Income and other taxes

12 Months Ended

Dec. 31, 2024

Income and other taxes:

a) Income tax (expense) recovery:


For the years ended December 31	2024		2023
Current tax (expense) recovery:
Current period before undernoted items	$	(74,169)	$	(64,679)

Adjustments to prior years including resolution for certain outstanding audits	43		14,755
	(74,126)		(49,924)
Deferred tax recovery (expense):
Origination and reversal of temporary differences	52,396		46,982
Adjustments to prior years including resolution for certain outstanding audits	(383)		6,904
Changes in tax rates	34		(5,828)
Impact of foreign exchange and other	(7,762)		377
	44,285		48,435
Total income tax expense	$	(29,841)	$	(1,489)

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	2024			2023
Income before income taxes	$	280,086		$	285,611
Deduct earnings of associate	(38,335)			(99,466)
	241,751			186,145
Canadian statutory tax rate	24.5		%	24.5		%
Income tax expense calculated at Canadian statutory tax rate	(59,229)			(45,606)
Decrease (increase) in income tax expense resulting from:
Impact of income and losses taxed in foreign jurisdictions	14,268			27,260
Utilization of unrecognized loss carryforwards and temporary differences	6,482			7,381
Impact of tax rate changes	34			(5,828)
Impact of foreign exchange	1,650			5,287
Other business taxes	2,791			(13,943)
Impact of items not taxable for tax purposes	4,555			2,373
Adjustments to prior years including resolution for certain outstanding audits	(340)			21,658
Other	(52)			(71)
Total income tax expense	$	(29,841)		$	(1,489)

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, 2024						Dec 31, 2023
	Net		Deferred tax assets		Deferred tax liabilities		Net		Deferred tax assets		Deferred tax liabilities
Property, plant and equipment (owned)	$	(325,338)	$	(162,036)	$	(163,302)	$	(363,644)	$	(189,646)	$	(173,998)
Right-of-use assets	(35,757)		(25,816)		(9,941)		(35,883)		(28,299)		(7,584)
Repatriation taxes	(119,281)		(30)		(119,251)		(109,186)		(7)		(109,179)
Other	(26,241)		(11,267)		(14,974)		(31,630)		(9,259)		(22,371)
	(506,617)		(199,149)		(307,468)		(540,343)		(227,212)		(313,131)
Non-capital loss carryforwards	357,670		346,150		11,520		358,774		321,602		37,172
Lease obligations	48,706		35,740		12,966		48,633		37,854		10,779
Share-based compensation	24,567		8,185		16,382		16,391		651		15,740
Other	40,652		13,165		27,487		50,955		19,355		31,600
	471,595		403,240		68,355		474,753		379,462		95,291
Net deferred income tax assets (liabilities)	$	(35,022)	$	204,091	$	(239,113)	$	(65,590)	$	152,250	$	(217,840)

As at December 31, 2024, 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 2024
	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	23,721		5,219
Losses generated in 2024	6,636		1,460
Total non-capital loss carryforwards	$	1,356,881	$	298,515

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, 2024 the Company had $170 million (2023 - $201 million) of deductible temporary differences in the United States that have not been recognized.

As at December 31, 2024, deferred income tax assets have been recognized in respect of non-capital loss carryforwards generated in Trinidad. The loss carryforwards total $107 million (2023 - $82 million), which result in a deferred income tax asset of $38 million (2023 - $29 million). The losses generated in Trinidad may be carried forward indefinitely against future taxable income.

As at December 31, 2024, deferred income tax assets have been recognized in respect of non-capital loss carryforwards generated in New Zealand. The loss carryforwards total $36 million (2023 - $25 million), which result in a deferred income tax asset of $10 million (2023 - $7 million). The losses generated in New Zealand may be carried forward indefinitely against future taxable income.

As at December 31, 2024, deferred income tax assets have been recognized in respect of non-capital loss carryforwards generated in Canada. The loss carryforwards total $47 million (2023 - $123 million), which result in a deferred income tax asset of $12 million (2023 - $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:


			2024						2023
	Net		Deferred tax assets		Deferred tax liabilities		Net		Deferred tax assets		Deferred tax liabilities
Balance, January 1	$	(65,590)	$	152,250	$	(217,840)	$	(180,643)	$	46,353	$	(226,996)


Deferred income tax recovery (expense) included in net income	44,285		65,244		(20,959)		48,435		40,159		8,276
Deferred income tax recovery (expense) included in other comprehensive income	(14,096)		(13,403)		(693)		66,636		65,738		898
Other	379		—		379		(17)		—		(17)
Balance, December 31	$	(35,022)	$	204,091	$	(239,113)	$	(65,590)	$	152,250	$	(217,840)

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. Canada enacted legislation resulting in Pillar Two rules being effective for tax years beginning January 1, 2024. The Company is in scope of the legislation and has performed an assessment of the exposure to top-up taxes that apply based on our financial results in the jurisdictions in which we operate. For the year ended December 31, 2024, $3 million is included in current tax expense relating to Pillar Two top-up obligations.