Eugene Cox 'Positive' Following US Visit

by Mike Godfrey, Tax-News.com, Washington

14 May 2002

Bermudian Finance Minister, Eugene Cox returned at the weekend in good spirits from a meeting with Washington lawmakers over the proposed US 'Patriot Tax' legislation, according to a report in the Royal Gazette.

Mr Cox, accompanied by Financial Secretary, Donald Scott, and Assistant Financial Secretary, Ifor Hughes, visited the US capital on Wednesday and Thursday of last week in order to lobby Congressmen over new legislation currently under discussion, which would remove tax benefits for American companies which choose to reincorporate in Bermuda, or other low tax jurisdictions.

However, according to the Royal Gazette, despite revealing that the tone of the discussions had been positive, the Bermudian Finance Minister chose to play his cards close to his chest, prior to a Cabinet briefing due to be held today:

'I can say it went very well but I feel I must come back and appraise Cabinet properly on Tuesday then I will have further news on those meetings,' he told the newspaper on Saturday.

Meanwhile, Stanley Works, one of the US companies at the centre of the reincorporation furore, has announced that despite the fact that its shareholders voted on Thursday that the manufacturing company should relocate to Bermuda, it will hold another vote in order to avoid accusations of impropriety.

This comes amid concerns that shareholders whose stake in the S&P 500 company forms part of their 401K retirement plans may have been confused about voting procedures. Stanley Works has not yet announced a date for the second vote.

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