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How We Operate
97
Tax Policy MATERIAL TOPIC
Context
In the last two years, government task forces in North America and Europe have asked well-known multinational companies to explain their tax policies, particularly relating to how they reduce the taxes paid in their home and host countries.
Materiality and Strategy
TD continues to work transparently and co-operatively with tax authori- ties in all jurisdictions in which we operate. Our strategy includes maintaining assets in diverse locations in order to compete with non-tradi- tional competitors and:
• Establishing and managing robust tax governance processes that ensure full compliance with tax disclosure and filing obligations in all jurisdictions;
• Consulting with leading law and accounting firms to obtain expert, objective advice and opinions on tax matters; and
• Working in a proactive way with policy-makers and revenue authorities over the long term.
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 86,067 employees across 16 countries;
• Unrecoverable transaction and sales taxes (VAT, HST and GST);
• Taxes on capital and insurance premiums; and
• Taxes on property and business operations.
1
Cash Taxes Borne by TD (restated for IFRS II adjustments)1 (in millions of dollars)
Income taxes Payroll taxes
Transaction and sales taxes
Capital and insurance premium taxes Property and business taxes Total
Effective income tax rate – reported Effective total tax rate
Due to the IFRS II adjustment, values will not tie to financial statements.
2013 1,135 404 380 140 169
2,228
15.1% 25.9%
2012 1,085 383 352 141 156
2,117
14.8% 25.4%
2011 1,326 367 339 147 149
2,328
18.6% 28.6%
TD 2013 Corporate Responsibility Report
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