warring factions concerned about the implications of proposed amendments which will make tax evasion overseas a criminal act under Bermuda's money laundering legislation, according to sources.

However moves are currently underway to change the amendments before they are debated in Parliament on Friday. The changes are being made to allay business fears that Bermuda's thriving financial services industry will be destroyed, according to various sources.

Critics claim the amendments as proposed are too onerous and will make them criminally liable for personal and corporate taxation matters overseas, an area over which they say they will be unable to properly monitor. Proponents say the amendments are necessary if Bermuda is to continue as an offshore centre in the face of a crackdown on tax havens by the UK and the Organisation for Economic Cooperation and Development.

Apparently BIBA was forced to postpone until next week a members meeting at which the concerns over the amendments were to be discussed with Government financial secretary Peter Hardie.

Finance Minister Eugene Cox is due to appear at the rescheduled BIBA next Thursday. However some members complain that the delay means the bill will be debated without consultation with the business community.

Yesterday BIBA apparently called an "emergency'' board meeting to discuss the issue, according to a source.

BIBA chairman Glenn Titterton has not returned calls to The Royal Gazette for the past two days. Mr. Cox has also not returned telephone calls.

BIBA yesterday sent out a Press release calling on the industry to accept the amendments and said compliance "appears to be at this time appropriate'' in the face of overseas pressure.

"The best course of action for the industry now will be to determine how to manage these changes in relation to their businesses,'' the release stated.

"Whilst some individual business might be more affected than others by these amendments, early compliance may ultimately be in Bermuda's best interests as a jurisdiction, further differentiating us and strengthening our case in the `harmful taxation' debate.'' The split in BIBA's membership appears to be between those working in the insurance sector and those working the financial services and investment sector. The financial sector businesses claim the amendments are being pushed through without consultation on how they might be affected. Apparently many believe the amendments are necessary but not in the form put forward by Mr.

Cox.

TAXES TAX