On The Tax System Of The Accumulated Trust Income

Our current tax system of trust follows the trust conduit theory, to be allocated tothe trust beneficiary gains after the final against beneficiary’s tax. In the cumulativetrust returns in both cases, the beneficiary of the former cannot be specified explicitlytaxpaying subject to taxation, the latter may be issued by the trustee independentlyregulate the income distribution lines and time to escape the behavior of tax, alsocreate conditions for the beneficiary for delayed tax benefits. Therefore, it isnecessary to establish suitable for the tax system of the accumulated trust income inour country, to solve these problems. From the Angle of fair and reasonableconsideration, according to the theory of trust entity, cumulative trust returns asbelonging to the trust property itself, ontology is proposed to make tax payment mainbody, the trust can solve realistic problems.Accumulated trust income are comparatively special trust returns a species, theproceeds of the current year accumulated in the trust property, is not in the assigned tothe beneficiary in the same year. Because the beneficiary does not exist, not specificor benefit share cannot be determined, the trustee cannot allocate the trust benefits tothe beneficiary and will be accumulated earnings to the trust property; Or because thetype is the discretion of the trust, the trust project accumulated trust, the trustee totemporarily not allocate the trust benefits, will achieve earnings increase investmentscale, access to the trust property of scale.After study compared two trust taxation theory, determine the guided by thetheory of trust entity, trust can be made with independent legal personality of civilsubject, to solve the problem of taxes are uncertain. Combining existing internationaladvanced experience, absorb the essence of common law rights separation point, takeroot in the civil law tradition of the civil law and the income tax act, designed to covertaxes, tax object, tax point, tax and other elements of the actual tax mode, constructsuitable for the tax system of the accumulated trust income in our country.