NOTE 13 – INCOME TAXES TRANSCANADA 58 GEOGRAPHIC COMPONENTS OF INCOME RECONCILIATION OF INCOME TAX EXPENSE PROVISION FOR INCOME TAXES 2001 2000 1999 Current Canada 307 246 177 Foreign 46 34 109 353 280 286 Future Canada 63 58 (99) Foreign 57 33 (9) 120 91 (108) 473 371 178 Year ended December 31  (millions of dollars) NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Year ended December 31  (millions of dollars) 2001 2000 1999 Canada 910 897 473 Foreign 300 203 257 Income from continuing operations before income taxes 1,210 1,100 730 Year ended December 31  (millions of dollars) 2001 2000 1999 Income from continuing operations before income taxes 1,210 1,100 730 Income from regulated operations not subject to tax currently (130) (245) (336) 1,080 855 394 Federal and provincial statutory tax rate 42.1% 44.6% 44.6% Expected income tax expense 455 381 176 Non-deductible expenses 3 3 15 Net difference between the federal and provincial statutory tax rate and rate of foreign authorities (13) (8) (33) Large corporations tax 31 32 32 Change in valuation allowance – (8) – Adjustment to future tax assets and liabilities for enacted changes in tax laws and rates – (28) – Other (3) (1) (12) Actual income tax expense 473 371 178