overseas a criminal act take to the floor of the House of Assembly today, with support from Bermuda's business community.

Proponents of the amendment say the inclusion of tax evasion under money laundering crimes will help protect Bermuda from a crackdown on tax havens by the UK and the Organisation for Economic Cooperation and Development.

According to sources changes have been made to the wording of The Proceeds of Crime Amendment Act 1999 allaying fears that Bermuda's businesses would be unduly liable for breaches in taxation laws overseas.

The amendment will be debated along with one making related changes in the The Taxes Management Act. Finance Minister Eugene Cox yesterday said the amendments brought Bermuda into line with international standards in relation to money laundering and tax evasion.

He said the amendments were the result of consultation with Bermuda's business community, including the banking, law and trust sectors.

He dismissed claims that there had been a division within the business community, saying that some people had been "scaremongering''.

"Some of the furore may be because some people are looking at the worst case scenario,'' he said. "All sectors have endorsed the amendments.'' UBP Shadow Finance Minister Grant Gibbons said the amendments now had the full support of the party. He had originally voiced concerns about the amendments earlier this week.

Bermuda International Business Association chairman Glenn Titterton said earlier reports in The Royal Gazette about splits within the ranks of the organisation were false.

"We broadly support the amendments recognising that there are differences of opinion,'' he said. The full board, which included representation from the banks and major sectors of the financial community, voted unanimously in favour of supporting the amendments, he said.

Mike Murphy, chair of the tax treaty advisory committee to Government, called reports in The Royal Gazette about dissension within the business community "grossly inaccurate''.

"As far as I'm aware the committee process has been followed,'' he said.

"The various interests have expressed their opinions and Government is making a good faith effort to address their concerns. Bermuda is consistently adopting policies that conform to the preservation of being an open and clean jurisdiction.'' Much of the debate surrounding the amendment focused on the "guidenotes'' for the various sectors in the financial services industry. The list of recommendations for each sector would lay out what procedures companies should follow in protecting themselves from being on the wrong side of the law if their clients are convicted of laundering money.

However, the status of the guidenotes as originally presented made them seem an optional consideration for the courts when deciding whether a company or person had helped a client evade taxes.

According to sources the changes now make consideration of the guide notes mandatory. The guide notes, which are to be drafted for various sectors in the financial industry, would provide protection in court if followed by individuals and companies.

Tax proposal to go before MPs Currently the guide notes for the mutual fund industry relating to tax offences have been drafted. Other sectors are following suit.

A separate amendment to Bermuda's tax treaty with the US has also been tabled as part of the package before the House.

The amendment to the tax treaty with the US clarifies that the US Government must indicate how the information being sought about a client relates to an investigation into a taxpayer.

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