Top lawyer says Portugal's tax regime is 'inhumane'

taxThe respected legal expert Alexandre de Albuquerque argues that taxes are too high in Portugal and criticises the relentless action of the ‘inhumane’ tax authorities.

In an interview with Diário Económico, Alexandre de Albuquerque, a partner at the Albuquerque & Associados law firm, does say that he is optimistic about the recovery in 2015.

The lawyer argues that the tax burden in Portugal is excessive, with an ‘inhumane’ tax machine that has displayed an efficiency that has crossed the legal line in many cases.

Albuquerque said that during 2014, area such as litigation and debt recovery have grown, but now there is more traditional business law activity which points to a recovery in the economy.

As for the tax reforms in recent years for income tax, company tax and the Green Taxation legislation, Albuquerque said that the tax machine is too unforgiving, at times completely inhumane with citizens’ rights greatly eroded as the taxpayer has to pay up and argue later.

Reflecting a general dissatisfaction with the legal system, Albuquerque said the the courts take years to resolve issues and when it comes to small amounts demanded by the tax authority, people just pay up as it is too much trouble to do otherwise, the tax machine is now inhumane.

Regarding the Green Taxes, Albuquerque said the reality is that the consumer has ended up paying these in most cases, either directly or through increases in their bills where the consumer has no alternative.

Taxation is one of the things that foreigners consider when looking at investing in Portugal, Albuquerque said he believes that many have the feeling that there is a considerable fiscal burden in Portugal and believes that an even greater effort to make Portugal more attractive is required, especially when it comes to taxes on businesses which are far lower in other countries.