XML 94 R16.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2019
INCOME TAXES |
INCOME TAXES | 10. INCOME TAXES Income Tax (Recovery) Expense
($ millions) |  | 2019 |  | 2018 |  |
Current: |  |  |  |  |  |
| Current year |  | 1 524 |  | 1 270 |  |
| Adjustments to current income tax of prior years |  | 28 |  | (20 | ) |
Deferred: |  |  |  |  |  |
| Origination and reversal of temporary differences |  | (819 | ) | 345 |  |
| Adjustments in respect of deferred income tax of prior years |  | 83 |  | 13 |  |
| Changes in tax rates and legislation |  | (1 124 | ) | — |  |
| Movement in unrecognized deferred income tax assets |  | (58 | ) | 82 |  |
Total income tax (recovery) expense |  | (366 | ) | 1 690 |  |
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) |  | 2019 |  | 2018 |  |
Earnings before income tax |  | 2 533 |  | 4 983 |  |
Canadian statutory tax rate |  | 26.74% |  | 27.04% |  |
Statutory tax |  | 677 |  | 1 347 |  |
Add (deduct) the tax effect of: |  |  |  |  |  |
| Non-taxable component of capital (gains) losses |  | (146 | ) | 146 |  |
| Share-based compensation and other permanent items |  | 25 |  | 31 |  |
| Assessments and adjustments |  | 112 |  | (7 | ) |
| Impact of income tax rate and legislative changes |  | (1 067 | ) | — |  |
| Foreign tax rate differential |  | 83 |  | 111 |  |
| Non-taxable component of acquisitions and dispositions |  | — |  | (14 | ) |
| Movement in unrecognized deferred income tax assets |  | (58 | ) | 82 |  |
| Other |  | 8 |  | (6 | ) |
Total income tax (recovery) expense |  | (366 | ) | 1 690 |  |
Effective tax rate |  | (14.4 | )% | 33.9% |  |
In the second quarter of 2019, Suncor recognized a deferred income tax recovery of $1.116 billion related to a decrease in the Alberta corporate tax rate from 12% to 8%. The tax rate decrease will be phased in as follows: 11% effective July 1, 2019, 10% effective January 1, 2020, 9% effective January 1, 2021, and 8% effective January 1, 2022. The deferred income tax recovery of $1.116 billion was comprised of $910 million recovery in the Oil Sands segment, $88 million recovery in the Refining and Marketing segment, $70 million recovery in the Exploration and Production segment, and $48 million recovery in the Corporate and Eliminations segment. Deferred Income Tax Balances The significant components of the company's deferred income tax (assets) liabilities and deferred income tax expense (recovery) are comprised of the following:
|  | Deferred Income Tax (Recovery) Expense |  | Deferred Income Tax Liability (Asset) |  |
($ millions) |  | 2019 |  | 2018 |  | December 31 2019 |  | December 31 2018 |  |
Property, plant and equipment |  | (2 348 | ) | 484 |  | 12 814 |  | 14 666 |  |
Decommissioning and restoration provision |  | 259 |  | 46 |  | (2 092 | ) | (1 854 | ) |
Employee retirement benefit plans |  | 32 |  | 15 |  | (576 | ) | (585 | ) |
Tax loss carry-forwards |  | 16 |  | (63 | ) | (156 | ) | (172 | ) |
Other |  | 123 |  | (42 | ) | (23 | ) | (138 | ) |
Net deferred income tax (recovery) expense and liability |  | (1 918 | ) | 440 |  | 9 967 |  | 11 917 |  |
Change in Deferred Income Tax Balances
($ millions) |  | 2019 |  | 2018 |
Net deferred income tax liability, beginning of year |  | 11 917 |  | 11 433 |
Recognized in deferred income tax expense |  | (1 918 | ) | 440 |
Recognized in other comprehensive income |  | (23 | ) | 39 |
Foreign exchange, disposition and other |  | (9 | ) | 5 |
Net deferred income tax liability, end of year |  | 9 967 |  | 11 917 |
Deferred Tax in Shareholders' Equity
($ millions) |  | 2019 |  | 2018 |
Deferred Tax in Other Comprehensive Income |  |  |  |  |
| Actuarial (loss) gain on employment retirement benefit plans |  | (23 | ) | 39 |
Total income tax (recovery) expense reported in equity |  | (23 | ) | 39 |
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 an $87 million (2018 – $153 million) deferred income tax asset on $715 million (2018 – $1,134 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, 2019, on temporary differences 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.

X
- Definition The entire disclosure for income taxes. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Name IAS -Number 12 -IssueDate 2019-01-01 -Section Disclosure -URI http://eifrs.ifrs.org/eifrs/xifrs-link?type=IAS&num=12&code=ifrs-tx-2019-en-r&doctype=Standard&dita_xref=IAS12_g79-88_TI -URIDate 2019-03-27 + 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