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Income Taxes
 12 Months Ended
Dec. 31, 2020
Text block [abstract]  
Income Taxes
Note 16     Income Taxes
(a) Income tax expense
The following table presents
i
ncome tax expense (recovery) recognized in the Consolidated Statements of Income.
 
For the years ended December 31,
 
2020
     2019 
Current tax
           
Current year
 
$
998
 
    $  1,246 
Adjustments related to prior yea
rs
 
 
(83
) 
     (74) 
Total current tax
 
 
915
 
     1,172 
Deferred tax
           
Change related to temporary differences
 
 
253
 
     (454) 
Effects of changes in tax rates
 
 
27
 
     
–
 
Total deferred tax
 
 
280
 
     (454) 
Income tax expense
 
$
  1,195
 
    $718 
 
The following table discloses income tax expense (recovery) recognized directly in equity.
 
For the years ended December 31,
 
2020
     2019 
Recognized in other comprehensive income
           
Current income tax expense (recovery)
 
$
  (92
) 
    $92 
Deferred income tax expense (recovery)
 
 
87
 
     366 
Total recognized in other comprehensive income
 
$
(5
) 
    $  458 
Recognized in equity, other than other comprehensive income
           
Current income tax expense (recovery)
 
$
25
 
    $5 
Deferred income tax expense (recovery)
 
 
(25
) 
     (6) 
Total income tax recognized directly in equity
 
$
–
 
    $(1) 
(b) Current tax receivable and payable
As at December 31, 2020, the Company had approximately $993 and $87 of current tax receivable and current tax payable, respectively (2019 – $600 and $121).
(c) Tax reconciliation
The effective income tax rate reflected in the Consolidated Statements of Income varies from the Canadian tax rate of 26.50 per cent for the year ended December 31, 2020 (2019 – 26.75 per cent)
for the items outlined in the following table.
 
For the years ended December 31,
 
2020
     2019 
Income before income taxes
 
$
  6,770
 
    $  6,220 
Income tax expense at Canadian statutory tax rate
 
$
1,794
 
    $1,664 
Increase (decrease) in income taxes due to:
           
Tax-exempt
investment income
 
 
(171
) 
     (260) 
Differences in tax rate on income not subject to tax in Canada
 
 
(528
) 
     (754) 
Adjustments to taxes related to prior years
 
 
(96
) 
     (106) 
Tax rate change
 
 
27
 
     – 
Other differences
 
 
169
 
     174 
Income tax expense
 
$
1,195
 
    $718 
(d) Deferred tax assets and liabilities
The following table presents the Company’s deferred tax assets and liabilities reflected on the Consolidated Statement of Financial Position.
 
As at December, 31
 
2020
     2019 
Deferred tax assets
 
$
  4,842
 
    $  4,574 
Deferred tax liabilities
 
 
(2,614
) 
     (1,972) 
Net deferred tax assets (liabilities)
 
$
2,228
 
    $2,602 
The following table presents movement of deferred tax assets and liabilities.
 
As at December 31, 2020
 Balance,
January 1,
2020		  Disposals  Recognized
in Income
Statement		  Recognized in Other
Comprehensive
Income		  Recognized
in Equity		  Translation
and Other		  Balance,
December 31,
2020		 
Loss carryforwards
 
$
705
 
 
$
        –
 
 
$
(210
) 
 
$
–
 
 
$
–
 
 
$
2
 
 
$
497
 
Actuarial liabilities
 
 
8,443
 
 
 
–
 
 
 
1,063
 
 
 
–
 
 
 
–
 
 
 
(134
) 
 
 
9,372
 
Pensions and post-employment benefits
 
 
226
 
 
 
–
 
 
 
–
 
 
 
(10
) 
 
 
–
 
 
 
(1
) 
 
 
215
 
Tax credits
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
Accrued interest
 
 
1
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
1
 
Real estate
 
 
(1,046
) 
 
 
–
 
 
 
5
 
 
 
(2
) 
 
 
1
 
 
 
9
 
 
 
(1,033
) 
Securities and other investments
 
 
(4,704
) 
 
 
–
 
 
 
(1,254
) 
 
 
(59
) 
 
 
2
 
 
 
72
 
 
 
(5,943
) 
Sale of investments
 
 
(69
) 
 
 
–
 
 
 
13
 
 
 
–
 
 
 
–
 
 
 
–
 
 
 
(56
) 
Goodwill and intangible assets
 
 
(876
) 
 
 
–
 
 
 
24
 
 
 
–
 
 
 
–
 
 
 
3
 
 
 
(849
) 
Other
 
 
(78
) 
 
 
–
 
 
 
79
 
 
 
(16
) 
 
 
22
 
 
 
17
 
 
 
24
 
Total
 
$
2,602
 
 
$
–
 
 
$
(280
) 
 
$
(87
) 
 
$
25
 
 
$
(32
) 
 
$
2,228
 
 
As at December 31, 2019 Balance,
January 1,
2019		  Disposals  Recognized
in Income
Statement		  Recognized in
Other
Comprehensive
Income		  Recognized
in Equity		  Translation
and Other		  Balance,
December 31,
2019		 
Loss carryforwards
 $   1,019  $(18)  $(278)  $–  $(1)  $(17)  $705 
Actuarial liabilities
  5,466   –   3,093   –   (1)   (115)   8,443 
Pensions and post-employment benefits
  242   –   4   (20)   –   –   226 
Tax credits
  261   –   (253)   –   –   (8)   – 
Accrued interest
  1   –   –   –   –   –   1 
Real estate
  (959)   –   (110)   –   –   23   (1,046) 
Securities and other investments
  (2,689)   –   (1,863)   (347)   39   156   (4,704) 
Sale of investments
  (87)   –   17   –   –   1   (69) 
Goodwill and intangible assets
  (847)   –   (49)   –   –   20   (876) 
Other
  97   (37)   (107)   1   (31)   (1)   (78) 
Total
 $2,504  $(55)  $454  $ (366)  $        6  $      59  $   2,602 
The total deferred tax assets as at December 31, 2020 of $4,842 (2019 – $4,574)
includes
$1,005 (2019 – $98) where the Company has suffered losses in either the current or preceding year and where the recognition is dependent on future taxable profits in the relevant jurisdictions and feasible management actions.
As at December 31, 2020, tax loss carryforwards available were approximately $2,479 (2019 – $3,440) of which $2,321 expire between the years 2022 and 2040 while $137 have no expiry date, and capital loss carryforwards available were approximately $21 (2019 – $31) and have no expiry date. A $497 (2019 – $705) tax benefit related to these tax loss carryforwards has been recognized as a deferred tax asset as at December 31, 2020, and a benefit of $99 (2019 – $93) has not been recognized. In addition, the Company has approximately $154 (2019 – $157) of tax credit carryforwards which will expire between the years 2027 and 2029 of which a benefit of $154 (2019 – $157) has not been recognized.
The total deferred tax liability as at December 31, 2020 was $2,614 (2019 – $1,972). This amount includes the deferred tax liability of consolidated entities. The aggregate amount of taxable temporary differences associated with the Company’s own investments in subsidiaries is not included in the Consolidated Financial Statements and was $22,782 (2019 – $19,623).