A Study On Tax Preference And Tax-Avoidance Regulation Of Charitable Trust

Charitable trust results from the development of public welfare establishments, it exploits social community to raise money and satisfies people's needs to engage in public enterprise. Charitable trust has centuries-old history abroad, it has played an important rule in economy and public welfare establishments. In our country, it comes up recently, the taxation system is one of the prime questions that restricts the charitable trust business. Current taxation is vacant in our country, it will inevitably meet the problem that how to adjust existing taxation to adapt the circulation of charitable trust. The most urgent affair is to definite the notion of charitable trust from angle of the tax law and the trust law, furthermore, to establish the motivation and regulation system adapted to the features of charitable trust rationally.This article is based on explaining the legal nature and developing trend of charitable trust, combined practices of U.K. and Japan with the reality of our recent taxation, it analyzes whether charitable trust is taxable, discusses the rationale of charitable trust taxation, the tax incentive and regulation. Besides the introduction and conclusion, this article will be elaborated in four chapters below.The first chapter reviews basic theory of designing the tax system. First of all, beginning with the essence of trust property right, this chapter will analyze its relationship with tax legislation and trust taxation design, then inspect general principle of the trust taxation. Secondly, from the following three aspects, the charitable trust's legal nature, its relationship with revenue in function and its revenue restricts, the author tries to inspect the particularity of charitable trust taxation, taking it for the foundation of the following contents.The second chapter is about the taxability of charitable trust. This chapter is based on the taxability theory in the science of tax law, then analyses charitable trust's taxability in three aspects which are tax philosophy, taxation scope and tax preference. It establishes the premise and rationale for constructing tax preference system of charitable trust. In the course of tax legislation, we should take humanism idea as the guideline, when confirming the concrete incidence of taxation, apply special measures and afford it tax preference, which is in the view of the economic policy, social justice and political stability.The third chapter illuminates tax preference system of charitable trust. This part firstly introduces situations of tax preference in our country, next draws lessons from U.K. and Japan, analyses its enlightenment of the construction of tax system, in the last place, integrating it with the reality of our country, the author attempts to state the tax preference respectively in the starting step, the existing step and the ending step, taking the tax relief as the starting point, designs a complete tax preference system.The forth chapter explains the regulation of charitable trust's tax-avoidance. Tax evasion behavior of participants has severe negative effects, and it is contradictory with the value-orientation of charitable trust. In this chapter a game analysis method is utilized, it reviews the game playing of tax authorities and participants who are interdependent and interacting, it is a basis for elaborating the institution measures to regulate the tax-avoidance behavior.The last section is the article's conclusion. This part summarizes the main content of charitable trust taxation and tax-avoidance regulation, and states the author's main viewpoint once again. Besides, this part makes a conclusion about the practical value and the purpose of this article.