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:
“If there be no nobility of descent in a nation, all the more indispensable is it that there should be nobility of ascent—a character in them that bear rule, so fine and high and pure, that as men come within the circle of its influence, they involuntarily pay homage to that which is the one pre-eminent distinction, the Royalty of Virtue.”
—Henry Codman Potter (1835–1908)
“We are all selfish & I no more trust myself than others with a good motive.”
—George Gordon Noel Byron (1788–1824)