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Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2022
Text block [abstract]  
Components of Income Tax Expense (Recovery) Recognized
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 ) 
Summary of Reconciliation of Income Tax Expense
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  
Summary of 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  
Components of Deferred Tax Assets and Liabilties
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