If it is a private charitable foundation, there may be the possibility of tax avoidance or tax evasion in malicious operation;

The foundation is an independent legal person, the biggest feature of which is strong confidentiality and no members and shareholders. The fundraiser transfers all the ownership, management and beneficial rights of the assets to the foundation.

The founder can be an individual or a corporate entity. The wishes of the promoters are embodied in the articles of association and management regulations of the foundation, and the term can be set or indefinite. The fund can be used for charitable, commercial or family purposes.

The accounts of charitable foundations are not open, and the money donated by the rich can avoid progressive income tax, inheritance tax and gift tax, and the children of the rich serve as paid consultants.

Extended data:

Reasons for tax avoidance:

1, profit-driven. Driven by interests, taxpayers not only make a fuss about costs, but also think about maximizing tax benefits.

2. There are differences in the choice and application of tax jurisdiction, tax elements and tax collection methods. , resulting in unfair taxation and providing convenient external conditions for tax avoidance.

3. There are loopholes in tax laws and regulations. Because of the flexibility of taxpayer's definition, the adjustability of the amount of tax object, the difference of tax rate, the threshold and the preferential policies of various taxes, we can make use of the shortcomings of existing policies to realize taxpayers' subjective tax avoidance desire.

In order to attract foreign investment and accelerate economic development, countries and regions have introduced preferential policies at the expense of tax incentives on the grounds of improving the investment environment, which has also provided convenient conditions for enterprises to avoid taxes to some extent.

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