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'Trump wrote off $ 100 million in business losses'
US President Donald Trump's tax affairs were back in the spotlight after leaked 2005 returns showed he wrote off more than $100 million in "business losses" to reduce his federal taxes burden.
 
The President paid $38 million in federal income tax on reported income of $150 million, an effective tax rate of 25 per cent, according to documents from Trump's 2005 tax returns disclosed on Rachel Maddow's MSNBC show late Tuesday. 
 
By claiming losses, Trump apparently saved millions of dollars in taxes that he would otherwise have owed, reports said.
 
The White House responded without even waiting for the show to air, issuing a statement that seemed to confirm the authenticity of the forms as it defended Trump and assailed MSNBC for publicising them. 
 
"You know you are desperate for ratings when you are willing to violate the law to push a story about two pages of tax returns from over a decade ago," a White House official said in a statement.
 
"The dishonest media can continue to make this part of their agenda, while the President will focus on his, which includes tax reform that will benefit all Americans," the official said.
 
The White House described Trump's business losses as a "large-scale depreciation for construction", but did not elaborate, reported the New York Times.
 
In addition to the federal income taxes in 2005, the statement said, he paid "tens of millions of dollars in other taxes, such as sales and excise taxes and employment taxes, and this illegally published return proves just that".
 
Democrats pounced on the report, arguing that the White House's decision to release details of Trump's 2005 taxes before Maddow's show undercut his past refusal to release any such information.
 
"If they can release some of the information, they can release all of the information," said Zac Petkanas, a senior adviser to the Democratic National Committee. 
 
"The only reason not to release his returns is to hide what's in them, such as financial connections with Russian oligarchs and the Kremlin."
 
The tax forms were sent to journalist David Cay Johnston, who has written a book on Trump. 
 
Appearing with Maddow on the MSNBC show, Johnston said he had received the forms "over the transom" at his home and did not know who had sent them. 
 
He suggested that they might even have been sent by Trump himself. Because he did not solicit the forms. Johnston said it was not illegal to receive them, reported the newspaper.
 
The forms showed that Trump made $67 million in real estate royalties, $42 million in business income, $32 million in capital gains, $9 million in taxable interest and $998,599 in salary in 2005, for a total of nearly $153 million. 
 
After writing off $103 million, he reported adjusted gross income of nearly $49 million. In the end, he had to write a check for $2,450,597, including penalties and interest for late payment, said the report.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Delhi HC vacates ITAT stay on Rs525 crore penalty on NDTV
The Delhi High Court has vacated a stay granted by the Income Tax Appellate Tribunal (ITAT) on the Rs525 crore penalty on New Delhi Television Ltd (NDTV), saying that the Tribunal does not have any powers in this matter. This is a big setback to the Prannoy Roy-controlled NDTV within this month.
 
The Delhi High Court was hearing the case (W.P.(C)­1327/2017) related with a stay granted by the ITAT on 15 September 2016. In its order, the ITAT had directed Income Tax (I-T) Department not to pass any order for the proposed penalty of Rs525 crore against NDTV till final disposal of the main appeal pending before the Tribunal. 
 
However, the HC Bench of Justice S Ravindra Bhat and Justice Najmi Waziri felt that, in such matters, the ITAT does not have any powers in the penalty matter and hence the stay given by the Tribunal was vacated. 
 
A senior official from NDTV said the company will appeal against the ruling of Delhi High Court. “This entire case relates to a baseless and outrageous charge by the Income Tax department that in effect accuses (Jeff Immelt, CEO) GE (US) as well as (Jeff Zucker, then CEO) NBC (US) of money laundering -- which is an offence that is punishable with jail in the US. In 2008, NBC (a 100% subsidiary of GE) invested $150 million in an entertainment wing of NDTV. Subsequently, without any evidence whatsoever, the I-T Department in Delhi called this legitimate investment a 'sham transaction' and in effect accused NDTV of round tripping money and using NBC and GE to act as a 'front' in a case of money laundering by GE and NBC,” says KVL Narayana Rao, Group Chief Executive & Executive Vice Chairperson of NDTV, in an email reply.
 
He says, “The ITAT has been unable to hear the case as the Delhi I-T Department has asked for 20 consecutive adjournments - with a succession of flimsy excuses. With the basic case not even being heard, the Delhi I-T department suddenly tried to levy a further penalty on NDTV for a delay in the case. Please note the delay is entirely the fault of the Delhi IT dept. asking for adjournments. The ITAT stayed the penalty. Now the Delhi High Court has ruled that the ITAT does not have the authority to stay the penalty. The Delhi I-T department's accusations against GE, NBC and NDTV are very damaging for the global image of India.  With all due respect to the High Court, NDTV will appeal against this ruling.”
 
Earlier this month, the Reserve Bank of India (RBI) rejected NDTV's application to compound from the Rs2,030 crore notice issued by the Enforcement Directorate (ED) under the Foreign Exchange Management Act (FEMA). "Filing compounding application to RBI by those who served notice under FEMA means that they have admitted their contravention in routing money from abroad and plead guilty by paying a fine. So NDTV admitted its guilt and offered its readiness to pay a fine. Many FEMA defaulters were using this compounding method to escape from being prosecuted under the FEMA. Continuing prosecution under FEMA also has a danger of converting the case to PMLA, when money laundering is established," says an article in PGurus.com
 
However, according to Mr Narayan Rao, the RBI has not rejected NDTV's application for settlement under FEMA provisions. “The RBI has asked NDTV to approach a particular division of the RBI called the Foreign Investment Division of RBI's Central Office,” he said.
 
Earlier in November 2015, the ED had slapped a Rs2,030 crore notice on NDTV for allegedly violating FEMA provisions for routing huge funds through the channel’s foreign units. The notice served to promoters Prannoy Roy, his wife Radhika Roy and senior executive KVL Narayan Rao stated that NDTV had violated RBI provisions on fund transfers. 

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COMMENTS

Sumit Goyal

1 week ago

We are a Banana Republic under Modi. All govt. agencies and even the courts are now compromised. Inches away from being a dictatorship. Everyone who is against them is hounded.

Cyber attacks on e-wallets aim to steal data: Report
As traffic to e-wallet platforms grows, there has been a significant increase in cyber attacks on online payment gateways to steal data than to disrupt operations, a new report said on Wednesday.
 
According to the data provided by global leader in content delivery network (CDN) services Akamai Technologies, hits to web pages on e-wallet companies grew from 512,115,015 per day in September to 1,264,470,283 per day in February in the country.
 
Akamai in India analysed the growth in traffic volume to India's e-wallet sites on the Akamai Intelligent Platform, three months before and three months after the demonetisation announcement.
 
"Nearly 94 per cent of attack attempts on mobile wallet companies were on the application layer (XSS and RFI attacks) with intent to steal business critical data," the report added.
 
Distributed Denial of Service or DDoS attacks were insignificant in comparison to the overall number of attacks observed, the report noted.
 
DDoS attempts on these wallets constituted less than 1 per cent of the total number of attempts in this time period, emphasising the fact that attacks were intended to steal data and not necessarily disrupt operations of mobile wallet firms.
 
According to Akamai's recent "State of The Internet Security" report for Q4 2016, India is second in the list of countries in Asia Pacific that sourced the most web application attack traffic with nearly 86,38,666 attacks attributed as originating from the country, after China.
 
India also ranks fourth in the list of target countries for web application attacks globally, the report said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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