Taxing Trust Income in Singapore : Models, Policy Objectives and Tax Expenditures

This article begins by developing a taxonomy of models for taxing the income of a trust. Thereafter, it provides an account of the income tax regime for trusts in Singapore, including a description of recent related tax reforms. The intricacies of the tax regime are unraveled to reveal four underpinning policy objectives: (1) upholding neutrality in tax treatment across different legal forms and business organizations; (2) balancing between simplifying tax compliance and safeguarding tax collection; (3) promoting the development and growth of the capital markets and the fund management and trust administration services sectors in Singapore through the use of tax expenditures; and (4) ensuring that trusts are not abused as vehicles for tax avoidance or deferral