THE Hamiltonian Hotel and Island Club is being sued by the Government's Debt Enforcement Unit (DEU) after clocking up a seven-figure sum in unpaid Government taxes.

Attorney General Larry Mussenden said yesterday that he had instigated proceedings against the hotel for seven different taxes that it owed.

The DEU, set up in January 2005 to move in on delinquent taxpayers, operates out of the Attorney General's chambers and Sen. Mussenden revealed that it has collected approximately $5 million in tax arrears, with another $5 million the subject of litigation.

Auditor General Larry Dennis this week described the Hamiltonian Hotel and Island Club as "an atrocious corporate citizen" after the Pembroke establishment again topped his "name and shame" list of the most delinquent taxpayers.

When Mr. Dennis first appended the list of companies owing the most in payroll tax and pensions contributions to his annual report on Government finances in 2000, the Hamiltonian was at number one.

Six years later, the cluster of timeshare units on Langton Hill is still at the top ? and it owes considerably more to the public purse.

Asked about the Hamiltonian case yesterday, Sen. Mudssenden said: "It is not our policy to comment on any individual cases, particularly those that are still before the courts."

But he confirmed that the legal action was to claim for money owed to the Government in the form of payroll tax, social insurance, the hospital levy, land tax, hotel occupancy tax, timeshare services tax and employment tax.

"As I have stated on previous occasions, I am pleased to confirm that the Debt Enforcement Unit (DEU) has already begun instituting legal proceedings against those delinquent debtors that are on the Auditor General's list with a view to recouping outstanding taxes owed to Government," Sen. Mussenden said. "Since its inception at the beginning of 2005, the DEU of the Attorney General's Chambers has collected approximately $5 million in tax arrears. Further, we have another $5 million under litigation before the courts.

"Further, as a result of our combined efforts with the Tax Department, there are a number of tax debtors who are on a payment plan that amounts to over $3 million.

"It is our aim to pursue each and every delinquent employer and person who owes taxes to the Bermuda Government. We continue to encourage delinquent tax payers to contact our offices to discuss their matters with a view to becoming current."

The Hamiltonian, which comprises 32 one-bedroom suites, now owes Government around $1 million, according to the Auditor's report, tabled in the House of Assembly last week. Of that, $469,036 is payroll tax, while $220,633 is unpaid pension contributions and $307,631 is land tax.

Back in 2000, on the Auditor's first list of shame, the Hamiltonian owed $345,000 in payroll taxes and $180,000 in pension contributions.

As the establishment has continued to operate, the debts have continued to mount, and Mr. Dennis believes the situation is unacceptable.

"The Hamiltonian is an atrocious corporate citizen and for the Government to have allowed this company to continue operations, and to put pension benefits of workers in jeopardy, is outrageous," Mr. Dennis said this week.

The manager of the Hamiltonian declined to comment yesterday.

In his report, the Auditor said the Government and its public pension fund were owed $38 million.

He pointed out that there were 34 employers who, at July 2005, owed pension contributions in excess of $40,000 that were more than 90 days in arrears. Most of them appeared on the same list last year.

And there were 39 employers who owed payroll taxes in excess of $40,000 that were more than 90 days in arrears.

Mr. Dennis noted that the DEU was having a beneficial effect on the situation.

The former general contractor of the new Berkeley school project, Pro-Active Management Systems Ltd., is second on the pensions contributions arrears list, owing $160,049, and third on the payroll tax list, owing $272,408.

Several construction firms appear on the list of shame, including Fine Touch Construction and Maintenance Ltd., which is in second place on the payroll tax list, owing $368,476.