The trust agreement respecting a mutual fund trust is amended to provide that where units of the fund are redeemed, a portion of the redemption proceeds will be treated as the redeeming unitholders' share of the fund's net realized capital gains in the year up until the date of redemption, and that the balance of the net capital gains realized by the fund will be allocated to unitholders at the end of the year.
Rulings that the fund may deduct from its income the capital gains distributions made to redeeming unitholders, that the proceeds of disposition of the redeemed unitholder of the redeemed units will be the amount by which the proceeds paid exceeds the amount treated as a capital gains distribution, and that the aggregate of such proceeds of disposition will be the amount referred to in A of the formula.