The owners of a luxury hotel in Panama City that ousted the Trump Organization as property managers last year accused it on Monday of evading taxes in Panama and creating a “false light” around the hotel’s finances.
The accusations, made in a legal filing in Manhattan federal court, are fraught with potential diplomatic and legal complexities for President Trump.
The president’s company, the filing alleges, “also made fraudulent and false claims to the Panamanian tax authorities” to “cover up its unlawful activities.” This was originally detected during an audit last year by that country’s tax agency, according to the filing.
The filing also alleges, among other claims, that the Trump Organization understated employee salaries in reports to the Panamanian social security agency, which may have reduced the hotel’s social security tax payments. Collectively, the company’s actions made “the financial and operational performance of the hotel appear in a false light,” the filing says.
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