Trump companies accused of tax evasion in Panama

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. He often Ithaca Capital’s suit, filed originally in January last year and amended Monday, is seeking at least $17 million in damages, alleging that Trump companies mismanaged the hotel and let it fall into disrepair. After the meeting, Trump companies sent Ithaca two brochures that reiterated his statements about the hotel “maintaining a leading market share” in Panama. In a December 2017 letter to hotel owners other than Ithaca, it said, Eric Trump wrote, “Over the last three years, the hotel has outperformed the market by a wide margin — as much as 20 percent — by virtually every measure.” 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.” The suit said Ithaca wouldn’t have bought the hotel if it had known about the tax and social security problems and other financial irregularities.