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Corporate Income Taxes (Tables)
 12 Months Ended
Oct. 31, 2021
Text Block [Abstract]  
Components of income tax provision
 
For the year ended October 31 ($ millions)  
2021
    
2020
    
2019
  
Provision for income taxes in the Consolidated Statement of Income:
                        
       
Current income taxes:
                        
Domestic:
                        
Federal
  
$
1,105
 
   $ 635     $ 525  
Provincial
  
 
824
 
     529       444  
Adjustments related to prior periods
  
 
(27
) 
     (29 )      5  
Foreign
  
 
726
 
     1,053       1,215  
Adjustments related to prior periods
  
 
(24
) 
     24       (48 ) 
   
 
2,604
 
     2,212       2,141  
Deferred income taxes:
                        
Domestic:
                        
Federal
  
 
32
 
     (159 )      174  
Provincial
  
 
8
 
     (97 )      103  
Foreign
  
 
227
 
     (413 )      54  
   
 
267
 
     (669 )      331  
Total provision for income taxes in the Consolidated Statement of Income
  
$
2,871
 
   $ 1,543     $ 2,472  
Provision for income taxes in the Consolidated Statement of Changes in Equity:
                        
Current income taxes
  
$
435
 
   $ 149     $ (108 ) 
Deferred income taxes
  
 
(100
) 
     (212 )      60  
   
 
335
 
     (63 )      (48 ) 
Reported in:
                        
Other Comprehensive Income
  
 
341
 
     (63 )      (33 ) 
Retained earnings
  
 
(6
) 
     –       (18 ) 
Other reserves
  
 
–
 
     –       3  
Total provision for income taxes in the Consolidated Statement of Changes in Equity
  
 
335
 
     (63 )      (48 ) 
Total provision for income taxes
  
$
  3,206
 
   $   1,480     $   2,424  
Provision for income taxes in the Consolidated Statement of Income includes:
                        
Deferred tax expense (benefit) relating to origination/reversal of temporary differences
  
$
269
 
   $ (672 )    $ 329  
Deferred tax expense (benefit) of tax rate changes
  
 
(2
) 
     3       2  
 
  
$
267
 
   $ (669 )    $ 331  
Reconciliation to Statutory Tax Rate
Income taxes in the Consolidated Statement of Income vary from the amounts that would be computed by applying the composite federal and provincial statutory income tax rate for the following reasons:
 
   
2021
    
2020
    
2019
  
For the year ended October 31 ($ millions)  
Amount
    
Percent
of pre-tax

income
    
Amount
    
Percent
of pre-tax

income
    
Amount
    
Percent
of pre-tax
income
  
Income taxes at Canadian statutory rate
  
$
3,364
 
  
 
26.2
% 
   $ 2,209       26.3 %    $ 2,983       26.5 % 
Increase (decrease) in income taxes resulting from:
                                                
Lower average tax rate applicable to subsidiaries and foreign branches
  
 
(245
) 
  
 
(1.9
) 
     (489 )      (5.8 )      (300 )      (2.7 ) 
Tax-exempt income from securities
  
 
(236
) 
  
 
(1.8
) 
     (207 )      (2.4 )      (221 )      (2.0 ) 
Deferred income tax effect of substantively enacted tax rate changes
  
 
(2
) 
  
 
–
 
     3       –       2       –  
Other, net
  
 
(10
) 
  
 
(0.1
) 
     27       0.3       8       0.1  
Total income taxes and effective tax rate
  
$
  2,871
 
  
 
22.4
% 
   $   1,543       18.4 %    $   2,472       21.9 % 
Significant Components of Deferred Tax Assets and Liabilities
Significant components of the Bank’s deferred tax assets and liabilities are as follows:
 
   
Statement of Income
    
Statement of Financial Position
  
   
For the year ended
    
As at
  
October 31 ($ millions)  
2021
    
2020
    
2021
    
2020
  
Deferred tax assets:
                                
Loss carryforwards
  
$
  52
 
   $      60    
$
  174
 
   $ 226  
Allowance for credit losses
  
 
405
 
     (718 )   
 
922
 
     1,380  
Deferred compensation
  
 
(77
 )     44    
 
241
 
     164  
Deferred income
  
 
88
 
     112    
 
254
 
     352  
Property and equipment
  
 
(106
 )     (35 )   
 
364
 
     368  
Pension and other post-retirement benefits
  
 
(28
 )     (52 )   
 
522
 
     980  
Securities
  
 
(21
 )     (26 )   
 
323
 
     187  
Lease liabilities
  
 
59
 
     49    
 
875
 
     827  
Cash flow hedges
 
 
 
–
 
 
 
–
 
 
 
 
49
 
 
 
–
 
Other
  
 
(119
 )     (78 )   
 
663
 
     650  
Total deferred tax assets
  
$
253
 
   $ (644 )   
$
4,387
 
   $   5,134  
Deferred tax liabilities:
                                
Cash flow hedges
  
$
–
 
   $ –    
$
34
 
   $ 360  
Deferred compensation
  
 
(16
 )     (25 )   
 
131
 
     121  
Deferred income
  
 
(8
 )     (15 )   
 
14
 
     15  
Property and equipment
  
 
94
 
     158    
 
808
 
     849  
Pension and other post-retirement benefits
  
 
(9
 )     (7 )   
 
97
 
     90  
Securities
  
 
14
 
     (40 )   
 
179
 
     201  
Investment in subsidiaries and associates
  
 
(40
 )     82    
 
122
 
     98  
Intangible assets
  
 
53
 
     (1 )   
 
1,774
 
     1,837  
Other
  
 
(102
 )     (127 )   
 
326
 
     451  
Total deferred tax liabilities
  
$
(14
 )   $ 25    
$
3,485
 
   $ 4,022  
Net deferred tax assets (liabilities)
(1)
  
$
267
 
   $ (669 )   
$
902
 
   $ 1,112  
 
(1)
For Consolidated Statement of Financial Position presentation, deferred tax assets and liabilities are assessed by legal entity. As a result, the net deferred tax assets of $902
 
(2020 – $1,112) are represented by deferred tax assets of $2,051 (2020 – $2,185), and deferred tax liabilities of $1,149 (2020 – $1,073) on the Consolidated Statement of Financial Position.
Changes to Net Deferred Taxes
The major changes to net deferred taxes were as follows:
 
For the year ended October 31 ($ millions)  
2021
    
2020
  
Balance at beginning of year
  
$
   1,112
 
   $   263  
Deferred tax benefit (expense) for the year recorded in income
  
 
(267
) 
     669  
Deferred tax benefit (expense) for the year recorded in equity
  
 
100
 
     212  
Disposed in divestitures
  
 
–
 
     9  
Other
  
 
(43
) 
     (41 ) 
Balance at end of year
  
$
902
 
   $ 1,112