The Commission is trying to understand how the EU legal framework could be improved to tackle the use of legal entities with no or minimum substance and no real economic activities, by taxpayers operating cross-border to reduce their tax liability. While EFAMA fully supports the Commission’s action plan to fight tax avoidance and aggressive tax planning, in this paper we explain why this initiative is not aimed at investment funds and we urge that any legislation on “shell entities” along the lines proposed should be crafted carefully to effectively exclude from scope investment management firms, investment funds and investment structures that include SPV’s (Special Purpose Vehicles) set up for a legitimate and non-abusive purpose.