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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Components of Company's Deferred Tax Assets and Liabilities

The significant components of the Company’s deferred tax assets and liabilities are as follows:

			December 31, 2020 $						December 31, 2019 $
Deferred tax assets:
Vessels and equipment			17,707						1,646
Tax losses carried forward and disallowed finance costs (1)			167,179						164,009
Other			17,697						19,674
Total deferred tax assets			202,583						185,329
Deferred tax liabilities:
Vessels and equipment			1,256						22,913
Provisions			—						6,512
Other			21,232						—
Total deferred tax liabilities			22,488						29,425
Net deferred tax assets			180,095						155,904
Valuation allowance			(172,867)						(153,302)
Net deferred tax assets			7,228						2,602

(1)Substantially all of the Company's estimated net operating loss carryforwards of $838.5 million relate primarily to its U.K., Spanish, Norwegian and Luxembourg subsidiaries and, to a lesser extent, to its Australian subsidiaries. The Company had estimated disallowed finance costs in Spain and Norway of approximately $9.2 million and $15.4 million, respectively, at December 31, 2020, which are available indefinitely and 10 years, respectively, from the year the costs are incurred for offset against future taxable income in Spain and Norway, respectively. The Company's estimated tax losses in Luxembourg are available for offset against taxable future income in Luxembourg, either indefinitely for losses arising prior to 2017, or for 17 years for losses arising subsequent to 2016.

Components of Provision for Income Taxes

The components of the provision for income tax expense are as follows:

			Year Ended December 31, 2020 $						Year Ended December 31, 2019 $						Year Ended December 31, 2018 $
Current			(11,089)						(25,563)						(17,458)
Deferred			2,101						81						(2,266)
Income tax expense			(8,988)						(25,482)						(19,724)

Reconciliations of Income Tax Rates and Actual Tax Charge

Reconciliations of the tax charge related to the relevant year at the applicable statutory income tax rates and the actual tax charge related to the relevant year are as follows:

			Year Ended December 31, 2020 $						Year Ended December 31, 2019 $						Year Ended December 31, 2018 $
Net income (loss) before taxes			99,970						(123,504)						(38,023)
Net income (loss) not subject to taxes			141,639						(91,925)						(104,465)
Net (loss) income subject to taxes			(41,669)						(31,579)						66,442
At applicable statutory tax rates			(9,957)						(4,352)						15,177
Permanent and currency differences, adjustments to valuation allowances and uncertain tax positions			10,650						25,177						4,639
Other			8,295						4,657						(92)
Tax expense related to the year			8,988						25,482						19,724

Unrecognized Tax Benefits, Recorded in Other Long-Term Liabilities

The following table reflects changes in uncertain tax positions relating to freight tax liabilities, which are recorded in other long-term liabilities and accrued liabilities on the Company’s consolidated balance sheets:

			Year Ended December 31, 2020 $						Year Ended December 31, 2019 $						Year Ended December 31, 2018 $
Balance of unrecognized tax benefits as at January 1			62,958						40,556						31,061
Increases for positions related to the current year			19,084						5,829						9,297
Increases for positions related to prior years			16,799						19,721						5,270
Decreases for positions related to prior years			(17,021)						—						—
Settlements with tax authority			(9,372)						—						—
Decreases related to statute of limitations			(3,176)						(2,546)						(783)
Foreign exchange loss (gain)			1,466						(602)						(4,289)
Balance of unrecognized tax benefits as at December 31			70,738						62,958						40,556

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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months.

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