Changing tax haven scene - Switzerland and Caribbean trusts no longer preferred

The Economic Times writes today about the changing tax haven scene where traditional tax havens such as Switzerland, Liechtenstein and Caribbean countries are quickly dropping out of favor as their bank secrecy is rapidly eroded and they come under attack from aggressive tax agencies chasing tax dodging citizens. The article further posits that Singapore and Dubai may now be the tax haven of choice for rich Indians or NRIs looking to invest overseas.

I would argue against the choice of either Singapore or Dubai as the base for overseas investments for Indian residents or NRIs for the same cautionary tale told by recent events in Cyprus (see video clip above). Moreover, Singapore and Dubai are in restive neighborhoods and there is always a political risk from this geographical closeness. A better choice for overseas investment gateways for resident Indians and NRIs alike are the Isle of Man and the Channel Islands. Both these locations are protected under British Sovereignty and are very clean with transparent regulation.