Premier Jennifer Smith yesterday announced that fiscal offences -- which would cover tax evasion -- will be added to the Proceeds of Crime Act.

And Bermuda has also tightened up the wording of its tax agreement with the US, it was revealed yesterday.

Ms Smith said the move on fiscal offences came after talks between Government and the UK Government, sparked by the UK White Paper on a rewrite of relations with its Overseas Territories.

She added that attacks on so-called tax havens and probes into offshore jurisdictions by groups like the Organisation for Economic Cooperation and Development, the European Union and G7 countries had also been the subject of shuttle diplomacy.

Ms Smith said -- despite the fact that Government has yet to debate the implications of the White Paper, although the matter has been on House of Assembly order papers for weeks -- that the matter had not been allowed to rest.

She added: "During discussions with the OECD and the United Kingdom with respect to the EU, the Government has addressed many incorrect perceptions and is also proposing some changes to Bermuda's legislation to enable us to maintain our position as a leader in the international community.

"The Finance Minister and senior Government officials and the Attorney General have presented Bermuda's position to the OECD.

"They have met with senior members of the US Treasury. The Minister has been pleased with our reception and we are working with the appropriate bodies to maintain Bermuda's enviable international reputation.'' Ms Smith confirmed: "The Government is proposing changes to legislation to include enabling legislation for the USA-Bermuda Tax Convention Amendment Act which resulted from discussions in the United States.

"Changes to incorporate fiscal offences as part of the Proceeds of Crime Act are proposed following discussions with the United Kingdom. These changes will be tabled for discussion by the House in this session.'' Ms Smith added: "Bermuda has always prided itself on its hard-earned reputation as a well-respected jurisdiction.

"We pledge to continue to do all that is required in order to build on the progress we have enjoyed thus far.'' Chairman of the International Business Forum, accountant Jan Spiering, said alterations to the US-Bermuda Tax Treaty were "minor but significant''.

He added: "It's just a clarification -- the concern is if there was no clarity in how we exchange information, there is always a danger people could say `you haven't met the process', so no information can be exchanged.

"There was a lot of talk at one point as to whether there would be wholesale changes, but the good thing is that, by having significant amounts of discussions, it cleared the air.

"This a fairly minor -- but significant -- change.'' Premier Jennifer Smith