Government continued its get tough stance against delinquent taxpayers, warning in the Throne Speech that company directors could be held personally liable for pension and tax arrears owed by the businesses under their watch ? even when they go out of business.

Government earlier this year formed a special task force between the Finance Ministry and the Attorney General?s Chambers to go after companies falling behind in remittances.

But it has found it difficult to go after limited liability companies that go into liquidation before settling outstanding pension and tax bills.

Under amendments due to be made to legislation as early as next spring, Government could strengthen their power to go after debtors. In August, Finance Minister Paula Cox hinted the latest get-tough development was on its way, saying Government intended to remove the current requirement of having to prove criminal intent before being able to proceed with legal action.

The amendments, which are scheduled for the third term of this Parliamentary session which falls after the 2006 Easter recess, are due to be made to the Contributory Pensions Act 1970, the National Pension Scheme (Occupation Pensions) Act 1998, and the Taxes Management Act 1976.

On Friday Financial Secretary Donald Scott said in an e-mail response to questions that Government was still in the process of defining the specific amendments that would be made.

had asked if Government would strengthen its powers to go after all directors, including those of limited liability companies, that fall into arrears on tax and pension payments.

?During the interim period, the specifics of the policy changes will be refined and stakeholders will be consulted,? Mr. Scott said. And he said the get-tough approach was only directed at those who flout the law. ?Government recognises that the majority of businesses in Bermuda readily comply with their tax obligations but wishes to leave no doubt that tax payments and pension remittances must be viewed as first priorities in a business?s financial planning.?

At the end of last year, Government had outstanding receivables - including employer/employee contributions and land tax owing - of about $37 million. And companies in liquidation owed about $6.7 million in payroll taxes and Government contributions.

In the Throne speech ? read out by the Duke of York on Friday ? Government said it wanted to ?seek justice for workers and to ensure that they enjoy the

retirement benefits for which they have worked so hard?.

Government also said it planned to create a dedicated Tax Court ?so that cases of non-payment of taxes can be dealt with expeditiously.?