Offshore Financial Centres - Recent Developments

'Every man is entitled if he can to arrange his affairs so that the tax attaching under the appropriate Acts is less than it otherwise would be. If he succeeds … he cannot be compelled to pay an increased tax.'

Lord Tomlin in IRC v Duke of Westminster (1936) AC 1

'There is nothing sinister in so arranging one's affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands; taxes are enforced exactions not voluntary contributions.'

Judge Learned Hand, 1947

The last half of the 20^th century saw significant developments in the world financial system. Restrictions on trade and capital flows were relaxed, technology made rapid advances and the different parts of the global economy became more closely linked.