Oxford University Press, Trusts & Trustees Journal

There is an increasing trend among policy makers and tax administrators to do whatever it takes to tax offshore trusts. This article discusses how this approach may lead to the violation of the rule of law in the case of Australia and China. In Australia, several complex rules are enacted to close the ‘gaps’ in the law. While in China, there are insufficient rules to elaborate the vague laws surrounding taxation of offshore trusts. This article will dissect what a trust is and how the rules work in practice to determine whether the rule of law is violated in these jurisdictions.