Prime Minister Sigmundur David Gunnlaugsson resigned Tuesday amid reports that he and his wife set up an offshore company with the help of a Panamanian law firm at the center of a massive tax evasion leak, representing the first world leader to step down in the Panama Papers scandal. Gunnlaugsson denies doing anything illegal and says he paid all taxes. Opponents say his company, set up in the British Virgin Islands, represents a severe conflict of interest because it held investments in failed Icelandic banks his government was responsible for overseeing.
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