The Minister of Finance has restated that Bermuda is not a tax haven but declined to comment directly on the Bank of Bermuda's alleged facilitation of tax evasion for a South African tycoon.

Documents revealed in a South African tax case suggest the Bank of Bermuda offered bespoke advice to a billionaire David King on how to create a "blind alley" and "stop the South African taxman in his tracks".

A series of e-mails and memos which circulated between three Bank employees in 2000 suggest that the Bank looked for ways to restructure Mr. King's finances to ensure he did not have to pay a hefty bill to the state. In one of the e-mails employees are encouraged to be "creative" in helping Mr. King. In total Mr. King is facing 322 counts of tax fraud, racketeering and foreign exchange control contraventions and his assets have been frozen, the Mail & Guardian in South Africa reported. The story has gained international attention.

The Minister of Finance Paula Cox, who is also the Deputy Premier, was asked if she was concerned about the allegations being made and if Bermuda was a tax haven whose banks assist people looking to hide their money from foreign tax officials.

Minister Cox replied: "The Ministry of Finance in conjunction with our regulatory authorities and stakeholder agencies spend a great deal of time and resources constructing and passing legislation aimed at better positioning Bermuda as a premier international financial sector.

"In this particular case the BMA did its due diligence to ensure that the proper protocols and guidelines were followed with regard to the setting up of these company entities. Furthermore, it is a well established fact that the authorities in Bermuda do not condone inappropriate behaviour and deal with it as swiftly as it arises."

Meanwhile, Minister Cox assured the public, its partners and stakeholders in the industry that Bermuda will continue to protect the Island's reputation and defend criticisms that Bermuda is considered a tax haven.

She said: "All authorities are determined not to allow the jurisdiction to be used by those who could damage our reputation.

"So, whenever and wherever issues are raised that cast a cloud over Bermuda and her market participants it causes us concern.

"We are living in a globally competitive environment and we are continually told by those who seek Bermuda as their domicile of choice that it is our reputation that distinguishes us from others. So if this is undermined we will take the necessary steps to vigorously defend and mitigate any ill-effects to Bermuda.

"One of the most effective measures Bermuda has taken to underpin we are not a tax haven is our commitment to Organisation for Economic Cooperation and Development (OECD) in 2000. And at that time, I committed that I would share information with foreign tax authorities to expose inappropriate behaviour." The Minister did not comment on the Bank of Bermuda's alleged involvement in offering bespoke services to assist Mr. King in dodging the taxman.

The Bank of Bermuda, which was not owned by HSBC at the time of the alleged activity, has declined to comment.