President-elect Donald Trump’s outlandish threat to seize control of the Panama Canal was made as his companies face ongoing financial and legal troubles in Panama.
During a Sunday speech and in subsequent posts on his failing social media platform, Truth Social, Trump whined about Panama’s canal fees and suggested that the U.S. could take the Panama Canal back.
However, an ongoing tax evasion lawsuit reveals the truth behind Trump Organization’s fraudulent history with Panama.
In 2019, ProPublica revealed that Ithaca, the owners of a hotel tower in Panama City that formerly operated under the Trump brand, accused Trump Panama Hotel Management LLC and Trump International Hotels Management LLC of not paying the 12.5% required taxes to the local government. A legal filing at the time accused the companies of “intentionally evading taxes,” which left the hotel owners liable for millions of dollars.
“Had Trump been honest with Ithaca about its failure to pay taxes on the management fees it earned and its failure to properly report employee salaries to Panama’s social security agency, Ithaca would have never entered into the [licensing deal],” read an updated complaint filed in 2020, according to Newsweek.
The suit against the Trump Organization is still pending in New York District Court, the timing of it all hasn’t escaped notice. Some prominent political commentators have suggested that Trump’s sudden interest in controlling the Panama Canal is simply another Trump attempt to avoid paying taxes.