Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Components of Income Tax Expense



	2018			2017
Current tax expense (recovery)
Recognized in profit or loss in current year	$	59,056		$	66,345
Adjustments recognized in the current year with respect to prior years	(5,155		)	(3,468		)
	53,901			62,877
Deferred tax expense (recovery)
Deferred tax recovery recognized in the current year	(13,256		)	(898		)
Adjustments recognized in the current year with respect to prior years	(1,098		)	(1,539		)
Increase in deferred tax liabilities due to tax impact of reversals of mineral properties, plant, and equipment impairments (Note 11, 12)	—			17,770
Recognition of previously unrecognized deferred tax assets	(6,140		)	(10,275		)
Benefit from previously unrecognized losses, and other temporary differences	(3,600		)	(6,487		)
Decrease in deferred tax liabilities due to tax impact of NRV charge to inventory	(8,660		)	(2,414		)
	(32,754		)	(3,843		)
Income tax expense	$	21,147		$	59,034

Reconciliation of effective income tax rate

Reconciliation of Effective Income Tax Rate



	2018			2017
Earnings before taxes and non-controlling interest	$	33,188		$	182,485
Statutory Canadian income tax rate	27.00		%	26.00		%
Income tax expense based on above rates	$	8,961		$	47,446
Increase (decrease) due to:
Non-deductible expenditures	3,929			4,618
Foreign tax rate differences	(2,160		)	3,644
Change in net deferred tax assets not recognized:
- Argentina exploration expenditures	3,372			2,051
- Other deferred tax assets	1,168			(10,752		)
Non-taxable portion of net earnings of affiliates	(3,254		)	(4,055		)
Tax on sale of royalty	—			1,400
Effect of other taxes paid (mining and withholding)	14,371			20,065
Effect of foreign exchange on tax expense	1,611			(3,928		)
Non-taxable impact of foreign exchange	(351		)	2,937
Change in current tax expense estimated for prior years	(5,030		)	(3,503		)
Other	(1,470		)	(889		)
Income tax expense	$	21,147		$	59,034
Effective income tax rate	63.72		%	32.35		%

Analysis of deferred tax assets and liabilities

The following is the analysis of the deferred tax assets (liabilities) presented in the consolidated financial statements:



	2018			2017
Net deferred tax liability, beginning of year	$	(168,549	)	$	(169,136	)
Recognized in net earnings in the year	32,754			3,843
Reduction due to Mexican de-consolidation payments applied to current tax	(697		)	(3,231		)
Other	(83		)	(25		)
Net deferred liability, end of year	$	(136,575	)	$	(168,549	)
Deferred tax assets	12,244			2,679
Deferred tax liabilities	(148,819		)	(171,228		)
Net deferred tax liability	$	(136,575	)	$	(168,549	)

Components of deferred tax assets and liabilities

The deferred tax assets (liabilities) are comprised of the various temporary differences as detailed below:



	2018			2017
Deferred tax assets (liabilities) arising from:
Closure and decommissioning costs	$	9,105		$	7,019
Tax losses and mining tax credits	29,195			24,014
Deductible Mexican mining taxes	2,974			2,792
Tax credit resulting from Mexican de-consolidation	698			1,385
Accounts payable and accrued liabilities	6,726			3,047
Trade and other receivables	15,756			21,527
Provision for doubtful debts and inventory adjustments	(11,752		)	(14,517		)
Mineral properties, plant, and equipment	(169,703		)	(186,641		)
Estimated sales provisions	(19,746		)	(28,726		)
Other temporary differences and provisions	172			1,551
Net deferred tax liability	$	(136,575	)	$	(168,549	)

Deductible temporary differences, unused tax losses and unused tax credits for which no deferred tax assets have been recognised

Deductible temporary differences, unused tax losses and unused tax credits for which no deferred tax assets have been recognized are attributable to the following:



	2018		2017
Tax loss (revenue in nature)	$	131,179	$	165,180
Net tax loss (capital in nature)	14,456		15,423
Resource pools and other tax credits	18,266		18,609
Financing fees	785		1,464
Mineral properties, plant, and equipment	22,669		20,441
Closure and decommissioning costs	33,835		42,484
Exploration and other expenses not currently deductible	51,175		54,672
Intercompany debt	10,160		8,061
Doubtful debt and inventory	24,840		16,602
Deductible Mexican mining taxes	—		77
Payroll and vacation accruals	827		2,015
Other temporary differences	8,217		2,601
	$	316,409	$	347,629

Schedule of operating loss carryforwards

Included in the above amounts are operating losses, which if not utilized will expire as follows:



At December 31, 2018
	Canada		US		Peru		Mexico		Barbados		Argentina		Total
2019	—		85		—		—		4		45		134
2020	—		80		—		—		7		61		148
2021 – and after	114,466		13,469		250		2,456		105		151		130,897
Total tax losses	$	114,466	$	13,634	$	250	$	2,456	$	116	$	257	131,179



At December 31, 2017
	Canada		US		Peru		Mexico		Barbados		Argentina		Total
2018	—		120		—		—		6		50		176
2019	—		86		—		—		4		90		180
2020 – and after	122,853		13,289		—		20,925		93		7,664		164,824
Total tax losses	$	122,853	$	13,495	$	—	$	20,925	$	103	$	7,804	$	165,180