Income taxes

12 Months Ended

Dec. 31, 2024

The following table shows the significant components of income taxes deducted from net earnings.


For the year ended December 31		2024	2023
Current taxes
	Current taxes	(494)	(923)
	Uncertain tax positions	4	8
	Change in estimate relating to prior periods	8	9


Deferred taxes
	Deferred taxes relating to the origination and reversal of temporary differences	(120)	(75)
	Change in estimate relating to prior periods	(7)	1
	Recognition and utilization of loss carryforwards	29	(24)
	Previously unrecognized tax benefits	3	—

	Uncertain tax positions	—	8
Total income taxes		(577)	(996)

The following table reconciles the amount of reported income taxes in the income statements with income taxes calculated at a statutory income tax rate of 26.8% for both 2024 and 2023.


For the year ended December 31	2024		2023
Net earnings	375		2,327
Add back income taxes	577		996
Earnings before income taxes	952		3,323
Applicable statutory tax rate	26.8	%	26.8	%
Income taxes computed at applicable statutory rates	(255)		(891)
Non-taxable portion of gains on investments	18		5
Uncertain tax positions	4		16

Impairment of goodwill	(303)		—
Change in estimate relating to prior periods	1		10
Non-taxable portion of equity losses	(66)		(149)
Previously unrecognized tax benefits	3		—
Other	21		13
Total income taxes	(577)		(996)
Average effective tax rate	60.6	%	30.0	%

The following table shows aggregate current and deferred taxes relating to items recognized outside the income statements.


For the year ended December 31	2024		2023
	Other comprehensive (loss)/income	Deficit	Other comprehensive (loss)/income	Deficit
Current taxes	—	—	(2)	1
Deferred taxes	(128)	(26)	199	(8)
Total income taxes (expense) recovery	(128)	(26)	197	(7)

The following table shows deferred taxes resulting from temporary differences between the carrying amounts of assets and liabilities recognized in the statements of financial position and their corresponding tax basis, as well as tax loss carryforwards.


Net deferred tax liability	Non-capital loss carry-forwards	Post-employment benefit plans	Indefinite-life intangible assets	Property, plant and equipment and finite-life intangible assets	Other	Total
January 1, 2023	60	(602)	(1,767)	(2,745)	185	(4,869)
Income statements	(23)	10	(35)	(36)	(6)	(90)
Business acquisitions/business dispositions	(1)	—	(10)	(4)	(3)	(18)
Other comprehensive income	—	149	—	—	50	199
Deficit	—	—	—	—	(8)	(8)
Reclassified to liabilities held for sale	—	—	7	(1)	—	6
Other	—	—	—	5	2	7
December 31, 2023	36	(443)	(1,805)	(2,781)	220	(4,773)
Income statements	31	25	148	(315)	16	(95)
Business acquisitions	—	(3)	(5)	(84)	(2)	(94)
Other comprehensive (loss) income	—	(213)	—	—	85	(128)
Deficit	—	—	—	—	(26)	(26)

Other	6	—	—	2	—	8
December 31, 2024	73	(634)	(1,662)	(3,178)	293	(5,108)

At December 31, 2024, BCE had $281 million of non-capital loss carryforwards. We:

•recognized a deferred tax asset of $73 million for $277 million of the non-capital loss carryforwards. These non-capital loss carryforwards expire in varying annual amounts from 2036 to 2044.

•did not recognize a deferred tax asset for $4 million of non-capital loss carryforwards. This balance expires in varying annual amounts from 2036 to 2044.

At December 31, 2024, BCE had $55 million of unrecognized capital loss carryforwards, which can be carried forward indefinitely.

At December 31, 2023, BCE had $156 million of non-capital loss carryforwards. We:

•recognized a deferred tax asset of $36 million for $143 million of the non-capital loss carryforwards. These non-capital loss carryforwards expire in varying annual amounts from 2028 to 2043.

•did not recognize a deferred tax asset for $13 million of non-capital loss carryforwards. This balance expires in varying annual amounts from 2031 to 2043.

At December 31, 2023, BCE had $55 million of unrecognized capital loss carryforwards, which can be carried forward indefinitely.