2003 Ruling 2003-000348D - Mutual Fund Trust - Capital Gain Allocation -- summary under Subsection 104(6)

The Declaration of Trust of a mutual fund trust is amended to provide that on redemption of units, the unitholders will be paid a proportionate share of net capital gains and net income realized on their class of units in the year to date, with the redemption proceeds being reduced accordingly. Rulings that the mutual fund will be entitled to deduct under s. 104(6)(b) the taxable portion of the capital gains distribution so paid to redeemed unitholders and that s. 104(7.1) will not apply.