XML 79 R53.htm IDEA: XBRL DOCUMENT v3.22.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2021
Income Taxes [Abstract]  
Summary of deferred tax assets and liabilities
The following represents the deferred tax assets and liabilities in the Consolidated Statements of Financial Position:
As at December 31,20212020
Deferred tax assets(1)
$1,848 $1,634 
Deferred tax liabilities(1)
322 383 
Net deferred tax asset$1,526 $1,251 

(1)    Our deferred tax assets and deferred tax liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred taxes relate to the same taxable entity and the same taxation authority.

The movement in net deferred tax assets for the years ended December 31, are as follows:
Investments
Policy
liabilities(1)
Deferred
acquisition
costs		Losses
available
for carry
forward		     Pension
and other
employee
benefits
Other(2)
Total
As at December 31, 2020
$(1,240)$1,621 $82 $708 $322 $(242)$1,251 
Charged to statement of operations53 48 (9)125 (14)(7)196 
Charged to other comprehensive income25 30 — 17 9 4 85 
Foreign exchange rate movements and Other(16)28 1 3 (16)(6)(6)
As at December 31, 2021
$(1,178)$1,727 $74 $853 $301 $(251)$1,526 
(1)    Consists of Insurance contract liabilities and Investment contract liabilities, net of Reinsurance assets.
(2)    Includes unused tax credits.
Investments
Policy
liabilities(1)
Deferred
acquisition
costs		Losses
available
for carry
forward		Pension
and other
employee
benefits
Other(2)
Total
As at December 31, 2019
$(1,040)$1,121 $83 $697 $338 $(150)$1,049 
Acquisitions (disposals) through business combinations— — — — — (67)(67)
Charged to statement of operations(149)494 — 62 (5)(31)371 
Charged to other comprehensive income(54)— — (50)(8)— (112)
Charged to equity, other than other comprehensive income— — — (1)— — (1)
Foreign exchange rate movements and Other3 6 (1)— (3)6 11 
As at December 31, 2020
$(1,240)$1,621 $82 $708 $322 $(242)$1,251 

(1)    Consists of Insurance contract liabilities and Investment contract liabilities, net of Reinsurance assets.
(2)    Includes unused tax credits.
Components of income tax expense (benefit) In our Consolidated Statements of Operations, Income tax expense (benefit) for the years ended December 31 has the following components:
20212020
Current income tax expense (benefit):
Current year$964 $859 
Adjustments in respect of prior years, including resolution of tax disputes(41)7 
Total current income tax expense (benefit)923 866 
Deferred income tax expense (benefit):
Origination and reversal of temporary differences(204)(435)
Adjustments in respect of prior years, including resolution of tax disputes(8)48 
Tax expense (benefit) arising from unrecognized tax losses6 15 
Tax rate and other legislative changes10 1 
Total deferred income tax expense (benefit)(196)(371)
Total income tax expense (benefit)$727 $495 
Summary of income tax relating to equity Income tax benefit (expense) recognized directly in equity for the years ended December 31:
20212020
Recognized in other comprehensive income:
Current income tax benefit (expense)$3 $(2)
Deferred income tax benefit (expense)85 (112)
Total recognized in other comprehensive income88 (114)
Recognized in equity, other than other comprehensive income:
Deferred income tax benefit (expense)— (1)
Total income tax benefit (expense) recorded in equity, including tax benefit (expense) recorded in Other comprehensive income$88 $(115)
Summary of effective income tax rate differences Our effective income tax rate differs from the combined Canadian federal and provincial statutory income tax rate as follows:
For the years ended December 31,20212020
%%
Total net income (loss)$4,370 $2,792 
Add: Income tax expense (benefit)727 495 
Total net income (loss) before income taxes$5,097 $3,287 
Taxes at the combined Canadian federal and provincial statutory income tax rate $1,338 26.3 $871 26.5 
Increase (decrease) in rate resulting from:
Higher (lower) effective rates on income subject to taxation in foreign jurisdictions(231)(4.5)(218)(6.6)
Tax-exempt investment (income) loss(345)(6.8)(253)(7.7)
Adjustments in respect of prior periods, including resolution of tax disputes(49)(1.0)55 1.7 
Tax (benefit) cost of unrecognized tax losses and tax credits6 0.1 15 0.5 
Tax rate and other legislative changes10 0.2 1 — 
Other(2)— 24 0.7 
Total income tax expense (benefit) and effective income tax rate$727 14.3 $495 15.1