Moreover, within developed nations there exist numerous tax incentives for which the
generally accepted within the international society that sovereign states will adopt fiscal
policies that do not impede or obstruct the entrepreneurial spirit. Hence, the assertion
made by the report that countries with no or nominal taxation are a threat to the
sustainable development of its members does not address the underlying issue which can
be placed in the form of a question: Why are countries offering offshore investments
attractive? It is this basic question, inter alia, that will be addressed. It is interesting that
the OECD and its members have suggested that the purposes are solely to evade taxes
and protect illicit profits through a web of bank secrecy and confidentiality.
However, in defense of the Offshore Centers numerous measures have been undertaken
by several of the leading centers in order to avoid the dubious connotation that offshore
denotes sham type of banking. Indeed, centers such as the Bahamas, Cayman and
Bermuda arguably are better regulated and are much more sophisticated centers of
financial excellence than some of the members of the OECD such as Turkey, Poland and
8 See generally the tax breaks afforded to Puerto Rico, U.S. Virgin Islands and Delaware: with reference to the Puerto Rico the provisions of section 936 of the Internal Revenue Code allows substantive tax credits to domestic corporations.