Change to the tax treatment of mutual fund corporations Corporate Class Fund Changes In the 2016 federal budget, the government proposed to change the tax treatment of mutual fund corporations so that switches between share classes of a corporation would be considered a disposition for tax purposes. Currently, investors are able to switch between share classes on a tax-deferred basis.
On July 29, the Department of Finance announced that it intends to make the proposed tax changes effective January 1, 2017. The budget had initially proposed a date of October 1, 2016.