A debate is raging in the media in Portugal about Portuguese multinational corporations which transfer their assets to accounts held in the Netherlands.

The debate was prompted by the decision of the parent company of supermarket chain Pingo Doce to transfer its shares to the Dutch-registered company Francisco Manuel dos Santos to avoid paying taxes in Portugal.

Portugal is one of the EU member states worst affected by the financial crisis. Widespread economic hardship there has prompted much criticism of corporations which seek to avoid taxes by moving to the Netherlands.

Portuguese media have already published numerous stories about multinationals which profit from low tax rates in the Netherlands and the favourable effects of bilateral tax treaties.

(gsh/mw/imm)

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