TD Bank 2003 Annual Report Download - page 51

TD BANK FINANCIAL GROUP ANNUAL REPORT 2003 • Management’s Discussion and Analysis 49
TABLE 8Taxes
(millions of dollars) 2003 2002 2001 2000 1999
Income taxes
Income taxes $ 603 $ (89) $ 694 $ 1,093 $ 803
Taxable equivalent adjustment 230 222 245 199 192
Income taxes –operating cash basis 833 133 939 1,292 995
Other taxes
Payroll taxes 193 187 174 160 85
Capital taxes 125 97 98 76 77
GST and provincial sales taxes 150 162 149 92 82
Municipal and business taxes 86 93 91 93 71
Total other taxes 554 539 512 421 315
Total taxes $ 1,387 $ 672 $1,451 $ 1,713 $1,310
Effective income tax rate – operating cash basis133.4% 18.2% 29.5% 37.8% 40.1%
Effective total tax rate – operating cash basis145.5 52.9 39.2 44.6 46.8
TABLE 9Loans to small and mid-sized business customers
(millions of dollars)
Loans authorized Amount outstanding
Loan amount 2003 2002 2001 2003 2002 2001
(thousands of dollars)
0 – 24 $ 1,056 $ 1,081 $ 1,107 $ 530 $ 555 $ 590
25 – 49 745 738 725 434 431 435
50 – 99 1,298 1,280 1,263 745 735 748
100 – 249 2,682 2,660 2,690 1,626 1,623 1,676
250 – 499 2,409 2,440 2,409 1,421 1,414 1,416
500 – 999 2,478 2,571 2,552 1,271 1,342 1,371
1,000 – 4,999 6,769 6,898 7,266 3,112 3,167 3,336
Total1$17,437 $17,668 $18,012 $9,139 $ 9,267 $9,572
TABLE 10 Fees paid to the shareholders’ auditors
(thousands of dollars) 2003 2002
Audit1$ 8,661 $ 6,629
Audit-related2605 942
Tax33,457 3,205
Other45,480 5,611
Total $18,203 $16,387
The Bank’s Audit Committee has implemented a policy restricting
the services that may be provided by the Bank’s auditors and the
fees paid to the Bank’s auditors. Prior to the engagement of the
Bank’s auditors, the Audit Committee pre-approves the provision
of the service. In making their determination regarding non-audit
services, the Audit Committee considers the compliance with the
policy and the provision of non-audit services in the context of
avoiding impact on auditor independence. Each quarter, the CFO
makes a presentation to the Audit Committee detailing the non-
audit services performed by the Bank's auditors on a year-to-date
basis, and details of any proposed assignments for consideration
by the Audit Committee and pre-approval, if appropriate.
1Operating cash basis measurements are defined in the “How the Bank
reports” section on page 10 of this Annual Report.
The effective income tax rate on the reported basis is set out in
Note 15 of the Bank’s Consolidated Financial Statements.
1Personal loans used for business purposes are not included in these totals.
1Audit fees are fees for the professional services in connection with the
audit of the Bank’s financial statements or other services that are normally
provided by the Bank’s auditors in connection with statutory and regula-
tory filings or engagements. In addition to including fees for services nec-
essary to perform an audit or review in accordance with Generally
Accepted Auditing Standards, our audit fees include fees paid to the
Bank’s auditors for comfort letters, statutory audits, attest services, con-
sents and assistance with and review of documents filed with regulators.
2Audit-related fees are assurance and related services that are performed
by the Bank’s auditors. These services include: employee benefit plan
audits, accounting consultations in connection with acquisitions and
divestitures, internal control reviews, and interpretation of financial
accounting and reporting standards.
3Tax fees are services performed by the Bank’s auditors’ tax division except
those tax services related to the audit. These services include: fees for tax
compliance, tax planning and tax advice.
4Other fees primarily include fees for insolvency and viability matters either
paid by the Bank or by third parties. In these instances, the Bank’s auditors
are retained to provide assistance on operational business reviews, lender
negotiations, business plan assessments, debt restructuring and asset
recovery. The amount of insolvency and viability fees paid by third parties
and included above is $3,540 thousand (2002 –$3,013 thousand).