INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

The sources of deferred income tax balances are as follows:


	As of December 31,
US$ MILLIONS	2023		2022
Deferred income tax assets
Financial instruments and other	$	18	$	41
Tax losses carried forward	38		37
	$	56	$	78
Deferred income tax liabilities


Long-lived assets	$	(2,151)	$	(1,573)
Net deferred income tax liabilities	$	(2,095)	$	(1,495)
Reflected in the statement of financial position as follows:
Deferred tax assets	$	40	$	43
Deferred tax liabilities	(2,135)		(1,538)
Net deferred tax liabilities	$	(2,095)	$	(1,495)

The sources of deferred income tax balances and movements are as follows:


			Recognized in
US$ MILLIONS	Jan. 1, 2023		Net Income		Other Comprehensive Income		Other(1)		Acquisitions/Dispositions		Dec. 31, 2023
Deferred tax assets related to non-capital losses and capital losses	$	37	$	(2)	$	—	$	2	$	1	$	38
Deferred tax liabilities related to differences in tax and book basis, net	(1,532)		(18)		(34)		(104)		(445)		(2,133)
Net deferred tax liabilities	$	(1,495)	$	(20)	$	(34)	$	(102)	$	(444)	$	(2,095)


			Recognized in
US$ MILLIONS	Jan. 1, 2022		Net Income		Other Comprehensive Income		Other(1)		Acquisitions/Dispositions		Dec. 31, 2022
Deferred tax assets related to non-capital losses and capital losses	$	43	$	(1)	$	—	$	(5)	$	—	$	37
Deferred tax liabilities related to differences in tax and book basis, net	(1,629)		80		(14)		31		—		(1,532)
Net deferred tax liabilities	$	(1,586)	$	79	$	(14)	$	26	$	—	$	(1,495)

(1)Other items relate to foreign exchange as deferred income taxes are calculated based on the functional currency of each operating entity.


	For the year ended December 31,
US$ MILLIONS	2023		2022		2021
Deferred tax arising on income and expenses recognized in other comprehensive income
Revaluation of property, plant and equipment	$	36	$	25	$	121
Cash flow hedges	6		(19)		—
Other	(8)		8		—
Total income tax recognized directly in other comprehensive income	$	34	$	14	$	121

The major components of income tax expense include the following:


	For the year ended December 31,
US$ MILLIONS	2023		2022		2021
Tax expense comprises:
Current income tax expense	$	348	$	341	$	234
Deferred income tax expense
Origination and reversal of temporary differences	22		16		59
Change in tax rates or the imposition of new taxes	4		—		96
Deferred tax assets (recognized)/not recognized	(6)		(95)		16
Total income tax expense	$	368	$	262	$	405
Income tax on income before tax and non-controlling interests reconciles to tax expense as follows:
Net income before income tax and non-controlling interests	$	974	$	1,881	$	432
Income tax expense calculated at the domestic rates applicable to profits in the country concerned	328		576		179
Change in tax rates and new legislation	4		—		96
International operations subject to different tax rates	6		(1)		(2)
Taxable income attributable to non-controlling interests	—		(2)		(4)
Portion of gains subject to different tax rates	—		—		(37)
Deferred tax assets (recognized)/not recognized	(6)		(95)		16
Foreign exchange	(6)		12		2
Non-deductible dividends on exchangeable shares	47		42		30
Non-deductible remeasurement adjustments on exchangeable and class B shares	(9)		(280)		119
Permanent differences and other	4		10		6
Income tax expense recognized in profit or loss	$	368	$	262	$	405