Deferred Tax

12 Months Ended

Dec. 31, 2022

Note 23: Deferred Tax

The movements of deferred tax assets and liabilities are shown below:



Deferred tax liabilities	Goodwill and Other Identifiable Intangible Assets		Equity Method Investments		Other		Total
December 31, 2020		546		172		273		991
Acquisitions		5		-		-		5
(Benefit) expense to income statement - continuing operations		(26)		586		16		576
Benefit to other comprehensive income		-		(23)		-		(23)
Translation and other, net		1		130		(123)		8
December 31, 2021		526		865		166		1,557
Acquisitions		-		-		14		14
Benefit to income statement - continuing operations		(15)		(162)		(129)		(306)
Translation and other, net		1		-		6		7
December 31, 2022		512		703		57		1,272



Deferred tax assets	Tax Losses and Other Attributes		Goodwill and Other Identifiable Intangible Assets		Employee Benefits and Compensation		Other		Total
December 31, 2020		209		1,110		214		268		1,801
Acquisitions		-		-		-		5		5
Benefit (expense) to income statement - continuing operations		57		(55)		(4)		(84)		(86)
Expense to income statement - discontinued operations		-		-		-		(1)		(1)
Expense to other comprehensive income		-		-		(58)		-		(58)
Benefit to equity		-		-		21		-		21
Translation and other, net		1		3		2		3		9
December 31, 2021		267		1,058		175		191		1,691
Acquisitions		4		-		-		-		4
Expense to income statement - continuing operations		(105)		(77)		(8)		(36)		(226)
Benefit to other comprehensive income		-		-		43		-		43
Expense to equity		-		-		(28)		-		(28)
Translation and other, net		10		(2)		3		(2)		9
December 31, 2022		176		979		185		153		1,493
Net deferred tax asset as of December 31, 2021										134
Net deferred tax asset as of December 31, 2022										221

The estimated recovery period for the deferred tax balances, which is based on the classification of the underlying items in the consolidated statement of financial position, is shown below:



	December 31,

	2022		2021
Deferred tax liabilities
Deferred tax liabilities to be recovered after more than 12 months		1,270		1,555
Deferred tax liabilities to be recovered within 12 months		2		2
Total deferred tax liabilities		1,272		1,557

Deferred tax assets
Deferred tax assets to be recovered after more than 12 months		1,400		1,614
Deferred tax assets to be recovered within 12 months		93		77
Total deferred tax assets		1,493		1,691
Net deferred tax asset		221		134

Deferred tax assets are recognized to the extent that the realization of the related tax benefit through future taxable profits and the resolution of uncertain tax positions is probable. The ability to realize these deferred tax benefits is dependent on a number of factors, including the future profitability of operations and the resolution of tax audits in the jurisdictions in which the deferred tax assets arose.

As of December 31, 2022, the following summarizes the Company’s tax losses, certain deductible temporary differences and other tax attributes:



	Carry Forward Loss/ Tax Attributes		Tax Value		Unrecognized Deferred Tax Assets		Net Deferred Tax Assets
Canadian net operating losses		2,191		582		(582)		-
Net operating losses – other jurisdictions		1,667		422		(369)		53
Capital losses		513		129		(114)		15
Investment in subsidiaries		305		74		(74)		-
Other deductible temporary differences		412		109		(109)		-
U.S. state net operating losses (1)		n/m		3		(1)		2
Other attributes and credits (2)		n/m		174		(68)		106
Total				1,493		(1,317)		176

(1) The aggregation of U.S. state net operating losses is not meaningful due to differing combination and apportionment rules in various states.

(2) As other attributes and credits are calculated on an

after-tax

basis, there is no carry forward loss amount to disclose.

If not utilized, most of the Canadian tax losses and U.S. state tax losses carried forward will expire between 2023 and 2042. Approximately $950 million of the tax losses carried forward in other jurisdictions expire between 2034 and 2039, and the remainder may be carried forward indefinitely.

No deferred tax is recognized on the temporary differences associated with investments in subsidiaries and equity method investments to the extent that the Company can control the timing and reversal of such differences, or the reversal would not create a tax liability. These temporary differences are primarily attributable to the undistributed earnings of

non-Canadian

subsidiaries, which were $15.8 billion as of December 31, 2022 (2021 - $15.2 billion).