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Income taxes | 12 Months Ended
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Dec. 31, 2021
Major components of tax expense (income) [abstract] |
Income taxes | 21. Income taxes Total income tax expense consists of:
| December 31, 2021 |  | December 31, 2020
Current tax expense | $ | 90,174 |  |  | $ | 88,575 |
Deferred tax expense (recovery) | 49,796 |  |  | (6,214) |
| $ | 139,970 |  |  | $ | 82,361 |
Income tax expense (recovery) attributable to each geographical jurisdiction for the Company is as follows:
| 2021 |  |  | 2020 |
Turkey | $ | 93,144 |  |  | $ | 68,793 |
Canada | 36,622 |  |  | 28,412 |
Greece | 8,307 |  |  | (8,763) |
Romania | 1,897 |  |  | (6,081) |
| $ | 139,970 |  |  | $ | 82,361 |
The key factors affecting income tax expense for the years are as follows:
| 2021 |  | 2020
Earnings from continuing operations before income tax | $ | 151,066 |  |  | $ | 206,328 |
Canadian statutory tax rate | 27% |  | 27%
Tax expense on net earnings at Canadian statutory tax rate | $ | 40,788 |  |  | $ | 55,709 |
Items that cause an increase (decrease) in income tax expense: |  |  |
Foreign income subject to different income tax rates than Canada | (13,618) |  |  | (21,893) |
Reduction in Greek income tax rate | (11,434) |  |  | — |
Increase in Turkish income tax rate | 6,150 |  |  | — |
Turkish investment tax credits | (47,394) |  |  | (21,669) |
Québec mineral tax | 12,089 |  |  | 12,389 |
Non-tax effected operating losses | 9,734 |  |  | 26,040 |
Non-deductible expenses and other items | 33,413 |  |  | 7,400 |
Flow-through share renouncement | 6,397 |  |  | — |
Impairment and write-down of Stratoni assets | 13,359 |  |  | — |
Turkish inflation adjustment exemption benefit | (10,761) |  |  | — |
Foreign exchange related to the weakening of the Turkish Lira | 77,254 |  |  | 18,295 |
Foreign exchange and other translation adjustments | 16,292 |  |  | (1,426) |
Future and current withholding tax on foreign income dividends | 7,655 |  |  | 8,705 |
Other | 46 |  |  | (1,189) |
Income tax expense | $ | 139,970 |  |  | $ | 82,361 |
21. Income taxes (continued) On May 18, 2021, the Greek government enacted new tax law provisions to reduce the corporate income tax rate from 24% to 22%. The Greek corporate tax rate reduction will be effective retroactively from January 1, 2021 and onwards. The opening deferred tax liability and the deferred tax expense for the year ended December 31, 2021 were reduced by $11,434 due to the tax rate reduction. On April 16, 2021, an increase in the corporate income tax rate in Turkey was enacted. The corporate income tax rate was 20% at the beginning of 2021, and upon enactment increased to 25% for 2021, 23% for 2022 and will return to 20% for 2023 onwards. The increase was effective on July 1, 2021 with retroactive application to January 1, 2021. The opening deferred tax liability and the deferred tax expense for the year ended December 31, 2021 were increased by $6,150 due to the tax rate increase. The change in the Company’s net deferred tax position was as follows:
| 2021 |  | 2020
Net deferred income tax liability |  |  |
Balance at January 1, | $ | 414,554 |  |  | $ | 416,291 |
Deferred income tax expense (recovery) in the statement of operations | 49,796 |  |  | (6,214) |
Deferred tax assets from acquisition of QMX Gold Corporation | (14,122) |  |  | — |
Deferred tax expense related to discontinued operations | — |  |  | 5,040 |
Deferred tax impact on disposition of Tocantinzinho | (11,010) |  |  | — |
Deferred tax recovery in the consolidated statement of OCI | (23) |  |  | (563) |
Balance at December 31, | $ | 439,195 |  |  | $ | 414,554 |
The composition of the Company’s net deferred income tax assets and liabilities and deferred tax expense (recovery) is as follows:
Type of temporary difference | Deferred tax assets | Deferred tax liabilities | Expense (Recovery)
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020
Property, plant and equipment | $ | — |  | $ | — |  | $ | 490,868 |  | $ | 470,500 |  | $ | 37,727 |  | $ | (32,891) |
Loss carryforwards | 19,166 |  | 33,587 |  | — |  | — |  | 22,206 |  | 7,325 |
Liabilities | 34,012 |  | 35,794 |  | — |  | 10,070 |  | (5,909) |  | 1,647 |
Future withholding taxes | — |  | — |  | — |  | 6,234 |  | (6,234) |  | 6,234 |
Other items | 6,882 |  | 15,930 |  | 8,387 |  | 13,061 |  | 2,006 |  | 11,471 |
Balance at December 31, | $ | 60,060 |  | $ | 85,311 |  | $ | 499,255 |  | $ | 499,865 |  | $ | 49,796 |  | $ | (6,214) |
Unrecognized deferred tax assets | 2021 |  | 2020
Tax losses | $ | 192,880 |  |  | $ | 181,667 |
Other deductible temporary differences | 85,142 |  |  | 39,394 |
| $ | 278,022 |  |  | $ | 221,061 |
21. Income taxes (continued) Unrecognized tax losses The Company recognizes the benefit of tax losses only to the extent of anticipated future taxable income that can be reduced by the tax losses. Cumulative losses with a deferred tax benefit of $192,880 (2020 – $181,667) have not been recognized. The gross amount of tax losses for which no deferred tax asset was recognized expire as follows:
| 2021 | Expiry date |  | 2020 | Expiry date
Canadian net operating loss carryforwards | $ | 490,774 |  | 2026-2041 |  | $ | 512,102 |  | 2025-2040
Canadian capital losses | 240,081 |  | none |  | 65,836 |  | none
Greek net operating loss carryforwards | 125,401 |  | 2022-2026 |  | 140,196 |  | 2021-2025
Brazilian net operating loss carryforwards | Nil | none |  | 2,421 |  | none
Deductible temporary differences At December 31, 2021 the Company had deductible temporary differences for which deferred tax assets of $85,142 (2020 – $39,394) have not been recognized because it is not probable that future taxable profits will be available against which the Company can utilize the benefits. The vast majority of these temporary benefits have no expiry date. Temporary differences associated with investments in subsidiaries The Company has not recognized deferred tax liabilities in respect of historical unremitted earnings of foreign subsidiaries for which we are able to control the timing of the remittance and are considered reinvested for the foreseeable future. At December 31, 2021, these earnings amount to $1,032,084 (2020 – $927,295). Substantially all of these earnings would be subject to withholding taxes if they were remitted by the foreign subsidiaries. Other factors affecting taxation During 2021 deferred tax expense of $54,587 (2020 - $10,636) was recognized due to the net decrease in the value of future tax deductions as a result of foreign exchange movements. Of this expense, $37,126 was due to movements in the Turkish Lira, which weakened significantly at the end of 2021, and $12,930 was due to the weakening of the Euro through 2021. The Company expects that any future significant foreign exchange movements in the Turkish Lira or Euro in relation to the U.S. dollar could cause significant volatility in the deferred income tax expense or recovery.

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