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Finance Minister Eugene Cox yesterday angrily denied a Mid-Ocean News story claiming Government was bringing in Canadian tax experts which could lead to income tax being introduced.

And Premier Jennifer Smith accused the Opposition United Bermuda Party of "placing" the story in the newspaper.

Mr. Cox described the story as "reprehensible" and said neither he nor anyone in his department had any contacts with the Canadian tax authorities, and he said he had no plans to introduce income tax.

Yesterday's Mid-Ocean News said Government was in the process of hiring three experts from the Canada Customs and Revenue Agency with a view to looking at how income tax could be adapted to Bermuda.

Mr. Cox told The Royal Gazette yesterday: "It is reprehensible. There has been no contact whatsoever (with the Canadians) and we have no intention of doing anything about income tax.

"We've said it in our platform and in the budget statement that no taxes are to be levied. We certainly are responsible and I stand by my word.

"I know nothing, and my department knows nothing, about any contacts or any initiatives relative to income tax. It is disgraceful and reprehensible, and it suggests to me that the Opposition are so desperate they will use any ways and means.

"The Mid-Ocean News has become a launching pad for the (UBP's) election campaign, but they are not using facts and figures."

Mr. Cox also called the story "erroneous" in the House of Assembly yesterday after Opposition Leader Grant Gibbons asked him whether Government was exploring the idea of income tax in an effort to find other sources of revenue in the face of abysmal tourism figures.

He said he "wouldn't blame" Government if they were looking for other ways to raise money but called on them to release a report on taxes that was initiated by the UBP Government in 1998 in the interests of sparking "a broad discussion" on the issue.

But Premier Smith responded: "If he has evidence then let him lay it on the table. He is imputing improper motives."

Mid-Ocean News editor Tim Hodgson said yesterday: "The Mid-Ocean News stands by its story."