Income Tax Adjustment on the Gain on Sale of Schwab Shares
In the second quarter of fiscal 2026,
the Bank revised its estimate of taxes owed
on the gain from its disposition of Schwab
shares in the prior year. The revision
reflected the Bank's most recent tax filings
and included
previously inestimable information. The
revision reduced the Bank's provision
for income taxes by
$
288
million in the prior quarter.
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.
During the quarter, the CRA and the RQA reassessed the
Bank for a total of $
4
million of additional income tax and
interest. As at July 31, 2026, the CRA has reassessed
the Bank for $
1,679
million for the years 2011 to 2021, the RQA has reassessed
the Bank for $
53
the years 2011 to 2020, and the ATRA has reassessed the Bank for $
71
million for the years 2011 to 2020. In total, the Bank has been reassessed
for
$
1,803
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.