These differences result from the following items:


In $000s	Year Ended December 31, 2022			Year Ended December 31, 2021


Income before income taxes	$	87,769		$	44,853

Canadian federal and provincial income tax rates		27 %			27 %
Income tax expense based on the above rates	$	23,698		$	12,110



Increase (decrease) due to:

Non-deductible expenses and permanent differences	$	2,102		$	1,627

Non-taxable portion of capital gain or loss		(3,776	)		348

Withholding taxes		2,975			2,178

Recognition of unrecognized losses on Horizon transaction		(11,977	)		-

Change in unrecognized temporary differences and other		(3,703	)		968

Income tax expense	$	9,319		$	17,231

The deferred tax liabilities are shown below:


In $000s	As at December 31, 2022			As at December 31, 2021

Non-capital losses	$	27,664		$	17,405

Investments and other		2,240			274

Stream, royalty and other interests		(44,688	)		(35,973)

Total deferred income tax liabilities	$	(14,784	)	$	(18,294)

Deferred tax assets and liabilities have been offset where they relate to income taxes levied by the same taxation authority and the Company has the legal right and intent to offset.

Non-capital

losses have been recognized as a deferred income tax asset to the extent there will be future taxable income against which the Company can utilize the benefit prior to their expiration. The Company recognized deferred tax assets in respect of tax losses as at December 31, 2022 of $102.5 million (2021 — $64.5 million)

as it is probable that there will be future taxable profits to recover the deferred tax assets. These non-capital losses carry forwards are located in Canada and expire between

2030-2041.

The

movement in net deferred income taxes is shown below:


In $000s	Year Ended December 31, 2022			Year Ended December 31, 2021


Balance, beginning of the year	$	(18,294	)	$	(5,477)

Recognized in net income (loss) for the year		(4,058	)		(14,202)

Recognized in equity		1,634			65

Recognized in other comprehensive income (loss) for the year		900			1,320

Recognized from new acquisitions in the year		5,034			-
Balance, end of year	$	(14,784	)	$	(18,294)

The aggregate amount of deductible temporary differences associated with capital losses and other items, for which deferred income tax assets have not been recognized as at December 31, 2022 are

15.6

million (2021 — $

15.1

million). No deferred tax asset is recognized in respect of these items because it is not probable that future taxable capital gains or taxable income will be available against which the Company can utilize the benefit.

There were no deferred taxes recognized with respect to temporary differences arising from the Nomad acquisition as these were subject to the initial recognition exemption.