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also capitalized on this trend. Notably, British sports millionaires like cricketer Ian

Botham, Formula I driver Nigel Mansell and golfer Ian Woosnam live in the Channel

Islands or the Isle of Man, two of the leading offshore financial centers. Boris Becker and

Luciano Pavarotti have themselves taken up residence in Monaco.102 Fruit of the Loom

moved its headquarters to the Cayman Islands saving an estimated $100 Million in taxes

each year. U.S. Insurance companies are moving some of their operations to Bermuda to

avoid America’s 35 % percent corporate income taxes.103

The Wall Street Journal has titled this era of tax competition as, “taxpayers voting with

their feet.” Indeed the Journal says any attempt to restrict the right to move their funds

and domicile as they wish may be viewed by some as an attack on freedom and a threat to

their prosperity.104

The OECD has itself openly acknowledged that the open financial markets have resulted

in more economic growth. Perhaps more notable is that the OECD says that the tax

havens are genuinely responsible for these open markets since deregulation was:

“ in part a response to the threat to financial markets posed by such offshore centers. The

resulting liberalization and harmonization of financial markets greatly facilitated the free

flow of capital across national borders, which improved the allocation of capital and

reduced its cost.”105

102 Patrick Jenkins “ Idylls Where the Jet Set Find Life Not Too Taxing,” Financial Times , July 28, 2000 and Ulrika Lomas, Boris Becker Meets Taxman on Centre Court,” Tax-News. Com August 2000 Bruce Bartlett Internet Low Tax Sightings, The Washington Times July 10, 2000 and Dow Jones Newswire Six Offshore Centers Plan to End Tax Haven Practices June 19, 2000 The Wall Street Journal Europe “Tax and Trade” Spet. 22, 1999 OECD Improving Access to Bank Information for Tax Purposes,” 2000 p. 23 103 104 105

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