According to a recent testimony by an IRS whistleblower, Hunter Biden, the son of President Joe Biden, is alleged to have evaded paying taxes by utilizing a complex financial arrangement involving a Chinese firm and Burisma, a Ukrainian energy company. The whistleblower claims that Hunter Biden sent an email to his business associate, Devon Archer, in 2014 discussing plans for the $1 million they earned from Burisma.
The whistleblower asserts that the scheme involved using a portion of the Burisma money to fund an investment in a Chinese company, with Hunter Biden subsequently obtaining the funds through a “loan.” By structuring the transaction in this manner, Hunter Biden allegedly avoided paying taxes on the loans he received.
Although the alleged money transfer does not fit the definition of traditional money laundering, it exhibits characteristics of “layering,” which is a method used to complicate and conceal the trail of money. Notably, the Department of Justice (DOJ) decided not to pursue charges against Hunter Biden, deeming the money as a “loan.” However, the whistleblower argues that it is not possible to loan oneself their own money, suggesting impropriety in the arrangement.
It is important to mention that the statute of limitations has expired for the 2014 transaction, making it impossible to bring charges related to that particular incident. Hunter Biden recently pleaded guilty to tax evasion charges from 2017 and 2018. The whistleblower also revealed that Hunter Biden had a history of tax issues, including late filings and owing substantial amounts in previous years.
In May, the House Oversight Committee released a report alleging that Hunter Biden and other members of the Biden family had received $10 million from Chinese and Romanian sources through a network of LLCs during Joe Biden’s vice presidency. The White House has dismissed these claims, and Hunter Biden’s lawyer has attributed his client’s actions to personal struggles with addiction during the period under investigation.
At the time of writing, neither the White House nor Hunter Biden’s lawyer has responded, and the DOJ’s decision not to prosecute Hunter Biden based on the loan argument remains in effect. It is important to note that Hunter’s tax evasion and scheming spanned over several years. President Biden’s call for the wealthy to pay their fair share of taxes would be more effective if he ensured that his own family is also paying their fair share.