structure unveiled in the recent Budget, are not overly concerned by the increased costs of doing businesses in Bermuda.

Two new tax bands will affect international companies with assessable capital of more than $100 million, and also local companies with issued capital of $5 million.

Assessable capital is the amount of a company's authorised share capital and share premium account.

The two extra bands will be added to the company fee schedule to provide for the charging of higher fees to companies, which have a high capital base.

A Ministry of Finance spokesman said: "We have had a number of very large companies by capital incorporate here. Their capital is so far in excess of the existing schedule, that it was appropriate to introduce new bands for them.'' The new bands will catch the highly capitalised property catastrophe companies which brought an estimated $4 billion total capital into Bermuda last year.

The companies had no prior warning of the imposition of the higher levels of taxation but few were ruffled by the news.

Mr. Michael Butt, president and chief executive officer at property catastrophe reinsurer Mid-Ocean Re, expressed a compatible view to others in his sector.

The higher taxes would not be determinate in discouraging companies from coming to Bermuda, said Mr. Butt. Another reinsurer described the taxes as "reasonable''.

Mr. Gavin Arton, senior vice president and investor relations officer at Bermuda-based liability insurer EXEL, said the increases were "not overly onerous'', but said Government should be mindful of the costs of doing business in Bermuda.

"Don't tax us out of existence,'' he said.

Previously, five bands divided international companies according to their assessable capital. The top level of fees were contained in Band Five, which covered the range of companies with assessable capital from $12,000,001 upwards. ( See chart ) From April 1, 1994, two new bands will be introduced that add new fees for international companies.

The revised Band Five will now range from $12,000,001, to $100 million. The fee was previously $8,000. After the five percent increase, it will rise to $8,400.

The new Band Six will range from $100 million and $1, to $500 million, and companies falling into this category will pay a $15,000 fee.

The new Band Seven will encompass any companies with assessable capital of $500 million and $1 or more. These companies will be charged $25,000.

For local companies, fees are charged on the basis of issued capital.

The first five bands formerly ranged from less than $50,000 issued capital to $1 million or more.

Now, Band Five will range from $1 million or more, but less than $5 million, incurring a $5,250 annual fee.

The new Band Six will range from $5 million or more, up to $10 million, and the applicable fee will be $10,000. The new Band Seven will contain companies with issued capital of $10 million or more, incurring $15,000.

The fees for Permit companies are also being increased, but there are no new fee bands here.

All company fees will be increased by five percent on average. Company fees were last raised in 1990 to take effect in 1991. It was then indicated that fees would be adjusted every two years to take account of inflation.

CHANGES IN ANNUAL COMPANY FEES Local Companies 1993 1994 Issued capital Fees Less than $50,000 500525 50,000-249,999 750790 250,000-499,999 1,2501,315 500,000-999,999 2,5002,265 1,000,000-4,999,999 5,0005,250 5,000,000-10,000,000 5,00010,000 10,000,000 or more 5,00015,000 Exempted Companies Assessable capital 0-12,000 1,6001,680 12,001-120,000 3,2003,360 120,001-1,200,000 4,8005,040 1,200,001-12,000,000 6,4006,720 12,000,001-100,000,000 8,0008,400 100,000,001-500,000,000 8,00015,000 500,000,001 or more 8,00025,000.