Part 1/8:

The Evolution of Financial Manipulation: From Fake Invoices to Economic Substance Rules

In 2012, Donald Trump reported a $48 million loan on his financial statements that didn't actually exist—an extreme illustration of how financial manipulations could obscure truth for personal gain. This situation represents a broader pattern, particularly common before digital financial oversight became prevalent.

By operating in an era where companies could create fake invoices or loans without arousing suspicion, many took advantage of these loopholes to bypass tax obligations entirely. With minimal regulation, businesses—large and small—could set up offshore companies and bill themselves for fictitious services, effectively reducing their tax burdens through creative accounting methods.