April 06, 2016: The Panama Papers scandal has this morning claimed its first political casualty with Iceland's prime minister announcing his resignation.
Iceland's Prime Minister Sigmundur Gunnlaugsson has resigned after being accused of hiding millions of dollars worth of investments in offshore accounts.

It was revealed in the Panama Papers leak that Mr Gunnlaugsson and his wife owned an offshore company, Wintris, which was allegedly being used to conceal family assets.

On Monday thousands gathered outside the Icelandic parliament in Reykjavik to protest about what the opposition said was PMr Gunnlaugsson's failure to disclose a conflict of interest over the offshore company, which has big claims on Iceland's collapsed banks.

Earlier on Tuesday Mr Gunnlaugsson had asked for parliament to be dissolved after the opposition called a vote of no confidence in the government.

Sigmundur Gunnlaugsson.
Sigmundur Gunnlaugsson.
Sigurdur Ingi Johannsson, who is also currently minister of fisheries and agriculture, told reporters that the progressive party will suggest to its coalition partners in the Independence Party that he should become the new prime minister.

The more than 11.5 million documents leaked from the Panamanian law firm Mossack Fonseca have cast light on the financial arrangements of an array of politicians and public figures and the companies and financial institutions they use.

Following the leak, the Australian Taxation Office has confirmed it is investigating 800 taxpayers linked to the firm.

Among others named in the documents are friends of Russian President Vladimir Putin, relatives of the leaders of China, Britain, Iceland and Pakistan, and the president of Ukraine.
The papers have caused public outrage over how world's rich and powerful are able to stash their cash and avoid taxes while many people suffer austerity and hardship.

In Britain, the leader of the opposition Labour Party demanded that the government tackle tax havens, saying it was time Cameron stopped allowing "the super-rich elite" to dodge taxes.

"There cannot be one set of tax rules for the wealthy elite and another for the rest of us," Labour leader Jeremy Corbyn said.

Cameron has cast himself as a champion in the fight against tax evasion in British-linked territories, but he was put on the spot by the leaks, which named his late father and members of the ruling Conservative Party among the list of clients who used Mossack Fonseca's services.

Cameron said he did not own any shares or have offshore funds.

"I have a salary as prime minister, and I have some savings, which I get some interest from, and I have a house," he said.

"I have no shares, no offshore trusts, no offshore funds, nothing like that."

With AFP
© ninemsn 2016