On Trust-avoidance Legislation System

Tax avoidance of trust refers to a improper behavior of taxpayers, taldng advantage of jural leaks and abuse of trust, to reach the same economic effect by normal conduct for the perpose of abating and removing taxation through abnormal conduct unwritten in trust law or taxation law. The source of trust is for the avoidance of feudal laws and taxation. Nowadays, with expansion of trust ideas and abuse of trust dealing freedom, the phenomenon of tax avoidance of trust is popular. Especially, international off-shore tax avoidance of trust is more serious under the conditions of financial free-dissemination and economic globalization.The tax avoidance of trust distorts the development of trust and tax law, decreases the nations' financial revenue, and destructs the normal distribution order of the society. Based on this ,it is necessary to analysis the problems about tax avoidance of trust such as its legal definition, its concrete actions and its social harm, in order to make correct law-making evaluation and effective law measures.From the view of tax law, it is common to make negative evaluation and law regulation on tax avoidance of trust according to substantive taxation theory. Substantive taxation theory is one theory about the tax law explanation and application based on the fairness of tax burden and restriction of taxation on capability, with the main argument that the internally substantial relationship of tax law should be considered when explaining and applying tax law and this relationship should be the basis of tax.According to the substantive taxation theory, many nations revise their tax law related to trust. They make legal regulations on tax avoidance of trust through making anti-circumvention provision, with the form of general anti-abuse provisions and specific anti-abuse provisions.Nowadays, with the development of China's trust sector, how to use the legal models of foreign nations and make general anti-abuse provisions and specific anti-abuse provisions in related laws in order to improve the tax law and avoid the trust tax, is an important problem.