Research On The Standard Of Taxation Factors Of Family Trust Income In China

The report to the 20 th National Congress of the CPC stressed that "Chinese-style modernization is the modernization of common prosperity for all the people." To promote common prosperity,we must not only increase efficiency and benefits,promote high-quality development and make the "pie" of wealth bigger and better,but also resolutely prevent polarization and cut and divide the "pie" of wealth well by demonstrating fairness and justice.In the 14 th Five-Year Plan,the proportion of labor remuneration in the primary distribution should be increased.Improve the redistribution mechanism;We will give full play to the third distribution,develop philanthropy,and improve income and wealth distribution.Over the past40 years of reform and opening up,the Chinese economy has seen a dramatic rise in the amount of affluent individuals,and family trust businesses have become increasingly sophisticated,becoming the favored means of managing finances for those of high wealth.However,due to the imperfection of our family trust income tax system,the phenomenon of high-net-worth individuals using family trust to avoid tax and evade tax is relatively serious,which is contrary to our goal of achieving common prosperity.Therefore,study the taxation elements of family trust income is of great practical significance.Family trust refers to a type of trust business in which trust institutions accept the entrustment of high-net-worth individuals or families for the main purpose of protecting,inheriting and managing family wealth,and provide them with customized business management and financial services such as asset allocation,property planning,family governance,risk isolation and public welfare.Through the research and analysis of relevant literature,this thesis finds that there are three main problems in the standard of taxation elements of Chinese family trust income: First,the family trust income taxation laws and regulations are not perfect,mainly including unclear tax subject,difficult to determine tax object,unclear tax time point,etc.,leading to the family trust taxation is difficult to proceed,and prone to the problem of double taxation.Secondly,the family trust registration system in our country is not perfect,the Trust Law does not clearly provide specific registration procedures,and the trust property registration procedures are incomplete.Thirdly,the family trust forms of "public interest + private interest" do not conform to the provisions of standard charitable trusts,so it is difficult to put on record procedures,thus unable to enjoy tax benefits.Through extensive reading and comparative analysis of literature,this article understands the connotation,development status and operation mechanism of family trust by referring to a large number of literatures,and compares and analyzes the family trust with the traditional trust,then analyzes the problems existing in the norms of taxation factors of Chinese family trust income,and puts forward some policy suggestions as follows: First of all,it is necessary to clarify the principles that family trust tax legislation should follow,adhere to the trust conduit theory and implement the principle of tax substance.Secondly,we should improve the taxation factors of our family trusts,including appropriately expanding the scope of the trustee,clarifying the tax link,avoiding double taxation and bringing the family charitable trusts with mixed purposes into the preferential tax scope.Finally,we should improve the registration system of family trust property,clarify the registration mode and scope,and balance the relationship between the parties of family trust.