You are correct. The corporate class funds will have more of the income in the form of capital gains, with most of it deferred and very little distributed, so yes, it works very well in a corporation. It does not work all that bad personally, either, if you find yourself with a lot of non-registered money and in a high tax bracket.
I believe they hold a basket of funds in a corporate shell, with a wide variety of their funds (stock, bond, balance, you name it) under this corporate umbrella. Then they take those really bad performing funds ,every fund company has (ever wonder what happened to all those crappy mutual funds), with all those juicy capital losses they generated, and merge them into the corporate class structure. This allows them to write off those losses against your future capital gains. They use to be able to write forward contracts, as Humble Pie eluded to upthread, and that allowed them to magically change interest and dividends into capital gains and then right off the losses as I explained above, and PRESTO pretty much all the taxes would magically disappear. Jim Flaherty got wind of that last scam a couple years ago and smashed it into obliteration as quickly as he could, and now the forward contract scam has all but disappeared. So one should expect some dividend and interest distributions, but since they write off all the other funds expenses against them, the investor will likely receive very little of those, as well. In any case, the reduced capital gain scam is still working very well.
Keep in mind that although your ongoing taxes will be significantly reduced with corporate class funds, you are really just deferring them. As you make money in the funds, (I will leave the argument about that for another thread) you will be generating a deferred capital gain that you will have to address at some time. Also, as this passive form of assets grows in your corporation it will reduce your ability to ever use your lifetime capital gains exemption. So if you are planning on using that, you might want to look into purifying the corporation and increasing the ACB of your company before you build up all the passive assets.