A royalty trust is a type of corporation, mostly in the United States or Canada, usually involved in oil and gas production or mining. However, unlike most corporations, its profits are not taxed at the corporate level provided a certain high percentage (e.g. 90%) of profits are distributed to shareholders as dividends. The dividends are then taxed as personal income. This system, similar to real estate investment trusts, effectively avoids the double taxation of corporate income.
Read more about Royalty Trust: Characteristics of Royalty Trusts, Canadian Versus U.S. Royalty Trusts, History of Royalty Trusts, Publicly-Traded Royalty Trusts, Private Energy Income Trusts
Famous quotes containing the words royalty and/or trust:
“Royalty is a government in which the attention of the nation is concentrated on one person doing interesting actions. A Republic is a government in which that attention is divided between many, who are all doing uninteresting actions. Accordingly, so long as the human heart is strong and the human reason weak, Royalty will be strong because it appeals to diffused feeling, and Republics weak because they appeal to the understanding.”
—Walter Bagehot (1826–1877)
“We shall do better to abandon the whole attempt to learn the truth ... unless we can trust to the human mind’s having such a power of guessing right that before very many hypotheses shall have been tried, intelligent guessing may be expected to lead us to one which will support all tests, leaving the vast majority of possible hypotheses unexamined.”
—Charles S. Pierce (1839–1914)