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Income and other taxes | 12 Months Ended
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Dec. 31, 2023
Income Taxes [Abstract] |
Income and other taxes | Income and other taxes: a) Income tax (expense) recovery:
For the years ended December 31 | 2023 | 2022
Current tax (expense) recovery: |  |
Current period before undernoted items | $ | (64,679) |  | $ | (127,254) |
Adjustments to prior years including resolution for certain outstanding audits | 14,755 |  | (324) |
| (49,924) |  | (127,578) |
Deferred tax recovery (expense): |  |
Origination and reversal of temporary differences | 46,982 |  | 9,589 |
Adjustments to prior years including resolution for certain outstanding audits | 6,904 |  | (400) |
Changes in tax rates | (5,828) |  | (23) |
Impact of foreign exchange and other | 377 |  | (1,447) |
| 48,435 |  | 7,719 |
Total income tax expense | $ | (1,489) |  | $ | (119,859) |
b) Reconciliation of the effective tax rate: The Company operates in several tax jurisdictions and therefore its income is subject to various rates of taxation. Income tax expense differs from the amounts that would be obtained by applying the Canadian statutory income tax rate to net income before income taxes as follows:
For the years ended December 31 | 2023 | 2022
Income before income taxes | $ | 285,611 |  | $ | 582,147 |
Deduct earnings of associate | (99,466) |  | (76,938) |
| 186,145 |  | 505,209 |
Canadian statutory tax rate | 24.5 | % | 24.5 | %
Income tax expense calculated at Canadian statutory tax rate | (45,606) |  | (123,776) |
Decrease (increase) in income tax expense resulting from: |  |
Impact of income and losses taxed in foreign jurisdictions | 27,260 |  | 1,346 |
Utilization of unrecognized loss carryforwards and temporary differences | 7,381 |  | 7,077 |
Impact of tax rate changes | (5,828) |  | (23) |
Impact of foreign exchange | 5,287 |  | 3,783 |
Other business taxes | (13,943) |  | (11,065) |
Impact of items not taxable for tax purposes | 2,373 |  | 3,624 |
Adjustments to prior years including resolution for certain outstanding audits | 21,658 |  | (724) |
Other | (71) |  | (101) |
Total income tax expense | $ | (1,489) |  | $ | (119,859) |
c) Net deferred income tax assets and liabilities: (i) The tax effect of temporary differences that give rise to deferred income tax liabilities and deferred income tax assets is as follows:
As at |  | Dec 31, 2023 |  |  | Dec 31, 2022
| Net | Deferred tax assets | Deferred tax liabilities |  | Net | Deferred tax assets | Deferred tax liabilities
Property, plant and equipment (owned) | $ | (363,644) |  | $ | (189,646) |  | $ | (173,998) |  |  | $ | (403,505) |  | $ | (230,756) |  | $ | (172,749) |
Right-of-use assets | (35,883) |  | (28,299) |  | (7,584) |  |  | (33,477) |  | (26,486) |  | (6,991) |
Repatriation taxes | (109,186) |  | (7) |  | (109,179) |  |  | (106,989) |  | — |  | (106,989) |
Other | (31,630) |  | (9,259) |  | (22,371) |  |  | (78,305) |  | (60,850) |  | (17,455) |
| (540,343) |  | (227,212) |  | (313,131) |  |  | (622,276) |  | (318,092) |  | (304,184) |
Non-capital loss carryforwards | 358,774 |  | 321,602 |  | 37,172 |  |  | 353,986 |  | 322,608 |  | 31,378 |
Lease obligations | 48,633 |  | 37,854 |  | 10,779 |  |  | 46,438 |  | 35,957 |  | 10,481 |
Share-based compensation | 16,391 |  | 651 |  | 15,740 |  |  | 17,068 |  | 2,096 |  | 14,972 |
Other | 50,955 |  | 19,355 |  | 31,600 |  |  | 24,141 |  | 3,784 |  | 20,357 |
| 474,753 |  | 379,462 |  | 95,291 |  |  | 441,633 |  | 364,445 |  | 77,188 |
Net deferred income tax assets (liabilities) | $ | (65,590) |  | $ | 152,250 |  | $ | (217,840) |  |  | $ | (180,643) |  | $ | 46,353 |  | $ | (226,996) |
As at December 31, 2023, deferred income tax assets have been recognized in respect of non-capital loss carryforwards generated in the United States. These loss carryforwards expire as follows:
| Dec 31 2023
| Gross amount | Tax effect
Expire |  |
Losses generated in 2015 (expires 2035) | $ | 282,437 |  | $ | 62,136 |
Losses generated in 2016 (expires 2036) | 432,581 |  | 95,168 |
Losses generated in 2017 (expires 2037) | 234,941 |  | 51,687 |
| 949,959 |  | 208,991 |
No expiry |  |
Losses generated in 2019 | 255,244 |  | 56,154 |
Losses generated in 2020 | 121,321 |  | 26,691 |
Losses generated in 2023 | 29,235 |  | 6,432 |
Total non-capital loss carryforwards | $ | 1,355,760 |  | $ | 298,267 |
Losses generated in the United States on or after January 1, 2018 may be carried forward indefinitely against future taxable income. Tax losses generated before December 31, 2017 may be carried forward for a 20 year period. As at December 31, 2023 the Company had $201 million (2022 - $231 million) of deductible temporary differences in the United States that have not been recognized. As at December 31, 2023, deferred income tax assets have been recognized in respect of non-capital loss carryforwards generated in Trinidad. The loss carryforwards total $82 million (2022 - $70 million), which result in a deferred income tax asset of $29 million (2022 - $24 million). The losses generated in Trinidad may be carried forward indefinitely against future taxable income. As at December 31, 2023, deferred income tax assets have been recognized in respect of non-capital loss carryforwards generated in New Zealand. The loss carryforwards total $25 million (2022 - $7 million), which result in a deferred income tax asset of $7 million (2022 - $2 million). The losses generated in New Zealand may be carried forward indefinitely against future taxable income. As at December 31, 2023, deferred income tax assets have been recognized in respect of non-capital loss carryforwards generated in Canada. The loss carryforwards total $123 million (2022 - $121 million), which result in a deferred income tax asset of $30 million (2022 - $30 million). The losses were generated in 2020 and can be carried forward 20 years against future taxable income. (ii) Analysis of the change in deferred income tax assets and liabilities:
|  | 2023 |  |  |  | 2022 |
| Net | Deferred tax assets | Deferred tax liabilities |  | Net | Deferred tax assets | Deferred tax liabilities
Balance, January 1 | $ | (180,643) |  | $ | 46,353 |  | $ | (226,996) |  |  | $ | (114,536) |  | $ | 98,169 |  | $ | (212,705) |
Deferred income tax recovery (expense) included in net income | 48,435 |  | 40,159 |  | 8,276 |  |  | 7,719 |  | 22,578 |  | (14,859) |
Deferred income tax recovery (expense) included in other comprehensive income | 66,636 |  | 65,738 |  | 898 |  |  | (72,440) |  | (74,394) |  | 1,954 |
Other | (17) |  | — |  | (17) |  |  | (1,386) |  | — |  | (1,386) |
Balance, December 31 | $ | (65,590) |  | $ | 152,250 |  | $ | (217,840) |  |  | $ | (180,643) |  | $ | 46,353 |  | $ | (226,996) |
International Tax Reform — Pillar Two Rules Pillar Two rules were published by the Organization for Economic Co-operation and Development and establish a global minimum fifteen percent top-up tax regime. Under currently proposed legislation, Pillar Two rules are expected to be implemented in Canada and be effective for tax years beginning January 1, 2024. The Company is in scope of the proposed legislation and has performed a preliminary assessment of the potential exposure to to-up taxes that would apply based on our historical financial results in the jurisdictions in which we operate. Based on the assessment, we do not expect to have a material exposure to Pillar Two top-up taxes.

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