XML 95 R57.htm IDEA: XBRL DOCUMENT v3.22.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2021
Disclosure of income tax [Abstract]  
Components of income tax expense
Components of Income Tax Expense
 20212020
Current tax expense (recovery)  
Recognized in profit or loss in current year$134,947 $99,013 
Adjustments recognized in the current year with respect to prior years147 (658)
 135,094 98,355 
Deferred tax expense (recovery)  
Deferred tax recovery recognized in the current year14,194 14,667 
Adjustments recognized in the current year with respect to prior years56 433 
Benefit from previously unrecognized losses, and other temporary differences508 (42,379)
Decrease in deferred tax liabilities due to tax impact of NRV charge to inventory(3,423)4,481 
 11,335 (22,798)
Income tax expense$146,429 $75,557 
Reconciliation of effective income tax rate
Reconciliation of Effective Income Tax Rate
 20212020
Earnings before taxes and non-controlling interest$244,991 $252,012 
Statutory Canadian income tax rate27.00 %27.00 %
Income tax expense based on above rates$66,148 $68,043 
Increase (decrease) due to:
Non-deductible expenditures6,192 9,915 
Foreign tax rate differences15,969 16,179 
Change in net deferred tax assets not recognized20,574 (64,765)
Non-taxable portion of net earnings of affiliates(1,304)— 
Effect of other taxes paid (mining and withholding)25,846 22,545 
Effect of foreign exchange on tax expense14,337 18,598 
Non-taxable impact of foreign exchange(1,203)(3,000)
Change in non-deductible portion of reclamation liabilities2,380 8,605 
Other(2,510)(563)
Income tax expense$146,429 $75,557 
Analysis of deferred tax assets and liabilities
The following is the analysis of the deferred tax assets (liabilities) presented in the consolidated financial statements: 
 20212020
Net deferred tax liabilities, beginning of year$(117,461)$(140,361)
Recognized in net earnings in the year(11,335)22,798 
Other(36)102 
Net deferred liabilities, end of year(128,832)(117,461)
Deferred tax assets55,953 57,850 
Deferred tax liabilities(184,785)(175,311)
Net deferred tax liabilities$(128,832)$(117,461)
Components of deferred tax assets and liabilities
The deferred tax assets (liabilities) are comprised of the various temporary differences, as detailed below: 
 20212020
Deferred tax assets (liabilities) arising from:  
Closure and decommissioning costs$27,742 $26,482 
Tax losses, resource pools and mining tax credits92,928 140,608 
Deductible Mexican mining taxes4,682 3,286 
Accounts payable and accrued liabilities22,119 17,737 
Trade and other receivables29,163 13,290 
Provision for doubtful debts and inventory adjustments(28,153)(21,354)
Short-term investments(7,941)(15,649)
Mineral properties, plant, and equipment(245,126)(274,483)
Estimated sales provisions(30,466)(14,028)
Other temporary differences and provisions6,220 6,650 
Net deferred tax liabilities$(128,832)$(117,461)
At December 31, 2021, the net deferred tax liability above included the deferred tax asset of $92.9 million, which includes the benefits from tax losses ($26.4 million) and resource pools ($66.5 million). The decrease of $47.7 million in this deferred tax asset is mainly due to the unrealized losses on short-term investments. These unrealized mark-to-market losses in 2021 reduced the offsetting operating losses recognized, whereas in 2020, additional operating losses were recognized to offset the unrealized mark-to-market gains. The losses will begin to expire after the 2024 year end, if unused.

At December 31, 2020, the net deferred tax liability above included the deferred tax asset of $140.6 million, which includes the benefits from tax losses ($43.8 million) and resource pools ($96.8 million). The increase in this deferred tax asset is mainly due to the Timmins and Bell Creek mines - the assets added were related to previously unbenefitted deductible resource pools, partially offset by losses utilized against taxable income earned. The losses will begin to expire after the 2024 year end, if unused.
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:
 20212020
Operating tax loss$366,351 $284,626 
Net capital tax loss35,801 32,378 
Resource pools and other tax credits (1)
49,230 48,773 
Financing fees1,050 2,003 
Mineral properties, plant, and equipment (2)
127,945 107,124 
Closure and decommissioning costs143,080 136,728 
Exploration and other expenses not currently deductible (2)
33,837 68,266 
Intercompany debt17,956 12,160 
Doubtful debt and inventory24,624 41,378 
Payroll and vacation accruals6,168 1,491 
Other temporary differences6,154 3,562 
 $812,196 $738,489 
Schedule of operating loss carryforwards
Included in the above amounts are operating tax losses, which if not utilized will expire as follows:
At December 31, 2021
 CanadaUSPeruMexicoBarbadosArgentinaTotal
2022$— $529 $156 $— $15 $3 $703 
2023— 360 — 207 60 5 632 
2024 – and after330,799 11,399 593 2,092 168 19,965 365,016 
Total tax losses$330,799 $12,288 $749 $2,299 $243 $19,973 366,351 
At December 31, 2020      
 CanadaUSPeruMexicoBarbadosArgentinaTotal
2021$— $317 $26 $— $8 $1 $352 
2022— 529 — — 12 3 544 
2023 – and after269,001 11,746 314 2,406 183 80 283,730 
Total tax losses$269,001 $12,592 $340 $2,406 $203 $84 $284,626