XML 32 R17.htm IDEA: XBRL DOCUMENT
v3.7.0.1

Note 9 - Income Taxes | 12 Months Ended
--- | ---
Dec. 31, 2016
Notes to Financial Statements |
Income Tax Disclosure [Text Block] | 9 . Income taxes: The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate of 34% to income before provision for income taxes as a result of the following:
|  | Year ended December 31, 201 6 |  |  | Year ended December 31, 201 5 |  |  | Year ended December 31, 201 4 |
Income for the year before provision for income taxes |  | $ | 25,112,924 |  |  | $ | 17,942,957 |  |  | $ | 9,428,325 |
Computed expected tax expense |  | $ | 8,538,245 |  |  | $ | 6,100,605 |  |  | $ | 3,205,631 |
Increase (reduction) in income tax expense resulting from: |  |  |  |  |  |  |  |  |  |  |  |
State income taxes |  |  | 530,803 |  |  |  | 265,489 |  |  |  | 64,056 |
Permanent differences, including foreign exchange |  |  | 290,327 |  |  |  | 278,959 |  |  |  | 192,260 |
Other, including alternative minimum tax and adjustments to opening deferred tax assets |  |  | (313,605 | ) |  |  | (75,826 | ) |  |  | (407,718 | )
Provision for income taxes |  | $ | 9,045,770 |  |  | $ | 6,569,227 |  |  | $ | 3,054,229 |
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities as of December 31, 2016, and 2015 are presented below:
|  | December 31, 201 6 |  |  | December 31, 201 5 |
Deferred tax assets: |  |  |  |  |  |  |  |
Deferred revenue |  | $ | 5,482,080 |  |  | $ | 5,454,284 |
Foreign tax credit |  |  | 1,275,937 |  |  |  | 1,529,075 |
Amortization |  |  | (2,184,944 | ) |  |  | (883,466 | )
Accruals, including foreign exchange and other |  |  | 1,135,652 |  |  |  | 1,521,199 |
Deferred tax assets |  | $ | 5,708,725 |  |  | $ | 7,621,092 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Limited life intangible assets |  | $ | (120,232 | ) |  | $ | (169,731 |
Indefinite life intangible assets |  |  | (4,706,960 | ) |  |  | (4,706,960 | )
Total deferred tax liability, long-term portion |  | $ | (4,827,192 | ) |  | $ | (4,876,691 | )
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the years in which those temporary differences become deductible. Management considers projected future taxable income, uncertainties related to the industry in which the Company operates, and tax planning strategies in making this assessment. The Company had approximately $0.1 million of total gross unrecognized tax benefit as of December 31, 2016, and as of December 31, 2015, which if recognized would favorably affect its income tax rate in future periods. The unrecognized tax benefit relates primarily to prior year Pennsylvania state franchise taxes and other insignificant U.S. state taxes. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in tax expense. The Company did not have any significant interest and penalties accrued as of December 31, 2016, and December 31, 2015. Management believes that it is reasonably possible that $0.1 million of the unrecognized tax benefit will decrease in the next twelve months as it is anticipated that the foreign tax authorities will finalize their review of prior years’ taxes owing in Pennsylvania within that period. The following is a reconciliation of Tucows ’ change in uncertain tax position:
Total Gross Unrecognized Tax Benefits |  | December 31, 201 6 |  |  | December 31, 201 5 |
Balance, beginning of year |  | $ | 117,000 |  |  | $ | 117,000 |
Change in uncertain tax benefits |  |  | — |  |  |  | — |
Balance, end of year |  | $ | 117,000 |  |  | $ | 117,000 |

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
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=65882285&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=65882285&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=65882285&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=65882285&loc=d3e32537-109319 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration