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Portuguese gov't denies involvement in alleged VIP tax payers list

Xinhua, March 28, 2015 Adjust font size:

The Portuguese government denied any involvement on Friday in the elaboration of an alleged list of VIP figures who were shielded from paying tax, local media reported.

"Political control within the public administration would mean disrespect for the Tax Authority's autonomy and responsibility," said Minister of State and Finance Maria Luis Albuquerque at parliament, in response to the opposition Socialist Party.

However, Socialist MP Joao Galamba was sceptical about Luis Albuquerque's remarks.

"Either there is a list and it was decreed by the government or there is a list and it was decreed by the Tax Authority," Galamba said, referring to both cases as "unacceptable."

Director of Portugal's Tax and Customs Authority Antonio Brigas Afonso stepped down earlier this month over the alleged VIP list and denied any involvement in its elaboration.

Prime Minister Pedro Passos Coelho, who earlier this month was accused of tax evasion by the former director of the Social Security Institute, has also denied involvement in the scandal.

Passos Coelho admitted he had failed to pay his taxes in time but said he had not received any benefits or privileges.

On Thursday, local media reported that Passos Coelho had 106 consultations by employees from the Tax and Customs Authorities.

Portugal has been implementing harsh austerity measures including tax hikes and budget cuts to meet the deficit reduction targets set under its 78-billion-euro (84.93 billion U.S. dollars) bailout program it signed with the troika of international lenders -- the European Commission, International Monetary Fund and European Central Bank in May 2011 and ended last year.

The tax scandal has tainted Passos Coelho's reputation even further before the Autumn general elections.

Passos Coelho's party underwent the worst local election defeat in over two decades in October. The country has been hit by several corruption scandals recently which ended in the collapse of the country's biggest bank, the detention of the country's immigration chief and the imprisonment of former Socialist leader Jose Socrates. Enditem