| Summary: | 碩士 === 東吳大學 === 法律學系 === 103 === After the law of trust has legislated in 1996, the trust business grows vigorously. A trust shall be governed property by the settler so trust purpose is to manage the trust property as the Settlor requested. There are various trust categories, items in the trust field, and change with each passing day. The trust activity relationship is between -Settlor, trustee and beneficiary. The trust taxation has legislated in 2001 under the trust conduit theory and levy taxes by principle of taxation under the law and levy taxes when the trust income takes place and legislation of the dispersing type, to prevent the taxpayer tax evasion.
Trust is a fiduciary, legal and contractual relationship with respect to property, and the tax law of trust, especially the estate and gift tax, plays an influential role in property planning of trust. The number of administrative litigation cases of legacy tax evasion by means of trust arrangement has declined since the government reduced the Estate and Gift Tax rate to 10% in 2009.Therefore, this Article sets forth the grounds for understanding the relationship between trust and the gift tax evasion.
The taxpayer generally use the tax saving tool is stock benefit trust to beneficiary for saving gift tax or income tax, although the principle property is still control in the settlor. In addition, Taxation Agency of Ministry of Finance of R.O.C. has promulgated several administrative constructions regarding the trust taxation to prevent gift tax evasion. Among those administrative constructions, one promulgated on February 23, 2005 and another promulgated on May 6, 2011 have raised the public concerns of administrative litigation conflicts. Since the tax rule of trust is the key for trust to fully serve its purpose, those administrative constructions in question are greatly discussed in this Article.
To better understand the trust taxation of R.O.C., this Article also studies and discusses Supreme Administrative Court judicial decisions, real levy, and principle of taxation under the law, principle of legitimate expectation, and Gifts tax of Trust in United States.
The conclusion of this article: Trust Taxation should conserve the Principle of taxation under the law, should conserve principle of legitimate expectation and to protect stability of law- non-retroactivity law principle.
In order to solving these problems, based upon the situation of taxation law in Taiwan now. The article suggestions as follows, The Ministry of Finance of R.O.C. should seriously face the disputes and try to find out some methods to solve as soon as possible. Might follow the authority restriction principle to limits shrinks the administrative empowerment; ex. legal restrictions on taxation Agency of Ministry of Finance of R.O.C. to promulgate administrative constructions to increase trust taxpayer‘s tax liability. And return back to the Principle of taxation under the law. To improve the current trust tax regulations and to settle the trust tax disputes.
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