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Note 18 - Income Tax
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
18.
Income tax
 
The following is a reconciliation stated as a percentage of pre-tax income of the Ontario, Canada combined statutory corporate income tax rate to the Company’s effective tax rate:
 
    2019     2018  
             
Combined statutory rate    
26.5
 %    
26.5
 %
Nondeductible expenses    
3.0
      
2.5
  
Tax effect of flow through entities    
(2.0
 )    
(1.4
 )
Impact of changes in foreign exchange rates    
(0.1
 )    
0.2
  
Adjustments to tax liabilities for prior periods    
(0.1
 )    
0.2
  
Effect of changes in enacted tax rate in other jurisdictions    
0.3
      
(0.7
 )
Changes in liability for unrecognized tax benefits    
-
      
(0.3
 )
Stock-based compensation    
0.3
      
0.9
  
Foreign, state, and provincial tax rate differential    
(1.5
 )    
(0.2
 )
Change in valuation allowance    
(0.4
 )    
(0.1
 )
Contingent acquisition consideration    
1.4
      
1.2
  
Other    
0.4
      
0.5
  
Effective income tax rate    
27.8
 %    
29.3
 %
 
Earnings before income tax by jurisdiction comprise the following:
 
    2019     2018  
             
Canada   $
10,876
     $
21,627
  
United States    
49,884
      
40,097
  
Foreign    
129,838
      
120,110
  
Total   $
190,598
     $
181,834
  
 
Income tax expense (recovery) comprises the following:
 
    2019     2018  
             
Current                
Canada   $
2,939
     $
5,134
  
United States    
15,029
      
1,768
  
Foreign    
41,745
      
40,221
  
     
59,713
      
47,123
  
                 
Deferred                
Canada    
238
      
1,689
  
United States    
(520
 )    
10,732
  
Foreign    
(6,418
 )    
(6,284
 )
     
(6,700
 )    
6,137
  
                 
Total   $
53,013
     $
53,260
  
 
The significant components of deferred income tax are as follows:
 
    2019     2018  
             
Loss carry-forwards and other credits   $
18,969
     $
19,056
  
Expenses not currently deductible    
28,446
      
31,508
  
Revenue not currently taxable    
(6,212
 )    
(8,416
 )
Stock-based compensation    
386
      
157
  
Investments    
7,870
      
10,628
  
Provision for doubtful accounts    
4,585
      
4,871
  
Financing fees    
(330
 )    
(83
 )
Net unrealized foreign exchange losses    
68
      
126
  
Depreciation and amortization    
(44,577
 )    
(42,257
 )
Operating leases    
7,998
      
-
  
Less: valuation allowance    
(7,801
 )    
(8,945
 )
Net deferred income tax asset   $
9,402
     $
6,645
  
 
As at
December 31, 2019,
the Company believes that it is more likely than
not
that the net deferred tax assets of
$9,402
will be realized based upon future income, consideration of net operating loss (“NOL”) limitations, earnings trends, and tax planning strategies. The amount of deferred tax assets considered realizable, however, could be reduced in the near term if estimates of future income are reduced.
 
The Company has pre-tax NOL carry-forward balances as follows:
 
    Pre-tax loss carry forward     Pre-tax losses not recognized     Pre-tax losses recognized  
    2019     2018     2019     2018     2019     2018  
                                     
Canada   $
16,525
     $
16,249
     $
24
     $
27
     $
16,501
     $
16,222
  
United States    
3,144
      
1,315
      
922
      
921
      
2,222
      
394
  
Foreign    
40,006
      
39,147
      
21,476
      
27,363
      
18,530
      
11,784
  
 
The Company has pre-tax capital loss carry-forwards as follows:
 
    Pre-tax loss carry forward     Pre-tax losses not recognized     Pre-tax losses recognized  
    2019     2018     2019     2018     2019     2018  
                                     
Canada   $
1,864
     $
2,208
     $
1,758
     $
1,869
     $
106
     $
339
  
United States    
1,698
      
1,698
      
1,698
      
1,698
      
-
      
-
  
Foreign    
6,271
      
6,285
      
6,271
      
6,285
      
-
      
-
  
 
These amounts above are available to reduce future, federal, state, and provincial income taxes in their respective jurisdictions. NOL carry-forward balances attributable to Canada begin to expire in
2033.
NOL carry-forward balances attributable to the United States begin to expire in
2028.
Foreign NOL carry-forward balances begin to expire in
2020.
The utilization of NOLs
may
be subject to certain limitations under federal, provincial, state or foreign tax laws.
 
Cumulative unremitted foreign earnings of the US subsidiaries is
nil
(
2018
-
nil
). Cumulative unremitted foreign earnings of international subsidiaries of the Company approximated
$107,323
as at
December 31, 2019 (
2018
-
$89,461
). The Company has
not
provided a deferred tax liability on the unremitted foreign earnings as it is management’s intent to permanently reinvest such earnings outside of Canada. In addition, any repatriation of such earnings would
not
be subject to significant Canadian or foreign taxes.
 
A reconciliation of the beginning and ending amounts of the liability for unrecognized tax benefits is as follows:
 
    2019     2018  
             
Balance, January 1   $
1,460
     $
1,858
  
Gross increases for tax positions of prior periods    
71
      
6
  
Amount recognized on acquisitions    
-
      
289
  
Reduction for lapses in applicable statutes of limitations    
(129
 )    
(560
 )
Foreign currency translation    
66
      
(133
 )
                 
Balance, December 31   $
1,468
     $
1,460
  
 
Of the
$1,468
(
2018
-
$1,460
) in gross unrecognized tax benefits,
$1,468
(
2018
-
$1,460
) would affect the Company’s effective tax rate if recognized. For the year-ended
December 31, 2019,
additional interest and penalties of
$72
related to uncertain tax positions was accrued (
2018
-
$6;
2017
-
$18
). The Company reversed
$80
of accrued interest and penalties related to positions lapsed in applicable statute of limitations in
2019
(
2018
-
$173;
2017
-
$155
). As at
December 31, 2019,
the Company had accrued
$182
(
2018
-
$190
) for potential income tax related interest and penalties.
 
Within the next
twelve
months, the Company believes it is reasonably possible that
$86
of unrecognized tax benefits associated with uncertain tax positions
may
be reduced due to lapses in statutes of limitations.
 
The Company files tax returns in Canada, United States and multiple foreign jurisdictions. The number of years with open tax audits varies depending on the tax jurisdiction. Generally, income tax returns filed with the Canada Revenue Agency and related provinces are open for
four
to
seven
years and income tax returns filed with the United States Internal Revenue Service and related states are open for
three
to
five
years. Tax returns in the significant foreign jurisdictions that the company conducts business in are generally open for
four
years. 
 
The Company does
not
currently expect any other material impact on earnings to result from the resolution of matters related to open taxation years, other than noted above. Actual settlements
may
differ from the amounts accrued. The Company has, as part of its analysis, made its current estimates based on facts and circumstances known to date and cannot predict changes in facts and circumstances that
may
affect its current estimates.