Investigation Unfolds: Luís Montenegro's Alleged Tax Fraud Linked to Client Transfers

Allegations of Tax Fraud

Correio da Manhã reported that the suspicion of alleged tax fraud involves the purported transfer of clients from SP&M - Sociedade de Advogados, where Prime Minister Luís Montenegro was a partner, to Spinumviva to potentially gain a tax advantage.

Investigation Details

The Ministério Público (Public Prosecutor's Office) has initiated a preventive investigation concerning Montenegro and his family's business. According to Amadeu Guerra, the Attorney General of the Republic, the investigation also encompasses suspicions of tax fraud related to Montenegro.

The report indicates that the Ministério Público is examining whether Montenegro utilized Spinumviva to secure alleged tax benefits. The suspicion arises from a claim that if Montenegro performed work through the law firm, the Prime Minister would incur an IRS tax rate exceeding 40% due to the tax transparency regime. In contrast, through Spinumviva, he would pay an effective IRC tax rate between 21.01% and 22.84%.

Context of the Investigation

This preventive investigation aims to determine if there are sufficient elements to proceed with a formal inquiry. Recently, the Procuradoria-Geral da República received an anonymous complaint regarding the family business of the Prime Minister.

This information comes just a day after the government's collapse, following the rejection of a confidence motion presented by Montenegro's executive.

Conclusion

As the investigation unfolds, it remains to be seen how this will affect Montenegro and the political landscape in Portugal.