A Study On The System Of Trust Income Tax In China In A New Situation

As a property management system,trust plays an important role in promoting the development of modern financial industry.Since the implementation of the Trust Law in 2001,the trust legal system and accounting system have been gradually established in China.While the trust industry welcomes the new development,and its supporting tax system has not yet been established.In the wake of the 2008 global financial crisis,offshore trusts have emerged as an important form of tax avoidance,seriously undermining the tax interests of each resident country.As a result,several anti-tax avoidance documents have been issued to regulate offshore trusts,such as the America's FATCA and the CRS of OECD.In the contrary,China,which is also not optimistic about the status quo of trust tax avoidance,has no trust tax system and no effective means to restrict this phenomenon.The problem of lack of system is obvious.In order to tackle this problem and crack down on trust income tax avoidance,this paper makes an in-depth study on anti-tax avoidance of trust income tax in China in a new situation of strengthened Exchange of Tax Information after FATCA,CRS and China's CRS.Aiming at addressing the problem of tax avoidance of trust income,this paper is divided into five parts and expounds the necessity,urgency and solution of anti-tax avoidance of trust income step by step.The first part elaborates the background and the significance of this paper,and has sorted through the domestic and foreign research on the present situation.Starting from the classification of trust,the second part uses the quantitative analysis method to analyze the scale of different types of trust business,emphasizing the potential scale of offshore trust.Plus the lack of tax system and the inherent tax avoidance characteristics of trust,the conclusion is that the trust income tax avoidance situation is severe.After analyzing the deficiency of the trust income tax avoidance system in China,the contradiction between tax avoidance and the lack of the restriction is highlighted.The third part focuses on the international regulation of trust tax avoidance aka FATCA and CRS.Using comparative analysis method,comparing Fatca and CRS with China's CRS,we can draw a conclusion that the international and domestic anti-tax avoidance drive the trust income tax system in our country.Combining with the actual situation,the fourth part analyzes the specific problems of China's trust income tax system from three aspects: tax laws and regulations,tax collection and control system,Exchange of Tax Information.It is these problems that affect the effectiveness of anti-tax avoidance work.The final part using the literature research method,after taking other countries and the international practice for reference,has established the tax law application principle of the establishment trust income tax,and proposes the consummation strategy for the concrete questions of the abovementioned three stratification planes,which provides legislative proposals to perfect trust income tax system in China and strengthen the anti-tax avoidance work.Based on the reality,this paper draws the conclusion that the tax avoidance situation is serious and the tax avoidance system of trust is not enough.This paper analyzes the driving effect of the new situation of related anti-avoidance documents at home and abroad,and forms the results of applicable principles and system design.The establishment of trust income tax system not only adopts a new perspective of anti-tax avoidance,but also introduces new content of international anti-tax avoidance documents and domestic ones.The conclusions and achievements are more novel and more adaptable to the new trend,which is beneficial to the development of the theory of tax and financial overlapping and the research of trust tax system from the perspective of anti-avoidance of tax.This paper is advantageous to solve the contradiction between the increase of trust tax avoidance and the lack of trust system.Therefore,it has moral values both in theory and practice.