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INCOME TAX EXPENSE (RECOVERY) | 12 Months Ended
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Dec. 31, 2017
INCOME TAX EXPENSE (RECOVERY) |
INCOME TAX EXPENSE (RECOVERY) | 17. INCOME TAX EXPENSE (RECOVERY) The following table shows the components of the current and deferred tax expense:
|  | Years ended December 31, |
|  | 2017 |  | 2016 |
Current tax expense (recovery) |  |  |  |  |
Current period |  | $ | 63.2 |  | $ | 223.9 |
Adjustment for prior period |  | (10.0 | ) | (24.6 | )
Deferred tax expense (recovery) |  |  |  |  |
Origination and reversal of temporary differences |  | (83.0 | ) | (143.6 | )
Impact of changes in tax rate |  | (0.1 | ) | — |
Change in unrecognized deductible temporary differences |  | 7.5 |  | (6.7 | )
Recognition of previously unrecognized tax losses |  | (0.8 | ) | 0.6 |
Total tax expense (recovery) |  | $ | (23.2 | ) | $ | 49.6 |
The $23.2 million income tax recovery recognized in 2017 includes a net benefit of $93.4 million due to the enactment of U.S. Tax Reform legislation on December 22, 2017. The estimated net benefit includes a benefit of $124.4 million in respect of the collectability of the Alternative Minimum Tax (“AMT”) credit, which is partially offset by the write-down of net deferred tax assets to reflect the reduction in the U.S. corporate tax rate from 35% to 21% beginning January 1, 2018. Further guidance on the implementation and application of the U.S. Tax Reform legislation will be forthcoming in regulations to be issued by the Department of the Treasury, legislation or guidance from the states in which the Company operates, and directions from the Office of Management and Budget. Such legislation, regulations, directions, and additional guidance may require changes to the estimated net benefit recorded and the impact of such changes will be accounted for in the period in which the legislation, regulations, directions, and additional guidance are enacted or released by the relevant authorities. The reconciliation of the combined Canadian federal and provincial statutory income tax rate to the effective tax rate is as follows:
|  | 2017 |  | 2016 |
Combined statutory income tax rate |  | 26.5 | % | 26.5 | %
Increase (decrease) resulting from: |  |  |  |  |
Mining taxes |  | 5.0 | % | 4.4 | %
Resource allowance and depletion |  | 0.0 | % | 1.1 | %
Difference in foreign tax rates and foreign exchange on deferred income taxes within income tax expense |  | (19.1 | )% | 94.0 | %
Benefit of losses not recognized |  | 33.9 | % | (160.1 | )%
Recognition of tax attributes not previously benefited |  | (3.5 | )% | (44.0 | )%
Under (over) provided in prior periods |  | (8.9 | )% | (8.2 | )%
Income not subject to tax |  | (3.0 | )% | 109.2 | %
Effect of non-taxable impairment reversal |  | (17.6 | )% | 0.0 | %
Enacted rate change |  | 0.1 | % | 0.0 | %
Accounting expenses disallowed for tax |  | 9.8 | % | (17.2 | )%
Taxes on repatriation of foreign earnings |  | 3.8 | % | (79.9 | )%
AMT Credit recovery due to U.S. Tax Reform |  | (29.7 | )% | 0.0 | %
Other |  | (2.8 | )% | (9.2 | )%
Effective tax rate |  | (5.5 | )% | (83.4 | )%
i.Deferred income tax The following table summarizes the components of deferred income tax:
|  | December 31, 2017 |  | December 31, 2016 |
Deferred tax assets |  |  |  |  |
Accrued expenses and other |  | $ | 28.3 |  | $ | 39.3 |
Property, plant and equipment |  | 43.3 |  | 25.5 |
Reclamation and remediation obligations |  | 50.2 |  | 118.1 |
Inventory capitalization |  | 3.4 |  | 8.8 |
Non-capital loss |  | 6.2 |  | — |
|  | 131.4 |  | 191.7 |
Deferred tax liabilities |  |  |  |  |
Accrued expenses and other |  | 4.9 |  | 14.5 |
Property, plant and equipment |  | 316.8 |  | 442.0 |
Inventory capitalization |  | 32.0 |  | 31.4 |
Deferred tax liabilities - net |  | $ | 222.3 |  | $ | 296.2 |
For balance sheet disclosure purposes, deferred tax assets and liabilities have been offset where they relate to income taxes levied by the same taxation authority and the Company has the legal right and intent to offset. Movement in net deferred tax liabilities:
|  | December 31, 2017 |  | December 31, 2016 |
Balance at the beginning of the period |  | $ | 296.2 |  | $ | 422.5 |
Recognized in profit/loss |  | (76.4 | ) | (149.7 | )
Recognized in OCI |  | (0.8 | ) | 9.5 |
Other |  | 3.3 |  | 13.9 |
Balance at the end of the period |  | $ | 222.3 |  | $ | 296.2 |
ii.Unrecognized deferred tax assets and liabilities The aggregate amount of taxable temporary differences associated with investments in subsidiaries, for which deferred tax liabilities have not been recognized, as at December 31, 2017 is $6.5 billion (December 31, 2016 — $6.5 billion). Deferred tax assets have not been recognized in respect of the following items:
|  | December 31, 2017 |  | December 31, 2016 |
Deductible temporary differences |  | $ | 777.0 |  | $ | 721.4 |
Tax losses |  | 505.4 |  | 458.5 |
The tax losses not recognized expire as per the amount and years noted below. The deductible temporary differences do not expire under current tax legislation. Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profit will be available against which the Company can utilize the benefits therefrom. iii.Non-capital losses (not recognized) The following table summarizes the Company’s non-capital losses that can be applied against future taxable profit:
Country |  | Type |  | Amount |  | Expiry Date |
Canada |  | Net operating losses |  | $ | 804.2 |  | 2018 - 2037 |
United States(a) |  | Net operating losses |  | 42.8 |  | 2018 - 2037 |
Chile |  | Net operating losses |  | 171.4 |  | No expiry |
Mauritania |  | Net operating losses |  | 21.2 |  | 2018 - 2021 |
Other |  | Net operating losses |  | 59.9 |  | Various |
| (a) |  | Utilization of the United States loss carry forwards will be limited in any year as a result of the previous changes in ownership.

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