INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

Income Taxes [Abstract]

Schedule of components of income tax expense

The following table reconciles consolidated income taxes to current and deferred income taxes:

FOR THE YEARS ENDED DEC. 31 (MILLIONS)	2021		2020
Current income tax expense	$	(1,114)	$	(756)
Deferred income tax expense	(1,210)		(81)
Income tax expense	$	(2,324)	$	(837)

The major components of income tax expense for the years ended December 31, 2021 and 2020 are set out below:

FOR THE YEARS ENDED DEC. 31 (MILLIONS)	2021		2020
Current income tax expense	$	1,114	$	756
Deferred income tax expense / (recovery)
Origination and reversal of temporary differences	1,044		(103)
(Recovery) / expense arising from previously unrecognized tax assets	(251)		2
Change of tax rates and new legislation	417		182
Total deferred income tax expense	1,210		81
Income tax expense	$	2,324	$	837

Schedule of income tax rates

The company’s effective income tax rate is different from the company’s domestic statutory income tax rate due to the following differences set out below:

FOR THE YEARS ENDED DEC. 31	2021		2020
Statutory income tax rate	26	%	26	%
Increase (reduction) in rate resulting from:
Change in tax rates and new legislation	3		12
International operations subject to different tax rates	(1)		52
Taxable income attributable to non-controlling interests	(10)		(31)
Portion of gains subject to different tax rates	(3)		(10)
Recognition of deferred tax assets	(2)		(10)
Non-recognition of the benefit of current year’s tax losses	2		8
Other	1		7
Effective income tax rate	16	%	54	%

Schedule of deferred income tax assets and liabilities

Deferred income tax assets and liabilities as at December 31, 2021 and 2020 relate to the following:

AS AT DEC. 31 (MILLIONS)	2021		2020
Non-capital losses (Canada)	$	1,339	$	916
Capital losses (Canada)	53		48
Losses (U.S.)	3,561		3,338
Losses (International)	1,474		1,415
Difference in basis	(23,415)		(18,292)
Total net deferred tax liabilities	$	(16,988)	$	(12,575)

Disclosure of unrecognized deferred tax assets

The following table details the expiry date, if applicable, of the unrecognized deferred tax assets:

AS AT DEC. 31 (MILLIONS)	2021		2020
One year from reporting date	$	8	$	4
Two years from reporting date	30		20
Three years from reporting date	15		20
After three years from reporting date	487		465
Do not expire	1,891		1,473
Total	$	2,431	$	1,982

Schedule of components of income taxes in other comprehensive income

The components of the income taxes in other comprehensive income for the years ended December 31, 2021 and 2020 are set out below:

FOR THE YEARS ENDED DEC. 31 (MILLIONS)	2021		2020
Revaluation of property, plant and equipment	$	1,549	$	1,214
Financial contracts and power sale agreements	89		(59)
Fair value through OCI securities	83		74
Foreign currency translation	(21)		37
Revaluation of pension obligation	71		(40)
Total deferred tax in other comprehensive income	$	1,771	$	1,226