Taxing mutual fund distributions

Question: Does the taxation of net capital gains apply to mutual funds outside of a registered plan and not in a trust but simply registered in an individual’s name ? – G.R.H., British Columbia

Answer:

Most mutual funds are set up as trusts (a few are corporations). So if you own a mutual fund, you really own units in a mutual fund trust. This has nothing to do with whether you set up a trust account yourself. The taxation rules that apply to mutual fund trusts will therefore be in force.