The difference between the amount of the provision for (recovery of) income taxes and the amount computed by multiplying income (loss) before income taxes by the statutory Canadian tax rate is reconciled as follows:


	For the Years Ended
	February 28, 2021			February 29, 2020			February 28, 2019
Statutory Canadian tax rate	26.5		%	26.5		%	26.5		%
Expected provision for (recovery of) income taxes	$	(295)		$	(39)		$	20
Differences in income taxes resulting from:
Valuation allowance	205			41			(55)
Investment tax credits	(41)			(10)			(10)

Change in unrecognized income tax benefits	(48)			(12)			9

Foreign tax rate differences	3			3			(1)

Non-deductible permanent differences	13			15			19
Goodwill impairment	158			6			—
Other differences	(4)			1			2

Withholding tax on unremitted earnings	—			(1)			—
	$	(9)		$	4		$	(16)


	For the Years Ended
	February 28, 2021		February 29, 2020		February 28, 2019
Income (loss) before income taxes:
Canadian	$	(383)	$	15	$	63
Foreign	(730)		(163)		14
	$	(1,113)	$	(148)	$	77


	For the Years Ended
	February 28, 2021		February 29, 2020		February 28, 2019
Current
Canadian	$	(2)	$	2	$	2
Foreign	(7)		3		7
Deferred

Foreign	—		(1)		(25)
	$	(9)	$	4	$	(16)


	As at
	February 28, 2021		February 29, 2020
Assets
Property, plant, equipment and intangibles assets	$	240	$	174
Non-deductible reserves	59		65
Minimum taxes	206		267
Convertible Debentures (note 7)	94		1
Research and development	390		327
Tax loss carryforwards	414		419
Other	82		117
Deferred income tax assets	1,485		1,370

Valuation allowance	1,360		1,223
Deferred income tax assets net of valuation allowance	125		147

Liabilities
Property, plant, equipment and intangibles assets	(125)		(147)


Deferred income tax liabilities	(125)		(147)
Net deferred income tax asset (liability)	$	—	$	—

The Company regularly assesses the need for a valuation allowance against its deferred tax assets. In making that assessment, the Company considers both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all of the deferred tax assets will be realized.

In evaluating the need for a valuation allowance, the Company noted that there had been three years of cumulative losses including fiscal 2021. In fiscal 2021, the Company saw an increase in the deferred tax valuation allowance of $205 million (February 29, 2020 - increase of $41 million). As a result, the deferred tax valuation allowance had an ending balance of $1,360 million (February 29, 2020 - $1,223 million). This accounting treatment has no effect on the Company’s ability to utilize deferred tax assets to reduce future cash tax payments. The Company will continue to assess the likelihood that the deferred tax assets will be realizable at each reporting period and the valuation allowance will be adjusted accordingly.

The Company’s total unrecognized income tax benefits as at February 28, 2021 and February 29, 2020 were $24 million and $72 million, respectively. A reconciliation of the beginning and ending amount of unrecognized income tax benefits that, if recognized, would affect the Company’s effective income tax rate is as follows:


	For the Years Ended
	February 28, 2021		February 29, 2020		February 28, 2019
Unrecognized income tax benefits, opening balance	$	72	$	84	$	73
Increase for income tax positions of prior years	—		2		10
Increase for income tax positions of current year	2		1		5
Settlement of tax positions	(50)		(15)		(4)

Unrecognized income tax benefits, ending balance	$	24	$	72	$	84

As at February 28, 2021, $22 million of the unrecognized tax benefits have been netted against deferred income taxes and $2 million has been recorded within income taxes payable on the Company’s consolidated balance sheets.

The Company is subject to ongoing examination by tax authorities in the jurisdictions in which it operates. The Company regularly assesses the status of these examinations and the potential for adverse outcomes to determine the adequacy of the provision for income taxes, as well as the provisions for indirect and other taxes and related penalties and interest. The Company believes it is reasonably possible that approximately nil of its gross unrecognized income tax benefits will be realized in the next twelve months. While the final resolution of these audits is uncertain, the Company believes the ultimate resolution of these audits will not have a material adverse effect on its consolidated financial position, liquidity or results of operations.

The Company recognizes interest and penalties related to unrecognized income tax benefits as interest expense that is netted and reported within investment income, net. The amount of interest accrued as at February 28, 2021 was approximately $3 million (February 29, 2020 - approximately $4 million). The amount of penalties accrued as at February 28, 2021 was nil (February 29, 2020 - nil).

As at February 28, 2021, the Company has the following net operating loss carryforwards and tax credits, which are scheduled to expire in the following years:


Year of Expiry	Net Operating Losses		Capital Losses		Research and Development Tax Credits (1)		Minimum Taxes
2029	$	10	$	—	$	—	$	1
2030	—		—		—		108
2031	1		—		23		71
2032	28		—		1		22
2033	88		—		146		—
2034	96		—		120		—
2035	92		—		52		4
2036	275		—		39		—
2037	475		—		23		—
2038	225		—		17		—
2039	13		—		16		—
2040	—		—		14		—
2041	—		—		3		—
Indefinite	236		19		19		—
	$	1,539	$	19	$	473	$	206