Bank of Montreal 2012 Annual Report Download - page 168

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Notes
Provision for Income Taxes
(Canadian $ in millions) 2012 2011
Consolidated Statement of Income
Provision for (recovery of) income taxes
Current 756 1,034
Adjustments in respect of current tax for prior periods (112) (39)
Deferred
Origination and reversal of temporary differences 301 (121)
Effect of changes in tax rates (7) 2
938 876
Shareholders’ Equity
Income tax expense (recovery) related to:
Unrealized gains (losses) on available-for-sale securities,
net of hedging activities (26) (40)
Gains (losses) on cash flow hedges (48) 128
Hedging of unrealized gains (losses) on translation of net
foreign operations (13) 26
Total 851 990
Components of Total Provision for Income Taxes
(Canadian $ in millions) 2012 2011
Canada: Current income taxes
Federal 316 608
Provincial 201 333
517 941
Canada: Deferred income taxes
Federal 30 (29)
Provincial 17 (14)
47 (43)
Total Canadian 564 898
Foreign: Current income taxes 50 140
Deferred income taxes 237 (48)
Total foreign 287 92
Total 851 990
Set out below is a reconciliation of our statutory tax rates and income tax that would be payable at these rates to the effective income tax rates and
provision for income taxes that we have recorded in our Consolidated Statement of Income:
(Canadian $ in millions, except as noted) 2012 2011
Combined Canadian federal and provincial income taxes at the statutory tax rate 1,364 26.6%(1) 1,125 28.2%(1)
Increase (decrease) resulting from:
Tax-exempt income (188) (3.7) (161) (4.0)
Foreign operations subject to different tax rates (30) (0.6) (80) (2.0)
Change in tax rate for deferred income taxes (7) (0.1) 2 0.1
Run-off of structured credit activities (67) (1.3) 14 0.3
Adjustments in respect of current tax for prior periods (112) (2.2) (39) (1.0)
Other (22) (0.4) 15 0.4
Provision for income taxes and effective tax rate 938 18.3% 876 22.0%
(1) The combined statutory tax rate changes during the year as a result of legislation that became substantively enacted with respect to the year.
BMO Financial Group 195th Annual Report 2012 165