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Income Taxes
 12 Months Ended
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).