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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

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 from continuing operations are as follows:

			December 31, 2022 $						December 31, 2021 $
Deferred tax assets:
Vessels and equipment			21,837						15,653
Tax losses carried forward and disallowed finance costs (1)			98,558						96,008
Other			5,094						4,084
Total deferred tax assets			125,489						115,745
Deferred tax liabilities:
Vessels and equipment			369						—
Other			407						6,054
Total deferred tax liabilities			776						6,054
Net deferred tax assets			124,713						109,691
Valuation allowance			(123,461)						(106,949)
Net deferred tax assets			1,252						2,742

(1)Substantially all of the Company's estimated net operating loss carryforwards of $400.9 million relate to its U.K. and Norwegian subsidiaries in 2022 and to its U.K., Norwegian, and Australian subsidiaries in 2021. The Company had estimated disallowed finance costs in Norway of approximately $13.5 million at December 31, 2022, which are available 10 years from the year the costs are incurred for offset against future taxable income in Norway.

Components of Provision for Income Taxes

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

			Year Ended December 31, 2022 $						Year Ended December 31, 2021 $						Year Ended December 31, 2020 $
Current			(532)						4,082						(6,756)
Deferred			(885)						881						1,197
Income tax (expense) recovery			(1,417)						4,963						(5,559)

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, 2022 $						Year Ended December 31, 2021 $						Year Ended December 31, 2020 $
Net income (loss) before taxes			211,053						(282,426)						(18,745)
Net income (loss) not subject to taxes			204,462						(336,040)						(9,912)
Net income (loss) subject to taxes			6,591						53,614						(8,833)
At applicable statutory tax rates			2,234						12,476						(1,411)
Permanent and currency differences, adjustments to valuation allowances and uncertain tax positions			(702)						(13,870)						4,947
Other			(115)						(3,569)						2,023
Tax expense (recovery) related to the year			1,417						(4,963)						5,559

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, 2022 $						Year Ended December 31, 2021 $						Year Ended December 31, 2020 $
Balance as at January 1			46,956						51,562						53,665
Increases for positions related to the current year			5,820						3,749						14,264
Increases for positions related to prior years			2,983						4,801						10,704
Decreases for positions related to prior years			(964)						—						(15,941)
Settlements with tax authority			—						—						(8,714)
Decreases related to statute of limitations			(8,972)						(12,753)						(2,910)
Foreign exchange (gain) loss			(3,346)						(403)						494
Balance as at December 31			42,477						46,956						51,562

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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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