Tax Law Predicament And Countermeasures Of Charitable Trust

China is a disaster-prone country. Each year, various types of natural disasters and man-made disasters have brought incalculable damage to the national economy. Long-term, comprehensive disaster relief mechanism depends on the coordination and cooperation of government appropriations, market-oriented operation of the catastrophe insurance, and public charitable donations.As a national charitable aid channel, charitable trust engaged in disaster relief has unique advantages different from that of existing patterns, such as more flexibility, initiative, persistence, lower operating and management costs, helpful to preserve and increase the value of public property, and high transparency and so on. But the institutional advantages of charitable trust to play with good performance depend on tax law system to protect both from the tax preference and its abuse prevention. United States has more developed philanthropy than China, and tax law not only give charitable trust engaged in disaster relief a lot of tax breaks, and also use the bar against"private benefit"doctrine to effectively preventing tax abuses.China's"Trust Law"also introduces charitable trust, but due to lack of tax incentives and absence of monitoring measures, making the advantage of charitable trust institution difficult to play, and the use of charitable trust engaged in disaster relief existing tax dilemma. This can be completed through the establishment and improvement of tax credit system, tax law regulation of the abuse of tax incentives, and set up of tax penalties mechanism.