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Income Taxes | 12 Months Ended
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Dec. 31, 2020
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Income Taxes | Note 16 Income Taxes (a) Income tax expense The following table presents i ncome tax expense (recovery) recognized in the Consolidated Statements of Income.
For the years ended December 31, |  | 2020 |  |  | 2019 |
Current tax |  |  |  |  |  |  |  |
Current year |  | $ | 998 |  |  | $ | 1,246 |
Adjustments related to prior yea rs |  |  | (83 | ) |  |  | (74 | )
Total current tax |  |  | 915 |  |  |  | 1,172 |
Deferred tax |  |  |  |  |  |  |  |
Change related to temporary differences |  |  | 253 |  |  |  | (454 | )
Effects of changes in tax rates |  |  | 27 |  |  |  | – |
Total deferred tax |  |  | 280 |  |  |  | (454 | )
Income tax expense |  | $ | 1,195 |  |  | $ | 718 |
The following table discloses income tax expense (recovery) recognized directly in equity.
For the years ended December 31, |  | 2020 |  |  | 2019 |
Recognized in other comprehensive income |  |  |  |  |  |  |  |
Current income tax expense (recovery) |  | $ | (92 | ) |  | $ | 92 |
Deferred income tax expense (recovery) |  |  | 87 |  |  |  | 366 |
Total recognized in other comprehensive income |  | $ | (5 | ) |  | $ | 458 |
Recognized in equity, other than other comprehensive income |  |  |  |  |  |  |  |
Current income tax expense (recovery) |  | $ | 25 |  |  | $ | 5 |
Deferred income tax expense (recovery) |  |  | (25 | ) |  |  | (6 | )
Total income tax recognized directly in equity |  | $ | – |  |  | $ | (1 | )
(b) Current tax receivable and payable As at December 31, 2020, the Company had approximately $993 and $87 of current tax receivable and current tax payable, respectively (2019 – $600 and $121). (c) Tax reconciliation The effective income tax rate reflected in the Consolidated Statements of Income varies from the Canadian tax rate of 26.50 per cent for the year ended December 31, 2020 (2019 – 26.75 per cent) for the items outlined in the following table.
For the years ended December 31, |  | 2020 |  |  | 2019 |
Income before income taxes |  | $ | 6,770 |  |  | $ | 6,220 |
Income tax expense at Canadian statutory tax rate |  | $ | 1,794 |  |  | $ | 1,664 |
Increase (decrease) in income taxes due to: |  |  |  |  |  |  |  |
Tax-exempt investment income |  |  | (171 | ) |  |  | (260 | )
Differences in tax rate on income not subject to tax in Canada |  |  | (528 | ) |  |  | (754 | )
Adjustments to taxes related to prior years |  |  | (96 | ) |  |  | (106 | )
Tax rate change |  |  | 27 |  |  |  | – |
Other differences |  |  | 169 |  |  |  | 174 |
Income tax expense |  | $ | 1,195 |  |  | $ | 718 |
(d) Deferred tax assets and liabilities The following table presents the Company’s deferred tax assets and liabilities reflected on the Consolidated Statement of Financial Position.
As at December, 31 |  | 2020 |  |  | 2019 |
Deferred tax assets |  | $ | 4,842 |  |  | $ | 4,574 |
Deferred tax liabilities |  |  | (2,614 | ) |  |  | (1,972 | )
Net deferred tax assets (liabilities) |  | $ | 2,228 |  |  | $ | 2,602 |
The following table presents movement of deferred tax assets and liabilities.
As at December 31, 2020 |  | Balance, January 1, 2020 |  |  | Disposals |  |  | Recognized in Income Statement |  |  | Recognized in Other Comprehensive Income |  |  | Recognized in Equity |  |  | Translation and Other |  |  | Balance, December 31, 2020 |
Loss carryforwards |  | $ | 705 |  |  | $ | – |  |  | $ | (210 | ) |  | $ | – |  |  | $ | – |  |  | $ | 2 |  |  | $ | 497 |
Actuarial liabilities |  |  | 8,443 |  |  |  | – |  |  |  | 1,063 |  |  |  | – |  |  |  | – |  |  |  | (134 | ) |  |  | 9,372 |
Pensions and post-employment benefits |  |  | 226 |  |  |  | – |  |  |  | – |  |  |  | (10 | ) |  |  | – |  |  |  | (1 | ) |  |  | 215 |
Tax credits |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |
Accrued interest |  |  | 1 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 1 |
Real estate |  |  | (1,046 | ) |  |  | – |  |  |  | 5 |  |  |  | (2 | ) |  |  | 1 |  |  |  | 9 |  |  |  | (1,033 | )
Securities and other investments |  |  | (4,704 | ) |  |  | – |  |  |  | (1,254 | ) |  |  | (59 | ) |  |  | 2 |  |  |  | 72 |  |  |  | (5,943 | )
Sale of investments |  |  | (69 | ) |  |  | – |  |  |  | 13 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | (56 | )
Goodwill and intangible assets |  |  | (876 | ) |  |  | – |  |  |  | 24 |  |  |  | – |  |  |  | – |  |  |  | 3 |  |  |  | (849 | )
Other |  |  | (78 | ) |  |  | – |  |  |  | 79 |  |  |  | (16 | ) |  |  | 22 |  |  |  | 17 |  |  |  | 24 |
Total |  | $ | 2,602 |  |  | $ | – |  |  | $ | (280 | ) |  | $ | (87 | ) |  | $ | 25 |  |  | $ | (32 | ) |  | $ | 2,228 |
As at December 31, 2019 |  | Balance, January 1, 2019 |  |  | Disposals |  |  | Recognized in Income Statement |  |  | Recognized in Other Comprehensive Income |  |  | Recognized in Equity |  |  | Translation and Other |  |  | Balance, December 31, 2019 |
Loss carryforwards |  | $ | 1,019 |  |  | $ | (18 | ) |  | $ | (278 | ) |  | $ | – |  |  | $ | (1 | ) |  | $ | (17 | ) |  | $ | 705 |
Actuarial liabilities |  |  | 5,466 |  |  |  | – |  |  |  | 3,093 |  |  |  | – |  |  |  | (1 | ) |  |  | (115 | ) |  |  | 8,443 |
Pensions and post-employment benefits |  |  | 242 |  |  |  | – |  |  |  | 4 |  |  |  | (20 | ) |  |  | – |  |  |  | – |  |  |  | 226 |
Tax credits |  |  | 261 |  |  |  | – |  |  |  | (253 | ) |  |  | – |  |  |  | – |  |  |  | (8 | ) |  |  | – |
Accrued interest |  |  | 1 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 1 |
Real estate |  |  | (959 | ) |  |  | – |  |  |  | (110 | ) |  |  | – |  |  |  | – |  |  |  | 23 |  |  |  | (1,046 | )
Securities and other investments |  |  | (2,689 | ) |  |  | – |  |  |  | (1,863 | ) |  |  | (347 | ) |  |  | 39 |  |  |  | 156 |  |  |  | (4,704 | )
Sale of investments |  |  | (87 | ) |  |  | – |  |  |  | 17 |  |  |  | – |  |  |  | – |  |  |  | 1 |  |  |  | (69 | )
Goodwill and intangible assets |  |  | (847 | ) |  |  | – |  |  |  | (49 | ) |  |  | – |  |  |  | – |  |  |  | 20 |  |  |  | (876 | )
Other |  |  | 97 |  |  |  | (37 | ) |  |  | (107 | ) |  |  | 1 |  |  |  | (31 | ) |  |  | (1 | ) |  |  | (78 | )
Total |  | $ | 2,504 |  |  | $ | (55 | ) |  | $ | 454 |  |  | $ |  | (366) |  | $ | 6 |  |  | $ | 59 |  |  | $ | 2,602 |
The total deferred tax assets as at December 31, 2020 of $4,842 (2019 – $4,574) includes $1,005 (2019 – $98) where the Company has suffered losses in either the current or preceding year and where the recognition is dependent on future taxable profits in the relevant jurisdictions and feasible management actions. As at December 31, 2020, tax loss carryforwards available were approximately $2,479 (2019 – $3,440) of which $2,321 expire between the years 2022 and 2040 while $137 have no expiry date, and capital loss carryforwards available were approximately $21 (2019 – $31) and have no expiry date. A $497 (2019 – $705) tax benefit related to these tax loss carryforwards has been recognized as a deferred tax asset as at December 31, 2020, and a benefit of $99 (2019 – $93) has not been recognized. In addition, the Company has approximately $154 (2019 – $157) of tax credit carryforwards which will expire between the years 2027 and 2029 of which a benefit of $154 (2019 – $157) has not been recognized. The total deferred tax liability as at December 31, 2020 was $2,614 (2019 – $1,972). This amount includes the deferred tax liability of consolidated entities. The aggregate amount of taxable temporary differences associated with the Company’s own investments in subsidiaries is not included in the Consolidated Financial Statements and was $22,782 (2019 – $19,623).

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