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Income Taxes
 12 Months Ended
Dec. 31, 2023
Text block [abstract]  
Income Taxes
Note 17 Income Taxes
(a) Income tax expense
The following table presents income tax expenses (recoveries) recognized in the Consolidated Statements of Income.
 
For the years ended December 31,
 
2023
 
 
2022
 
Current tax
                
Current year
  
$
568
 
   $ 1,098  
Adjustments related to prior years
  
 
(193
)
     (263 ) 
Total current tax
  
 
375
 
     835  
Deferred tax
                
Change related to temporary differences
  
 
489
 
     (1,975 ) 
Adjustments related to prior years
  
 
(19
)
     226  
Effects of change in tax rates in Canada
  
 
–
 
     (245 ) 
Total deferred tax
  
 
470
 
     (1,994 ) 
Income tax expenses (recoveries)
  
$
  845
 
   $   (1,159 ) 
The following table discloses income tax expenses (recoveries) recognized directly in equity.
 
For the years ended December 31,
 
2023
 
 
2022
 
Recognized in other comprehensive income
                
Current income tax expenses (recoveries)
  
$
  320
 
   $ (323 ) 
Deferred income tax expenses (recoveries)
  
 
 (326
)
       3,034  
Total recognized in other comprehensive income
  
$
(6
)
   $ 2,711  
Recognized in equity, other than other comprehensive income
                
Current income tax expenses (recoveries)
  
$
5
 
   $ 5  
Deferred income tax expenses (recoveries)
  
 
(4
)
     (8 ) 
Total income tax recognized directly in equity
  
$
1
 
   $ (3 ) 
(b) Current tax receivable and payable
As at December 31, 2023, the Company had approximately $1,056 of current tax recoverable included in other assets (2022 – $
1,135
) and a current tax payable of $147 includ
ed
in other liabilities (2022 – $
195
).

(c) Tax reconciliation
The effective income tax rate reflected in the Consolidated Statements of Income varies from the Canadian tax rate of 27.80 percent for the year ended December 31, 2023 (2022 – 27.50 percent) 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,
 
2023
 
 
2022
 
Net income (loss) before income taxes
  
$
 6,452
 
   $ (3,138 ) 
Income tax expenses (recoveries) at Canadian statutory tax rate
  
$
1,794
 
   $ (863 ) 
Increase (decrease) in income taxes due to:
                
Tax-exempt investment income
  
 
(199
)
     (206 ) 
Differences in tax rate on income not subject to tax in Canada
  
 
(770
)
     118  
Adjustments to taxes related to prior years
  
 
(212
)
     (37 ) 
Tax losses and temporary differences not recognized as deferred taxes
  
 
(38
)
     78  
Tax rate change in Canada
  
 
–
 
     (245 ) 
Other differences
  
 
270
 
     (4 ) 
Income tax expenses (recoveries)
  
$
  845
 
   $   (1,159 ) 
(d) Deferred tax assets and liabilities
The following table presents the Company’s deferred tax assets
and
liabilities reflected on the Consolidated Statements of Financial Position.

As at December 31,
 
2023
 
 
2022
 
Deferred tax assets
  
$
 
6,739
 
   $ 6,708  
Deferred tax liabilities
  
 
 (1,697
)
       (1,536 ) 
Net deferred tax assets (liabilities)
  
$
  5,042
 
   $ 5,172  
The following table presents movement of deferred tax assets and liabilities.
For the year ended December 31,
 
Balance,
January 1, 2023
 
 
Disposals
 
 
Recognized in
income
 
 
Recognized in other
comprehensive
income
 
 
Recognized
in equity
 
 
Translation
and other
 
 
Balance,
December 31,
2023
 
Loss carryforwards
  
$
701
 
  
$
–
 
  
$
(18
)
  
$
–
 
  
$
(8
)
  
$
(5
)
  
$
670
 
Actuarial liabilities
  
 
4,507
 
  
 
–
 
  
 
188
 
  
 
1,198
 
  
 
–
 
  
 
(80
)
  
 
5,813
 
Pensions and post-employment benefits
  
 
142
 
  
 
–
 
  
 
4
 
  
 
26
 
  
 
–
 
  
 
(1
)
  
 
171
 
Tax credits
  
 
109
 
  
 
–
 
  
 
15
 
  
 
–
 
  
 
–
 
  
 
(2
)
  
 
122
 
Accrued interest
  
 
1
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
1
 
Real estate
  
 
(1,317
)
  
 
–
 
  
 
168
 
  
 
–
 
  
 
–
 
  
 
14
 
  
 
 (1,135
)
Lease liability
  
 
47
 
  
 
–
 
  
 
(7
)
  
 
–
 
  
 
–
 
  
 
(2
)
  
 
38
 
Right of use asset and sublease receivable
  
 
(41
)
  
 
–
 
  
 
7
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
(34
)
Securities and other investments
  
 
1,560
 
  
 
–
 
  
 
(293
)
  
 
(1,245
)
  
 
2
 
  
 
62
 
  
 
86
 
Sale of investments
  
 
(30
)
  
 
–
 
  
 
12
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
(18
)
Goodwill and intangible assets
  
 
(828
)
  
 
–
 
  
 
(12
)
  
 
–
 
  
 
–
 
  
 
18
 
  
 
(822
)
Other
  
 
321
 
  
 
–
 
  
 
(534
)
  
 
347
 
  
 
10
 
  
 
6
 
  
 
150
 
Total
  
$
     5,172
 
  
$
   –
 
  
$
   (470
)
  
$
   326
 
  
$
   4
 
  
$
  10
 
  
$
   5,042
 
               
For the year ended
December 31,		   Balance,
January 1, 2022		     Disposals     Recognized in
income		     Recognized in other
comprehensive
income		     Recognized
in equity		     Translation
and other		     Balance,
December 31,
2022		  
Loss carryforwards
   $ 517     $ –     $ 184     $ –     $ –     $ –     $ 701  
Actuarial liabilities
     13,731       –       2,334       (12,005 )      11       436       4,507  
Pensions and post-employment benefits
     161       –       (2 )      (17 )      –       –       142  
Tax credits
     46       –       63       –       –       –       109  
Accrued interest
     1       –       –       –       –       –       1  
Real estate
     (1,287 )      –       10       (1 )      –       (39 )      (1,317 )
Lease liability
     26       –       17       –       3       1       47  
Right of use asset and sublease receivable
     (22 )      –       (18 )      –       (2 )      1       (41 ) 
Securities and other investments
     (6,484 )      –       (702 )      8,984       (10 )      (228 )      1,560  
Sale o
f inv
estments
     (40 )      –       10       –       –       –       (30 ) 
Goodwill and intangible assets
     (804 )      –       (6 )      –       –       (18 )      (828 ) 
Other
     209       –       104       5       6       (3 )      321  
Total
   $      6,054     $   –     $  1,994       $  (3,034 )    $      8     $    150     $    5,172  
The total deferred tax assets as at December 31, 2023 of $
6,739
(2022 – $
6,708
)
includes $6,136 relating to 2023 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, 2023, tax loss carryforwards available were approximately $
3,549
(2022 – $
3,902
), of which $
3,300
 
expire between the years 2025 and 2043 while $
249
 have no expiry date, and capital loss carryforwards available were approximately $
5
(2022 – $
1
) and have no expiry date. A $
670
(2022 – $
701
) tax benefit related to these tax loss carryforwards has been recognized as a deferred tax asset as at December 31, 2023, and a benefit of $
222
(2022 – $
211
) has not been recognized. The Company has approximately $
282
(2022 – $
273
) of tax credit carryforwards which will expire
between the years 2026 and 2043
of which a benefit of $
160
(2022 – $
164
) has not been recognized. In addition, the Company has not recognized a deferred tax asset of $
1,171
(2022 – $
663
) on other temporary differences of $
5,333
(2022 – $
2,523
).
The total deferred tax liability as at December 31, 2023 was $
1,697
(2022 – $
1,536
). 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 $
10,908
(2022 – $
11,439
).