Following the federal government’s announcement that the tax-favoured status of income funds would be eliminated by 2011, income funds have been anxiously awaiting the enactment of tax measures to facilitate conversion to a corporation. Those conversion rules came into force on March 12, 2009, now enabling income funds to chart their course of action.

In March of this year, the Mergers and Acquisition Practice Group of Lang Michener LLP published an Alert dealing with, among other things, the economic and market factors relevant to “when” to effect such a conversion and the “how” of the process. Of course, an income fund should review its particular circumstances with its accounting and legal advisors before a decision is made as to the best way to proceed.