Top US democrat: Bermuda is not in our crosshairs

Fears that Bermuda’s international business sector could be targeted by tough new US tax haven legislation were quashed yesterday by an influential Democratic politician.

Congressman Charles Rangel, chairman of the powerful financial House Ways and Means Committee, told a Government delegation to Washington, DC that Bermuda was not on the list of jurisdictions which could suffer from a proposed clampdown on offshore US business operations.

Premier Ewart Brown and Deputy Premier Paula Cox told The Royal Gazette they were delighted with the outcome of the closed-door talks with Congressman Rangel.

And the news will come as a relief to the Island’s insurance and reinsurance companies who do most of their business in the US and were uncertain as to how changes in the law could affect them.

Dr. Brown described Congressman Rangel, Representative for New York’s 15th District, as “Mr. Ways and Means”.

He said the veteran politician’s assurances during their half-hour meeting meant that though Bermuda would continue to monitor any draft legislation on tax issues, the Island was no longer on “orange alert”.

“He began the meeting with a five-minute monologue, I suppose you could call it, in which he just extolled the virtues of Bermuda,” said Dr. Brown.

“He talked about it being a well-regulated financial environment. He said as far as he knew Bermuda was a good place for American companies to do business and they would not be there if it was not good for business.

“I’m very pleased. If tomorrow can go like today, it will have been a memorable trip.”

Finance Minister Paula Cox said Congressman Rangel pre-empted much of what the delegation had planned to say in his welcoming remarks with “a clear declaration of support for Bermuda and our regulatory environment”.

She added: “He knew that we had a proper regulatory environment and were not a tax haven and that we conducted our business appropriately and he clearly recognised our business footprint.

“He was equally clear that while he may love us, as he did others, he told others who may have engaged in less pristine activities that even though he may love them he had a job to do.

“However he was categoric in indicating that that less correct approach was not the position with how Bermuda conducted business. We all chuckled as he pre-empted and made it clear that he anticipated our comments and had carefully thought about the issue.”

It was not possible to speak with Congressman Rangel after the meeting and a spokesman for the Ways and Means committee said he did not normally comment on private meetings.

The spokesman added: “The group had a very positive meeting, continuing a longstanding dialogue on issues of mutual concern.”

Earlier in the day, the delegation - which includes Finance Secretary Donald Scott and two DC lobbyists working on behalf of the Bermuda Government - also got a favourable response from Republican Senator Norm Coleman.

Sen. Coleman has tabled legislation aimed at combating abusive tax shelters and uncooperative offshore tax havens used by businesses and individuals to dodge payment of their US taxes.

Deputy Premier Ms Cox said he was “very responsive” and recognised that Bermuda was a legitimate jurisdiction which has been cooperative with US authorities on financial matters. “He said that I made a very good case,” she said.

Ms Cox described the 30-minute meeting with the Minnesota politician as “pivotal”, adding: “It’s one that directly impacts on our national economic interest.”

This week’s trip to the American capital includes meetings with several other Ways and Means Committee members, including John Lewis, Artur Davis, Kendrick Meek and Stephanie Tubbs Jones. The delegation will meet today with Senate Finance Committee chairman Max Baucus.

Courtesy of Royal Gazette reporter Sam Strangeways in Washington DC