v3.22.2.2
Income taxes (Tables)
 12 Months Ended
Oct. 31, 2022
Text Block [Abstract]  
Components of Tax Expenses
Components of tax expense
 
 
 
 
  
For the year ended
 
     
(Millions of Canadian dollars)
  
October 31
2022
 
  
October 31
2021
 
Income taxes (recoveries) in Consolidated Statements of Income
  
      
  
      
Current tax
  
      
  
      
Tax expense for current year
   
$
4,151
 
    $ 4,893  
Adjustments for prior years
   
 
(230
 )      (92 ) 
Recoveries arising from previously unrecognized tax loss, tax credit or temporary difference of a prior period
   
 
–
 
      (16 ) 
 
   
 
3,921
 
      4,785  
Deferred tax
                  
Origination and reversal of temporary difference
     
232
        (216 ) 
Effects of changes in tax rates
     
4
        (4 ) 
Adjustments for prior years
   
 
231
 
      74  
Recoveries arising from previously unrecognized tax loss, tax credit or temporary difference of a prior period, net
   
 
(86
 )      (58 ) 
 
   
 
381
 
      (204 ) 
 
   
 
4,302
 
      4,581  
Income taxes (recoveries) in Consolidated Statements of Comprehensive Income and Changes in Equity
                  
Other comprehensive income
                  
Net unrealized gains (losses) on debt securities and loans at fair value through other comprehensive income
   
 
(633
) 
      (35 ) 
Provision for credit losses recognized in income
   
 
(2
) 
      –  
Reclassification of net losses (gains) on debt securities and loans at fair value through other comprehensive income to income
   
 
2
 
      (28 ) 
Unrealized foreign currency translation gains (losses)
   
 
2
 
      1  
Net foreign currency translation gains (losses) from hedging activities
   
 
(478
) 
      591  
Reclassification of losses (gains) on net investment hedging activities to income
   
 
6
 
      –  
Net gains (losses) on derivatives designated as cash flow hedges
   
 
628
 
      485  
Reclassification of losses (gains) on derivatives designated as cash flow hedges to income
   
 
70
 
      97  
Remeasurements of employee benefit plans
   
 
287
 
      796  
Net fair value change due to credit risk on financial liabilities designated at fair value through profit or loss
   
 
622
 
      20  
Net gains (losses) on equity securities designated at fair value through other comprehensive income
   
 
(3
) 
      17  
Share-based compensation awards
   
 
10
 
      (17 ) 
Distributions on other equity instruments and issuance costs
   
 
(45
 )      (42 ) 
 
   
 
466
 
      1,885  
Total income taxes
   
$
4,768
 
    $ 6,466  
Reconciliation to Statutory Tax Rate
Reconciliation to statutory tax rate
 
  
  
For the year ended
 
     
(Millions of Canadian dollars, except for percentage amounts)
  
October 31, 2022
 
  
October 31, 2021
 
Income taxes at Canadian statutory tax rate
   
$
5,269
 
   
 
26.2
%
 
    $ 5,405        26.2 % 
Increase (decrease) in income taxes resulting from:
                                    
Lower average tax rate applicable to subsidiaries
   
 
(428
)
   
 
(2.1
)
      (361 )       (1.8 ) 
Tax-exempt
income from securities
   
 
(437
)
   
 
(2.2
)
      (379 )       (1.8 ) 
Tax rate change
   
 
4
 
   
 
–
 
      (4 )       –  
Other
   
 
(106
)
   
 
(0.5
)
      (80 )       (0.4 ) 
Income taxes in Consolidated S
tate
ments of Income / effective tax rate
   
$
4,302
 
   
 
21.4
%
 
    $ 4,581        22.2 % 
Significant Components of Deferred Tax Assets and Liabilities
Significant components of deferred tax assets and
liabilities
 
  
 
As at and for the year ended October 31, 2022
 
               
(Millions of Canadian dollars)
 
Net asset
beginning of
period
 
 
Change
through
equity
 
 
Change
through
profit or loss
 
 
Exchange
rate
differences
 
 
Acquisitions/
disposals
 
 
Other
 
 
Net asset
end of
period
 
Net deferred tax asset/(liability)
 
      
 
      
 
      
 
      
 
      
 
      
 
      
Allowance for credit losses
  
$
974
 
  
$
–
 
  
$
2
 
  
$
11
 
  
$
–
 
  
$
–
 
  
$
987
 
Deferred compensation
  
 
1,614
 
  
 
(10
 )  
 
(211
 )  
 
101
 
  
 
10
 
  
 
–
 
  
 
1,504
 
Business realignment charges
  
 
11
 
  
 
–
 
  
 
1
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
12
 
Tax loss and tax credit carryforwards
  
 
242
 
  
 
–
    
 
67
 
  
 
2
 
  
 
8
 
  
 
3
 
  
 
322
 
Deferred (income) expense
  
 
110
 
  
 
(1
)
  
 
(126
 )  
 
23
 
  
 
–
 
  
 
–
 
  
 
6
 
Financial instruments measured at fair value through other comprehensive income
  
 
(19
) 
  
 
(2
)
  
 
–
 
  
 
5
 
  
 
–
 
  
 
–
 
  
 
(16
) 
Premises and equipment and intangibles
  
 
(836
) 
  
 
  
 
  
 
4
 
  
 
(57
)
  
 
(345
)
 
  
 
–
 
  
 
(1,234
) 
Pension and post-employment related
  
 
(163
) 
  
 
(287
)
  
 
19
 
  
 
4
 
  
 
(8
)
 
  
 
–
 
  
 
(435
) 
Other
  
 
4
 
  
 
22
 
  
 
(137
)
  
 
(6
)
  
 
4
 
  
 
–
 
  
 
(113
 )
 
  
$
1,937
 
  
$
(278
)
  
$
(381
)
  
$
83
 
  
$
(331
)
  
$
3
 
  
$
1,033
 
Comprising
                                                        
Deferred tax assets
  
$
2,011
 
                                          
$
1,472
 
Deferred tax liabilities
  
 
(74
) 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
(439
 )
 
  
$
1,937
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
$
1,033
 
       
     As at and for the year ended October 31, 2021  
               
(Millions of Canadian dollars)
   Net asset
beginning of
period		    
Change
through
equity
    
Change
through
profit or loss
    
Exchange
rate
differences
    
Acquisitions/
disposals
     Other    
Net asset
end of
period
  
Net deferred tax asset/(liability)
                                                        
Allowance for credit losses
   $ 1,362     $ –     $ (372 )    $ (16 )    $ –     $ –     $ 974  
Deferred compensation
     1,269       17       396       (68 )      –       –       1,614  
Business realignment charges
     9       –       2       –       –       –       11  
Tax loss and tax credit carryforwards
     204       –       40       (2 )      –       –       242  
Deferred (income) expense
     (104 )      6       205       3       –       –       110  
Financial instruments measured at fair value through other comprehensive income
     (68 )      45       (1 )      5       –       –       (19 ) 
Premises and equipment and intangibles
     (784 )      –       (82 )      30               –       (836 ) 
Pension and post-employment related
     592       (796 )      45       (4 )      –       –       (163 ) 
Other
     47       (12 )      (29 )      3       –       (5 )      4  
 
   $ 2,527     $ (740 )    $ 204     $ (49 )    $ –     $ (5 )    $ 1,937  
Comprising
                                                        
Deferred tax assets
   $ 2,579                                             $ 2,011  
Deferred tax liabilities
     (52 )   
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
     (74 ) 
 
   $ 2,527    
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
   $ 1,937