INCOME TAXES

Income tax expense

A reconciliation of income taxes at Canadian statutory rates with the reported income taxes is as follows:



		2020			2019
Earnings before income taxes	$	392.7		$	399.7
Canadian statutory income tax rates		26.64	%		26.72	%
Income taxes at Canadian statutory rates	$	104.6		$	106.8
Effect of differences in tax rates in other jurisdictions		(19.9	)		(13.4	)
Unrecognized tax benefits and tax benefits not previously recognized		3.4			(33.0	)
Non-taxable revenues		(6.2	)		(5.5	)
Tax impact on after tax profit of equity accounted investees		(6.1	)		(8.0	)
Other		(2.0	)		12.7
Income tax expense	$	73.8		$	59.6

The Company's applicable tax rate corresponds to the combined Canadian tax rates applicable in the provinces where the Company operates. The decrease is due to a change in the tax rates and the allocation of income in the jurisdictions it operates.

Significant components of the provision for the income tax expense are as follows:



		2020			2019
Current income tax expense :
Current year	$	65.1		$	69.9
Prior years' tax adjustments		5.8			12.8
Deferred income tax (recovery) expense:
Tax benefit not previously recognized used to reduce the deferred tax expense		(2.8	)		(36.1	)
Change in income tax rates		(1.0	)		(1.3	)
Origination and reversal of temporary differences		6.7			14.3
Income tax expense	$	73.8		$	59.6

Deferred tax assets and liabilities

During the year ended March 31, 2020, movements in temporary differences are as follows:



				Impact of															Foreign
	Balance			adopting														currency
	beginning			IFRS 16		Recognized				Recognized				Business				exchange					Balance
	of year			(Note 2)		in income					in OCI			combinations				differences				end of year
Non-capital loss carryforwards	$	35.2		$	—		$	(1.2	)		$	—			$	—			$	(0.6	)		$	33.4
Unclaimed research & development
expenditures	45.1			—			19.3				—				—				—				64.4
Capital loss carryforwards	0.7			—			0.7				—				—				—				1.4
Investment tax credits	(74.1		)	—			4.1				—				—				—				(70.0		)
Property, plant and equipment
and right-of-use of assets	(73.2		)	5.8			(11.2		)		—				(3.1		)		(6.7		)		(88.4		)
Intangible assets	(87.4		)	—			(1.9		)		—				(2.9		)		(0.8		)		(93.0		)
Deferred revenues, contract assets
and contract liabilities	2.0			—			(18.9		)		—				—				1.0				(15.9		)
Foreign currency exchange difference	(13.9		)	—			(2.1		)		13.3				—				0.4				(2.3		)
Derivative financial assets and liabilities	0.2			—			15.6				9.7				—				—				25.5
Defined benefit obligation	55.4			—			0.1				(3.6		)		—				1.2				53.1
Other	34.0			—			(7.4		)		—				(0.6		)		(0.3		)		25.7
Net deferred income tax (liabilities) assets	$	(76.0	)	$	5.8		$	(2.9	)		$	19.4			$	(6.6	)		$	(5.8	)		$	(66.1	)

During the year ended March 31, 2019, movements in temporary differences are as follows:




																	Foreign
	Balance															currency
	beginning			Recognized				Recognized				Business				exchange					Balance
	of year			in income					in OCI			combinations				differences				end of year
Non-capital loss carryforwards	$	45.7			$	(9.6	)		$	—			$	0.8			$	(1.7	)		$	35.2
Unclaimed research & development expenditures	37.4				7.7				—				—				—				45.1
Capital loss carryforwards	—				0.7				—				—				—				0.7
Investment tax credits	(64.6		)		(9.5		)		—				—				—				(74.1		)
Property, plant and equipment
and right-of-use of assets	(104.6		)		16.4				—				18.3				(3.3		)		(73.2		)
Intangible assets	(87.8		)		5.7				—				(6.2		)		0.9				(87.4		)
Deferred revenues, contract assets
and contract liabilities	(8.6		)		(2.8		)		—				14.3				(0.9		)		2.0
Foreign currency exchange difference	(13.9		)		(1.3		)		1.0				—				0.3				(13.9		)
Derivative financial assets and liabilities	(0.3		)		(0.7		)		1.2				—				—				0.2
Defined benefit obligation	51.6				0.7				(1.1		)		0.7				3.5				55.4
Other	21.6				15.8				—				(0.7		)		(2.7		)		34.0
Net deferred income tax (liabilities) assets	$	(123.5	)		$	23.1			$	1.1			$	27.2			$	(3.9	)		$	(76.0	)

As at March 31, 2020, a deferred income tax liability on taxable temporary differences of $2,544.3 million (2019 – $2,294.4 million) related to investments in subsidiaries and interests in joint ventures has not been recognized, because the Company controls whether the liability will be incurred and it is satisfied that it will not be incurred in the foreseeable future.

The non-capital losses incurred in various jurisdictions expire as follows:



Expiry date	Unrecognized		Recognized
2021 - 2025	$	18.2	$	1.2
2026 - 2039		116.0		50.5
No expiry date		41.0		84.5
	$	175.2	$	136.2

As at March 31, 2020, the Company has $149.9 million (2019 – $125.4 million) of deductible temporary differences for which deferred tax assets have not been recognized. These amounts will reverse during a period of up to 25 years.