Notes to the Consolidated Financial Statements
(Years ended December 31, 2007 and 2006 (In thousands of dollars, except per share amounts)
17. Income taxes:
Income tax expense attributable to income differs from the amounts computed by applying the combined federal and provincial income tax rate of 35.03% (2006 – 35.06%) to pre-tax income from operations as a result of the following:
| 2007 | 2006 | |||
| Income before income taxes | $ | 257,397 | $ | 218,894 |
| Computed expected income tax expense | $ | 90,166 | $ | 76,744 |
| Non-deductible expenses | 1,076 | 948 | ||
| Share of affiliate loss (income) | (132) | 29 | ||
| Deferred revenue not affecting income tax expense | (1,846) | (2,668) | ||
| Impact of changes in substantively enacted income tax rates | 15,091 | 11,047 | ||
| Other | 4,345 | 1,270 | ||
| $ | 108,700 | $ | 87,370 |
The income tax provisions for the years ended December 31, 2007 and 2006 are as follows:
| 2007 | 2006 | |||
| Current income tax expense | $ | 111,770 | $ | 99,978 |
| Future income tax benefit | (3,070) | (12,608) | ||
| $ | 108,700 | $ | 87,370 |
The tax effects of temporary differences that give rise to significant portions of the future tax asset at December 31, 2007 and 2006 are presented below:
| 2007 | 2006 | |||
| Non-capital loss carryforwards | $ | 325 | $ | 742 |
| Premises and equipment | 4,445 | 5,309 | ||
| Cumulative eligible capital | 28,720 | 35,139 | ||
| Financing costs | - | 277 | ||
| Deferred listing revenue | 125,341 | 110,754 | ||
| Other temporary differences | (4,378) | 236 | ||
| $ | 154,453 | $ | 152,457 | |
| Future tax asset: | ||||
| Current | $ | 22,840 | $ | 25,095 |
| Long-term | 131,613 | 127,362 | ||
| $ | 154,453 | $ | 152,457 |