Canadian Royalty Trusts or “CanRoys” are similar in structure and tax treatment to master limited partnerships in the US.  Like MLPs, they typically have high yields and are exempt from paying taxes at the corporate level.  Unfortunately for investors, the Canadian government has decided to put an end to the corporate tax exemption in 2011 [...]

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As we saw in our last post, Distributable Cash Flow is the amount of cash an MLP could pay out to investors in a given period.  However, a well managed business balances future cash requirements with giving investors a return on investment today.  As a result, not all DCF is paid out to unitholders – [...]

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