TD Bank 2001 Annual Report Download - page 61

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59
FINANCIAL RESULTS
(millions of dollars) 2001 2000 1999
Provision for income taxes – consolidated statement of income1
Current income taxes $ 973 $ 1,087 $ 943
Future income taxes (1,137) (791) 147
(164) 296 1,090
Provision for income taxes – consolidated statement of changes in
shareholders’ equity
Current income taxes (217) (48) 58
Future income taxes (74) (6) (13)
(291) (54) 45
Total provision for (benefit of) income taxes $ (455) $ 242 $ 1,135
Current income taxes
Federal $ 395 $ 497 $ 267
Provincial 159 124 91
Foreign 202 418 643
756 1,039 1,001
Future income taxes2
Federal (785) (568) 98
Provincial (343) (199) 33
Foreign (83) (30) 3
(1,211) (797) 134
$(455) $ 242 $ 1,135
NOTE 11 Provision for (benefit of) income taxes
The provision for income taxes shown in the consolidated
state-
ment of income is less than that obtained by applying statutory
tax rates to the net income before provision for income taxes for
the following reasons:
2001 2000 1999
Canadian statutory income tax rate 41.1% 42.4% 42.5%
Increase (decrease) resulting from:
Goodwill amortization 4.4 2.6 .3
Dividends (12.3) (8.2) (2.6)
Rate differentials on international operations (19.0) (9.8) (2.4)
Future federal and provincial tax rate reductions (17.0) (7.2) –
Federal large corporations tax 1.4 1.0 .4
Financial institutions temporary surcharge –.5 .2
Gains on sale of investment real estate (9.1) ––
Non-taxable gain on sale of TD Waterhouse Group, Inc. –– (11.7)
Other – net (2.5) (.1) –
Effective income tax rate (13.0)% 21.2% 26.7%
1Includes the tax effect of goodwill amortization of $9 million
(2000 – $9 million; 1999 – $9 million).
2Includes a net future income tax benefit of $215 million (2000 –
$54 million) related to federal and provincial tax rate reductions.