A petroleum, mineral or gas firm which is formed as a trust as opposed to as a corporation that is normal. The CANROY doesn"t physically manage the gas, petroleum or mineral assets; external parties run functional tasks. Canadian Royalty Trusts weren"t taxed in the corporate tax rate since they can be formed as a trust. This enabled a CANROY to conserve more cash, which it used to pay a bigger-than-average dividend. Its tax policy shifted.