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INCOME TAX EXPENSE | 12 Months Ended
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Dec. 31, 2020
INCOME TAX EXPENSE |
INCOME TAX EXPENSE | 18. INCOME TAX EXPENSE The following table shows the components of the current and deferred tax expense:
|  | Years ended December 31,
|  | 2020 |  | 2019
Current tax expense |  |  |  |  |  |
Current period |  | $ | 297.7 |  | $ | 206.6
Adjustment for prior periods |  |  | (75.8) |  |  | (1.0)
Deferred tax expense |  |  |  |  |  |
Origination and reversal of temporary differences |  |  | 335.5 |  |  | 223.0
Impact of changes in tax rate |  |  | (0.8) |  |  | (1.6)
Change in unrecognized deductible temporary differences |  |  | (73.4) |  |  | (156.3)
Recognition of previously unrecognized tax losses |  |  | (43.4) |  |  | (24.0)
Total tax expense |  | $ | 439.8 |  | $ | 246.7
On March 27, 2020 the U.S. CARES Act was signed into law. Kinross benefited primarily from two significant changes in tax law included in the U.S. CARES Act. First, $33.1 million of federal Alternative Minimum Tax ("AMT") credits that were previously expected to be received after 2020, were received in 2020. Second, the tax law amendments provided for new tax loss carry-back opportunities that created additional federal AMT credits of $73.7 million, which were also refunded in 2020. The carry-back of U.S. net operating losses also resulted in a $25.4 million net tax benefit to tax expense, the result of the 35% U.S. federal corporate income tax rates prior to 2018, compared to 21% post 2017. The reconciliation of the combined Canadian federal and provincial statutory income tax rate to the effective tax rate is as follows:
|  | 2020 |  | 2019 |
Combined statutory income tax rate |  | 26.5 | % | 26.5 | %
Increase (decrease) resulting from: |  |  |  |  |
Mining taxes |  | 1.7 | % | 1.2 | %
Percentage of depletion |  | (0.9) | % | (1.4) | %
Difference in foreign tax rates and foreign exchange on deferred income taxes within income tax expense |  | 5.5 | % | 4.5 | %
Change in unrecognized deferred tax assets |  | (0.4) | % | (4.1) | %
Over provided in prior periods |  | — |  | (0.4) | %
Income not subject to tax |  | (0.7) | % | (0.7) | %
Effect of non-taxable impairment reversals |  | (6.9) | % | (4.2) | %
Accounting expenses disallowed for tax |  | 1.7 | % | 2.3 | %
Taxes on repatriation of foreign earnings |  | 0.1 | % | 0.5 | %
Impact of CARES Act |  | (1.4) | % | — |
AMT credit receivable due to U.S.Tax Reform |  | — |  | (0.5) | %
Other |  | (0.7) | % | 1.9 | %
Effective tax rate |  | 24.5 | % | 25.6 | %
i. Deferred income tax The following table summarizes the components of deferred income tax:
|  | December 31, |  | December 31,
|  | 2020 |  | 2019
Deferred tax assets |  |  |  |  |  |
Accrued expenses and other |  | $ | 51.1 |  | $ | 29.0
Property, plant and equipment |  |  | 5.2 |  |  | —
Reclamation and remediation obligations |  |  | 123.3 |  |  | 109.6
Inventory capitalization |  |  | 20.8 |  |  | 16.8
Non-capital loss |  |  | 54.4 |  |  | 34.7
|  |  | 254.8 |  |  | 190.1
Deferred tax liabilities |  |  |  |  |  |
Accrued expenses and other |  |  | 2.4 |  |  | 2.7
Reclamation and remediation obligations |  |  | — |  |  | 2.8
Property, plant and equipment |  |  | 677.5 |  |  | 423.4
Inventory capitalization |  |  | 60.0 |  |  | 30.5
Deferred tax liabilities - net |  | $ | 485.1 |  | $ | 269.3
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, |  | December 31,
|  | 2020 |  | 2019
Balance at the beginning of the period |  | $ | 269.3 |  | $ | 220.2
Recognized in the statement of operations |  |  | 217.9 |  |  | 41.1
Recognized in OCI |  |  | (2.1) |  |  | 8.0
Balance at the end of the period |  | $ | 485.1 |  | $ | 269.3
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, 2020 is $8.9 billion (December 31, 2019 - $7.3 billion). Deferred tax assets have not been recognized in respect of the following items:
|  | December 31, |  | December 31,
|  | 2020 |  | 2019
Deductible temporary differences |  | $ | 535.2 |  | $ | 656.5
Tax losses |  | $ | 394.1 |  | $ | 441.3
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 |  | $ | 1,011.9 |  | 2027 - 2040
United States(a) |  | Net operating losses |  |  | 33.6 |  | 2021 - 2033
Chile |  | Net operating losses |  |  | 243.8 |  | No expiry
Brazil |  | Net operating losses |  |  | 2.1 |  | No expiry
Russia |  | Net operating losses |  |  | 2.5 |  | No expiry
Mauritania |  | Net operating losses |  |  | 88.6 |  | 2021 - 2025
Barbados |  | Net operating losses |  |  | 144.9 |  | 2020 - 2026
Luxembourg |  | Net operating losses |  |  | 75.1 |  | Various
Other |  | Net operating losses |  |  | 57.5 |  | 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.
| (1) |  |

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