Tax scandal: Portugal’s PM under increasing fire

Attempts to brush his latest “tax scandal” under the carpet have so far backfired miserably on Portuguese prime minister Pedro Passos Coelho.

Socialist party heavyweight and former presidential candidate Manuel Alegre has berated party members for not having reacted sufficiently – saying that Passos Coelho’s “ethical and political obligation” is to resign.

Hours after his thoughts appeared in Portugal’s Diário de Notícias, Socialist leader António Costa spoke out on the controversy that has been widely covered in the international media. He said Passos Coelho had “used and abused his political immunity” to dodge questions. When it came to taxes, and their non-payment, “this prime minister and his coalition” have been “absolutely insensitive to the dramas of so many Portuguese”, Costa continued.

Thus Passos Coelho’s continued refusal to fully explain his tax debts were “unacceptable”.

The pressure is now well and truly on the PSD leader to fully explain why he failed to declare earnings between 2003 to 2007, when he was a consultant for various companies, including Tecnoforma – the services company that got him in to so much trouble when details of his allegedly non-declared earnings were revealed in September 2014 (see: https://www.portugalresident.com/new-psd-leader-mooted-as-passos-coelho-faces-backhander-scandal).

As the story travels the world, the severity of Passos Coelho’s debt has increased exponentially. While papers in Portugal talk of anything from €2886 plus interest, media sources elsewhere like China’s Global Times have said his debts were in the region of €4 million.

Meantime, the PS is awaiting Passos Coelho’s full and detailed explanation – expected to come any day now.

natasha.donn@algarveresident.com

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