these trust are excluded from tax but to get tax exclusion Companies have to pay from 60% to 80% of their profits in distribution (type of dividend if you like for some the yield is 9%) to investors ,if the investment was in a regular broker account the investor has to pay tax at year end but RRSP or RIA are also excluded this is great because the money invested is clear of tax but it will be taxable later when you withdraw $$ as a retiree. Pension funds mutual funds are also exclude from tax, in Canada Companies pay tax on their profits and, dividends coming from the profit are also taxable (this is double taxation). Problem with these trusts is that they are not all growth stock, and if the company has 1 or 2 bad Qtr. they may cut distribution and in doing so the price of units goes down so you losing on both side dist. and capital. This is an interesting investment product for people looking for a regular income like retirees. This am on ROBTV analyst were suggesting to re-invest their money in Bank, Insurance stock so they can get a good dividend and expect capital growth. Hope you got a better idea of CDN Trusts.