Thousands of Icelanders protest against PM's tax haven allegation

Thousands of Icelanders gathered in front of the parliament on Monday evening to express their anger against the government following the release of the so-called "Panama Papers", which suggest Icelandic prime minister Sigmundur David Gunnlaugsson and other two cabinet members have ties to offshore companies.

The riot gear equipped police used iron fence to separate protester and the parliament building in advance. After the organizer's speech, the protesters are chanting, banging drums, and throwing bananas, toilet paper and yogurts towards the parliament building, demanding dismissal of the current government.

This demonstration, initiated through a social media, calls for a snap election. "The government should respect the basic rules of democracy and stand down at once. We therefore demand elections now!" said the organizer in a statement on its facebook homepage.

The documents, leaked from a Panamanian law firm called Mossack Fonseca, reveal Gunnlaugsson co-owned a company called Wintris Inc, set up in 2007 on the Caribbean island of Tortola in the British Virgin Islands, to hold investments with his wife Anna Sigurlaug Palsdottir. He sold his entire shares to Palsdottir for one dollar in late 2009. But he failed to declare his interest in the company after he entered Iceland's parliament in 2009.

As the Wintris claimed millions dollars in assets in three bankrupted Icelandic banks after the financial crisis in 2008, Gunnlaugsson is faced with allegations from opponents that he has hidden a major financial conflict of interest from voters ever since he was elected a parliament member seven years ago.

The prime minister's office said in a statement that the PM's holding of Wintris shares was an error. He and his wife corrected it after they got married in 2009.

However, when receiving an interview with local media on Monday morning, Gunnlaugsson said he is not going to resign and the current government performs well.

The documents also suggest both the minister of finance and economic affairs Bjarni Benediktsson and the interior minister Olof Nordal are in connection with offshore companies. Enditem