Article 5-1 of the Estate and Gift Tax Act (in Taiwan) defines a trust contract, which is created under a fiduciary relationship in which benefit (includes principle and interest) does not distribute to the grantor totally, the grantor is subject to gift tax and the time of taxation is at the trust created.The trust property is the source of trust benefit, which includes principle (corpus) and interest (future income). Unlike principle, interest has not been realized. So tax collector only can estimate the values of those unrealized income at the time of trust contract created. Because there is no fair market value and the annual income is fluctuate from time to time. So, the value of trust interest is too hard to estimate correctly, reasonable, and fairly at the time of trust created. Besides, incorrectly estimation also violates the tax equity. If the time of taxation can be changed to the time of trust benefits realized instead of the time that the trust is created, the tax collector will be no need to estimate the trust interest, neither grantor can not avoid individual income tax by trust planning.At the time of trust created, trust benefit has transferred to beneficiaries, and the annual income of trust after trust created shall belong to the beneficiaries' annual individual income , even though trustee doesn't distribute income to the beneficiaries (Article 3-4 (1) of Income Tax Act in Taiwan). So, if the grantor's individual income tax rate bracket is much higher than beneficiaries', he can avoid individual income tax by separate his annual income to other beneficiaries. Unless, the time of taxation can be deferred to the time of trust income is distributed to beneficiaries (trust interest is realized), or trust income still belongs to grantor's individual income.The primary of this study is to discuss the time of taxation at the time of trust created can not reflect the trust benefit's real value, also gives taxpayers lots of chances to avoid individual income tax. In order to achieve tax equity, we recommend that the government can reconsider to change the time of taxation to the time of trust interest distribution.