Researches On Legal Regulations Of Offshore-Trust Tax Avoidance

Trust was originated in England, and the birth of it was accomplished with the nature of tax avoidance. At the very beginning, trusts used for tax avoidance are confined to civil matters. Those who use this regime for tax avoidances are human beings, which intended to escape the taxes relating to inheritances and donations. As the economic communication worldwide was deepened day by day, trust gradually permeated into the domain of commerce, and accepted by countries which belong to civil law system. Nowadays, trust has been playing an important role in investment and financing all over the world. Along with its development, many multinational companies and inner enterprises started to take advantage of this regime for international tax avoidance. In China, the use of offshore trust for tax avoidance is on its germination just because the system of trust in our country is lack of maturity. However, it is ripe in Anglo- America countries, besides, some tax havens are apt to offer preferential rulings concerning taxes. All these make offshore trust an attractive international tax avoidance measure.International tax avoidance is a kind of measure which can erode both national sovereignty and economic benefit. The unfairness it will put on civilian calling for the regulation of it. The writing of this thesis bases on the reference to other countries'anti offshore-trust tax avoidance measures, it also investigates regulations on international tax avoidance and multinational trust, then proposes some advices on the supervision of offshore-trust tax avoidance, hoping that it will give even small enlightenment to our country.This paper involves four parts. Chapter one gives a short overview on offshore–trust tax avoidance. It first introduces general situation of trust, discuss the theoretic and realistic background of this offshore tax avoidance phenomenon. Then analyzes the connection between trust and tax avoidance, put forward the reason of its appearance. It at last emphasizes the necessity of this regulation.Chapter two general talks about the domestic regulation on offshore–trust tax avoidance. This composes of two parts: general principal and specific measures. As to the former one, it not only applies the knowledge of jurisprudence, but also combines with the characteristics of offshore trust, to come out that the regulatory principle need legislative one and applicative one. As to the later one, this chapter combs other countries'particular provisions of it.Chapter three extracts some useful advices for anti offshore–trust tax avoidance from international organization and treaties, especially the endeavor OECD made for anti tax avoidance and the contribution conflict law gives to settle legal conflict in this area. Aim of this chapter is to demonstrate the need of international law to resolve this matter.Chapter four is the highlight of this paper, giving suggestion on how to perfect our regulation on offshore–trust tax avoidance. From the above, I conclude that we shall adopt"substance over form"as the basic principle in applying the tax law, which are aim to prohibit this kind of tax avoidance. Besides, I list some specific method for this regulation, including international co-operations.