PAUL'S SECRET $16M:IRS

Agent testifies Manafort failed to report it

An IRS agent testified Wednesday at Paul Manafort’s trial for tax and bank fraud that the former Trump campaign chairman had at least $16 million in unreported taxable business income over four years.

Michael Welch, a 34-year IRS veteran who has worked on more than 500 criminal investigations, said in federal court in Alexandria, Va., that Manafort received $15.5 million from Ukraine that he then used to pay for clothes, homes and landscaping between 2010 and 2014.

Manafort (above, left) also falsely classified another $1.5 million in income as a loan and failed to indicate on his tax returns that he had foreign bank accounts, Welch testified.

In addition to the unreported income, Welch said that Manafort listed dubious business expenses such as 132,000 euros to a yacht company, $49,000 for an Italian villa rental, $45,000 for cosmetic dentistry and $19,800 for a riding academy, according to The Washington Post.

Earlier on Wednesday, Manafort protégé Rick Gates (above, right) wrapped up three days of testimony after admitting he lied, committed crimes with Manafort, stole money from his boss and cheated on his wife.

Lawyers for Manafort grilled Gates on his personal life in a bid to undermine his credibility.

Attorney Kevin Downing asked Gates if he had told special counsel Robert Mueller’s office that “you actually engaged in four extramarital affairs?”

Gates, a married father of four, replied, “Mr. Downing, I’d say I made many mistakes, over many years.”

Gates had testified Tuesday that he once had an extramarital affair that involved maintaining a London apartment.

He testified under terms of a deal with the Justice Department and Mueller, who’s investigating Russian interference in the 2016 presidential election.

Gates faces up to six years in prison under the deal.

Also Wednesday, an FBI forensic accountant, Morgan Magionos, told jurors that bank records from Cyprus, St. Vincent and the Grenadines, and the United Kingdom revealed that the accounts were connected to Manafort and his associates.

She said Manafort’s passport was used to open many of them in dollars, euros and British pounds.

Using charts, e-mails and financial and tax records, Magionos told jurors how she traced millions of dollars back to his hidden foreign bank accounts.

In one case, she alleged that foreign accounts were used by Manafort to pay for more than $3.5 million in home improvements.

Gates was also listed as an owner of several of the accounts.

Konstantin Kilimnik, a man prosecutors say has ties to Russian intelligence, was among the owners of companies that received money from Manafort.

They are charged with witness tampering in a separate case.