An income trust structure allows a corporation to avoid paying tax if it distributes all or most of its earnings to investors.

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Income trusts are a type of investment vehicle that allows corporations to distribute most of their earnings to investors in the form of dividends. By doing so, the corporation can avoid paying corporate income tax on those earnings. However, the investors themselves will still have to pay taxes on their dividends. This structure is often used by companies in industries such as real estate, energy, and telecommunications.

An Income Trust Structure Allows a Corporation to Avoid Paying