I am surprised how many bought the simple "tax fraud heaven" formula their leaders were feeding them.
Imagine, there is a country where the tax authority does not automatically know how much you make and how much you own. You have to declare it. And with in some limits, the tax authority must trust you. There are checks to make sure everybody plays fair. However, per default, the state does not assume that you are a cheating liar. Can you say the same about your country?
And although this system can be abused, the business model is not primarily to attract money from foreigners. The natives have sufficient control over the government to create a comfortable system for themselves. We are extending this luxury to foreigners as well.
And believe it or not. There were instances in the past when foreigners were glad to be able to hide their money from a dictatorship...
(declaration of bias: Swiss, working at a Swiss bank, actually a bit proud to live in a democracy)