Pearse Trust Blog

In order to guard against the fiscally harmful practice of treaty shopping, most international tax treaties carry provisions limiting treaty benefits to residents meeting certain tests set out in the treaties.

In recent years, in an effort to crack down on international money laundering and tax evasion, nations like the United States, Germany and the UK began investigating just how widespread the practice was. With the assistance of international organisations like the Financial Action Task Force (FATF) and the Organization for Economic Co-operation and Development (OECD), US and European Governments began putting pressure on not only the Swiss, but also tiny Liechtenstein and small Caribbean island nations.