Icelanders protest, call for PM's resignation

People in Reykjavik, Iceland's capital, demonstrated outside the parliament building on Monday demanding Prime Minister Sigmundur David Gunnlaugsson's resignation after a leak of tax documents led to allegations of tax evasion.

More than 10,000 people gathered in the square outside the parliament, local media reported.

The protesters held signs reading "Take responsibility!" and "Where is the new constitution?"

"Of course we knew something was happening, the extent of the situation was a total surprise, so that's why I'm here," said protester Gudrun Erlingsdottir.

Another protester, Sigurdur Magnusson, said he wanted Gunlaugsson to resign.

"I'm just protesting like the rest of the nation, it appears... I would like the prime minister to resign," he said.

"I'm just protesting the corruption of the government. The prime minister has been hiding his money in Tortola [British Virgin Islands] and lying about it. The financial minister has also been lying about his participation in secret companies, and everybody is just fed up with this," protester Einar Bergmundur said.

According to the leaked documents Gunlaugsson and his wife Anna Sigurlaug Palsdottir bought an offshore company in British Virgin Islands in order to hide millions of dollars.

Gunlaugsson said that he does not intend to resign and claims that his wife's assets, which she inherited by her father, were taxed in Iceland and no money was hidden.

However, the opposition has called for the his resignation and plans on a vote of no-confidence.

"The prime minister should immediately resign," former Social Democratic prime minister Johanna Sigurdardottir said in a message posted on Facebook.

Around 28,000 Icelanders have signed a petition asking for Gunlaugsson's resignation.