Bermuda is classed as a "tax haven", according to the updated list published yesterday by the Organisation for Economic Cooperation and Development (OECD).

The news came out on the same day that leaders of the world's most powerful economies, meeting for the G20 summit in London promised to "take action against non-cooperative jurisdictions, including tax havens".

The OECD's progress report on meeting internationally-agreed tax standards brackets the Island with the likes of the Cayman Islands, Andorra, Liechtenstein, and the Turks and Caicos Islands.

Meanwhile, Barbados, Jersey, Guernsey and the Isle of Man are in the top tier, along with the likes of the US and the UK.

But Finance Minister Paula Cox said she was confident that Bermuda would soon ascend to the top bracket once it has signed tax information exchange agreements (TIEAs) that have already been negotiated with a string of countries.

Shadow Finance Minister Bob Richards said it was "incredible" that the Isle of Man could be in the top tier and Bermuda not, and said it was "worrying" that the Island was classed as a tax haven.

David Ezekiel, chairman of the Association of Bermuda International Companies, said the description of tax haven did not fit Bermuda and any company that "did its homework" would continue to find the Island an attractive jurisdiction, despite the rhetoric from some world leaders.

UK Prime Minister Gordon Brown said at the conclusion of yesterday's G20 summit that "it was the beginning of the end for tax havens".

The G20's wide-ranging statement said yesterday that the 20 countries agreed "to take action against non-cooperative jurisdictions, including tax havens. We stand ready to deploy sanctions to protect our public finances and financial systems. The era of banking secrecy is over."

In the OECD progress report, only four jurisdictions are "blacklisted" as having not committed to international standards of tax information sharing — Costa Rica, the Philippines, Uruguay and the Malaysian territory of Labuan. Bermuda was bracketed in a group of 38 countries that have committed to the standards, but "have not yet substantially implemented" it. While 30 appear under the heading of tax havens — under a definition they fit according to the OECD's report in 2000 — eight countries in the same tier are described as "other financial centres".

These include Switzerland, Luxembourg and Singapore.

The list shows Bermuda has signed three TIEAs, with the US, the UK and Australia. It will shortly sign many more, which Ms Cox believes is the key to reaching the top tier of countries. "Timing is everything," Ms Cox said. "As you know, Bermuda is set to sign eight TIEAs on April 16 with the seven Nordic Countries and New Zealand.

A TIEA with Germany in the near future will bring Bermuda's total to 12 in fairly short order.

"At least two more TIEAs are expected to be signed by the end of this year or early next year.

"We have signed three agreements but in less than a month we will have signed eight more TIEAs.

"Based on our understanding that the OECD standard was very recently set at 12 treaties, Bermuda will have met the standard before the close of 2009 and most probably ahead of the next G20 Summit Meeting which is scheduled for later in the year.

"Though the G20 were adamant that there is no blacklist and more a progress report, I would anticipate that once we have signed 12 TIEAs, then we will be in the top tier."

Mr. Richards said yesterday's developments had not allayed his fears over Bermuda's international reputation and he was surprised by rankings of some other financial centres.

"I find it amazing that Guernsey, Jersey and the Isle of Man are in the top group and we are not," Mr. Richards said. "It's incredible. From my own knowledge of the Isle of Man, the only reason for anyone to be there is for tax reasons. Maybe it's because they're more British than we are."

Like Bermuda, the three islands are British possessions, but they are classed as Crown Dependencies, rather than British Overseas Territories.

"We are still not differentiated from places we think we have done much more than — and that is worrying," Mr. Richards added.

He said not enough had been done since Bermuda committed to OECD standards in 2000. "The Minister has talked a lot about TIEAs agreed recently, but what were they doing in the years before that?" Mr. Richards added.

"Looking at the list, we do not seem to have made any progress since the last time the OECD published something. The scary part is that before, this was not on anybody's radar. Now that has all changed."

The United Bermuda Party MP noted that Antigua, the Cayman Islands, the Netherlands Antilles and Aruba all had more TIEAs to their name than Bermuda and said the Government still had a lot of work to do.

He questioned whether signing more TIEAs was the complete solution to reaching the top bracket of countries on the OECD list. "Barbados is in the top group and why this is, I don't know," Mr. Richards said. "It's not just a question of TIEAs. I don't have the answer, but we really have to more closely examine what is required."

Mr. Ezekiel said he would have expected Bermuda to qualify for the top tier.

"I am confident that it's only a matter of time before we get there," he said.

Given the hostile rhetoric directed by some world leaders towards offshore financial centres, Mr. Ezekiel conceded the situation might have a negative impact on the growth of international business on the Island.

"Those who really do their homework and see what Bermuda's doing to secure its future and the future of its companies will not be put off," Mr. Ezekiel said. "However, there may be some who will not want to deal with the noise. But from an infrastructure, regulatory and judicial point of view, it's still a compelling jurisdiction.

"Many people will take the path of least resistance, so it's possible that there may be a period when new incorporations might be slower."

Mr. Ezekiel added that the definition of a "tax haven" seemed to have shifted from low-tax jurisdiction to one that does not readily share information — and that change could favour Bermuda, particularly because of its long-standing TIEA with the US.