Directors and officers of companies that fail to pay employees? pension and tax deductions to Government could be held personally liable for the arrears, Finance Minister Paula Cox announced last night.

Ms Cox said her Ministry is working with the Attorney General?s chambers on initiatives that include amending business laws to make the heads of businesses liable for unpaid pensions and taxes due to Government and unpaid private pension payments.

And she said the legislation would remove the current requirement on Government to prove criminal intent for the missing money.

Controversy about companies failing to pay deductions erupted when it was revealed that new chairman of the Tourism Board Andre Curtis had been a partner in First Choice Construction which went into liquidation owing almost $500,000 in Government pension contributions and payroll tax.

In his latest report, the Auditor General estimates the total amount of all unpaid taxes and Government pension contributions had reached $52 million. Of that sum, $10 million in pension contributions was owed and the payroll tax arrears stood at more than $17 million.

Government has established a task force between the Finance Ministry and the Attorney General?s chambers tasked with reducing the arrears, but concerns have arisen over how to recover funds owed by limited liability companies that go into liquidation.

Companies in liquidation owe more than $6.7 million in payroll taxes and Government pension contributions.

Praising calls by top civil servants in a interview for a tougher collection policy, Ms Cox said: ?It is very serious that the money of those who can least afford to go without are victimised, i.e. the average worker and retired senior citizen who find themselves the victims of missing pension payments.

?The Ministry of Finance will work in close collaboration with the Attorney General on a number of initiatives being considered including:

A mechanism for the possible establishment of a Tax Court.

Amendments to the Companies Act 1981 to give directors and officers strict liability for unpaid pensions and taxes due to the Government and private pensions.?

Ms Cox added that in the latter amendment Government would not have to prove any criminal intent as is now the case.

Ms Cox said she made the release ?to facilitate public discussion? and invited business to forward their views to her ministry. She also noted that ?the overwhelming majority of the offenders are local companies?.

Ms Cox also explained that Government must be able to count on receiving taxes to fund its projects and programmes.

?Otherwise it presents difficulty to project funding and financial modelling for pressing previously announced social agenda items such as unemployment insurance or assistance,? she said. ?In planning for the future sustainability of government services these initiatives are necessary preparatory measures.?

Over the three year period up to June 30, Government?s Debt Management Section has collected $11.5 million in outstanding debt at an annual cost of $203,000, Ms Cox said.

The most recent figures show pension and tax receivables at approximately $52 million (July 31).

Former Home Affairs Minister Quinton Edness yesterday called on Mr. Curtis to resign as Tourism Board chairman, saying he would be unable to fulfil his duties with the controversy over unpaid taxes hanging over his head. Mr. Edness, a long-time Minister in successive United Bermuda Party governments, said the current Government had shown disrespect for employees left bereft by employers who failed to pay taxes and pensions by appointing Mr. Curtis to the head of one of Government;s most important boards.

And he singled out Tourism Minister Ewart Brown for defending Mr. Curtis? appointment on the grounds that the arrears had been built up a decade ago.

He said it did not matter when the debts occurred since they were still outstanding.

Mr. Curtis cannot be expected to do justice to this job and as long as he holds the post he will be embarrassing the Government,? Mr. Edness said. ?He should do the right thing and resign.?