XML 38 R15.htm IDEA: XBRL DOCUMENT
v3.3.1.900

INCOME TAXES | 12 Months Ended
--- | ---
Dec. 31, 2015
INCOME TAXES |
INCOME TAXES | NOTE 8 INCOME TAXES A reconciliation of the tax provision for 201 5, 201 4 and 201 3 at statutory U.S. Federal and State income tax rates to the actual tax provision recorded in the financial statements is computed as follows:
Expected tax recovery at |  | 2015 |  | 2014 |  | 2013 |
Loss before income taxes |  | $ | (45,010) |  |  | (419,113) |  |  | (201,107) |
Statutory tax rate |  |  | 34% |  |  | 34% |  |  | 34% |
US Federal and State tax recovery at statutory rate |  | $ | (15,303) |  | $ | (142,498) |  | $ | (68,376) |
Reconciling items: |  |  |  |  |  |  |  |  |  |
Equity pickup in MSC |  |  | (821) |  |  | 1,850 |  |  | (2,924) |
Impairment of MSC |  |  | 4,004 |  |  | 7,407 |  |  | 33,557 |
Revisions to prior year estimates |  |  | 906 |  |  | 8,330 |  |  | (19,016) |
Adjustment for foreign tax rates |  |  | (1,230) |  |  | (1,803) |  |  | 6,573 |
Other permanent differences |  |  | (15,694) |  |  | (14,760) |  |  | (11,296) |
Unrealized foreign exchange rate (loss)/gain |  |  | 9,389 |  |  | 19,444 |  |  | (28,319) |
NOL expired |  |  | 1,215 |  |  | 10,268 |  |  | 1,711 |
Valuation allowance |  |  | (7,026) |  |  | 4,592 |  |  | 34,725 |
Tax Recovery |  | $ | (24,560) |  | $ | (107,170) |  | $ | (53,365) |
T he tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as at December 31, 201 5 and 201 4 respectively are presented below:
|  | 2015 |  | 2014 |
Deferred tax assets: |  |  |  |  |  |  |
Net operating loss carryforward |  | $ | 105,555 |  | $ | 108,070 |
Mineral Properties |  |  | 11,842 |  |  | 14,797 |
Other temporary differences |  |  | 5,371 |  |  | 7,141 |
Total gross deferred tax assets |  |  | 122,768 |  |  | 130,008 |
Less: valuation allowance |  |  | (122,768) |  |  | (129,794) |
Net deferred tax assets |  | $ | — |  | $ | 214 |
Deferred tax liabilities: |  |  |  |  |  |  |
Investments |  | $ | — |  | $ | (214) |
Acquired mineral property interests |  |  | (26,899) |  |  | (51,899) |
Total deferred tax liabilities |  |  | (26,899) |  |  | (52,113) |
Total net deferred tax liabilities |  | $ | (26,899) |  | $ | (51,899) |
The Company believes that it is unlikely that the full amount of deferred tax assets will be realized. Therefore, a valuation allowance has been provided for most of the full amount of deferred tax assets. The change in valuation allowance of approximately $7.0 million primarily reflects a decrease of net operating loss carryforwards and mineral properties. In 2 01 4 the change in valuation allowance of approximately $4.6 million primarily reflects a decrease of net operating loss carryforwards. The table below summarizes changes to the valuation allowance:
For the year ended December 31, |  |  | Balance at Beginning of Period |  |  | Additions (a) |  |  | Deductions (b) |  |  | Balance at End of Period
2015 |  | $ | 129,794 |  | $ | 6,873 |  | $ | (13,899) |  | $ | 122,768
2014 |  |  | 125,202 |  |  | 11,514 |  |  | (6,922) |  |  | 129,794
2013 |  |  | 90,477 |  |  | 35,547 |  |  | (822) |  |  | 125,202
| (a) |  | The additions to valuation allowance mainly results from the Company and its subsidiaries incurring losses and exploration expenses for tax purposes which do not meet the more-likely-than-not criterion for recognition of deferred tax assets.
| (b) |  | The reductions to valuation allowance mainly results from expir ation of the C ompany's tax attributes and foreign exchange reductions of tax attributes in Mexico and Argentina.
The deferred tax liability related to the Minera Andes acquisition was $19.8 million as at December 31, 201 5 (201 4 - $26.6 million). On December 11, 2013, the Mexican government enacted a tax reform that increased the effective tax rate applicable to the Company's Mexican operations. The law, effective January 1, 2014, introduced a Special Mining Duty of 7.5%. The Special Mining duty is deductible for income tax purposes. The Special Mining Duty is generally applicable to earnings before income tax, depreciation, depletion, amortization and interest. There are no deductions allowed for development type costs but exploration and prospecting costs can be claimed. In addition, certain undeducted exploration expenditures incurred prior to January 1, 2014 are also deductible in the calculation of the Specia l Mining Duty. For the year ended December 31, 2015 and 2014, the Company had no taxes payable under the 7.5% Special Mining Duty. The following table summarizes the Company’s losses that can be applied against future taxable profit:
Country | Type of Loss |  |  | Amount | Expiry Period
United States (a) | Non operating losses |  | $ | 158,974 | 2016-2035
Mexico | Non operating losses |  |  | 57,822 | 2016-2025
Canada | Non operating losses |  |  | 20,349 | 2016-2035
Argentina | Non operating losses |  |  | 85,878 | 2016-2020
| (a) |  | The losses in the United States and Argentina are part of a multiple consolidating groups, and therefore, may be restricted in use to specific projects.
The Company or its subsidiaries file income tax returns in Canada, the United States, Mexico, and Argentina. These tax returns are subject to examination by local taxation authorities provided the tax years remain open to audit under the relevant statute of limitations. The following summarizes the open tax years by major jurisdiction: United States: 201 2 to 2015 Canada: 2008 to 2015 Mexico: 2011 to 2015 Argentina: 201 1 to 201 5

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration