Bank of Montreal 2013 Annual Report Download - page 162

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Provision for Income Taxes
(Canadian $ in millions) 2013 2012 2011
Consolidated Statement of Income
Current
Provision for income taxes for the current period 1,147 756 1,034
Adjustments in respect of current tax for prior periods (29) (112) (39)
Deferred
Origination and reversal of temporary differences 12 301 (121)
Effect of changes in tax rates (1) (7) 2
1,129 938 876
Shareholders' Equity
Income tax expense (recovery) related to:
Unrealized gains (losses) on available-for-sale securities, net of hedging activities (31) (26) (40)
Gains (losses) on cash flow hedges (57) (48) 128
Hedging of unrealized (gains) losses on translation of net foreign operations (146) (13) 26
Total 895 851 990
Components of Total Provision for Income Taxes
(Canadian $ in millions) 2013 2012 2011
Canada: Current income taxes
Federal 484 316 608
Provincial 319 201 333
803 517 941
Canada: Deferred income taxes
Federal (137) 30 (29)
Provincial (96) 17 (14)
(233) 47 (43)
Total Canadian 570 564 898
Foreign: Current income taxes 96 50 140
Deferred income taxes 229 237 (48)
Total foreign 325 287 92
Total 895 851 990
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) 2013 2012 2011
Combined Canadian federal and provincial income taxes at the statutory tax rate 1,420 26.4% (1) 1,364 26.6% (1) 1,125 28.2% (1)
Increase (decrease) resulting from:
Tax-exempt income from securities (250) (4.7) (188) (3.7) (161) (4.0)
Foreign operations subject to different tax rates (8) (0.2) (30) (0.6) (80) (2.0)
Change in tax rate for deferred income taxes (1) – (7) (0.1) 2 0.1
Run-off of structured credit activities (6) (0.1) (67) (1.3) 14 0.3
Adjustments in respect of current tax for prior periods (29) (0.5) (112) (2.2) (39) (1.0)
Other 3 0.1 (22) (0.4) 15 0.4
Provision for income taxes and effective tax rate 1,129 21.0% 938 18.3% 876 22.0%
(1) The combined statutory tax rate changed during the year as a result of legislation that became substantively enacted with respect to the year.
BMO Financial Group 196th Annual Report 2013 173
Notes