13. INCOME TAXES

		2020			2019
Current tax (recovery) expense

Current year	$	(1,376	)	$	3,999
Prior years		46			187
Total current tax (recovery) expense	$	(1,330	)	$	4,186

Deferred tax (recovery) expense
Current year movement in recognized temporary differences and losses		(97	)		841
Prior years		(33	)		128
Total deferred tax (recovery) expense	$	(130	)	$	969

Total income tax (recovery) expense	$	(1,460	)	$	5,155

Reconciliation of effective tax rate

The total provision for income taxes differs from that amount which would be computed by applying the Canadian statutory income tax rate to income before income taxes. The reasons for these differences are as follows:

		2020			2019
Income tax (recovery) expense at statutory rate of 26.5% (2019 - 26.5%)	$	(1,806	)	$	4,517
Increase in taxes resulting from:
Non-deductible items		196			292
Other differences		150			346
Income tax (recovery) expense	$	(1,460	)	$	5,155

Recognized deferred tax assets and liabilities

Deferred tax assets and liabilities are attributable to the following:

2020		Deferred Tax Assets			Deferred Tax Liabilities

Forward exchange contracts	$	—		$	(219	)
Property and equipment and Intangible assets		2,398			(1,564	)
Accrued liabilities		94			—
Leases		120			—
Restricted Share Units		322			—
Tax losses		205			—
		3,139			(1,783	)
Reclassification		(52	)		52
	$	3,087		$	(1,731	)

2019		Deferred Tax Assets			Deferred Tax Liabilities

Forward exchange contracts	$	—		$	(60	)
Property and equipment and Intangible assets		2,170			(1,485	)
Accrued liabilities		112			—
Investment tax credits		—			(27	)
Leases		135			—
Restricted Share Units		504			—
Tax losses		34			—
		2,955			(1,572	)
Reclassification		(850	)		850
	$	2,105		$	(722	)

The Corporation has non-capital loss carry-forward for income tax purposes in the amount of approximately $772 (2019 - $125). Non-capital losses of $772 may be used to reduce future years' taxable income and expire in 2040.

Management has concluded the deferred tax asset meets the relevant recognition criteria under IFRS. This conclusion is supported by Management's forecasts and the future reversal of existing taxable temporary differences, which are expected to produce sufficient taxable income to realize the deferred tax assets.

Unrecognized deferred tax assets

Deferred tax assets have not been recognized in respect of the following items:

		2020			2019
Capital losses	$	1,385		$	1,385

The capital losses of $10,456 (2019 - $10,456) can be carried forward indefinitely.

Temporary differences associated with Points International Ltd. investments

The temporary difference associated with the investments in the Corporation's subsidiaries is $2,688 (2019 - $2,384). A deferred tax liability associated with these investments has not been recognized as the Corporation controls the timing of the reversal and it is probable that the temporary difference will not reverse in the foreseeable future.

As at December 31, 2020 and 2019, no deferred tax liability was recognized for taxes that would be payable on the unremitted earnings of certain subsidiaries of Points International Ltd. as the Corporation has determined that the undistributed profits of its subsidiaries will not be distributed in the foreseeable future.