Annual report - About TELUS

notes to consolidated financial statements
7. INCOME TAXES
(millions) 2000 1999
Current $ 344.1 $ 307.0
Future 152.0 (10.1)
A reconciliation of the statutory income tax rate to the effective income tax rate is as follows:
> 70
$ 496.1 $ 296.9
2000 1999
Basic federal and provincial statutory income tax rate 45.2% 45.5%
Revaluation of future tax assets for decreases in statutory rate 6.7 –
Non-deductible portion of amortization of acquired assets 1.0 –
Non-taxable portion of gain on disposal of assets (0.1) (0.6)
Future tax assets not previously recognized (4.4) –
Other 0.8 (1.1)
49.2 43.8
Large corporations tax 0.9 1.3
Effective rate per Consolidated Statement of Income 50.1% 45.1%
8. ACCOUNTS RECEIVABLE
(millions) 2000 1999
Trade receivables $ 788.3 $ 544.7
Current portion of leases receivable 64.5 55.1
Other 155.7 63.8
$ 1,008.5 $ 663.6
Under an agreement dated November 20, 1997, TELUS Communications (B.C.) Inc. (formerly BC TEL) sold, with minimal
recourse, accounts receivable for aggregate cash proceeds of $150 million. Pursuant to the agreement, the purchaser
will use the proceeds of collection to purchase further receivables. This agreement, which expires in November 2002, is
extendable upon the Company’s request.
9. SINKING FUND ASSETS
Sinking fund assets relate to the Company’s note payable and consist of the following:
(millions) 2000 1999
Debentures, at amortized cost
Government of Canada, direct and guaranteed $ – $ 38.3
Alberta Government Telephones Commission – 67.1
– 105.4
Less: current portion – 105.4
$ – $ –
Proceeds of the sinking fund were withdrawn in May 2000 for early redemption of the TELUS Communications Inc.
11.80% Notes Payable otherwise due May 2003. At December 31, 1999, assets in the sinking fund had an approximate
market value of $107 million and these assets had a weighted average effective interest rate of 9.3% for that year.