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The standard requires only a single settlor of a trust to be named, instead of all the settlors and contributors
of assets to trusts. It is common tax dodging practice globally for lawyers to serve as "nominee" settlors to a
trust by initially contributing a token amount, after which the real person behind the trust will put in the larger
sums. The issue of jurisdictions selling residency to those seeking to engage in tax avoidance from their
home country needs to be addressed.
For the OECD standard to be effective it needs as many governments as possible to participate. However,
the draft standard will be likely to exclude many developing countries by requiring they be able to provide
reciprocal information exchange, even though the vast bulk of tax havens are wealthy countries. Developing
countries should be allowed to participate immediately and be given a reasonable period of time before they
have to provide reciprocal exchange.
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