Income Taxes (Tables)

12 Months Ended

Dec. 31, 2017

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, 2017 $		December 31, 2016 $
Deferred tax assets:
Tax losses carried forward⁽¹⁾	120,789		109,013
Other	6,204		2,747
Total deferred tax assets	126,993		111,760
Deferred tax liabilities:
Vessels and equipment	14,046		5,974
Long-term debt	365		1,691
Other	620		1,933
Total deferred tax liabilities	15,031		9,598
Net deferred tax assets	111,962		102,162
Valuation allowance	(85,560	)	(78,365	)
Net deferred tax assets⁽²⁾	26,402		23,797
Disclosed in:
Deferred tax asset	28,110		24,659
Other long-term liabilities	1,708		862
Net deferred tax assets	26,402		23,797


(1)	As at December 31, 2017, the income tax losses carried forward of $509.8 million (December 31, 2016 - $442.2 million) are available to offset future taxable income in the applicable jurisdictions, of which $498.8 million can be carried forward indefinitely, $7.2 million will expire in 2026, $1.8 million will expire in 2034 and $2.0 million will expire in 2037.


(2)	Deferred tax assets decreased by $1.0 million for the year ended December 31, 2017 (December 31, 2016 - decrease of $2.4 million) due to a decrease in tax rates in certain countries which the Partnership operates.

Components of Provision for Income Taxes

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



	Year Ended December 31, 2017 $		Year Ended December 31, 2016 $		Year Ended December 31, 2015 $
Current	(1,772	)	(3,954	)	(1,650	)
Deferred	1,870		(4,854	)	23,007
Income tax recovery (expense)	98		(8,808	)	21,357

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, 2017 $		Year Ended December 31, 2016 $		Year Ended December 31, 2015 $
Net (loss) income before taxes	(299,540	)	53,283		78,786
Net (loss) income not subject to taxes	(244,045	)	(19,706	)	12,601
Net (loss) income subject to taxes	(55,495	)	72,989		66,185
At applicable statutory tax rates	(15,784	)	12,972		14,527
Permanent differences	2,424		(13,277	)	387
Adjustments related to currency differences	5,847		(1,869	)	(1,060	)
Valuation allowance and other	7,415		10,982		(35,211	)
Tax (recovery) expense related to current year	(98	)	8,808		(21,357	)

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 2017, 2016 and 2015:



	Year Ended December 31, 2017 $		Year Ended December 31, 2016 $		Year Ended December 31, 2015 $
Balance of unrecognized tax benefits as at beginning of the year	2,174		4,047		6,779
Decreases for positions related to prior years	(930	)	(3,376	)	(3,082	)
Increases for positions related to the current year	166		1,503		350
Balance of unrecognized tax benefits as at end of the year	1,410		2,174		4,047