A leading American tax and accounting analyst has said that so-called "patriot tax" legislation could become law.

Robert Willens, managing director and leading tax expert with Lehman Brothers in New York told The Royal Gazette that changes could go through on the back of strong advocacy for legislation to stem the flow of business moving offshore.

Mr. Willens added that the issue had captured public attention as a result of significant media coverage and the current climate in the US after September 11 and Enron.

Mr. Willens said the matter had become high-profile despite the fact that the bills introduced to date - several draft pieces of legislation have now come before the US House and Senate - have not been "particularly good legislation".

Mr. Willens added: "This is not a first-hand sense as I am not in Washington but I get the impression that there is outrage in the populace."

The push for legislation to stem the perceived flow of companies that have either moved to Bermuda or stated their intention to reincorporate on the Island has been gaining momentum since early in the year. But Mr. Willens cited the number of companies that had reincorporated here as a mere 20 or so over the last eight years.

The focus of the debate has been a number of well-known companies including Ingersoll-Rand, Cooper Industries and much in the news Stanley Works. Manufacturing conglomerate Tyco - which did not reincorporate as such but bought Bermuda-based firm ADT - has also been included in the debate.

Mr. Willens, who is also an adjunct professor of finance at Columbia University School of Business, added that the push for "patriot tax" legislation was not something that he necessarily agreed with, and that an overhaul of the US tax system may ultimately be what was called for.

Mr. Willens added that he was sympathetic to the plight of company's management in getting the maximum return for shareholders and the need to remain competitive in a global environment.

Looking at the advantages a company may gain in moving to Bermuda, Mr. Willens said that by estimates a firm could on average reduce its level of tax by ten percentage points, depending on the company's level of foreign income.

Mr. Willens balked at the popular perception that reincorporating to Bermuda was easily accomplished. Nor was moving to Bermuda the most popular technique to "manage your tax liability," Mr. Willens added. He cited transfer pricing initiatives and use of tax treaties as more popular means of minimising a company's tax burden.

He said: "For some reason the companies moving to Bermuda have caught the public's fancy. Undoubtedly this is based on images of corporations literally not doing anything more than paying a small fee and making a mere paper transaction to save millions in taxes."

In contrast Mr. Willens - who said he had not visited Bermuda but had in years past advised on companies that moved their place of incorporation to the Island - said reincorporation here was a "complex exercise".

"It is so far from what is being portrayed. The way it is presented in the Press makes it appear that this can be done in a matter of moments and it is guaranteed to save hundreds of millions of dollars," Mr. Willens said.

In reality, Mr. Willens said the process of changing a corporation's domocile was "a huge undertaking requiring huge analysis".