Last week we learned of the controversy that has arisen with the tax reform of the SICAV. Recall that the SICAV is an investment company with variable capital and raised the tax reform will affect the capital gains from income from 21,000 euros per year, could affect more than 10 million people and trigger a capital flight to other places fiscally attractive. In this regard, the Association of Collective Investment Institutions reported that the large sums that are managed investment companies are taxed for its attractive tax corporate tax at 1% instead of 30%. There are currently over 3,000 SICAV in our country and are exempt from tax on capital transfers. Raising taxes on investment companies has been at war more affluent sector of

society. Also since it was reported that the reverse is imperative to avoid a situation of double taxation to which investment companies should be exempt from corporation tax on capital gains considering that this product once materialized already taxed at 18%. The controversy is well served as it should be noted that investment companies in other countries enjoy tax benefits in order to stimulate savings and investment. In countries such as UK, France or Germany, investment companies are taxed at personal income tax at a marginal rate. Any situation that affect SICAV wings produce a flight of capital to other countries with more advantageous tax system. You also should not forget that the investment portfolios of half of the SICAV incorporated in Spain, are invested in the Spanish market which helps the business of managing and trading entities. Collective investment companies are headed by a single partner and become the domain requires that rests on a single partner and in 3005 the Ministry of Finance reported that investment companies had no real investors. However since Inverse SICAV is considered that generate a large amount of public revenue. In 2008 alone there was an estate of 25,000 million euros. During fiscal 2008 the SICAV lost 22% of its assets. Currently, the taxation of capital gains is 18% and there are a total of 3347 SICAV in Spain.