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Income taxes | 12 Months Ended
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Dec. 31, 2023
Major components of tax expense (income) [abstract] |
Income taxes | 19. Income taxes Total income tax expense consists of:
| 2023 |  |  | 2022 |
Current tax expense | $ | 85,804 |  |  | $ | 69,701 |
Deferred tax recovery | (28,229) |  |  | (8,477) |
| $ | 57,575 |  |  | $ | 61,224 |
Income tax expense attributable to each geographical jurisdiction for the Company is as follows:
| 2023 |  |  | 2022 |
Turkiye | $ | 42,471 |  |  | $ | 30,366 |
Canada | 30,491 |  |  | 16,934 |
Greece | (15,387) |  |  | 13,924 |
| $ | 57,575 |  |  | $ | 61,224 |
The key factors affecting income tax expense for the years are as follows:
| 2023 |  | 2022
Earnings from continuing operations before income tax | $ | 163,365 |  |  | $ | 11,856 |
Canadian statutory tax rate | 27% |  | 27%
Tax expense on net earnings at Canadian statutory tax rate | $ | 44,109 |  |  | $ | 3,201 |
Items that cause an increase (decrease) in income tax expense: |  |  |
Foreign income subject to different income tax rates than Canada | 1,143 |  |  | 1,032 |
Turkish fixed asset revaluation | (4,528) |  |  | — |
Increase (decrease) in Turkish income tax rate | 22,589 |  |  | (4,755) |
Turkish investment tax credits | (17,473) |  |  | (9,958) |
Québec mineral tax | 22,518 |  |  | 12,539 |
Non-tax effected temporary differences and operating losses | (4,383) |  |  | 1,910 |
Non-deductible expenses and non-taxable income | (96) |  |  | 9,194 |
Flow-through share renouncement | 3,500 |  |  | 4,388 |
Turkish earthquake relief tax | 4,348 |  |  | — |
Turkish inflation benefit | (59,361) |  |  | (18,048) |
Foreign exchange related to the weakening of the Turkish Lira | 51,205 |  |  | 26,619 |
Foreign exchange and other translation adjustments | (9,608) |  |  | 14,079 |
Future and current withholding tax on foreign income dividends | 6,723 |  |  | 19,993 |
Other | (3,111) |  |  | 1,030 |
Income tax expense | $ | 57,575 |  |  | $ | 61,224 |
19. Income taxes (continued) On July 15, 2023, Turkiye enacted an income tax rate increase from 20% to 25% for general income, from 19% to 24% for certain manufacturing activities (including mining), and from 19% to 20% for export income. The rate increases were applicable retroactively to January 1, 2023. The rate change resulted in $8,200 current tax expense and $22,589 deferred tax expense recognized in Q3 2023. On December 31, 2023, Turkiye announced application of hyperinflation accounting for the year ended December 31, 2023. This resulted in a $59,361 reduction to the ending deferred tax liability and a corresponding deferred tax recovery for Q4 2023. On January 22, 2022 a decrease in the corporate income tax rate in Turkiye was enacted for certain qualifying corporations on specified income. The corporate income tax rate reduced from 23% to 22% in 2022 and will reduce from 20% to 19% in 2023 onwards. The reduction is effective retroactively from January 1, 2022 and onwards. The opening deferred tax liability and the deferred tax expense for the year ended December 31, 2022 were reduced by $4,755 for the year ended December 31, 2022 due to the tax rate reduction. The change in the Company’s net deferred tax position was as follows:
| 2023 |  | 2022
Net deferred income tax liability |  |  |
Balance at January 1, | $ | 410,219 |  |  | $ | 439,195 |
Deferred income tax recovery in the statements of operations | (28,229) |  |  | (8,477) |
Deferred tax recovery related to discontinued operations | — |  |  | (20,039) |
Deferred tax expense (recovery) in the consolidated statements of other comprehensive income | 2,371 |  |  | (460) |
Balance at December 31, | $ | 384,361 |  |  | $ | 410,219 |
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)
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022
Property, plant and equipment | $ | — |  | $ | — |  | $ | 419,824 |  | $ | 446,695 |  | $ | (26,871) |  | $ | (44,173) |
Loss carryforwards | 14,748 |  | 17,532 |  | — |  | — |  | 2,784 |  | 1,634 |
Liabilities | 45,618 |  | 27,960 |  | — |  | — |  | (17,658) |  | 6,052 |
Future withholding taxes | — |  | — |  | 5,355 |  | 5,555 |  | (200) |  | 5,555 |
Other items | — |  | — |  | 19,548 |  | 3,461 |  | 13,716 |  | 2,416 |
| $ | 60,366 |  | $ | 45,492 |  | $ | 444,727 |  | $ | 455,711 |  | $ | (28,229) |  | $ | (28,516) |
Less: discontinued operations | — |  | — |  | — |  | — |  | — |  | 20,039 |
Balance at December 31, | $ | 60,366 |  | $ | 45,492 |  | $ | 444,727 |  | $ | 455,711 |  | $ | (28,229) |  | $ | (8,477) |
Unrecognized deferred tax assets | 2023 |  | 2022
Tax losses | $ | 218,615 |  |  | $ | 191,448 |
Other deductible temporary differences | 86,864 |  |  | 99,835 |
| $ | 305,479 |  |  | $ | 291,283 |
19. 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 $218,615 (2022 – $191,448) have not been recognized. The gross amount of tax losses for which no deferred tax asset was recognized expire as follows:
| 2023 | Expiry date |  | 2022 | Expiry date
Canadian net operating loss carryforwards | $ | 464,761 |  | 2030-2043 |  | $ | 448,935 |  | 2029-2042
Canadian capital losses | 258,795 |  | none |  | 229,146 |  | none
Greek net operating loss carryforwards | 182,444 |  | 2024-2028 |  | 177,188 |  | 2023-2027
Romanian net operating loss carryforwards | 6,811 |  | 2024-2030 |  | 1,837 |  | 2023-2029
Deductible temporary differences At December 31, 2023, the Company had deductible temporary differences for which deferred tax assets of $86,864 (2022 – $99,835) 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, 2023, these earnings amount to $958,595 (2022 – $895,198). Substantially all of these earnings would be subject to withholding taxes if they were remitted by the foreign subsidiaries. Other factors affecting taxation During 2023, deferred tax expense of $29,250 (2022 – $35,863) was recognized due to the net decrease in the value of future tax deductions as a result of foreign exchange moveme nts. Of this expense, $38,421 was due to the weakening of the Turkish lira against the U.S. dollar. This expense was partially offset by a $9,160 recovery due to the strengthening of the Euro against the U.S. dollar. 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. Global minimum top-up tax Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions in which the Company operates. The legislation will be effective for the Company’s financial year beginning January 1, 2024. The Company has performed an assessment of the Company’s potential exposure to Pillar Two income taxes. This assessment is based on the most recent information available regarding the financial performance of the constituent entities in the group. Based on the assessment performed, the transitional CbCR safe harbour rules apply in all jurisdictions in which the Company operates and management is not currently aware of any circumstances under which this might change. Therefore, based on the most recent information available, the Company does not expect a potential material exposure to Pillar Two top-up taxes. The Company has applied a temporary mandatory relief from deferred tax accounting for the impacts of the top-up tax and would account for it as a current tax in the unlikely event that this would be incurred.

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