The Status Of Tax Subject Of Contractual Securities Investment Fund

There are three legal form for contractual securities investment fund to choose that are corporate,partnership and contract.Corporate type investment funds apply to company tax law.Partnership type investment funds apply to partnership tax law.There are two different viewpoints in academic field,the dominant point is that contractual securities investment fund should have the status of tax subject,and the taxation born in the investment activity shall be bear by the fund unit holder.The viewpoint root in the Principle of material imposition deem contractual securities investment fund as an investment conduit or an investment way,or other scholar depended on the civil law theory of legal person deem contractual securities Investment fund don’t possess the status of tax subject.If the contractual securities Investment fund don’t have the status of tax subject,there would be many problems,such as it will ignore the costs and expense come from the investment,and the taxation will directly bear by investment funds holders,which is violate the basic theory of tax law.The article consider contractual securities Investment fund have the status of tax subject and it should bear the tax liability for its income,but under the national policy of our country,the taxation bear by contractual securities Investment fund may be reduced or exempted.The article are composed by four parts,the first part is to set forth the type and basic theory of contractual securities Investment fund and the existing problems.At second part,the theory of determining the status of tax subject will be put forward,and then the article will demonstrate that contractual securities Investment fund have the status of tax subject in two aspects.The third part will introduce the status of tax subject of contractual securities Investment fund in other country,which shows most country choose contractual securities Investment fund as the tax subject.The fourth part is to analysis the tax system improvement if the contractual securities Investment fund have the status of tax subject.