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There are many old tales about the true reason, however it is said that the true story involves natives of the island noticed British ships that had wrecked on outlying iron-shore rocks around the island. The natives quickly swam to the British merchant ships and rescued the sailors. When the sailors had returned, they reported what had happened and the Queen ordered the Cayman Islands to be tax-free as a reward and show of gratitude.

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Q: Why has Great Britain promised Cayman Islands to be tax-free forever?
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