18. Income Taxes

A reconciliation of the combined Canadian income taxes at statutory rates and the Corporation's effective income tax (benefit)/expense is as follows:

	Years ended December 31,
	2011			2010			2009
Income tax (benefit)/expense at statutory rates	$	33,846		$	(7,008	)	$	(2,014	)
Increase/(decrease) in taxes from:
Permanent differences		-			-			(989	)
Differences in foreign tax rates		1,930			630			160
Effect of foreign exchange		603			(755	)		(1,466	)
Change in effective tax rate		(764	)		209			(759	)
Prior year provision to actual adjustments		987			1,829			(2,433	)
Change in valuation allowance		(2,970	)		5,009			7,664
Stock-based compensation		113			98			49
Debt discount interest		(2	)		(182	)		(347	)
Meals and entertainment		5			3			5
Other adjustments		77			60			(28	)
Adjustments to capital gains		89			-			-
Imputed interest		82			108			139
Realized foreign exchange gain/(loss) on intercompany balances		-			(1	)		19
Expiration or use of NOLs		1,526			-			-
Income tax (benefit)/expense	$	35,522		$	-		$	-

Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of our deferred tax assets and liabilities as at December 31 are as follows:

	December 31,
Deferred income tax assets	2011			2010

Excess tax basis over book basis of plant, and equipment	$	6,011		$	6,495
Operating loss carryforwards		26,772			20,945
Capital loss carryforwards		2,645			2,773
Other		2,023			1,407
Unrealized foreign exchange on loans		676			864
Total deferred tax assets		38,127			32,484
Valuation allowance for deferred tax assets		(29,291	)		(31,886	)
		8,836			598
Deferred income tax liabilities
Amayapapa disposal consideration		482			482
Excess carrying value over tax value of plant, and equipment		29,784			-
Marketable securities		14,092			116
Total deferred tax liabilities		44,358			598

Total deferred taxes	$	(35,522	)	$	-

The Corporation has available income tax losses of $62,018, which may be carried forward and applied against future taxable income when earned.

The losses expire as follows:

	Noncapital Canada			United States			Mexico			Indonesia			Barbados			Total

2012		-			-			(168	)		(1,959	)		-			(2,127	)
2013		-			-			(254	)		(968	)		-			(1,222	)
2014		(725	)		-			(112	)		(428	)		-			(1,265	)
2015		(889	)		-			(290	)		(142	)		(9	)		(1,330	)
2016		-			-			(113	)		(105	)		(8	)		(226	)
2017		-			-			(480	)		-			(12	)		(492	)
2018		-			-			(5,609	)		-			(84	)		(5,693	)
2019		-			(519	)		(867	)		-			(63	)		(1,449	)
2020		-			(783	)		(2,131	)		-			-			(2,914	)
2021		-			(779	)		(5,771	)		-			-			(6,550	)
2022		-			(748	)		-			-			-			(748	)
2023		-			(691	)		-			-			-			(691	)
2024		-			(2,082	)		-			-			-			(2,082	)
2025		-			(2,362	)		-			-			-			(2,362	)
2026		(1,027	)		(1,213	)		-			-			-			(2,240	)
2027		(847	)		(1,700	)		-			-			-			(2,547	)
2028		(5,245	)		(1,719	)		-			-			-			(6,964	)
2029		(4,022	)		(2,309	)		-			-			-			(6,331	)
2030		(5,032	)		(2,146	)		-			-			-			(7,178	)
2031		(3,828	)		(3,779	)		-			-			-			(7,607	)
	$	(21,615	)	$	(20,830	)	$	(15,795	)	$	(3,602	)	$	(176	)	$	(62,018	)

Our tax returns for the years ended December 31, 2008; 2009; 2010; and 2011 remain subject to regulatory agency review.