Corporate tax hike could have ‘unintended consequences’, says TD CEO – National


The chief executive of the Toronto-Dominion Bank said the increase in the corporate tax rate targeting financial institutions announced in last week’s federal budget “could have unintended consequences.”

At the bank’s annual shareholders’ meeting, CEO Bharat Masrani said the federal government had chosen to “target” the Canadian banking sector with this measure.

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Federal budget: Banking tax could hurt Canada’s competitiveness, says CIBC CEO

The Liberals’ 2022 budget included a proposed 1.5% surtax on bank profits over $100 million, as well as a one-time 15% charge on income over $1 billion for the year of 2021 tax, a move that major Canadian bank executives say could hurt Canada’s competitiveness on the global stage.

Masrani also urged the Canadian government to “reduce deficits accumulated during the pandemic and focus on growth” amid soaring inflation and lingering supply chain challenges.

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Fossil fuel project financing and TD’s climate strategy were discussed several times during the meeting, such as at previous Canadian bank shareholder meetings over the past two weeks.

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Wealth inequality and the pay gap in large organizations between executives and the average worker were also raised, in particular a demand for the bank to publish its pay ratios.

This follows TD’s announcement in an internal memo on Wednesday of a 3% wage increase for most of its non-executive employees, effective July 1.

This report from The Canadian Press was first published on April 14, 2022.

© 2022 The Canadian Press


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