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

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

At the bank’s annual shareholder meeting, CEO Bharat Masrani said that the federal government has chosen to “single-out” the Canadian banking sector with this measure.

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

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

TD’s financing of fossil fuel projects and climate strategy was brought up several times during the meeting, similar to previous Canadian bank shareholder meetings over the last couple of weeks.

Wealth inequality and the disparity in compensation between high-ranking executives and average workers was raised as well. The bank was asked to publish its pay ratios.

This follows a Wednesday memo from TD announcing a 3 percent pay increase for its non-executive employees effective July 1.

This report was originally published by The Canadian Press April 14, 2022.