TD Bank 2006 Annual Report Download - page 99

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TD BANK FINANCIAL GROUP ANNUAL REPORT 2006 Financial Results 95
Indicated below arethe statutory income tax rates and income
taxes reconciled to the effective income tax rates and provisions
for income taxes that we have recorded in the Consolidated
Statement of Income.
1Includes the foreign currency translation tax provision of $209 million
in fiscal 2006 (2005 – $141 million; 2004 – $400 million). In fiscal 2005,
a benefit of $45 million for the TD Banknorth currency hedging loss is
recorded in goodwill.
Reconciliation to Statutory Tax Rate
(millions of Canadian dollars) 2006 2005 2004
Income taxes at Canadian statutory income tax rate $1,934 35.0% $1,072 35.0% $1,065 35.1%
Increase (decrease) resulting from:
Dividends received (234) (4.2) (232) (7.6) (205) (6.8)
Rate differentials on international operations (248) (4.5) (215) (7.0) (215) (7.1)
Items related to dilution gains and losses (582) (10.5) 163 5.3 – –
Futurefederal and provincial tax rate changes 10 .2 – – 52 1.7
Federal large corporations tax (3) (.1) 9 .3 12 .4
Other – net (3) (.1) (98) (3.2) 94 3.2
Provision forincome taxes and effectiveincome tax rate $874 15.8% $699 22.8% $ 803 26.5%
Provision for Income Taxes
(millions of Canadian dollars) 2006 2005 2004
Provision for (benefit of) income taxes – Consolidated Statement of Income
Current income taxes $888 $960 $ 675
Future income taxes (14) (261) 128
874 699 803
Provision for (benefit of) income taxes – Consolidated Balance Sheet1
Current income taxes 219 96 399
Future income taxes (3) ––
216 96 399
Total $1,090 $795 $1,202
Current income taxes
Federal $600 $454 $ 586
Provincial 339 230 289
Foreign 168 372 199
1,107 1,056 1,074
Future income taxes
Federal (49) (220) 62
Provincial (26) (105) 35
Foreign 58 64 31
(17) (261) 128
Total $1,090 $795 $1,202
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.
INCOME TAXES
NOTE 16