Government set out its stall for tackling illegal companies trying to open up shop in Bermuda following the passing of the Companies Amendment Act 2008.

The proposal to amend the fifth schedule of the Companies Act 1981, which lists the annual company taxes incurred by local, exempted and permit companies, used to help improve the Island's regulatory structure, was given the go-ahead by the House of Assembly on Monday.

Earlier this month Finance Minister Paula Cox announced in her Budget statement that company fees would be raised 6.5 percent, effective April 1 this year.

Ms Cox said the Act would help to recover the costs of policing international business in Bermuda so that the Island retained its "blue chip" reputation.

She said stricter procedures were necessary to watch for illegitimate companies setting up on the Island and to ensure all business complied with international regulations.

Shadow Finance Minister E.T. (Bob) Richards asked Ms Cox how Bermuda compared with other financial jurisdictions in terms of costs for companies.

He said: "We have to pay for the protection of our reputation. The Minister has made a good case for the protection of reputation but I don't believe she has for competitiveness."

But Ms Cox said that it was a case of "swings and roundabouts" and that in comparison with other destinations, Bermuda offered lower work permit fees. An example of this was the Cayman Islands, where work permit fees cost up to $15,000.

"I think the issue of competitiveness against reputation is an interesting one and a ticklish one," she said. "When you look at the raft of fees in other jurisdictions, it's swings and roundabouts.

"Although in company fees we may be seen as considerably higher, and companies recognise that in certain areas Bermuda is more costly, they also feel it's worth it because of our reputation. We are seen as blue chip.

"Certainly, I think on swings and roundabouts, Bermuda is not out of the ball park. In some areas we're higher but in other areas, other jurisdictions are much higher."

The Minister said: "We aren't going to tolerate abusive and sham transactions. We are going to protect our reputation and are not going to tolerate sham or abusive transactions.

"We are serious about protecting our reputation and are not willing to be tarnished or sullied by those wishing to use us."

The Exempted Partnerships Amendment Act 2008 and the Overseas Partnerships Amendment Act 2008 were also passed in the House of Assembly without any objections from the Opposition.

Meanwhile, the Bermuda Monetary Authority Amendment Act 2008 was also passed in the House of Assembly, which includes annual fees for insurance companies such as $210,000 for Class 4 insurers and $10,000 for those in the Class 3 category.