TD Bank 2007 Annual Report Download - page 109

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TD BANK FINANCIAL GROUP ANNUAL REPORT 2007 Financial Results 105
NOTE 20 INCOME TAXES
The Bank recognizes both the current and future income tax of
all transactions that have been recognized in the Consolidated
Financial Statements. Future income tax assets and liabilities are
determined based on the tax rates that are expected to apply
when the assets or liabilities are reported for tax purposes.
The Bank records a valuation allowance to the extent the future
tax asset exceeds the amount that is more likely than not to
be realized.
Provision for (Benefit of) Income Taxes1
(millions of Canadian dollars) 2007 2006 2005
Provision for income taxes – Consolidated Statement of Income
Current income taxes $ 974 $ 888 $ 960
Future income taxes (121)(14)(261)
853 874 699
Provision for income taxes – Statement of Other Comprehensive Income
Current income taxes 980 209 141
Future income taxes (78)– –
902 209 141
Income taxes – other non-income related items including
business combinations and other transition adjustments
Current income taxes (10)10 (45)
Future income taxes 442 (3) –
432 7 (45)
Total provision for (benefit of) income taxes $ 2,187 $ 1,090 $ 795
Current income taxes
Federal $ 1,120 $ 600 $ 454
Provincial 598 339 230
Foreign 226 168 372
1,944 1,107 1,056
Future income taxes
Federal (37)(49)(220)
Provincial (13)(26)(105)
Foreign 293 58 64
243 (17)(261)
Total $ 2,187 $ 1,090 $ 795
1 Certain prior period numbers have been restated to conform with the
presentation adopted in the current period.
Reconciliation to Statutory Tax Rate
(millions of Canadian dollars) 2007 2006 2005
Income taxes at Canadian statutory income tax rate $ 1,627 34.9%$ 1,934 35.0%$ 1,072 35.0%
Increase (decrease) resulting from:
Dividends received (423) (9.1)(234)(4.2)(232)(7.6)
Rate differentials on international operations (336) (7.2)(248)(4.5)(215)(7.0)
Items related to dilution gains and losses – – (582)(10.5)163 5.3
Future federal and provincial tax rate changes 12 0.3 10 0.2 – –
Other – net (27) (0.6)(6)(0.2)(89)(2.9)
Provision for income taxes and effective income tax rate $ 853 18.3%$ 874 15.8%$ 699 22.8%
Indicated below are the statutory income tax rates and income
taxes reconciled to the effective income tax rates and provisions
for income taxes that have been recorded in the Consolidated
Statement of Income.
Restructuring Costs
(millions of Canadian dollars) 2007 2006 2005
Human
Resources
Real
Estate Technology Other Total Total Total
Balance at beginning of year $ 19 $ 8 $ – $ – $ 27 $25 $ 7
Restructuring costs arising (reversed) during the year:
Wholesale Banking – – – – – 50 43
U.S. Personal and Commercial Banking 37 10 17 367 – –
Amount utilized during the year:
Wholesale Banking 7 3 – – 10 48 25
U.S. Personal and Commercial Banking 33 10 11 155 – –
Balance at end of year $ 16 $ 5 $ 6 $ 2 $ 29 $27 $ 25