HOW WE OPERATE RESPONSIBLE BANKING WORKPLACE ENVIRONMENT COMMUNITY GOVERNANCE
EC-8
Tax Policy WHY IT’S MATERIAL TO TD
TD is committed to paying all taxes due in the jurisdictions where we operate.
Management Approach
TD continues to work transparently and co-operatively with tax authorities in all jurisdictions in which we operate. We aim to:
• Establish and manage robust tax governance processes that ensure full compliance with tax disclosure and filing obligations in all jurisdictions
• Consult with leading law and accounting firms to obtain expert, objective advice and opinions on tax matters
• Work in a proactive way with policy-makers and revenue authorities over the long term
2015 Performance Taxes we pay TD pays corporate income taxes on the profits we earn, as well as various taxes incurred in our business operations.
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:
Taxes Borne by TD
(in millions of dollars) Income taxes
Payroll taxes for over 84,000
employees across 16 countries Transaction and sales taxes
Capital and insurance premium taxes Property and business taxes TOTAL
2015 1,523 485
428 135 181
2,752
Effective income tax rate – reported 16.6% Effective total tax rate
26.5% Tax Type Income taxes Transaction and sales taxes Property and business taxes %
55% 15%
Capital and insurance premium taxes 5% Payroll taxes
18% 7%
Types of Taxes Borne by TD
$2.8 billion
• 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
Go Deeper
Detailed Tax Performance, including 3-year trend
Taxes Paid by Province in Canada (page 5 of Public Accountability Statement)
Page 52 + +
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 its 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, as well as the interpretation and application of the legislation.
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