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Income Taxes | 12 Months Ended
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Dec. 31, 2017
Income Taxes [abstract] |
Income Taxes | 29. Income Taxes ﻿ (a) Reconciliation of effective tax rate ﻿ Income tax expense differs from the amount that would be computed by applying the applicable Canadian statutory income tax rate to income before income taxes. The significant reasons for the differences are as follows: ﻿
﻿ |  |  |  |  |  |
﻿ |  |  | Year ended December 31,
﻿ |  |  | 2017 |  |  | 2016
﻿Net income before tax |  | $ | 104,951 |  | $ | 47,110
﻿Statutory tax rate |  |  | 26.0% |  |  | 26.0%
﻿Anticipated income tax at statutory rates |  |  | 27,287 |  |  | 12,249
﻿Non-deductible expenditures |  |  | 1,082 |  |  | 514
﻿Differences between Canadian and foreign tax rates |  |  | 5,804 |  |  | 2,995
﻿Change in estimate |  |  | 88 |  |  | (511)
﻿Effect of change in tax rates |  |  | (1,576) |  |  | (622)
﻿Inflation adjustment |  |  | (2,242) |  |  | (933)
﻿Impact of foreign exchange |  |  | (666) |  |  | 5,328
﻿Change in deferred tax assets not recognized |  |  | 4,194 |  |  | 4,839
﻿Mining taxes |  |  | 4,568 |  |  | 2,738
﻿Withholding taxes |  |  | 649 |  |  | 2,760
﻿Other items |  |  | (542) |  |  | (105)
﻿Total income tax expense |  | $ | 38,646 |  | $ | 29,252
﻿Total income tax represented by: |  |  |  |  |  |
﻿ Current income tax expense |  | $ | 34,863 |  | $ | 29,063
﻿ Deferred tax expense |  |  | 3,783 |  |  | 189
﻿ |  | $ | 38,646 |  | $ | 29,252
In 2015, Peru underwent a tax reform that included an announced decrease in tax rates over a four year period. In December of 2016 the future decreases were halted and the tax rate was increased. The Company’s Peruvian operating subsidiary, Minera Bateas, had an agreement with Peruvian government that stabilized its tax rate until December 31, 2017. The Company will be subject to a Peruvian income tax rate of 29.5% in 2018 and thereafter. ﻿ On December 27, 2017, the Argentine Congress passed the proposed tax reform which became effective on January 1, 2018. The changes included an immediate transitional reduction in corporate income tax rate from 35% to 30% for the two taxation years beginning on or after January 1, 2018. Effective 2020 and thereafter, the Argentine corporate income tax rate will reduce from 30% to 25%. ﻿ Effective January 1, 2018, the British Columbia provincial tax rate will increase from 11% to 12%, resulting in an increase in the combined Canadian Federal and Provincial statutory tax rate of 27% starting 2018 and thereafter. ﻿ (b) Tax amounts recognized in profit or loss ﻿
﻿ |  |  |  |  |  |
﻿ |  |  | Year ended December 31,
﻿ |  |  | 2017 |  |  | 2016
﻿ |  |  |  |  |  |
﻿Current tax expense |  |  |  |  |  |
﻿Current taxes on profit for the year |  | $ | 34,940 |  | $ | 29,791
﻿Changes in estimates related to prior years |  |  | (77) |  |  | (728)
﻿ |  | $ | 34,863 |  | $ | 29,063
﻿ |  |  |  |  |  |
﻿Deferred tax expense |  |  |  |  |  |
﻿Origination and reversal of temporary differences and foreign exchange rate effects |  | $ | 5,194 |  | $ | 594
﻿Changes in estimates related to prior years |  |  | 165 |  |  | 217
﻿Effect of changes in tax rates |  |  | (1,576) |  |  | (622)
﻿ |  | $ | 3,783 |  | $ | 189
﻿ |  |  |  |  |  |
﻿Total Tax expense |  | $ | 38,646 |  | $ | 29,252
(c) Deferred tax balances ﻿ The significant components of the recognized deferred tax assets and liabilities are: ﻿
﻿ |  |  |  |  |  |
﻿ |  |  | December 31, |  |  | December 31,
﻿ |  |  | 2017 |  |  | 2016
﻿Deferred tax assets: |  |  |  |  |  |
﻿Reclamation and closure cost obligation |  | $ | 3,996 |  | $ | 3,940
﻿Other |  |  | 6,268 |  |  | 2,898
﻿Total deferred tax assets |  | $ | 10,264 |  | $ | 6,838
﻿ |  |  |  |  |  |
﻿Deferred tax liabilities: |  |  |  |  |  |
﻿Mineral properties |  | $ | (30,413) |  | $ | (14,858)
﻿Mining taxes |  |  | (3,376) |  |  | (3,336)
﻿Equipment and buildings |  |  | (4,658) |  |  | (5,363)
﻿Other |  |  | (474) |  |  | (8,155)
﻿Total deferred tax liabilities |  | $ | (38,921) |  | $ | (31,712)
﻿ |  |  |  |  |  |
﻿Net deferred tax liabilities |  | $ | (28,657) |  | $ | (24,874)
﻿ |  |  |  |  |  |
﻿Classification: |  |  |  |  |  |
﻿ |  |  | 2017 |  |  | 2016
﻿Deferred tax assets |  | $ | - |  | $ | 471
﻿Deferred tax liabilities |  |  | (28,657) |  |  | (25,345)
﻿Net deferred tax liabilities |  | $ | (28,657) |  | $ | (24,874)
﻿ ﻿ The Company’s movement of net deferred tax liabilities is described below: ﻿
﻿ |  |  |  |  |  |
﻿ |  |  | 2017 |  |  | 2016
﻿At January 1 |  | $ | 24,874 |  | $ | 24,685
﻿Deferred income tax expense through income statement |  |  | 3,783 |  |  | 189
﻿At December 31 |  | $ | 28,657 |  | $ | 24,874
﻿ ﻿ ﻿ (d) Unrecognized deferred tax assets and liabilities ﻿ The Company recognizes tax benefits on losses or other deductible amounts where it is more likely than not that the deferred tax asset will be realized. The Company’s unrecognized deductible temporary differences and unused tax losses for which no deferred tax asset is recognized consists of the following amounts: ﻿
﻿ |  |  |  |  |  |
﻿ |  |  | December 31, |  |  | December 31,
﻿ |  |  | 2017 |  |  | 2016
﻿Unrecognized deductible temporary differences and unused tax losses: |  |  |  |  |  |
﻿Non capital losses |  | $ | 73,994 |  | $ | 55,500
﻿Provisions and other |  |  | 11,720 |  |  | 13,074
﻿Share issue costs |  |  | 4,473 |  |  | 624
﻿Mineral properties, plant and equipment |  |  | 762 |  |  | 1,801
﻿Derivative liabilities |  |  | - |  |  | 254
﻿Capital losses |  |  | 906 |  |  | 846
﻿Unrecognized deductible temporary differences |  | $ | 91,855 |  | $ | 72,099
﻿ ﻿ As at December 31, 2017, the Company has temporary differences associated with investments in subsidiaries for which an income tax liability has not been recognized as the Company can control the timing of the reversal of the temporary differences and the Company plans to reinvest in its foreign subsidiaries. The temporary difference associated with investments in subsidiaries aggregate to:
﻿ |  |  |  |  |  |
﻿ |  |  | December 31, |  |  | December 31,
﻿ |  |  | 2017 |  |  | 2016
﻿Mexico |  | $ | 69,044 |  | $ | 66,035
﻿Peru |  |  | 98,070 |  |  | 58,017
(e) Tax loss carryforwards ﻿ Tax losses have the following expiry dates: ﻿ ﻿ ﻿
﻿ |  |  |  |  |  |  |  |
﻿ |  |  |  |  | December 31, |  |  | December 31,
﻿ |  | Year of expiry |  |  | 2017 |  |  | 2016
﻿Canada |  | 2025 – 2037 |  | $ | 74,300 |  | $ | 55,500
﻿Argentina |  | 2018 – 2022 |  |  | 3,700 |  |  | -
﻿Mexico |  | 2021 – 2025 |  |  | 332 |  |  | 450
﻿Barbados |  | 2022 – 2024 |  |  | 266 |  |  | 185
﻿ In addition, at December 31, 2017, the Company has accumulated Canadian resource-related expenses of $5,773 (2016 - $3,271) for which the deferred tax benefit has not been recognized.

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