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Income Taxes | 12 Months Ended
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Dec. 31, 2022
Text block [abstract] |
Income Taxes | Note 17 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, |  | 2022 |  |  | 2021 |
Current tax |  |  |  |  |  |  |  |
Current year |  | $ | 1,097 |  |  | $ | 1,390 |
Adjustments related to prior years |  |  | (263 | ) |  |  | (50 | )
Total current tax |  |  | 834 |  |  |  | 1,340 |
Deferred tax |  |  |  |  |  |  |  |
Change related to temporary differences |  |  | 706 |  |  |  | (139 | )
Adjustments related to prior years |  |  | 226 |  |  |  | 12 |
Effects of change in tax rates in Canada |  |  | (201 | ) |  |  | – |
Total deferred tax |  |  | 731 |  |  |  | (127 | )
Income tax expense |  | $ | 1,565 |  |  | $ | 1,213 |
The following table discloses income tax expense (recovery) recognized directly in equity.
For the years ended December 31, |  | 2022 |  |  | 2021 |
Recognized in other comprehensive income |  |  |  |  |  |  |  |
Current income tax expense (recovery) |  | $ | (323 | ) |  | $ | (3 | )
Deferred income tax expense (recovery) |  |  | (863 | ) |  |  | (61 | )
Total recognized in other comprehensive income |  | $ | (1,186 | ) |  | $ | (64 | )
Recognized in equity, other than other comprehensive income |  |  |  |  |  |  |  |
Current income tax expense (recovery) |  | $ | 5 |  |  | $ | 5 |
Deferred income tax expense (recovery) |  |  | (8 | ) |  |  | (15 | )
Total income tax recognized directly in equity |  | $ | (3 | ) |  | $ | (10 | )
(b) Current tax receivable and payable As at December 31, 2022, the Company had approximately $1,135 of current tax receivable included in other assets (2021 – $660) and a current tax payable of $195 included in other liabilities (2021 – $357). (c) Tax reconciliation The effective income tax rate reflected in the Consolidated Statements of Income varies from the Canadian tax rate of 27.50 per cent for the year ended December 31, 2022 (2021 – 26.50 per cent) for the items outlined in the following table. The Canadian tax rate became substantively enacted in December 2022 with an effective date of April 7, 2022.
For the years ended December 31, |  | 2022 |  |  | 2021 |
Income before income taxes |  | $ | 8,747 |  |  | $ | 8,125 |
Income tax expense at Canadian statutory tax rate |  | $ | 2,406 |  |  | $ | 2,153 |
Increase (decrease) in income taxes due to: |  |  |  |  |  |  |  |
Tax-exempt investment income |  |  | (214 | ) |  |  | (261 | )
Differences in tax rate on income not subject to tax in Canada |  |  | (835 | ) |  |  | (917 | )
Adjustments to taxes related to prior years |  |  | (37 | ) |  |  | (38 | )
Tax losses and temporary differences not recognized as deferred taxes |  |  | 86 |  |  |  | 53 |
Tax rate change in Canada |  |  | (201 | ) |  |  | – |
Other differences |  |  | 360 |  |  |  | 223 |
Income tax expense |  | $ | 1,565 |  |  | $ | 1,213 |
(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 |  | 2022 |  |  | 2021 |
Deferred tax assets |  | $ | 5,423 |  |  | $ | 5,254 |
Deferred tax liabilities |  |  | (2,774 | ) |  |  | (2,769 | )
Net deferred tax assets (liabilities) |  | $ | 2,649 |  |  | $ | 2,485 |
The following table presents movement of deferred tax assets and liabilities.
As at December 31, 2022 |  | Balance, January 1, 2022 |  |  | Disposals |  |  | Recognized in Income Statement |  |  | Recognized in Other Comprehensive Income |  |  | Recognized in Equity |  |  | Translation and Other |  |  | Balance, December 31, 2022 |
Loss carryforwards |  | $ | 517 |  |  | $ | – |  |  | $ | 184 |  |  | $ | – |  |  | $ | – |  |  | $ | – |  |  | $ | 701 |
Actuarial liabilities |  |  | 8,703 |  |  |  | – |  |  |  | (5,537 | ) |  |  | – |  |  |  | 1 |  |  |  | 374 |  |  |  | 3,541 |
Pensions and post-employment benefits |  |  | 161 |  |  |  | – |  |  |  | (1 | ) |  |  | (17 | ) |  |  | – |  |  |  | – |  |  |  | 143 |
Tax credits |  |  | 46 |  |  |  | – |  |  |  | 63 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 109 |
Accrued interest |  |  | 1 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | 1 |
Real estate |  |  | (1,171 | ) |  |  | – |  |  |  | (20 | ) |  |  | (1 | ) |  |  | – |  |  |  | (36 | ) |  |  | (1,228 | )
Securities and other investments |  |  | (5,139 | ) |  |  | – |  |  |  | 4,552 |  |  |  | 879 |  |  |  | (1 | ) |  |  | (250 | ) |  |  | 41 |
Sale of investments |  |  | (40 | ) |  |  | – |  |  |  | 10 |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | (30 | )
Goodwill and intangible assets |  |  | (804 | ) |  |  | – |  |  |  | (4 | ) |  |  | – |  |  |  | – |  |  |  | (17 | ) |  |  | (825 | )
Other |  |  | 211 |  |  |  | – |  |  |  | 22 |  |  |  | 2 |  |  |  | 8 |  |  |  | (47 | ) |  |  | 196 |
Total |  | $ | 2,485 |  |  | $ | – |  |  | $ | (731 | ) |  | $ | 863 |  |  | $ | 8 |  |  | $ | 24 |  |  | $ | 2,649 |
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 |
The total deferred tax assets as at December 31, 2022 of $5,423 (2021 – $5,254) include $40 (2021 – $942) 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, 2022, tax loss carryforwards available were approximately $3,902 (2021 – $2,689) of which $3,684 expire between the years 2025 and 2042 while $218 have no expiry date, and capital loss carryforwards available were approximately $1 (2021 – $1) and have no expiry date. A $701 (2021 – $517) tax benefit related to these tax loss carryforwards has been recognized as a deferred tax asset as at December 31, 2022, and a benefit of $211 (2021 – $120) has not been recognized. The Company has approximately $273 (2021 – $200) of tax credit carryforwards which will expire between the years 2026 and 2042 of which a benefit of $164 (2021 – $154) has not been recognized. In addition, the Company has not recognized a deferred tax asset of $507 (2021 – $490) on other temporary differences of $1,829 (2021 – $1,867). The total deferred tax liability as at December 31, 2022 was $2,774 (2021 – $2,769). 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 $20,625 (2021 – $24,034).

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