Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Components of Partnership's Deferred Tax Assets and Liabilities

The significant components of the Partnership’s deferred tax assets and liabilities are as follows:



	December 31, 2016 $		December 31, 2015 $
Deferred tax assets:
Tax losses carried forward⁽¹⁾	109,013		128,523
Other	2,747		2,815
Total deferred tax assets	111,760		131,338
Deferred tax liabilities:
Vessels and equipment	5,974		10,577
Long-term debt	1,691		3,218
Other	1,933		1,204
Total deferred tax liabilities	9,598		14,999
Net deferred tax assets	102,162		116,339
Valuation allowance	(78,365	)	(86,906	)
Net deferred tax assets	23,797		29,433
Disclosed in:
Deferred tax asset	24,659		30,050
Other long-term liabilities	862		617
Net deferred tax assets	23,797		29,433


(1)	As at December 31, 2016, the income tax losses carried forward of $442.2 million ($506.5 million – December 31, 2015) are available to offset future taxable income in the applicable jurisdictions, and can be carried forward indefinitely.

Certain of the balances in the comparative columns above have been adjusted with no impact on the amount of the net deferred tax assets.

Components of Provision for Income Tax

The components of the provision for income taxes are as follows:



	Year Ended December 31, 2016 $		Year Ended December 31, 2015 $		Year Ended December 31, 2014 $
Current	(3,954	)	(1,650	)	(1,290	)
Deferred	(4,854	)	23,007		(889	)
Income tax (expense) recovery	(8,808	)	21,357		(2,179	)

Reconciliations of Income Tax Rate and Actual Tax Charge

Reconciliations of the tax charge related to the current year at the applicable statutory income tax rates and the actual tax charge related to the current year are as follows:



	Year ended December 31, 2016 $		Year ended December 31, 2015 $		Year ended December 31, 2014 $
Net income before taxes	53,283		78,786		19,835
Net income not subject to taxes	(19,706	)	12,601		(72,469	)
Net income subject to taxes	72,989		66,185		92,304
At applicable statutory tax rates	12,972		14,527		12,484
Permanent differences	(13,277	)	387		(4,677	)
Adjustments related to currency differences	(1,869	)	(1,060	)	3,349
Valuation allowance	10,982		(35,211	)	(8,977	)
Tax expense (recovery) related to current year	8,808		(21,357	)	2,179

Reconciliation of Partnership's Total Amount of Unrecognized Tax Benefits

The following is a tabular reconciliation of the Partnership’s total amount of unrecognized tax benefits at the beginning and end of 2016, 2015 and 2014:



	Year ended December 31, 2016 $		Year ended December 31, 2015 $		Year ended December 31, 2014 $
Balance of unrecognized tax benefits as at beginning of the year	4,047		6,779		7,037
Decreases for positions related to prior years	(3,376	)	(3,082	)	(258	)
Increases for positions related to the current year	1,503		350		—
Balance of unrecognized tax benefits as at end of the year	2,174		4,047		6,779