Finance Minister Paula Cox says that the passage of a corporate tax break bill by the US Senate on Monday should resolve the controversy over corporate inversions "that has unfairly buffeted Bermuda over the last few years."

The Minister issued a media statement after the US Senate voted by a 69-17 margin to approve HR 4520, known as the American Jobs Creation Act of 2004. The bill, approved earlier by the House and expected to be signed into law by President George W. Bush within two weeks, was designed to settle a tax dispute with the European Union.

It repeals the portion of the US tax code known as FSC/ETI - thereby ending European Union sanctions on American manufacturers, business and farmers. It also reduces corporate taxes on manufacturers and makes changes in US taxes on US multinational companies making them better able to compete with their international competitors.

Minister Cox said: "I understand that the international provisions will make it easier for subsidiaries of US companies to better compete in the global economy and provide less reason for corporate inversions.

"The corporate inversion provision in the Act disallows corporate inversion for US tax purposes for tax years beginning after March 4, 2003. As such, it is not likely to impact any Bermuda-based companies since there have not been any known corporate inversions to Bermuda since 2002."

The Los Angeles Times says that the bill "offers a big break for multinationals that want to bring into the US profits they make overseas."

Currently, such companies must pay the US 35 percent on that money - in addition to the taxes paid in the country where the money was earned. The bill would slash the rate to 5.25 percent for one year. The Times says that various banks and government agencies estimate that there are $350 billion to $650 billion in these so-called undistributed earnings overseas.

Minister Cox said in her statement that Government is already looking to the future and the emergence of other issues in the United States that will be of importance to Bermuda.

She said: "Government plans to visit Washington DC after the November elections to get an insight into the policy direction of the new administration."