Collaboration with the Portuguese Communist Party may be their best bet, but the price for the communists' backing is likely to be heavier taxation of capital. That said, reform is expected to seep through from 2001 onwards and, in addition to substantial income and real estate tax reform, will include changes to commercial transfer pricing tax, significant for multinationals and international business as a whole.
Tax is a substantial and lucrative practice area for Portuguese lawyers.
Name partner Miguel Teixeira de Abreu is a member of the government commission considering the amendments to international tax laws. The firm is experienced in corporate structuring within the Madeira Tax Free Zone and was the first firm to advise on the tax issues of securitisation projects, formerly handled exclusively by international auditing firms. The international focus of the firm leaves it well placed for multinational restructuring and transactions. The firm advises a number of multinationals on Portuguese tax issues, including Borealis, Compaq, the McKinsey group, and Cap Gemini. The firm advised the Portuguese government in respect of recent submissions before the European Commission to justify the tax regime of Madeira.