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Report: Trump used 'legally dubious' tax avoidance maneuver in 1990s – election live Report: Trump used 'legally dubious' tax avoidance maneuver in 1990s – election live
(35 minutes later)
3.06am GMT
03:06
An “active shooter situation” at the Clinton Library in Arkansas has been resolved and is “not at all related” to the election, police in Little Rock have confirmed:
Motive appears to be a robbery. Victim was selling blue jeans when shot. Incident not at all related to the upcoming presidential election.
The victim was reportedly shot in the leg but the injuries are not believed to be life-threatening.
2.49am GMT
02:49
Elle Hunt
For the next president of the United States, the Oval Office will come with more than 11m Twitter followers.
Barack Obama was the first US president to be on the platform, drawing 11.1m followers to the verified @POTUS account since signing up in May 2015.
The next president will take over the handle on Inauguration Day, 20 January 2017, but the slate will be wiped clean of tweets.
Obama’s 317 posts will be archived at a newly created handle, @POTUS44, by the National Archives and Records Administration.
The same will happen with Obama’s Facebook and Instagram accounts, along with other presences on Twitter, such as Michelle Obama’s @FLOTUS, Joe Biden’s @VP, @WhiteHouse and @PressSec.
The @POTUS Twitter account will only be “made available” to the next president, suggesting the successful candidate could choose to continue using their existing handle.
Both presidential candidates already have huge followings on Twitter, with Hillary Clinton followed by 10.1m people at @HillaryClinton and Donald Trump 12.8m at @realDonaldTrump – nearly 2m more than the @POTUS account.
2.44am GMT2.44am GMT
02:4402:44
As your antidote to politicians dressing up for Halloween (though let’s not pretend the Romney one was the last we’ll see), here’s two boys dressed up as Barack Obama at the White House trick or treating event:As your antidote to politicians dressing up for Halloween (though let’s not pretend the Romney one was the last we’ll see), here’s two boys dressed up as Barack Obama at the White House trick or treating event:
2.29am GMT2.29am GMT
02:2902:29
Meta Romney:Meta Romney:
Meanwhile, Mitt Romney dressed up for Halloween as...Mitt Romney? https://t.co/sKphR8kZO4 pic.twitter.com/EpDKQraZDfMeanwhile, Mitt Romney dressed up for Halloween as...Mitt Romney? https://t.co/sKphR8kZO4 pic.twitter.com/EpDKQraZDf
2.22am GMT2.22am GMT
02:2202:22
Former Republican hopeful John Kasich has cast his early ballot – and it’s for John McCain.Former Republican hopeful John Kasich has cast his early ballot – and it’s for John McCain.
His spokesman Chris Schrimpf said Kasich had voted for the actual Republican candidates in every other contest, but on the issue of the presidency the Ohio governorHis spokesman Chris Schrimpf said Kasich had voted for the actual Republican candidates in every other contest, but on the issue of the presidency the Ohio governor
went with someone he could support and also kept his commitment and demonstrated his support for down-ballot Republicans.went with someone he could support and also kept his commitment and demonstrated his support for down-ballot Republicans.
It’ll count for naught, mind, as Associated Press says McCain – the 2008 nominee – isn’t one of the allowable write-in names in Ohio. It’s the thought that counts etc.It’ll count for naught, mind, as Associated Press says McCain – the 2008 nominee – isn’t one of the allowable write-in names in Ohio. It’s the thought that counts etc.
2.11am GMT2.11am GMT
02:1102:11
Further to that Slate report that a Trump Organization server could have been communicating with a Russian bank – a link the Trump campaign has denied – the New York Times has also been investigating the pinging between the two and came to … not the same conclusion as Slate. Instead it reports:Further to that Slate report that a Trump Organization server could have been communicating with a Russian bank – a link the Trump campaign has denied – the New York Times has also been investigating the pinging between the two and came to … not the same conclusion as Slate. Instead it reports:
FBI officials spent weeks examining computer data showing an odd stream of activity to a Trump Organization server and Alfa Bank. Computer logs obtained by the New York Times show that two servers at Alfa Bank sent more than 2,700 “look-up” messages – a first step for one system’s computers to talk to another – to a Trump-connected server beginning in the spring.FBI officials spent weeks examining computer data showing an odd stream of activity to a Trump Organization server and Alfa Bank. Computer logs obtained by the New York Times show that two servers at Alfa Bank sent more than 2,700 “look-up” messages – a first step for one system’s computers to talk to another – to a Trump-connected server beginning in the spring.
But the FBI ultimately concluded that there could be an innocuous explanation, like a marketing email or spam, for the computer contacts.But the FBI ultimately concluded that there could be an innocuous explanation, like a marketing email or spam, for the computer contacts.
2.00am GMT2.00am GMT
02:0002:00
This is Claire Phipps picking up the live blog from Scott Bixby.This is Claire Phipps picking up the live blog from Scott Bixby.
And this is why (probably common-or-garden) IT glitches seem much more suspicious in the dying hours of “October surprise!” month:And this is why (probably common-or-garden) IT glitches seem much more suspicious in the dying hours of “October surprise!” month:
The internal senate email server is down due to unknown network issue, investigation ongoing. Some staff haven't had access in hours.The internal senate email server is down due to unknown network issue, investigation ongoing. Some staff haven't had access in hours.
1.52am GMT1.52am GMT
01:5201:52
“A Halloween full of tricks.”“A Halloween full of tricks.”
Thanks to friends & loved ones for support—on a Halloween full of tricks, you have been real treats.Thanks to friends & loved ones for support—on a Halloween full of tricks, you have been real treats.
1.40am GMT1.40am GMT
01:4001:40
Paul Manafort, in response to a request for comment from The Guardian regarding an NBC story alleging the opening of an FBI inquiry into his foreign business ties, dismissed the report as “an outrageous smear.”Paul Manafort, in response to a request for comment from The Guardian regarding an NBC story alleging the opening of an FBI inquiry into his foreign business ties, dismissed the report as “an outrageous smear.”
“The NBC story is an outrageous smear being driven by Harry Reid and the Clinton campaign,” Manafort said. “It is an attempt by them to take the focus off of the FBI’s announcement of last Friday on the FBI’s renewed interest in the Clinton email scandal and the Wikileaks release of DNC and Clinton campaign emails.”“The NBC story is an outrageous smear being driven by Harry Reid and the Clinton campaign,” Manafort said. “It is an attempt by them to take the focus off of the FBI’s announcement of last Friday on the FBI’s renewed interest in the Clinton email scandal and the Wikileaks release of DNC and Clinton campaign emails.”
“There is nothing of my business activities to investigate,” Manafort continued. “There is no FBI investigation and NBC even admitted that there is no criminal investigation. This is presidential politics and nothing more.”“There is nothing of my business activities to investigate,” Manafort continued. “There is no FBI investigation and NBC even admitted that there is no criminal investigation. This is presidential politics and nothing more.”
1.28am GMT1.28am GMT
01:2801:28
Happy Halloween from Ted Cruz...Happy Halloween from Ted Cruz...
Two little girls... very excited to trick or treat with Mommy and Daddy. #HappyHalloween! pic.twitter.com/YyXxSCov95Two little girls... very excited to trick or treat with Mommy and Daddy. #HappyHalloween! pic.twitter.com/YyXxSCov95
1.25am GMT1.25am GMT
01:2501:25
More on Donald Trump’s alleged ties to a Russian bank:More on Donald Trump’s alleged ties to a Russian bank:
Trump’s ties to Russia have long raised eyebrows. Several of the Republican nominee’s campaign staffers, including former campaign chair Paul Manafort, have long maintained business ties in Eastern Europe. Manafort was a longtime political adviser to deposed Ukrainian president Viktor Yanukovych, a close Putin ally.Trump’s ties to Russia have long raised eyebrows. Several of the Republican nominee’s campaign staffers, including former campaign chair Paul Manafort, have long maintained business ties in Eastern Europe. Manafort was a longtime political adviser to deposed Ukrainian president Viktor Yanukovych, a close Putin ally.
The Republican nominee has long praised Russian leader Vladimir Putin and refused to condemn the Russian regime’s hostile actions towards neighboring countries, including Ukraine. He has even criticized Hillary Clinton for her criticism of Putin and the United States to cooperate with Russia in Syria, where the Russian air force has been repeatedly conducted air strikes on civilians in Aleppo.The Republican nominee has long praised Russian leader Vladimir Putin and refused to condemn the Russian regime’s hostile actions towards neighboring countries, including Ukraine. He has even criticized Hillary Clinton for her criticism of Putin and the United States to cooperate with Russia in Syria, where the Russian air force has been repeatedly conducted air strikes on civilians in Aleppo.
Further, Trump has long worked with Russian business interests in real estate projects. His son, Donald Trump Jr, said in 2008, “Russians make up a pretty disproportionate cross-section of a lot of our assets. We see a lot of money pouring in from Russia.”Further, Trump has long worked with Russian business interests in real estate projects. His son, Donald Trump Jr, said in 2008, “Russians make up a pretty disproportionate cross-section of a lot of our assets. We see a lot of money pouring in from Russia.”
1.09am GMT1.09am GMT
01:0901:09
A statement from Karen Dunn, Huma Abedin’s attorney:A statement from Karen Dunn, Huma Abedin’s attorney:
From the beginning, Ms. Abedin has complied fully and voluntarily with State Department and law enforcement requests, including sitting for hours-long interviews and providing her work-related and potentially work-related documents. Ms. Abedin’s willing cooperation has been praised by members of Congress and law enforcement officials alike. She only learned for the first time on Friday, from press reports, of the possibility that a laptop belonging to Mr. Weiner could contain emails of her While the FBI has not contacted us about this, Ms. Abedin will continue to be, as she always has been, forthcoming and cooperative.From the beginning, Ms. Abedin has complied fully and voluntarily with State Department and law enforcement requests, including sitting for hours-long interviews and providing her work-related and potentially work-related documents. Ms. Abedin’s willing cooperation has been praised by members of Congress and law enforcement officials alike. She only learned for the first time on Friday, from press reports, of the possibility that a laptop belonging to Mr. Weiner could contain emails of her While the FBI has not contacted us about this, Ms. Abedin will continue to be, as she always has been, forthcoming and cooperative.
12.55am GMT12.55am GMT
00:5500:55
Report: Donald Trump used 'legally dubious' tax avoidance maneuver in early 1990sReport: Donald Trump used 'legally dubious' tax avoidance maneuver in early 1990s
A five-byline New York Times story reports that Republican presidential nominee Donald Trump availed himself of a tax-avoidance method in the early 1990s so legally hazy that Trump’s own lawyers warned him that the Internal Revenue Service (IRS) would deem it improper under audit.A five-byline New York Times story reports that Republican presidential nominee Donald Trump availed himself of a tax-avoidance method in the early 1990s so legally hazy that Trump’s own lawyers warned him that the Internal Revenue Service (IRS) would deem it improper under audit.
The maneuver, the New York Times reports, helped Trump avoid reporting hundreds of millions of dollars in cancelled debt resulting from the failure of one of Trump’s casino businesses as taxable income. The IRS views cancelled debt in the same light as taxable income - which would normally mean that after the floundering of Trump’s Atlantic City casino business and the subsequent cancellation of hundreds of millions of dollars in debt, Trump would have to pay taxes on that cancelled debt as income:The maneuver, the New York Times reports, helped Trump avoid reporting hundreds of millions of dollars in cancelled debt resulting from the failure of one of Trump’s casino businesses as taxable income. The IRS views cancelled debt in the same light as taxable income - which would normally mean that after the floundering of Trump’s Atlantic City casino business and the subsequent cancellation of hundreds of millions of dollars in debt, Trump would have to pay taxes on that cancelled debt as income:
The strategy - known among tax practitioners as a ‘stock-for-debt swap’ - relies on mathematical sleight of hand. Say a company can repay only $60 million of a $100 million bank loan. If the bank forgives the remaining $40 million, the company faces a large tax bill because it will have to report that canceled $40 million debt as taxable income.The strategy - known among tax practitioners as a ‘stock-for-debt swap’ - relies on mathematical sleight of hand. Say a company can repay only $60 million of a $100 million bank loan. If the bank forgives the remaining $40 million, the company faces a large tax bill because it will have to report that canceled $40 million debt as taxable income.
Clever tax lawyers found a way around this inconvenience. The company would simply swap stock for the $40 million in debt it could not repay. This way, it would look as if the entire $100 million loan had been repaid, and presto: There would be no tax bill due for $40 million in canceled debt.Clever tax lawyers found a way around this inconvenience. The company would simply swap stock for the $40 million in debt it could not repay. This way, it would look as if the entire $100 million loan had been repaid, and presto: There would be no tax bill due for $40 million in canceled debt.
The Trump campaign dismissed the Times’ allegations, which are based on documents uncovered during a search of casino bankruptcy filings from the 1990s.The Trump campaign dismissed the Times’ allegations, which are based on documents uncovered during a search of casino bankruptcy filings from the 1990s.
“Your e-mail suggests either a fundamental misunderstanding or an intentional misreading of the law,” Trump campaign press secretary Hope Hicks told the New York Times. “Your thesis is a criticism, not just of Mr. Trump, but of all taxpayers who take the time and spend the money to try to comply with the dizzyingly complex and ambiguous tax laws without paying more tax than they owe. Mr. Trump does not think that taxpayers should file returns that resolve all doubt in favor of the IRS. And any tax experts that you have consulted are engaged in pure speculation. There is no news here.”“Your e-mail suggests either a fundamental misunderstanding or an intentional misreading of the law,” Trump campaign press secretary Hope Hicks told the New York Times. “Your thesis is a criticism, not just of Mr. Trump, but of all taxpayers who take the time and spend the money to try to comply with the dizzyingly complex and ambiguous tax laws without paying more tax than they owe. Mr. Trump does not think that taxpayers should file returns that resolve all doubt in favor of the IRS. And any tax experts that you have consulted are engaged in pure speculation. There is no news here.”
Congress banned the use of “stock-for-debt swaps” in 1993.Congress banned the use of “stock-for-debt swaps” in 1993.
UpdatedUpdated
at 12.56am GMTat 12.56am GMT