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'Warm' Washington welcome

Early talk: ABIR president Brad Kading (left) and Finance Minister Paula Cox listen to remarks from Congressman G.K. Butterfield during a breakfast meeting in Washington.

US Consul General Gregory Slayton says a Government delegation to Washington D.C. has been buoyed by their "warm reception" by Members of Congress.

Mr. Slayton is accompanying Premier Dr. Ewart Brown and Deputy Premier and Finance Minister Paula Cox as they seek to rebut US perceptions of Bermuda as a 'tax haven'.

Dr. Brown and Ms Cox, leading the Government delegation on its fourth annual visit to the capitol, also aim to firm up US-Bermuda relations.

Yesterday the party met with key Members of Congress to discuss issues of taxation and reinsurance. The US Representatives included G.K. Butterfield, Kendrick Meek, Charles Rangel, Mike Thompson, Danny Davis, Elliot Engel, James Clyburn and Joe Crowley.

Mr. Slayton said last night: "It's been very interesting in that I would say the reception so far has been extremely warm. (Ways and Means Committee) Chairman Charles Rangel certainly cares about Bermuda but was even more positive and proactive today.

"Mr. Rangel is one of the most important members of Congress, and he clearly understands the issues and the importance of the US-Bermuda relationship as it continues to grow."

Mr. Slayton said: "It's always good to have dialogue. We are dialoguing and are continuing to expand the discussion."

Ms Cox also met with editors and journalists from the Washington Times yesterday and told them the Island was working hard to remove itself from a list of tax havens released last month by the Organisation for Economic Co-operation and Development.

"We resist and resent the appellation of tax haven," said Ms Cox.

"With a number of overseas territories, it's easy to lump us all together. But the Bermuda brand has cachet."

To lift the Island above the OECD's tax-haven tier, to the group of jurisdictions that have implemented the internationally-agreed tax standard, Bermuda must conclude Tax Information Exchange Agreements (TIEAs) with 12 countries.

The Island signed its first TIEA with the US in 1988. Ms Cox said three more will be signed with Germany, the Netherlands and Mexico in the next four to six weeks, lifting Bermuda above the minimum threshold of 12. Another agreement with Canada is also pending.

Ms. Cox told the newspaper she was also pleased the Obama administration recently referred to Bermuda as a "low-tax country" rather than a 'tax haven'.

She reminded representatives that foreign companies "pay the same taxes we pay", including payroll and property taxes plus company fees.

"We don't have income taxes on Bermudians or non-Bermudians, or non-Bermudian corporations," said Ms Cox.