New text is in preparation on the subject

I turn now to matters of urgency. The finance law is under discussion in Parliament. It will be passed soon. That you based on this text What do you think of the law on participation also in debate

Michel Turon. The participation Act, which is a catch-all law, contains, in its provisions, a few strong vectors for the transmission of businesses. CIPF (common business investment fund) can become Member of a shareholders Pact. It will be possible to accommodate in an APR of funds to a Fund for recovery of the company with tax advantages to the key. This Act also provides accompaniment including for allocations of free shares to not do anything and to avoid abuse.

Axel Depondt. Overall, in comparison to other types of investment, the property tax is not very interesting. I am surprised to see the strength of the market despite a punitive taxation. Companies, they are nearly exempt property of EWB and estate tax: 6 maximum tax collection, fifteen years to pay, with an interest rate of 0.6 if it builds on the new provisions of the Act. Woods and forests, agricultural lands, stock investments via life insurance are exempt property.

What remains of taxable Income, wealth and real estate are still taxed. Jean-Pierre Petit refuted at the time the concept of safe haven. He is perfectly correct as an economist. But I am in contact with customers. Some have an extraordinary experience, and have made a fortune in business. Whatever their real estate is more funds, to pay succession rights, the ISF and the CSG: they want to put a portion of their assets in such assets. They may be wrong, but it is the reality.

Guy Marty. Investment funds on real estate business in France are supernumerary. I note strong competition of business real estate research, so that it became difficult to find the performance. We all put money aside, which explains the excess liquidity which spoke Jean-Pierre. In addition, we find today in structures of investment of the countries of the OECD, new investors, who came from India, China, Thailand or other emerging countries. They pass through investment funds and arrive on real estate simply for reasons of relationship between risk and profitability. There, they earn money with a very strong profitability and risk; they are then invest that money here, where the risks and yields are lower.

Jean-Pierre Petit. I would advise readers to wait for the elections for long investments. In may, a number of changes might occur. Much discussion including were incurred on the tax shield, Lai or succession rights. Nonetheless, it must be no illusion: the situation of public finances is not sustainable in the medium term in France, including in view of ageing. In the next few years, the immobile imposing bases will be surfiscalisées, in a context of monetary union and European and global tax competition. The Germany just give us the example, just after the Spain: it reduced the taxation of companies to avoid including relocations. This movement will continue. As real estate, master Depondt noted, quite rightly, its special status in France taxation. I would be surprised that this improves over the next years.

Axel Depondt. Me also.

Guy Marty. I can give your readers a very concrete Board: they put a little bit of real estate liquid in their PEA. I find damage that this is so little practised. Place of the real estate investment fund in a PEA, it is not only to ensure high yields because most of the listed real estate companies (SIIC) do not pay tax on corporations, but also relieve this dividend.

Daniel Roy. Is the Organization of investment real estate (OPCI) finalized

Guy Marty. Essentially, Yes. The latest texts should go out in the first quarter of 2007, and the first real estate funds should be launched in the second quarter. It may be that real estate funds for institutional start more quickly than those intended for individuals. Should be more attend for part some SCPI, and processing for part in launches real estate funds. I think it is interesting to recall that there are two versions of this product: some real estate funds will be in real estate taxation, others in financial taxation.

A word on life insurance. You it still appears as a wonder that justifies the craze of half of the French

Valérie Desmouceaux. The contract of life insurance is a very good tool.

Michel Turon. Entirely.

Valérie Desmouceaux. That is the new contracts, such as those to benefit both from the effects of the capitalization and the benefits of the transmission contract, mirroring on contracts of life insurance

Michel Turon. I'm suspicious of the mixture of genres on this type of product, because it is often difficult to know at what legal category they belong. I remember some people who thought having life insurance contracts and who found themselves, through a reverse of fortune, in a difficult situation. I am for the ingenuity and imagination, but with the rigour.

Valérie Desmouceaux. We could say a few words on the reform of the estates and the donations.

Axel Depondt. Reform will enter into force from January 1, 2007. It has very interesting news. It allows for example the ascending to make donations to some of their children or to third parties, and to the heirs testamentary to renounce the action of reduction. It is a solemn contract, both before the notary of the family and a notary public appointed by the President of the Chamber. This novelty, that will surely interest more donors donors, opens a space of freedoms to the head of the family. There are many new faculties offered by the reform. I am already very sought to explain these new features, and in particular tax aspects, which were not treated by the law. Inheritance tax is indeed not always very clear.

We talked about at the time of life insurance contracts. New text is in preparation on the subject. Under the pretext of wanting to save life, to torpedo the very principle. These contracts are based on the stipulation for another. The latter, once accepted by the beneficiaries of the contract, becomes irrevocable. The Subscriber cannot return the money he gave to the insurer. But the Act is preparing to allow redemptions. It is to disjoin the stipulation for another of the legal mechanism of the insurance contract. Long term, it jeopardizes the life insurance contract. We live in a legal schizophrenia: the contract of life insurance is a financial product subject to a special law, insurance law, which has nothing to do with the family law; but this contract is constantly subject to adjustments in the law, so that our customers be more found.