72 Taxes The taxes we pay and collect

TD pays corporate income taxes on the profits we earn, as well as various taxes incurred in our business operations. These include: • Income taxes paid on profits; • Payroll taxes for 87,109 employees across 16 countries; • Unrecoverable transaction and sales taxes (VAT, HST and GST); • Taxes on capital investments and insurance premiums; and • Taxes on property and business operations.

$2.1 billion

Amount TD contributed in taxes borne in 2012

Taxes Borne by TD Bank Group (in millions of dollars) 2012

Income taxes Payroll taxes

Transaction and sales taxes

Capital and insurance premium taxes Property and business taxes Total

Effective income tax rate Effective total tax rate

1,092 383 352 141 156

$2,124

14.9% 29.0%

2011 1,326 367 339 147 149

$2,328

18.6% 32.7%

2010 1,262 316 222 207 133

$2,140

21.8% 37.0%

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The income taxes paid by TD were lower in 2012 as a result of corporate tax rate reductions in Canada and the United Kingdom.

+ More on TD’s Tax Strategy and Approach (PDF) Types of Taxes Borne by TD

Transaction and sales taxes 17%

Property and business taxes 7%

Payroll taxes 18%

Income taxes 51%

TD collects taxes on behalf of governments in the countries and regions where we operate. Although there are administrative costs associated with this activity, we understand and support the benefits to the broader economy. The taxes we collect include:

Employee-related Customer-related

• The employee portion of payroll taxes • Income tax on behalf of employees

• Property tax on behalf of customers who are mortgage holders

• Transaction tax on customer transactions to which sales taxes apply

• Withholding taxes on behalf of investors

Capital and insurance premium taxes 7%

$1.7 billion

collected in employee-related and customer-related taxes on behalf of governments

TD 2012 Corporate Responsibility Report