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Income Taxes | 12 Months Ended
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Dec. 31, 2019
Income Taxes [abstract] |
Income Taxes | 28. Income Tax (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:
|  | Years ended December 31,
|  | 2019 |  | 2018
Net income before tax |  | $ | 43,971 |  | $ | 67,340
Statutory tax rate |  |  | 27.0% |  |  | 27.0%
Anticipated income tax at statutory rates |  |  | 11,872 |  |  | 18,182
Non-deductible expenditures |  |  | 2,507 |  |  | 1,935
Differences between Canadian and foreign tax rates |  |  | 1,353 |  |  | 2,159
Changes in estimate |  |  | 856 |  |  | (679)
Effect of change in tax rates |  |  | 345 |  |  | 299
Inflation adjustment |  |  | (12,158) |  |  | (6,408)
Impact of foreign exchange |  |  | 11,773 |  |  | 10,377
Changes in deferred tax assets not recognized |  |  | (2,254) |  |  | (287)
Mining taxes |  |  | 3,241 |  |  | 4,383
Withholding taxes |  |  | 2,367 |  |  | 3,180
Other items |  |  | 273 |  |  | 209
Total income tax expense |  | $ | 20,175 |  | $ | 33,350
Total income tax represented by: |  |  |  |  |  |
Current income tax expense |  | $ | 32,631 |  | $ | 30,563
Deferred tax expense |  |  | (12,456) |  |  | 2,787
|  | $ | 20,175 |  | $ | 33,350
(b) Tax Amounts Recognized in Profit or Loss
|  | Years ended December 31,
|  | 2019 |  | 2018
Current tax expense |  |  |  |  |  |
Current taxes on profit for the year |  | $ | 32,246 |  | $ | 30,515
Changes in estimates related to prior years |  |  | 385 |  |  | 48
|  | $ | 32,631 |  | $ | 30,563
Deferred tax expense |  |  |  |  |  |
Origination and reversal of temporary differences and foreign exchange rate |  | $ | (13,678) |  | $ | 3,216
Changes in estimates related to prior years |  |  | 479 |  |  | (728)
Effect of differences in tax rates |  |  | 398 |  |  | 16
Effect of changes in tax rates |  |  | 345 |  |  | 283
|  | $ | (12,456) |  | $ | 2,787
Total tax expense |  | $ | 20,175 |  | $ | 33,350
(c) Deferred Tax Balances The significant components of the recognized deferred tax assets and liabilities are:
|  | December 31, |  | December 31,
|  | 2019 |  | 2018
Deferred tax assets: |  |  |  |  |  |
Reclamation and closure cost obligation |  | $ | 9,530 |  | $ | 4,594
Carried forward tax loss |  |  | 14,020 |  |  | 3,386
Accounts payable and accrued liabilities |  |  | 7,731 |  |  | 5,642
Deductibility of resource taxes |  |  | 3,140 |  |  | 3,436
Lease obligations |  |  | 5,317 |  |  | -
Other |  |  | 1 |  |  | 190
Total deferred tax assets |  | $ | 39,739 |  | $ | 17,248
Deferred tax liabilities: |  |  |  |  |  |
Mineral properties |  | $ | (44,825) |  | $ | (34,541)
Mining and foreign withholding taxes |  |  | (5,281) |  |  | (8,412)
Equipment and buildings |  |  | (3,621) |  |  | (4,413)
Convertible debenture |  |  | (1,857) |  |  | -
Inflation |  |  | (4,939) |  |  | -
Other |  |  | (131) |  |  | (1,326)
Total deferred tax liabilities |  | $ | (60,654) |  | $ | (48,692)
Net deferred tax liabilities |  | $ | (20,915) |  | $ | (31,444)
|  |  | 2019 |  |  | 2018
Classification: |  |  |  |  |  |
Deferred tax assets |  | $ | - |  | $ | -
Deferred tax liabilities |  |  | (20,915) |  |  | (31,444)
Net deferred tax liabilities |  | $ | (20,915) |  | $ | (31,444)
The Company's movement of net deferred tax liabilities is described below:
|  |  | 2019 |  |  | 2018
At January 1 |  | $ | 31,444 |  | $ | 28,657
Deferred income tax (recovery) expense through income statement |  |  | (12,456) |  |  | 2,787
Deferred income tax expense through equity |  |  | 1,927 |  |  | -
At December 31 |  | $ | 20,915 |  | $ | 31,444
(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,
|  | 2019 |  | 2018
Unrecognized deductible temporary differences and unused tax losses: |  |  |  |  |  |
Non capital losses |  | $ | 72,156 |  | $ | 81,188
Provisions |  |  | 5,074 |  |  | 5,173
Share issue costs |  |  | 2,174 |  |  | 3,354
Mineral properties, plant and equipment |  |  | - |  |  | 244
Lease obligation |  |  | 656 |  |  | -
Derivative liabilities |  |  | 894 |  |  | -
Capital losses |  |  | 2,496 |  |  | 2,326
Investments in associates |  |  | 1,397 |  |  | -
Unrecognized deductible temporary differences |  | $ | 84,847 |  | $ | 92,285
As at December 31, 2019, 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 as follow:
|  | December 31, |  | December 31,
|  | 2019 |  | 2018
Mexico |  | $ | 198,214 |  | $ | 97,705
Peru |  |  | 54,618 |  |  | 69,669
(e) Tax Loss Carry Forwards Tax losses have the following expiry dates:
|  |  |  |  | December 31, |  |  |  | December 31,
|  |  | Year of expiry |  | 2019 |  | Year of expiry |  | 2018
Canada |  |  | 2026 - 2039 |  | $ | 84,200 |  | 2026 - 2038 |  | $ | 81,000
Argentina |  |  | 2020 - 2024 |  |  | 42,500 |  | 2019 - 2023 |  |  | 11,900
Mexico |  |  | 2021 - 2029 |  |  | 369 |  | 2021 - 2028 |  |  | 349
Peru |  |  | 2021 |  |  | 70 |  | 2021 |  |  | 238
In addition, as at December 31, 2019, the Company has accumulated Canadian resource-related expenses of $8,188 (2018 - $6,582) for which the deferred tax benefit has not been recognized.

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