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Note 22 - Income Tax
 12 Months Ended
Dec. 31, 2020
Notes to Financial Statements  
Income Tax Disclosure [Text Block]
22.
Income tax
 
The following is a reconciliation stated as a percentage of pre-tax income of the combined statutory corporate income tax rate of Ontario, Canada to the Company's effective tax rate:
 
    Year ended December 31,
      2020       2019  
                 
Combined statutory rate    
26.5
 %    
26.5
 %
Nondeductible expenses    
1.5
      
3.0
  
Tax effect of flow through entities    
(4.6
 )    
(2.0
 )
Impact of changes in foreign exchange rates    
0.3
      
(0.1
 )
Adjustments to tax liabilities for prior periods    
(0.2
 )    
(0.1
 )
Effect of changes in enacted tax rate in other jurisdictions    
0.3
      
0.3
  
Changes in liability for unrecognized tax benefits    
0.6
      
-
  
Stock-based compensation    
1.5
      
0.3
  
Foreign, state, and provincial tax rate differential    
(2.3
 )    
(1.5
 )
Change in valuation allowance    
3.8
      
(0.4
 )
Acquisition related costs and contingent consideration    
1.6
      
1.4
  
Withholding taxes and other    
1.8
      
0.4
  
Effective income tax rate    
30.8
 %    
27.8
 %
 
Earnings before income tax by jurisdiction comprise the following:
 
    Year ended December 31,
      2020       2019  
                 
Canada   $
8,257
     $
10,876
  
United States    
53,111
      
49,884
  
Foreign    
75,167
      
129,838
  
Total   $
136,535
     $
190,598
  
 
Income tax expense (recovery) comprises the following:
 
    Year ended December 31,
      2020       2019  
                 
Current                
Canada   $
3,309
     $
2,939
  
United States    
19,577
      
15,029
  
Foreign    
32,344
      
41,745
  
     
55,230
      
59,713
  
                 
Deferred                
Canada    
2,154
      
238
  
United States    
(9,765
 )    
(520
 )
Foreign    
(5,573
 )    
(6,418
 )
     
(13,184
 )    
(6,700
 )
                 
Total   $
42,046
     $
53,013
  
 
The significant components of deferred tax assets and liabilities are as follows:
 
    As at December 31,
      2020       2019  
                 
Loss carry-forwards and other credits   $
18,314
     $
18,969
  
Expenses not currently deductible    
33,442
      
28,446
  
Revenue not currently taxable    
(14,076
 )    
(6,212
 )
Stock-based compensation    
526
      
386
  
Investments    
10,696
      
7,870
  
Provision for doubtful accounts    
8,308
      
4,585
  
Financing fees    
(325
 )    
(330
 )
Net unrealized foreign exchange losses    
560
      
68
  
Depreciation and amortization    
(57,746
 )    
(44,577
 )
Operating leases    
8,110
      
7,998
  
Less: valuation allowance    
(13,324
 )    
(7,801
 )
Net deferred tax (liabilities) assets   $
(5,515
 )   $
9,402
  
 
As at
December 31, 2020,
the Company believes that it is more likely than
not
that its deferred tax assets of
$45,008
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
      2020       2019       2020       2019       2020       2019  
                                                 
Canada   $
5,632
     $
16,525
     $
65
     $
24
     $
5,567
     $
16,501
  
United States    
3,059
      
3,144
      
924
      
922
      
2,135
      
2,222
  
Foreign    
53,997
      
40,006
      
32,091
      
21,476
      
21,906
      
18,530
  
 
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
      2020       2019       2020       2019       2020       2019  
                                                 
Canada   $
1,922
     $
1,864
     $
1,922
     $
1,758
     $
-
     $
106
  
United States    
1,698
      
1,698
      
1,698
      
1,698
      
-
      
-
  
Foreign    
6,876
      
6,271
      
6,876
      
6,271
      
-
      
-
  
 
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
2035.
NOL carry-forward balances attributable to the United States begin to expire in
2028.
Foreign NOL carry-forward balances begin to expire in
2021.
The utilization of NOLs
may
be subject to certain limitations under federal, provincial, state or foreign tax laws.
 
Cumulative unremitted foreign earnings of US subsidiaries is
nil
(
2019
-
nil
). Cumulative unremitted foreign earnings of international subsidiaries (other than the US) approximated
$117,897
as at
December 31, 2020 (
2019
-
$107,323
). 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:
 
      2020       2019  
                 
Balance, January 1   $
1,468
     $
1,460
  
Gross increases for tax positions of prior periods    
908
      
71
  
Reduction for lapses in applicable statutes of limitations    
(87
 )    
(129
 )
Foreign currency translation    
55
      
66
  
                 
Balance, December 31   $
2,344
     $
1,468
  
 
Of the
$2,344
(
2019
-
$1,468
) in gross unrecognized tax benefits,
$2,344
(
2019
-
$1,468
) would affect the Company's effective tax rate if recognized. For the year-ended
December 31, 2020,
additional interest and penalties of
$224
related to uncertain tax positions was accrued (
2019
-
$72;
2018
-
$6
). The Company reversed
$44
of accrued interest and penalties related to positions lapsed in applicable statute of limitations in
2020
(
2019
-
$80;
2018
-
$173
). As at
December 31, 2020,
the Company had accrued
$362
(
2019
-
$182
) for potential income tax related interest and penalties.
 
Within the next
twelve
months, the Company believes it is reasonably possible that
$262
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 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 for significant other jurisdictions in which the Company conducts business 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.