Income tax expense and deferred taxes (Tables)

12 Months Ended

Dec. 31, 2017

Total income tax expense (recovery) consists of:


	December 31, 2017		December 31, 2016
	$		$
Current tax expense		39,232		47,166
Deferred tax expense (recovery)		(19,849)		9,039
		19,383		56,205

Total income tax expense (recovery) attributable to geographical jurisdiction is as follows:

Factors affecting income tax expense (recovery) for the year:


	2017		2016
	$		$
Profit from continuing operations before income tax		792		48,698
Canadian statutory tax rate		26%		26%
Tax expense on net income at Canadian statutory tax rate		206		12,662

Items that cause an increase (decrease) in income tax expense:
Foreign income subject to different income tax rates than Canada		(11,792)		(15,695)
Non-tax effected operating losses		9,691		19,198
Non-deductible expenses and other items		10,002		10,525
Foreign exchange and other translation adjustments		6,289		16,048
Amounts under (over) provided in prior years		(84)		453
Investment tax credits		(226)		(269)
Withholding tax on foreign income		5,297		13,283
Income tax expense		19,383		56,205

The change for the year in the Company’s net deferred tax position was as follows:


	2017		2016
Net deferred tax asset (liability)	$		$
Balance at January 1,		(443,501)		(607,871)
Deferred income tax (expense) recovery related to discontinued operations		-		174,837
Deferred income tax liability related to Integra acquisition		(126,903)		-
Deferred income tax (expense) recovery in the income statement		19,849		(9,039)
Deferred tax recovery (expense) in other comprehensive income		1,428		(1,428)
Net balance at December 31,		(549,127)		(443,501)

The composition of the Company’s net deferred income tax asset and liability and deferred tax expense is as follows:


									Expense (recovery)
Type of temporary difference	Deferred tax assets				Deferred tax liabilities				on the income statement
	2017		2016		2017		2016		2017			2016
	$		$		$		$		$			$
Property, plant and equipment		-		-		592,062		482,530		(33,466	)		11,200
Loss carryforwards		31,457		15,436		-		-		(4,641	)		(1,603	)
Liabilities		24,690		20,864		-		-		(80	)		(3,496	)
Investment tax credits		-		-		-		-		-			5,665
Other items		1,997		13,995		15,208		11,266		18,338			(2,727	)
Balance at December 31,		58,144		50,295		607,270		493,796		(19,849	)		9,039


Unrecognized deferred tax assets	2017		2016
	$		$
Tax losses		167,030		164,100
Other deductible temporary differences		11,253		9,968
Total unrecognized deferred tax assets		178,283		174,068

The gross amount of the tax losses for which a tax benefit has not been recorded expire as follows:


Expiry date	Canada		Brazil		Greece		Total
	$		$		$		$
2018		-		-		10,880		10,880
2019		-		-		28,934		28,934
2020		-		-		26,420		26,420
2021		-		-		16,058		16,058
2022		-		-		10,638		10,638
2025		7,858		-		-		7,858
2026		14,839		-		-		14,839
2027		10,703		-		-		10,703
2028		25,959		-		-		25,959
2029		23,444		-		-		23,444
2030		7,285		-		-		7,285
2031		45,351		-		-		45,351
2032		74,871		-		-		74,871
2033		64,883		-		-		64,883
2034		58,689		-		-		58,689
2035		55,266		-		-		55,266
2036		50,503		-		-		50,503
2037		43,180		-		-		43,180
No Expiry		-		33,378		-		33,378
		482,831		33,378		92,930		609,139

Capital losses with no expiry		65,812		-		-		65,812

Tax effect of total losses not recognized		134,289		5,791		26,950		167,030