immunity

WASHINGTON — President Trump’s lawsuit against the Internal Revenue Service over his leaked tax returns was filed for an “improper purpose,” a judge said Monday in a scathing decision that referred one of his lawyers for discipline and characterized the $10-billion complaint as an exercise in self-dealing.

U.S. District Judge Kathleen Williams accused Trump of having manipulated the court system when he sued a federal agency under his control, bypassing a requirement that parties in a lawsuit must have adverse interests and laying the groundwork for a settlement last spring that granted him immunity from tax audits and created a fund to compensate allies of the president who say they were unjustly persecuted.

Though the practical impacts of the ruling may be limited given the administration’s public pronouncements that the so-called $1.776 billion Anti-Weaponization Fund has been abandoned, the judge’s ruling nonetheless amounts to a scathing rebuke of the Trump administration and resurfaces a politically damaging storyline for acting Atty. Gen. Todd Blanche just as he prepares to face the Senate Judiciary Committee for his confirmation hearing Wednesday.

“The nature of the suit itself and the conduct of the Parties and counsel from its filing make plain that this was an attempt to use the Court to provide some legitimacy to an agreement to confer immunity to people and entities affiliated with the President and to earmark billions of dollars from American taxpayers to redress grievances not defined in the law,” Williams wrote in her ruling.

She added: “The President may be the functional ‘dominus litus’ of the Executive Branch, but as a party to a civil suit, he, as well as all the parties and lawyers before a court, are bound by the rules. Ensuring that our courts are used only for the express purpose created by the Constitution is the obligation of every judge and an obligation that this Court must discharge in light of the matter before it. ”

The judge pointed to Blanche’s congressional testimony in early June in which he revealed that the “anti-weaponization” fund was no longer moving forward amid intense bipartisan backlash. Though nothing had been filed in court, Blanche appeared confident in his testimony that he “could speak for, and bind, both sides of this matter,” the judge wrote.

“Acting Attorney General Blanche’s apparent capacity to speak for both Plaintiffs and Defendants, sign a ‘settlement’ document on behalf of all Parties to this action, and then repudiate part of that agreement, demonstrates that there was only one party whose interests were being represented throughout this case,” the judge wrote.

Tucker and Richer write for the Associated Press. AP writers Fatima Hussein and Michelle L. Price contributed to this report.

Democratic lawmakers blast move, which follows the establishment of a controversial ‘Anti-Weaponization Fund’.

United States President Donald Trump, his family, and his businesses have been granted immunity from any ongoing audits into their tax affairs, according to a directive by the Department of Justice.

The move on Tuesday came as an addendum to Trump’s agreement a day earlier to settle a $10bn lawsuit against the Internal Revenue Service (IRS) over the leak of his tax information to media outlets between 2018 and 2020.

In a one-page document, signed by acting Attorney General Todd Blanche, the Justice Department said authorities would be “FOREVER BARRED and PRECLUDED” from “prosecuting or pursuing” tax claims against Trump, members of his family, and his businesses.

The document, which was posted on the Justice Department’s website without any official announcement or press release, stipulates that the waiver applies to inquiries that are “currently pending or that could be pending,” including any related to tax returns filed by Trump before Monday’s settlement.

Democratic lawmakers immediately blasted the move.

Senator Adam Schiff of California accused the Trump administration of engaging in corruption and “self-dealing”.

“The tax-dodging President gets himself and his whole family a tax break, thanks to Todd Blanche,” Schiff said in a statement on social media.

Richard Painter, the chief White House ethics lawyer under former President George W Bush, said that exempting Trump from any tax obligations would be unconstitutional.

“If the president or his family owe the IRS money, this is a violation of the domestic emoluments clause of the US Constitution, which specifically says that the president cannot receive any profits or advantages from the US government other than his salary appropriated by Congress,” Painter told Al Jazeera.

The Justice Department and the Trump Organisation did not immediately respond to requests for comment.

The Justice Department’s directive marks a dramatic expansion in Trump’s settlement, which established a so-called “Anti-Weaponization Fund” to compensate people who claim to have been victims of politically-motivated “lawfare”.

Critics have likened the initiative to a “slush fund”, warning that it is likely to be used to reward Trump’s allies.

Decisions on distributing money from the $1.776bn fund will be made by a five-member commission, four of whom will be directly appointed by Blanche, a Trump appointee who formerly acted as his personal lawyer.

In heated exchanges with Democratic senators on Tuesday, Blanche denied that Trump had directed him to establish the fund or that it would be used in a partisan manner.

“Anybody in this country is eligible to apply if they believe they were a victim of weaponisation,” Blanche said.