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significantly lowered25. This provision will be the cause of disruption of the financial

activities of the unscrupulous investors who may for instance be attempting to avoid the

reach of potential creditors.

More importantly, the provision will affect the legitimate investor whose desire was to

dispose of his assets upon his demise with a degree of certainty without the risk of normal

estate taxes diminishing the final sum of assets available for his heirs. It is unfortunate

that the OCED has not considered that a great deal of the offshore investors intend at

some point to return their assets in a taxable manner in various forms such as in the

purchase of real property or investing in a company or a financial instrument26.

Other Legal Implications

The First National Bank of Chicago case represents a welcome departure from the limits

established in the Bank of Nova Scotia case.27 Moreover, undoubtedly, the response of

the OECD with respect to the sovereign and independent nations labeled as Offshore

centers has some repercussions in the context of international law. In the First National

Bank of Chicago Case the Court of Appeal for the Seventh Circuit referred to the

recommendation provided in the Restatement (Revised) of Foreign Relations Law

25 Wall Street Journal Article by Staff Reporter Michael Allen ‘Tax Havens Offer Collectors Concessions dated 28th July 2000 reports that the Cayman Islands has agreed to waive its bank secrecy protection for clients in civil investigations conducted by tax authorities

26 Ibid “Cayman government minister Truman Bodden said 85% of clients are large firms doing institutional business”

27 See Brief of the Government of Canada as Amicus Curiae on Appeal from the United States District Court of Florida at 16 In re Grand Jury Proceedings, The Bank of Nova Scotia v United States

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