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:
“Powerful, yes, that is the word that I constantly rolled on my tongue; I dreamed of absolute power, the kind that forces to kneel, that forces the enemy to capitulate, finally converting him, and the more the enemy is blind, cruel, sure of himself, buried in his conviction, the more his admission proclaims the royalty of he who has brought on his defeat.”
—Albert Camus (1913–1960)
“Nevertheless, no school can work well for children if parents and teachers do not act in partnership on behalf of the children’s best interests. Parents have every right to understand what is happening to their children at school, and teachers have the responsibility to share that information without prejudicial judgment.... Such communication, which can only be in a child’s interest, is not possible without mutual trust between parent and teacher.”
—Dorothy H. Cohen (20th century)