Avoid, not evade. Big difference. And generally those structures only allow you to defer tax, not avoid all tax. Yes, having $10m sitting in a bank account of s

Avoid, not evade. Big difference. And generally those structures only allow you to defer tax, not avoid all tax. Yes, having $10m sitting in a bank account of some corporate structure is obviously better than not having any money at all, but it's still money that has restrictions attached to it -- can't just go and spend it all. Generally, if you want to bring that back, you will at least have to pay some sort of capital gains or dividend tax on that. Second, pure tax havens (such as Jersey and the Cayman Islands) are one thing. But pretty much every developed nation has special tax incentives that exist in their tax code to attract investment. And it is obvious why they do it. If we use Luxembourg as an example, which is generally a favourable holding and fund location, what can they offer? They are a small country with no natural resources. Smaller nations need to live off of intellectual capacity, meaning: outsmarting others. There are various approaches (Singapore, Channel Islands, Luxembourg) to that, but ultimately, if you want to attract investment and tax revenue, offering an attracting tax system seems like a great way to do it. I don't see the world introducing a globalised 20% corporate tax rate any time soon, for example.