413 million in today's dollars from his late father over several decades, undercutting his claim that he is a self-made man. The returns and tax positions that the Times now attacks were examined in real time by the relevant taxing authorities.

The Times said its analysis drew on tax returns of Trump's father, among other documents, but not Trump's personal tax returns. "The facts upon which The Times bases its false allegations are extremely inaccurate".

Read the Times' investigation here.

"The Tax Department is reviewing the allegations in the NYT article and is vigorously pursuing all appropriate avenues of investigation", a spokesman for New York's tax department confirmed to CBS News. "Our family has no other comment on these matters that happened some 20 years ago", he said in a statement to the Times, "and would appreciate your respecting the privacy of our deceased parents, may God rest their souls". The difference between the inflated bills it sent to Fred Trump and those it paid to suppliers were the equivalent of substantial cash gifts, according to the Times, but Fred Trump never paid gift taxes on them.

Trump's taxes have been largely a mystery since he first ran for office.

The Times said Trump's tax-hating father used "relentless and creative" ways to funnel his wealth to his children and shield it from the Internal Revenue Service.

When he was campaigning, Trump repeatedly boasted of his ability to turn a small loan from his father into his fortune.

When Donald Trump and his siblings gained ownership of their father's real-estate empire in 1997, they dodged hundreds of millions in taxes by undervaluing the properties at just north of $US41 million.

It said Trump got a cut of $177.3 million, or $236.2 million, in today's dollars from the sale.

Fred Trump was a Queens-based developer who made a fortune building drab but serviceable low-rise apartment blocks for a fast-growing city.

"My father gave me a very small loan in 1975, and I built it into a company that's worth many, many billions of dollars", Trump said during a 2016 presidential debate.

"Much of his giving was structured to sidestep gift and inheritance taxes using methods tax experts described to The Times as improper or possibly illegal", the newspaper said. "He was a millionaire by age 8".

But All County charged Fred Trump's business a drastically inflated price, records show.