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 others 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)
“In order for an individual to partake of the world and contribute to it in a healthy way, he first needs to view that world as a basically kind, friendly, and supportive place. Such an outlook begins to be formed during infancy. It’s essential that the baby establish a fundamental trust in his environment. The infant needs to learn that the world is a nurturing place where his needs will be met.”
—Saf Lerman (20th century)