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instruments such as the International Trust have been used in order to avoid sometimes

contentious and litigious probate proceedings.

Recommendation twelve of the OECD’s report129 states that all member states should

consider terminating any tax treaties with offshore centers where the treaties do not cover

adequate exchange of information procedures. The seriousness of the OECD’s view on

this is enhanced by the fact that it clearly states that “ 130most states recognize that

termination of a treaty may raise significant political and diplomatic difficulties both for

the countries concerned and possibly for other countries as well.”

Accordingly, it is felt that the exchange of information treaty represents a basic tool that

has not been forthcoming in the past from offshore centers and even where there may

have been some interpretation of existing agreements, which would have allowed

exchange of information, national courts of the offshore financial centers have not always

been forthcoming.131

Interestingly, the provision of extensive exchange of information treaties as proposed by

the OECD report between the OECD membership and the offshore centers would cure a

129 130 131 Recommendation 12 page 59 OECD Report Harmful Tax Competition An Emerging Global Issue 1998 Id at page 50 See note 23 above Bank of Nova Scotia Case and others.. similarly paragraph 131 of the OECD s report states.. in considering whether they should terminate or enter into a tax treaty with a tax haven, countries should take account of all relevant factors, including the effect of their decision on exchange of information. I f the exchange of information provision of a treaty with a tax haven can be used effectively to obtain information the benefit if the treaty in relation to the exchange of information may offset the disadvantages of that treaty for countries as a whole’

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