"The future belongs to the things that can grow, whether it be a tree or democracy."

Kenneth D. Johnson

The earliest examples of the tax haven are located within medieval Europe where jurisdictions went into competition with each other. Notable examples included the Vatican City, believe it or not! The Channel Islands and the Isle of Man have always provided an offshore tax haven location for the more affluent since very early days. However, it is commonly accepted that the modern definition of a tax haven was first formed around the time of just after World War I.

There are various countries laying claim to being the original offshore tax haven. Liechtenstein was proactive in the mid 1920’s in trying to attract foreign investments and established its Offshore Trust Law and Bermuda created Offshore Company Laws about ten years later endeavoring to be a Corporate Tax Haven. The common perception, however, of the most established offshore financial centre is Switzerland.

Switzerland is perceived to be the original and prestigious tax haven and, indeed, this offshore financial centre began its banking efforts early on. With the economic and political upheaval in its neighboring countries, Switzerland welcomed investments from Russia and Germany in particular throughout the early part of the 21st Century.

Where Switzerland remained neutral throughout the First World War, it did not have any of the reconstruction costs associated with the struggles and, therefore, was able to offer a haven with much lower taxes than its neighbors through tax competition – hence attracting foreign investments.

In the time before WWII, France and Germany were both exerting pressure upon Switzerland to release information about people using the jurisdiction as an offshore tax haven. The Swiss response was to introduce strong privacy legislation protecting and safeguarding its investors and, hence, cementing Switzerland as the safest offshore financial centre in the world in terms of asset protection.

Twenty five years ago, there were only a handful of offshore tax havens. Also, there were only a few professionals specializing in offshore practice and tax havens, and those that did, typically made use of only one or two offshore jurisdictions.

Over the last twenty five years the telecommunications revolution has made it easier to access offshore facilities - so much so, that today's offshore industry has developed into a major global business, spanning all quarters of the world, involving, in one way or another, approximately half of the world's financial transactions by value.

Consequently, International Financial Services Centers are no longer surrounded by the 'mystique' of twenty five years ago. They are used globally, twenty-four hours a day, each and every day, as an integral and important part of the world's financial system.