Taxation of an entity without legal personality: the accounting and tax challenges of the Czech trust fund in continental law

Abstract This article describes and evaluates selected aspects of accounting and tax regime of the Czech trust fund. The Czech legislature has resolved the incompatibility between the private law nature of the trust fund and public law requirements through a series of pragmatic legal fictions, which treat the trust fund as a legal person for accounting and tax purposes. The article identifies the Czech tax model as a viable framework for use within a holding structure, whilst also highlighting the regulatory tension between the desire for discretion and the growing pressure for transparency under AML legislation.