Investors are scrambling to use the last days when capital gains are still taxed at the rate of 1% for stocks held for more than a year, by selling their holdings to close relatives or, in some cases, to their companies themselves.

Investors are trying this to preserve some of their profits, given the fact that, starting July 1st, the stock market gains will be taxed at 16% regardless of the holding period.

Several such trades, which were reported by the exchange as they involved insiders, show the mechanism used by investors as a last resort to avoid paying higher taxes.

Luana Chiş, the wife of Grigore Chiş, head of brokerage firm "Broker" Cluj, sold 3,500 shares of "Cominco" Bucharest, at a price of 19.9 lei/share, last Thursday. The buyer was her husband, Grigore Chiş. Contacted by BURSA, Mr. Chiş declined the request to comment on this transaction, stating only that it was "perfectly legal".

Sterie Tivichi, one of the shareholders of construction company "Comnord" Bucharest, did a similar move. Also last Thursday, he sold 1.75 million shares of COSC, at a price of 1.0004 lei/share. His son Nicolae Stelian Tivichi, was reported as the buyer of 1.72 million shares of COSC, at an average price of 1 leu. Sterie Tivichi could not be contacted to discuss this transaction.

Last Thursday, businessman Octavian Buzoianu of Cluj sold 1.49 million shares of "Retrasib" Buzău, which manufactures engines, generators and electric transformers, at a price of 0.34 lei/share. On the same day, the company "Hold Comerț", controlled by the Buzoianu family, was reported as having bought 1.49 million shares of RTRA, at a price of 0.34 lei/share.

"According to the Tax Code valid until July 1st, if one sells stocks held for more than a year, would pay a capital gains tax of just 1%, but if those shares are sold after July 1st, any capital gains would