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Income taxes
 12 Months Ended
Mar. 31, 2024
Disclosure Of Income Tax [Abstract]  
Income taxes Income taxes
Income tax expense (recovery) includes the following components:
20242023
$
$
Current
Related to current year2,704 2,880 
Related to prior years1,095 (411)
3,799 2,469 
Deferred
Related to current year(317)(6,338)
Related to prior years(6)(350)
(323)(6,688)
Total income tax expense (recovery)
3,476 (4,219)
The income tax expense (recovery) reported, which includes foreign taxes, differs from the amount of the income tax recovery computed by applying Canadian statutory rates as follows:
20242023
$$
Loss before income taxes(160,488)(1,074,228)
Statutory tax rate26.5 %26.5 %
Income tax recovery at the statutory tax rate(42,529)(284,671)
Impact of rate differential of foreign jurisdiction8,303 9,944 
Non-deductible share-based compensation and related costs14,048 33,771 
Acquisition-related compensation and transaction-related costs575 1,267 
Other non-deductible expenses and non-taxable amounts
742 728 
Adjustment related to prior years1,089 (761)
Goodwill impairment— 198,409 
Changes in unrecognized benefits of deferred tax assets19,493 38,673 
Impact of foreign exchange and other1,755 (1,579)
Total income tax expense (recovery)
3,476 (4,219)
Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities are as follows (the line "Other" in Deferred tax assets in the amount of $17,760 in the fiscal year ended March 31, 2023 included "Long-term incentive plan" and "Capitalized R&D costs" and has been broken down for comparative purposes):
20242023
Deferred tax assets$$
Property and equipment3,924 3,179 
Non-capital losses carried forward24,741 49,467 
Lease liabilities5,657 6,045 
Deferred revenue421 530 
Interest expenses carried forward— 3,170 
Long-term incentive plan
8,844 6,211 
Capitalized R&D costs
12,535 7,542 
Other1,570 4,007 
Total deferred tax assets57,692 80,151 
Deferred tax liabilities
Property and equipment(411)(562)
Intangible assets(46,697)(67,972)
Lease right-of-use assets(4,213)(5,028)
Other(5,819)(6,288)
Total deferred tax liabilities(57,140)(79,850)
Net deferred tax assets
552 301 
As presented on the consolidated balance sheets:
Deferred tax assets552 301 
Net deferred tax assets
552 301 
2024
Balance as at March 31, 2023Charged
(credited) to
consolidated
statement of
loss
Charged
(credited) to
other comprehensive loss
Other
Balance as at March 31, 2024
$$
$
$$
Deferred tax assets (liabilities) continuity
Property and equipment2,617 896 — — 3,513 
Intangible assets(67,972)21,275 — — (46,697)
Lease liabilities6,045 (388)— — 5,657 
Lease right-of-use assets(5,028)815 — — (4,213)
Non-capital losses carried forward49,467 (24,726)— — 24,741 
Deferred revenue530 (109)— — 421 
Interest expenses carried forward3,170 (3,170)— — — 
Long-term incentive plan
6,211 2,633 — — 8,844 
Capitalized R&D costs
7,542 4,993 — — 12,535 
Other(2,281)(1,896)(68)(4)(4,249)
Net deferred tax assets (liabilities)301 323 (68)(4)552 
2023
Balance as at March 31, 2022Charged
(credited) to
consolidated
statement of
loss
Charged
(credited) to
other comprehensive loss
Other
Balance as at March 31, 2023
$$
$
$$
Deferred tax assets (liabilities) continuity
Property and equipment2,103 514 — — 2,617 
Intangible assets(97,647)29,675 — — (67,972)
Lease liabilities6,354 (309)— — 6,045 
Lease right-of-use assets(5,140)112 — — (5,028)
Non-capital losses carried forward78,292 (28,825)— — 49,467 
Deferred revenue1,217 (687)— — 530 
Interest expenses carried forward5,852 (2,682)— — 3,170 
Long-term incentive plan
4,702 1,509 — — 6,211 
Capitalized R&D costs
— 7,542 — — 7,542 
Other(2,412)(161)— 292 (2,281)
Net deferred tax assets (liabilities)(6,679)6,688 — 292 301 
The Company has accumulated unrecognized deductible temporary differences, unused tax losses and unrecognized research and development expenditures as follows:
20242023
$$
Deductible temporary differences58,737 63,695 
Non-capital losses676,756 587,407 
Research and development expenditures12,207 21,760 
747,700 672,862 
As at March 31, 2024, the Company and its subsidiaries have non-capital losses of $676,756 (2023 - $587,407) available to reduce future taxable income for which the benefits have not been recognized. From this amount, $354,039 (2023 - $320,344) expires from the fiscal year ended March 31, 2025 to the fiscal year ended March 31, 2044, while $322,717 (2023 - $267,063) has no expiry date.
There was no change in the Canadian statutory tax rate for the financial year.
Government assistance
The Company incurred research and development expenditures and e-business development expenses which are eligible for tax credits. The tax credits recorded are based on management’s estimate of amounts expected to be recovered and are subject to audit by the taxation authorities and, accordingly, these amounts may vary. For the fiscal year ended March 31, 2024, the Company recorded a Canadian provision for refundable tax credits of $3,622 (2023 – $4,077). This amount has been recorded as a reduction of research and development and e-business development expenditures for the year.
As at March 31, 2024, the Company has available Canadian federal non-refundable investment tax credits of $2,598 (2023 – $2,598) related to research and development expenditures which may be used to reduce Canadian federal income taxes payable in future years. These non-refundable investment tax credits begin to expire in 2032. The Company also has a non-refundable e-business tax credit of $5,692 (2023 – $4,823) expiring in various dates starting in 2036.
The benefits of these non-refundable investment tax credits have not been recognized in the consolidated financial statements.
Pillar Two
In December 2021, the Organization for Economic Cooperation and Development (“OECD”) published Tax Challenges Arising From the Digitalisation of the Economy - Global Anti-Base Erosion Model Rules (Pillar Two) introducing a 15% minimum tax rate for multinationals on income arising in each jurisdiction where they operate. Pillar Two applies to multinational enterprises with annual consolidated revenues of EUR 750 million in at least two of the four fiscal years immediately preceding the tested fiscal year. The OECD continues to release guidance and countries are implementing legislation to adopt these rules. On August 4, 2023, the Canadian Department of Finance released draft legislation to implement a proposed Global Minimum Tax Act, largely based on the OECD rules, and expected to be effective for fiscal years beginning on or after December 31, 2023. The Company met the threshold of EUR 750 million for the first time in fiscal year ended March 31, 2024 but does not yet meet the Pillar Two requirements as stated in the proposed legislation. The Company is monitoring the legislative developments and their potential effect on its effective tax rate in future periods.