Save tax on fund rebates
If you buy back-end load funds and get a rebate on the commission, that amount is considered to be taxable income. But there’s a way to avoid paying any tax right away. You can file a special election with your tax return to have the rebate applied to reduce the cost base of the fund units you purchased.
There are two advantages to this, says the Investment Funds Institute of Canada (IFIC). First, you defer paying any tax on the rebate until you dispose of your units. Second, making the election effectively transforms the rebate from ordinary income (fully taxed) to a capital gain (75% taxed).