On The Developments Of "Charitable Trust Under Charity Law" To "Charitable Trust Under Trust Law"

Charitable Trust is named as GONG-YI-XIN-TUO,which may be translated into Public Trust as stipulated in the Trust Law passed in 2001.Charitable Trust under Trust Law(referred to as Public Trust hereinafter)in China has been developed for more than a decade,but because of difficulty of approval and tax incentives and other reasons,the development of Public Trust is very slow.The Charity Law promulgated in March 2016 has a profound impact on China's Charitable Trust industry,marking the path of the development of charity in China.With the continuous strengthening of China's economic strength,the demand for large-scale donation has been expanding,the development of charity needs the corresponding laws to regulate.The introduction of Charitable Trust under Charity Law(hereinafter referred to as Charitable Trust)has its practical significance.Charity Law contains a special chapter of Charitable Trusts,and has a lot of breakthrough compared with the Trust Law,reflecting the country attaches great importance to the role of financial instruments and legal system in the development of charitable causes.Charity Law absorbed the experience in the development of Public Trust and made a breakthrough change.The breakthroughs of Charitable Trust are the following: Firstly,simplify the establishment,the establishment of Charitable Trusts has changed from the previous approval into the record review system.Secondly,it is clear that charitable organizations and trust companies can become charitable trust trustees.Thirdly,confirm the regulator of the Charitable Trust is the civil affairs department of the people's government at or above the county level.Fourthly,it is no longer forced to set up the trust supervisor.Finally,reveal the fact that record of Charitable Trusts can enjoy tax incentives,Charitable Trust has the advantages of simple establishment,flexible operation,professional management and independent property,and these advantages of Charitable Trust have a positive effect on the development of charity in our country.But at this stage China's Charitable Trust system is not perfect,Charitable Trust legal system still has shortcomings.Although the introduction of Charitable Trust has been cleared the fuzzy rules in the Public Trust,but it also led to discrepancies between Charitable Trust and Public Trust,at the same time,preferential taxation policies is still omission.In view of the existing problems of Charitable Trust legal system,we need to learn from foreign legislation.The United Kingdom is the birthplace of Charitable Trusts,current Charitable Trust is still the main form of British charity,the UK is the best development country of Charitable Trusts.The legal system of Charitable Trust in China can draw lessons from the British Charitable Trust system in the aspect of supervision system and preferential taxation policies.This article consists of four chapters.The first chapter combs the present situation of Public Trust in our country.This paper analyzes the established Public Trusts' situation and summarizes through the tabular form to find out the characteristics of the Public Trusts which had been set up in our country.Through summarizing the problems existing in the development of Public Trust in China,it discusses the impact of the problems in the practice of Public Trust on charity.The second chapter of the article is the interpretation of Charitable Trust.The chapter begins with the concept of Charitable trust,and it is clear that there is no clear difference between Charitable Trust and Public Trust.Charitable Trust belongs to Public Trust,but it also explains the difference between Charitable Trust and Public Trust.The chapter also summarizes the characteristics of Charitable Trusts,and it sorts out the policy promulgated since the introduction of Charity Law in order to promote the development of charitable trust.The third chapter of the article lists the development from Public Trust to Charitable Trust.Charitable Trust and Public Trust has a big difference in the way of establishment,the establishment of Charitable Trusts has changed from the previous approval into the record review system,Charitable Trust has confirmed the regulators of the Charitable Trust is the civil affairs department of the people's government at or above the county level,it is clear that charitable organizations and trust companies can become Charitable Trust trustees.The trust companies have a lot of trust projects experience,the charitable organizations have sufficient charitable resources.Charitable Trusts can let both play their own advantages.It is no longer forced to set up the trust supervisor which can speed up set up of the Charitable Trust,simplify the trust set up process,reduce the cost to set up a Charitable Trust and promote the development of Charitable Trust.The fourth chapter of the article analyzes the existing problems of the Charitable Trust legal system from the perspective of system analysis,such as the priority of the Charitable Trust and Public Trust,the lack of the preferential taxation policies,and it refers to the Charitable Trust system in the UK to put forward the suggestions for the perfection of charitable trust legal system in China.