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Income Tax | 12 Months Ended
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Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Tax |
11. | Income Tax
The components of the provision for income taxes were as follows:
|  | Year Ended December 31, 2015 $ |  |  | Year Ended December 31, 2014 $ |  |  | Year Ended December 31, 2013 $ |
Current |  |  | (2,646 | ) |  |  | (5,212 | ) |  |  | (1,482 | )
Deferred |  |  | (76 | ) |  |  | (2,355 | ) |  |  | (3,674 | )
Income tax expense |  |  | (2,722 | ) |  |  | (7,567 | ) |  |  | (5,156 | )
The Partnership operates in countries that have differing tax laws and rates. Consequently, a consolidated weighted average tax rate will vary from year to year according to the source of earnings or losses by country and the change in applicable tax rates. Reconciliations of the tax charge related to the relevant year at the applicable statutory income tax rates and the actual tax charge related to the relevant year are as follows:
|  | Year Ended December 31, 2015 $ |  |  | Year Ended December 31, 2014 $ |  |  | Year Ended December 31, 2013 $ |
Net income before income tax expenses |  |  | 220,232 |  |  |  | 226,494 |  |  |  | 218,471 |
Net income not subject to taxes |  |  | (173,298 | ) |  |  | (81,604 | ) |  |  | (131,529 | )
Net income subject to taxes |  |  | 46,934 |  |  |  | 144,890 |  |  |  | 86,942 |
At applicable statutory tax rates |  |  |  |  |  |  |  |  |  |  |  |
Amount computed using the standard rate of corporate tax |  |  | (12,007 | ) |  |  | (33,083 | ) |  |  | (16,476 | )
Adjustments to valuation allowance and uncertain tax position |  |  | 5,362 |  |  |  | 14,851 |  |  |  | 12,830 |
Permanent and currency differences |  |  | 4,204 |  |  |  | 11,507 |  |  |  | 1,576 |
Change in tax rate |  |  | (281 | ) |  |  | (842 | ) |  |  | (3,086 | )
Tax expense charge related to the current year |  |  | (2,722 | ) |  |  | (7,567 | ) |  |  | (5,156 | )
The significant components of the Partnership’s deferred tax assets (liabilities) were as follows:
|  | Year Ended December 31, 2015 $ |  |  | Year Ended December 31, 2014 $ |
Derivative instruments |  |  | 7,021 |  |  |  | 8,647 |
Taxation loss carryforwards and disallowed finance costs |  |  | 44,823 |  |  |  | 48,440 |
Vessels and equipment |  |  | 3,462 |  |  |  | 3,602 |
Capitalized interest |  |  | (2,184 | ) |  |  | (2,261 | )
|  |  | 53,122 |  |  |  | 58,428 |
Valuation allowance |  |  | (53,198 | ) |  |  | (58,428 | )
Net deferred tax liabilities included in accrued liabilities |  |  | (76 | ) |  |  | — |
The Partnership had tax losses in the United Kingdom (or UK) of $12.7 million as at December 31, 2015 that are available indefinitely for offset against future taxable income in the UK. The Partnership had tax losses and disallowed finance costs in Spain of 110.3 million Euros (approximately $119.8 million) and 34.2 million Euros (approximately $37.2 million), respectively, at December 31, 2015 that are available indefinitely for offset against future taxable income in Spain. During 2015, as a result of an audit performed by the Spanish tax authorities on the Partnership’s Spanish subsidiaries, the Partnership and the Spanish tax authorities reached an agreement to reduce the Partnership’s tax losses in Spain by 29.0 million Euros (approximately $31.5 million). The losses were subject to a full valuation allowance, and therefore no change in income tax expense or assets will occur as a result of this agreement. The Partnership also had tax losses in Luxembourg of 120.9 million Euros (approximately $131.3 million) as at December 31, 2015 that are available indefinitely for offset against taxable future income in Luxembourg. The Partnership recognizes interest and penalties related to uncertain tax positions in income tax expense. The tax years 2007 through 2015 currently remain open to examination by the major tax jurisdictions to which the Partnership is subject.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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