New York authorities investigate Trump family tax fraud allegations

New York state tax authorities are looking into President Donald Trump's tax affairs after the New York Times reported that he was involved in "dubious tax schemes during the 1990's, including instances of outright fraud."

"The tax department is reviewing the allegations in the NYT article and is vigorously pursuing all appropriate avenues of investigation," the state taxation authority told the Washington Post.

According to the Times, which said its sources included hundreds of public documents such as financial disclosure reports and confidential records like bank statements, Trump had received "the equivalent today of at least $413m from his father’s real estate empire, starting when he was a toddler and continuing to this day."

Trump on the other hand had reportedly always claimed that his father’s empire was a "tiny" concern and that he only received a $1m loan to start his own business, which he later paid back with interest.

The Times said Trump was the beneficiary of "295 streams of revenue that Fred Trump created over five decades to enrich his son, making him a millionaire by the age of 8."

The revelation also included alleged instances of tax fraud by Trump's father which could be subject to civil fines but more importantly, could harm the president's reputation.

Trump and his siblings only paid around 5% in taxes at a time when gifts and inheritance were taxed at 55%.

The President and his siblings had allegedly also helped their father dodge taxes by setting up a "sham corporation" to disguise millions of dollars in gifts from their parents and by undervaluing their property assets by hundred of millions of dollars.

White House spokeswoman Sarah Sanders dubbed the story a "misleading attack” and said the transactions were signed off by the IRS "many decades ago".

Unlike previous presidents, Donald Trump has refused to release his personal tax returns.