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Panama Papers: More protests ahead as Icelanders seek PM’s resignation

Click to play video: '‘We’re a laughing stock’ says Iceland MP in wake of PM’s attempt to dissolve government'
‘We’re a laughing stock’ says Iceland MP in wake of PM’s attempt to dissolve government
WATCH ABOVE: Iceland's political parties have responded with anger after Prime Minister Sigmunder David Gunnlaugsson attempted to dissolve the government, apparently without consulting his party or his coalition partners – Apr 5, 2016

REYKJAVIK, Iceland – Iceland’s prime minister is defying calls for his resignation as opponents plan a second day of mass protests outside the island nation’s parliament.

Prime Minister Sigmundur David Gunnlaugsson and his wife have been linked to an offshore company that may represent a severe conflict of interest with his official role.

WATCH: Thousands rally in Iceland after release of Panama Papers ignites controversy for PM

Click to play video: 'Thousands rally in Iceland after release of Panama Papers ignites controversy for PM'
Thousands rally in Iceland after release of Panama Papers ignites controversy for PM

A wide array of opposition groups are planning protests Tuesday evening, seeking a new election. Parliament was not in session but deliberations on the crisis are expected to resume later this week.

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READ MORE: Iceland’s PM won’t resign in Panama Papers scandal

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News reports have alleged that Gunnlaugsson and his wife set up a company in the British Virgin Islands with the help of a Panamanian law firm at the centre of a massive tax evasion leak.

WATCH: Iceland PM walks out on interview after being questioned about Panama Papers allegations

Click to play video: 'Iceland PM walks out on interview after being questioned about Panama Papers allegations'
Iceland PM walks out on interview after being questioned about Panama Papers allegations

He denies doing anything illegal and says all taxes were paid.

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