Tax Treatment of Trusts

Abstract This chapter considers the comparative tax treatment of trusts, focusing on income derived by, through or from a trust and wealth transfer taxes. It presents an introductory comparative study of the tax treatment of trusts, building on earlier work of the present author which focused primarily on income tax treatment in Australia, New Zealand, the United Kingdom, and the United States. It addresses questions of fiscal attribution of trust income and trust assets at varying levels of generality. Issues upon which material differences are found in national tax rules with respect to trusts include whether those rules apply to trusts globally or only to locally constituted trusts, the purposes for which trusts are locally used, and the choice between corporate, transparent, and mixed taxing paradigms.