Iceland Prime Minister is facing the biggest challenge of his career after he's been called on the parliament for a snap election. Panama papers have revealed the Iceland PM's connection to the notorious offshore tax havens.
Sigmundur Davíð Gunnlaugsson and his wife were under fire after the Panamanian law firm, Mossack Fonseca showed papers that secure clients' hidden wealth offshore, Independent reported. Since the tax haven's leakage, activists and other opposition leaders have been weighing on the motion for a general election.
Gunnlaugsson is set to face the accusations that he had secretly kept a major financial conflict of interest from voters since he became Iceland's PM. Other opponents demanded that Gunnlaugsson should resign immediately if he would not regain the trust of the people.
"We can't permit this. Iceland would simply look like a banana republic. No one is saying he used his position as prime minister to help this offshore company, but the fact is you shouldn't leave yourself open to a conflict of interest. And nor should you keep it secret," former finance minister Steingrímur Sigfússon told The Guardian.
According to the leaked papers from Mossack Fonseca firm, Gunnlaugsson was the co-owner of Wintris, Inc. in the Caribbean island of Tortola in the British Virgin Islands, IB Times reports. The report alleged that the Iceland's PM and his wife used the property to hide their million worth of investments located abroad.
The couple allegedly invested the huge fortune from the sale of Pálsdóttir's share in Iceland. The papers revealed that Iceland's PM owned a 50% share in Wintris for two years before he transferred to Pálsdóttir.
"I don't know how these things work but everything is declared on the tax report from the beginning. You're asking me about things I haven't acquainted myself with. You are asking me nonsense. You trick me into an interview under false pretences. Something is being made suspicious that isn't suspicious," Gunnlaugsson said before walking out of the interview by The Guardian.
Iceland's PM has denied the accusations, claiming he was never meant to have a share in the company. Meanwhile, Mossack Fonseca director Ramon Fonseca said that the leakage of the documents was an international campaign against privacy.
