European expatriates going home need not fear ? their offshore Bermuda savings are not at risk when they return. Or at least not just yet.

An article in the Scotsman newspaper this week, and read out verbatim on at least one Bermuda media channel, mistakenly lumped in Bermuda with a piece of European Union legislation aiming to identify citizens with offshore funds which are avoiding tax.

The European Savings Tax Directive is designed to make sure funds are subject to taxation in the account holders' home country once they return.

It is also part of a broader initiative to curtail money-laundering, to track the proceeds of drug-dealing and identify the source of money used to fund terrorism.

However Bermuda is still not subject to the treaty, even though all of the other British territories are.

And the legislation which was due to come into force in January has been pushed back six months.

For an unknown reason, Bermuda was the only British Dependent Territory not included in the list of EU countries and their Dependent Territories when it was published in June last year.

In commenting on the most recent development on the European Union Savings Tax Directive, Minister of Finance Paula Cox said the Government was maintaining an active watching brief on the directive.

Minister Cox said the EU had delayed the directive to get the Swiss on board.

The Minister explained that the agreement with Switzerland "constitutes the basis for the agreements with other third countries (Andorra, Liechtenstein, Monaco and San Marino)."

"I am aware also that model agreements have been drawn up for United Kingdom and Dutch dependent territories listed in the conclusions of the European Council of Santa Maria da Feira in June, 2000. Bermuda was not listed in the Feira Conclusion.

"Bermuda's position on exchange of information in relation to tax matters is well known. Government supports fair tax practices and stands ready to enter into mutually beneficial exchange of information treaties in relation to tax matters.

"Government adopts this position as a responsible member of the international financial community and will continue to monitor developments surrounding the implementation of the Savings Tax Directive and its impact."