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Income Tax
 6 Months Ended
Jun. 30, 2012
Income Tax [Abstract]  
Income Tax
8. Income Tax

The components of the provision for income taxes were as follows:

 

                                 
    Three Months Ended June 30,     Six Months Ended June 30,  
    2012     2011     2012     2011  
    $     $     $     $  

Current

     (330 )      (210 )      (619 )      (619 ) 

Deferred

     198       91       748       (336 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Income tax (expense) recovery

     (132 )      (119 )      129       (955 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

As of December 31, 2011, the Partnership had unrecognized tax benefits of 4.2 million Euros (approximately $5.5 million) relating to a re-investment tax credit in connection to a 2005 annual tax filing. The Partnership received this tax credit refund in 2008; however, the relevant tax authorities had challenged the eligibility of the re-investment tax credit and, as a result, the Partnership believed the more-likely-than-not threshold was not met and recognized a liability of 3.4 million Euros (approximately $4.7 million) in 2009. During 2012, the Central Administrative Court accepted the Partnership’s claim on its re-investment tax credit and as a result, the Partnership has recognized this tax benefit in equity as the original vessel sale transaction was a related party transaction reflected in equity.