CURRENT AND DEFERRED INCOME TAX (Tables)

12 Months Ended

Dec. 31, 2020

Disclosure of current tax expense, deferred tax expense and total income tax expense

The following table represents the major components of income tax expense recognized in the consolidated statements of income for the years ended December 31, 2020 and 2019:


Years ended December 31	2020		2019

Current tax expense	$	22,544	$	24,796
Deferred tax expense	18,309		5,576
Total income tax expense	$	40,853	$	30,372

The reasons for the differences are as follows:


Years ended December 31	2020			2019

Income before income taxes	$	181,321		$	86,129
Statutory tax rate	27.00		%	27.00		%
Expected income tax expense	48,957			23,254

Increase (decrease) attributable to:
Non-taxable items	(30,371)			(17,654)
Foreign exchange	7,858			15,058
Differences in foreign and future tax rates	(7,272)			(3,309)
Investment incentive tax credits	1,983			—
Mineral and overseas withholding tax	17,027			10,249
Expired losses	1,129			738
Change in estimates in respect of prior years	(1,616)			(2,316)
Changes in recognition of deferred tax assets	3,003			3,952
Other	155			400
Total income tax expense	$	40,853		$	30,372

Disclosure of temporary difference, unused tax losses and unused tax credits

The significant components of deferred income tax assets and deferred income tax liabilities as at December 31, 2020 and 2019 are presented below:


	December 31, 2020		December 31, 2019
Deferred income tax assets
Deductible temporary differences relating to:
Inventories	$	2,691	$	2,241
Reclamation and closure cost provision	6,140		4,760
Lease liabilities	24,247		917
Deductibility of other taxes	9,658		9,242
Share-based compensation	8,820		4,554
Other items	8,306		4,446
	59,862		26,160
Investment incentive tax credits (1)	168,447		—
Tax loss carryforwards	12,556		9,919
Total deferred income tax assets	$	240,865	$	36,079

Deferred income tax liabilities
Taxable temporary differences relating to:
Marketable securities	$	(2,041)	$	(4,118)
Inventories	(46,431)		(4,138)
Mineral properties, plant and equipment	(582,364)		(98,438)
Convertible notes	(13,105)		(15,046)
Mineral tax	(42,125)		(40,462)
Foreign withholding tax	(32,875)		—
Other items	(761)		(1,629)
Total deferred income tax liabilities	$	(719,702)	$	(163,831)

Balance sheet presentation
Deferred income tax assets	$	4,612	$	63
Deferred income tax liabilities	(483,449)		(127,815)
Deferred income tax liabilities, net	$	(478,837)	$	(127,752)

(1)The Company receives investment incentive tax credits for qualifying expenditures at Çöpler. The application of these tax credits, which are denominated in Turkish Lira, reduced income tax expense and cash tax payments for the year ended December 31, 2020 and are expected to offset future cash tax payments. Reviews of eligible expenditures for tax credits by local tax authorities occur periodically and can result in adjustments to the recognition of investment incentive tax credits.

Disclosure of unrecognized deductible temporary differences for which no deferred tax asset is recognized

At December 31, 2020, the Company's unrecognized deductible temporary differences and unused tax losses for which no deferred tax asset is recognized consist of the following amounts:


	December 31, 2020		December 31, 2019


Mineral properties, plant and equipment	$	523	$	4,850
Reclamation and closure cost provision	61,650		46,418
Tax loss carryforwards and tax credits	38,235		15,192
Mineral and foreign withholding tax	570		616
Share-based compensation	9,591		—
Other items	8,214		6,913
Unrecognized deductible temporary differences	$	118,783	$	73,989

Disclosure of estimated tax operating losses available to reduce future taxable income

At December 31, 2020, the Company had the following estimated tax operating losses available to reduce future taxable income, including both losses for which deferred tax assets are utilized to offset applicable deferred tax liabilities and losses for which deferred tax assets are not recognized as listed in the table above. Losses expire at various dates and amounts between 2021 and 2040.


	December 31, 2020
Mexico	$	39,197
Canada	33,304
U.S.A.	7,802
Peru	71
Tax operating losses	$	80,374