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Income Taxes
 12 Months Ended
Dec. 31, 2021
Text block [abstract]  
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,
  
2021
     2020  
Current tax
                
Current year
  
$
1,389
 
   $ 998  
Adjustments related to prior years
  
 
(49
) 
     (83 ) 
Total current tax
  
 
1,340
 
     915  
Deferred tax
                
Change related to temporary differences
  
 
(108
) 
     253  
Effects of changes in tax rates
  
 
(19
) 
     27  
Total deferred tax
  
 
(127
) 
     280  
Income tax expense
  
$
        1,213
 
   $   1,195  
The following table discloses income tax expense (recovery) recognized directly in equity.
 
For the years ended December 31,
  
2021
     2020  
Recognized in other comprehensive income
                
Current income tax expense (recovery)
  
$
(3
) 
   $ (92 ) 
Deferred income tax expense (recovery)
  
 
(61
) 
     87  
Total recognized in other comprehensive income
  
$
(64
) 
   $ (5 ) 
Recognized in equity, other than other comprehensive income
                
Current income tax expense (recovery)
  
$
        5
 
   $ 25  
Deferred income tax expense (recovery)
  
 
(15
) 
     (25 ) 
Total income tax recognized directly in equity
  
$
(10
) 
   $          –  
(b) Current tax receivable and payable
As at December 31, 2021, the Company had approximately $660 and $357 of current tax receivable and current tax payable, respectively (2020 – $993 and $87).
(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, 2021 (2020 – 26.50 per cent) for the items outlined in the following table.
 
For the years ended December 31,
  
2021
     2020  
Income before income taxes
  
$
8,125
 
   $ 6,770  
Income tax expense at Canadian statutory tax rate
  
$
2,153
 
   $ 1,794  
Increase (decrease) in income taxes due to:
                
Tax-exempt
investment income
  
 
(261
) 
     (171 ) 
Differences in tax rate on income not subject to tax in Canada
  
 
(917
) 
     (528 ) 
Adjustments to taxes related to prior years
  
 
(47
) 
     (96 ) 
Tax losses and temporary differences not recognized as deferred taxes
  
 
53
 
     –  
Tax rate change
  
 
(19
) 
     27  
Other differences
  
 
251
 
     169  
Income tax expense
  
$
       1,213
 
   $    1,195  
(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
,
  
2021
     2020  
Deferred tax assets
  
$
5,254
 
   $ 4,842  
Deferred tax liabilities
  
 
(2,769
) 
     (2,614 ) 
Net deferred tax assets (liabilities)
  
$
       2,485
 
   $   2,228  
The following table presents movement of deferred tax assets and liabilities.

 
As at December 31, 2021
 
Balance,
January 1, 2021
 
 
Disposals
 
 
Recognized in
Income
Statement
 
 
Recognized in Other
Comprehensive
Income
 
 
Recognized
in Equity
 
 
Translation
and Other
 
 
Balance,
December 31,
2021
 
Loss carryforwards
  
$    497
 
  
$
(10
) 
  
$
22
 
  
$
–
 
  
$
–
 
  
$
8
 
  
$
517
 
Actuarial liabilities
  
 
9,372
 
  
 
        –
 
  
 
(666
) 
  
 
–
 
  
 
–
 
  
 
(3
) 
  
 
8,703
 
Pensions and post-employment benefits
  
 
215
 
  
 
–
 
  
 
7
 
  
 
(61
) 
  
 
–
 
  
 
–
 
  
 
161
 
Tax credits
  
 
34
 
  
 
–
 
  
 
11
 
  
 
1
 
  
 
–
 
  
 
–
 
  
 
46
 
Accrued interest
  
 
1
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
1
 
Real estate
  
 
(1,033
) 
  
 
–
 
  
 
(145
) 
  
 
–
 
  
 
–
 
  
 
7
 
  
 
(1,171
) 
Securities and other investments
  
 
(5,950
) 
  
 
–
 
  
 
643
 
  
 
119
 
  
 
–
 
  
 
49
 
  
 
(5,139
) 
Sale of investments
  
 
(56
) 
  
 
–
 
  
 
16
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
(40
) 
Goodwill and intangible assets
  
 
(849
) 
  
 
–
 
  
 
29
 
  
 
–
 
  
 
–
 
  
 
16
 
  
 
(804
) 
Other
  
 
(3
) 
  
 
1
 
  
 
210
 
  
 
2
 
  
 
15
 
  
 
(14
) 
  
 
211
 
Total
  
$   2,228
 
  
$
(9
) 
  
$
          127
 
  
$
          61
 
  
$
          15
 
  
$
          63
 
  
$
          2,485
 
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
     32       –       2       –       –       –       34  
Accrued interest
     1       –       –       –       –       –       1  
Real estate
     (1,046 )      –       5       (2 )      1       9       (1,033 ) 
Securities and other investments
     (4,704 )      –         (1,254)       (59 )      2       65       (5,950 ) 
Sale of investments
     (69 )      –       13       –       –       –       (56 ) 
Goodwill and intangible assets
     (876 )      –       24       –       –       3       (849 ) 
Other
     (110 )      –       77       (16 )      22       24       (3 ) 
Total
   $    2,602     $     –     $ (280 )      $  (87)     $     25     $      
 (32
)
   $    2,228  
The total deferred tax assets as at December 31, 2021 of $5,254 (2020 – $4,842) include $942 (2020 – $1,005) 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, 2021, tax loss carryforwards available were approximately $2,689 (2020 – $2,479) of which $2,514 expire between the years 202
4
and 2041 while $174 have no expiry date, and capital loss carryforwards available were approximately $1 (2020 – $21) and have no expiry date. A $517 (2020 – $497) tax benefit related to these tax loss carryforwards has been recognized as a deferred tax asset as at December 31, 2021, and a benefit of $120 (2020 – $99) has not been recognized. The Company has approximately $200 (2020 – $188) of tax credit carryforwards which will expire between the years 2026 and 2041 of which a benefit of $154 (2020 – $154) has not been recognized. In addition, the Company has not recognized a deferred tax asset of $490
(2020 – $96) on other temporary differences of
$1,867
(2020 – $385).
The total deferred tax liability as at December 31, 2021 was $2,769 (2020 – $2,614). 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 $24,034 (2020 – $22,782).