Bermuda has received recognition from the Internal Revenue Service (IRS) and British Prime Minister Gordon Brown for its efforts to get onto the Organisation of Economic Cooperation and Development (OECD) "white list".

Government marked the Island's upgrade to the OECD List of International Tax Standards with a conference held at the Cabinet Office yesterday by Premier Ewart Brown and the Cabinet to congratulate the Finance Ministry on signing its 12th tax information exchange agreement and being removed from the OECD "grey list" as a result on Monday.

Finance Minister Paula Cox disclosed that she had received an e-mail from the IRS, the US tax authority, noting that Bermuda was now on the white list, saying that statement was "worth its weight in gold".

Meanwhile Dr. Brown said he had been sent a letter by Mr. Brown which indicated that he expected Bermuda to "do something like this", adding that it was different from the first correspondence he had received from the British PM that suggested the Island had not made the grade.

"The truth is: nothing has really changed about the way we do business," said Dr. Brown.

"We have always been a reputable and transparent financial services jurisdiction working diligently with our international partners - particularly the United States.

"We have had a tax treaty with the Americans for more than two decades and our track record with the OECD is well known."

But Dr. Brown added a word of caution that in an ever-changing politically-charged regulatory environment the standards were constantly changing, however, members of Government were more than capable of adjusting accordingly and protecting Bermuda's international reputation.

He said the Finance Ministry had more tax information exchange agreements (TIEAs) on the way and would continue its work on that front as a matter of national priority.

"Our economy is too important to the livelihood of Bermudians; we must never allow complacency to creep in," he said.

Ms Cox said that Bermuda had relied on bi-lateral and multi-lateral face-to-face negotiations from day one to ensure its TIEAs were comprehensive and legislatively well-regulated and that the Island built lasting and meaningful relationships with its Treaty partners.

"Our TIEA partners recognise Bermuda as one of the first international finance centres to engage in partnership with OECD countries in the worldwide effort to achieve greater transparency and co-operation in tax matters and they recognise that Bermuda is committed to the highest international standards in this regard," she said.

"But most of all, our TIEAs provide meaningful benefits to Bermudians."

Ms Cox said that Bermuda would be more attractive to international business and foreign investors than other jurisdictions that "received a gift of white listing" on April 2.

She said that the OECD white listing would enable the Island to attract direct foreign investment for hotel development and other domestic investment, including public offerings by Bermuda companies, such as the preference shares in Butterfield Bank, while international business would continue to be a pillar of the third economy, supporting a number of charities, sports teams, clubs, churches, schools and scholarship funds.

"Truly, the Bermudian international business relationship is a partnership and success story that we all profit from," she said.

"We look forward to that relationship continuing and flourishing, ensuring that Bermuda remains one of the top five places in the world to live and do business in."

• The Bermuda International Business Association (BIBA) has praised Government for successfully reaching its 12th TIEA and ensuring Bermuda's position on the OECD white list.

"Bermuda is now at a clear competitive advantage with other offshore centres in seeking legitimate international business partners," said Cheryl Packwood, CEO of BIBA.

"Let there be little doubt for those in the offshore world who think that non-co-operation and stubbornness is an appropriate stance that they are wrong. Moreover, while these countries try to catch up to Bermuda, they will need to change laws, negotiate their own agreements and more than likely change their behaviour."