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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2024
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, 2024 $ |  | December 31, 2023 $
Deferred tax assets: |  |  |
Vessels and equipment | 437 |  | 437
Tax losses carried forward and disallowed finance costs (1) (2) | 36,219 |  | 115,564
Other | 6,150 |  | 7,166
Total deferred tax assets | 42,806 |  | 123,167
Deferred tax liabilities: |  |  |
Vessels and equipment | 83 |  | 32
Provisions | — |  | 87
Other | 47 |  | 76
Total deferred tax liabilities | 130 |  | 195
Net deferred tax assets | 42,676 |  | 122,972
Valuation allowance | (38,572) |  | (120,810)
Net deferred tax assets | 4,104 |  | 2,162
(1)Substantially all of the Company's estimated net operating loss carryforwards of $156.2 million as at December 31, 2024, relate to its Bermudian and Norwegian subsidiaries. The Company had estimated disallowed finance costs in Norway of approximately $11.6 million at December 31, 2024, which are available 10 years from the year the costs are incurred for offset against future taxable income in Norway. (2)In December 2023, Bermuda enacted income tax legislation which is effective as of January 1, 2025. The Bermudian corporate income tax rate is 15%, which rate was used to determine the deferred tax asset related to Bermuda at December 31, 2024.
Components of Provision for Income Taxes | The components of the provision for income tax expense are as follows:
| Year Ended December 31, 2024 $ |  | Year Ended December 31, 2023 $ |  | Year Ended December 31, 2022 $
Current | (2,469) |  | (13,386) |  | (532)
Deferred | 2,064 |  | 1,224 |  | (885)
Income tax expense | (405) |  | (12,162) |  | (1,417)
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, 2024 $ |  | Year Ended December 31, 2023 $ |  | Year Ended December 31, 2022 $
Net income before taxes | 402,024 |  | 529,585 |  | 211,053
Net income not subject to taxes | 377,892 |  | 508,201 |  | 204,462
Net income subject to taxes | 24,132 |  | 21,384 |  | 6,591
At applicable statutory tax rates | 5,876 |  | 4,411 |  | 2,234
Permanent and currency differences, adjustments to valuation allowances and uncertain tax positions | (4,879) |  | 7,422 |  | (702)
Other | (592) |  | 329 |  | (115)
Tax expense related to the year | 405 |  | 12,162 |  | 1,417
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, 2024 $ |  | Year Ended December 31, 2023 $ |  | Year Ended December 31, 2022 $
Balance as at January 1 | 47,813 |  | 42,477 |  | 46,956
Increases for positions related to the current year | 2,482 |  | 9,708 |  | 5,820
Increases for positions related to prior years | 6,805 |  | 7,394 |  | 2,983
Decreases for positions related to prior years | (3,303) |  | (4,798) |  | (964)
Decreases related to statute of limitations | (9,153) |  | (5,430) |  | (8,972)
Foreign exchange gain | (3,240) |  | (1,538) |  | (3,346)
Balance as at December 31 | 41,404 |  | 47,813 |  | 42,477

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- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 9 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-9 + Details
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- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 2 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-2 + Details
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- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Paragraph 12 -Section 50 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-12 + Details
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- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15A -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-15A Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Section 50 -Paragraph 19 -SubTopic 10 -Topic 740 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-19 + Details
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