23. INCOME AND MINING TAXES

Income and mining taxes expense is made up of the following components:


		Year Ended December 31,

		2017		2016

Current income and mining taxes		$	87,639	$	102,028

Deferred income and mining taxes:

	Origination and reversal of temporary differences		10,855		7,609

Total income and mining taxes expense		$	98,494	$	109,637

The income and mining taxes expense is different from the amount that would have been calculated by applying the Canadian statutory income tax rate as a result of the following:


		Year Ended December 31,

		2017			2016

Combined federal and composite provincial tax rates			26%			26%

Expected income tax expense at statutory income tax rate		$	88,677		$	69,666

Increase (decrease) in income and mining taxes resulting from:

	Mining taxes		40,886			33,949

	Tax law changes		–			(1,557	)

	Impact of foreign tax rates		(7,915	)		(9,370	)

	Permanent differences		(5,275	)		2,387

	Impact of foreign exchange on deferred income tax balances		(17,879	)		14,562

Total income and mining taxes expense		$	98,494		$	109,637

The following table sets out the components of Agnico Eagle's net deferred income and mining tax liabilities:

		As at December 31, 2017			As at December 31, 2016

Mining properties	$	1,089,751		$	1,046,218

Net operating and capital loss carry forwards		(97,946	)		(80,227	)

Mining taxes		(75,238	)		(76,344	)

Reclamation provisions and other liabilities		(89,226	)		(70,085	)

Total deferred income and mining tax liabilities	$	827,341		$	819,562


	Year Ended December 31,

	2017			2016

Deferred income and mining tax liabilities – beginning of year	$	819,562		$	802,114

Income and mining tax impact recognized in net income		10,181			7,888

Income tax impact recognized in other comprehensive income (loss) and equity		(2,402	)		4,458

Reduction of flow-through share liability		–			5,102

Deferred income and mining tax liabilities – end of year	$	827,341		$	819,562

The Company operates in different jurisdictions and, accordingly, it is subject to income and other taxes under the various tax regimes in the countries in which it operates. The tax rules and regulations in many countries are highly complex and subject to interpretation. The Company may be subject, in the future, to a review of its historic income and other tax filings and, in connection with such reviews, disputes can arise with the taxing authorities over the interpretation or application of certain tax rules and regulations to the Company's business conducted within the country involved.

The deductible temporary differences and unused tax losses in respect of which a deferred tax asset has not been recognized in the consolidated balance sheets are as follows:

		As at December 31, 2017		As at December 31, 2016

Net capital loss carry forwards	$	54,503	$	34,298

Other deductible temporary differences		265,919		202,614

Unrecognized deductible temporary differences and unused tax losses	$	320,422	$	236,912

The Company also has unused tax credits of $12.9 million as at December 31, 2017 (December 31, 2016 – $12.9 million) for which a deferred tax asset has not been recognized.

Capital loss carry forwards and other deductible temporary differences have no expiry date while the unused tax credits expire in 2020.

The Company has $474.9 million (2016 – $410.5 million) of taxable temporary differences associated with its investments in subsidiaries for which deferred income tax has not been recognized, as the Company is able to control the timing of the reversal of the taxable temporary differences and it is probable that they will not reverse in the foreseeable future.

The Company is subject to taxes in Canada, Mexico and Finland, each with varying statutes of limitations. Prior taxation years generally remain subject to examination.