Income Tax Adjustment on the Gain on Sale of Schwab Shares
In the current quarter, the Bank revised its estimate of
taxes owed on the gain from its disposition
of Schwab shares in the prior year. The revision reflects
the
Bank's most recent tax filings and includes
previously inestimable information.
The revision reduced the Bank's provision
for income taxes by $
288
Other Tax Matters
The Canada Revenue Agency (CRA), Revenu
Québec Agency (RQA) and Alberta
Tax and Revenue Administration (ATRA) are denying certain dividend and
interest deductions claimed by the Bank.
As at April 30, 2026, the CRA has reassessed
the Bank for $
1,676
million for the years 2011 to 2020, the RQA has
reassessed the Bank for $
52
million for the years 2011 to 2019, and the ATRA has reassessed the Bank for $
71
million for the years 2011 to 2020. In total, the
Bank has been reassessed for $
1,799
million of income tax and interest. The Bank
expects to continue to be reassessed
for open years. The Bank is of the view
that its tax filing positions were appropriate
and filed a Notice of Appeal with the
Tax Court of Canada on March 21, 2023.