XML 45 R16.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2018
INCOME TAXES |
INCOME TAXES | 10. INCOME TAXES Income Tax Expense (Recovery)
($ millions) |  | 2018 |  | 2017 |  |
Current: |  |  |  |  |  |
| Current year |  | 1 270 |  | 1 150 |  |
| Adjustments to current income tax of prior years |  | (20 | ) | 59 |  |
Deferred: |  |  |  |  |  |
| Origination and reversal of temporary differences |  | 345 |  | 476 |  |
| Adjustments in respect of deferred income tax of prior years |  | 13 |  | (70 | ) |
| Changes in tax rates and legislation |  | — |  | (106 | ) |
| Movement in unrecognized deferred income tax assets |  | 82 |  | (51 | ) |
Total income tax expense |  | 1 690 |  | 1 458 |  |
Reconciliation of Effective Tax Rate The provision for income taxes reflects an effective tax rate that differs from the statutory tax rate. A reconciliation of the difference is as follows:
($ millions) |  | 2018 |  | 2017 |  |
Earnings before income tax |  | 4 983 |  | 5 916 |  |
Canadian statutory tax rate |  | 27.04% |  | 27.01% |  |
Statutory tax |  | 1 347 |  | 1 598 |  |
Add (deduct) the tax effect of: |  |  |  |  |  |
| Non-taxable component of capital losses (gains) |  | 146 |  | (90 | ) |
| Share-based compensation and other permanent items |  | 31 |  | (1 | ) |
| Assessments and adjustments |  | (7 | ) | (11 | ) |
| Impact of income tax rate and legislative changes |  | — |  | (106 | ) |
| Foreign tax rate differential |  | 111 |  | 180 |  |
| Non-taxable component of acquisitions and dispositions |  | (14 | ) | (41 | ) |
| Movement in unrecognized deferred income tax assets |  | 82 |  | (51 | ) |
| Other |  | (6 | ) | (20 | ) |
Total income tax expense |  | 1 690 |  | 1 458 |  |
Effective tax rate |  | 33.9% |  | 24.6% |  |
Deferred Income Tax Balances The significant components of the company's deferred income tax (assets) liabilities and deferred income tax expense (recovery) are comprised of the following:
|  | Deferred Income Tax Expense (Recovery) |  | Deferred Income Tax Liability (Asset) |  |
($ millions) |  | 2018 |  | 2017 |  | December 31 2018 |  | December 31 2017 |  |
Property, plant and equipment |  | 484 |  | 157 |  | 14 705 |  | 14 252 |  |
Decommissioning and restoration provision |  | 46 |  | 19 |  | (1 854 | ) | (1 910 | ) |
Employee retirement benefit plans |  | 15 |  | (5 | ) | (585 | ) | (639 | ) |
Tax loss carry-forwards |  | (63 | ) | — |  | (172 | ) | (109 | ) |
Other |  | (42 | ) | 78 |  | (177 | ) | (161 | ) |
Net deferred income tax expense and liability |  | 440 |  | 249 |  | 11 917 |  | 11 433 |  |
Change in Deferred Income Tax Balances
($ millions) |  | 2018 |  | 2017 |  |
Net deferred income tax liability, beginning of year |  | 11 433 |  | 11 180 |  |
Recognized in deferred income tax expense |  | 440 |  | 249 |  |
Recognized in other comprehensive income |  | 39 |  | 19 |  |
Foreign exchange, disposition and other |  | 5 |  | (15 | ) |
Net deferred income tax liability, end of year |  | 11 917 |  | 11 433 |  |
Deferred Tax in Shareholders' Equity
($ millions) |  | 2018 |  | 2017 |
Deferred Tax in Other Comprehensive Income |  |  |  |  |
| Actuarial gain on employment retirement benefit plans |  | 39 |  | 19 |
Total income tax expense reported in equity |  | 39 |  | 19 |
Deferred income tax assets are recognized for tax loss carry-forwards to the extent that the realization of the related tax benefit is probable based on estimated future earnings. Suncor has not recognized a $153 million (2017 – $75 million) deferred income tax asset on $1 134 million (2017 – $556 million) of capital losses related to foreign exchange on U.S. dollar denominated debt, which can only be utilized against future capital gains. No deferred tax liability has been recognized at December 31, 2018, on temporary differences of approximately $9.7 billion (2017 – $9.6 billion) associated with earnings retained in our investments in foreign subsidiaries, as the company is able to control the timing of the reversal of these differences. Based on current plans, repatriation of funds in excess of foreign reinvestment will not result in material additional income tax expense. Deferred distribution taxes associated with international business operations have not been recorded. In the fourth quarter of 2017, the U.S. government enacted a decrease in the federal corporate tax rate from 35% to 21% effective January 1, 2018. As a result, the company revalued its deferred income tax balances, resulting in a deferred income tax recovery of $124 million. In the fourth quarter of 2017, the Government of British Columbia (B.C.) enacted an increase to the provincial corporate income tax rate from 11% to 12%. As a result, the company revalued its deferred income tax balances, resulting in a deferred income tax expense of $18 million.

X
- Definition The entire disclosure for income taxes. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 12 -IssueDate 2018-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/XBRL?type=IAS&num=12&date=2018-03-01&anchor=sect_Disclosure&doctype=Standard -URIDate 2018-03-16 + Details
Name: | ifrs-full_DisclosureOfIncomeTaxExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | ifrs-full_MajorComponentsOfTaxExpenseIncomeAbstract
Namespace Prefix: | ifrs-full_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration