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Strengthening Communities


Building The Better Bank Material Issues How We Operate Responsible Banking Extraordinary Workplace Environmental Leadership Strengthening Communities


Community Investment Financial Education Affordable Housing Sourcing Tax Policy


Reporting


Tax Policy


EC-8 WHY IT’S MATERIAL TO TD +


TD is committed to paying our fair share of taxes in the jurisdictions where we operate.


HEADLINE PERFORMANCE $2.7 billion


amount TD contributed in taxes borne in 2014


23% increase in taxes paid by TD year-over-year


MANAGEMENT APPROACH


TD continues to work transparently and co- operatively with tax authorities in all jurisdictions in which we operate. We aim to:


n


Establish and manage robust tax governance processes that ensure full compliance with tax disclosure and filing obligations in all jurisdictions


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Consult with leading law and accounting firms to obtain expert, objective advice and opinions on tax matters


n


Work in a proactive way with policy-makers and revenue authorities over the long term


GO DEEPER APPENDIX: PERFORMANCE DATA


FAIR SHARE AND FAIR TAXATION; A BALANCING ACT


TD 2014 Corporate Responsibility Report Page 57


+ + n


Taxes We Pay TD pays corporate income taxes on the profits we earn, as well as various taxes incurred in our business operations.


Cash Taxes Borne by TD (restated for IFRS II adjustments) (in millions of dollars)


Income taxes


Payroll taxes for over 87,000 employees across 16 countries


Transaction and sales taxes Capital and insurance premium taxes Property and business taxes TOTAL Effective income tax rate – reported Effective total tax rate 2014 1,512 435 426 157 172 2,702 16.7% 26.3%


Taxes We Collect TD collects taxes on behalf of governments in the countries and regions where we operate. We assume the administrative costs associated with this activity, understanding and supporting the benefits to the broader economy. The taxes we collect include:


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


n n


Property tax on behalf of customers who are mortgage holders


Transaction tax on customer transactions to which sales taxes apply


n Withholding taxes on behalf of investors 6%


Capital and insurance premium taxes


16% Payroll taxes


6% Property


and business taxes $2.7 Billion


16% Transaction and


sales taxes Types of Taxes Borne by TD 56% Income taxes


Tax Policy We believe that when it comes to tax, all companies should compete on a level playing field. The international financial market is highly competitive and TD will continue to leverage our presence in all jurisdictions in order to compete effectively.


To help tax authorities keep abreast of changes in the banking business, we hold Commercial Awareness Sessions on a wide range of banking issues. These sessions provide a forum for the discussion of tax trends and issues. Should a dispute arise with a tax authority as to how the law should be interpreted and applied, our policy is to resolve any issue promptly in a transparent and cooperative manner.





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