Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

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, 2018 $		December 31, 2017 $
Deferred tax assets:
Tax losses carried forward ⁽¹⁾	251,240		120,789
Other	2,887		6,204
Total deferred tax assets	254,127		126,993
Deferred tax liabilities:
Vessels and equipment	17,018		14,046
Other	5,531		985
Total deferred tax liabilities	22,549		15,031
Net deferred tax assets	231,578		111,962
Valuation allowance	(224,593	)	(85,560	)
Net deferred tax assets	6,985		26,402
Disclosed in:
Deferred tax asset	9,168		28,110
Other long-term liabilities	2,183		1,708
Net deferred tax assets	6,985		26,402

(1)

As at December 31, 2018, the income tax losses carried forward of $1,040.4 million (December 31, 2017 - $509.8 million) are available to offset future taxable income in the applicable jurisdictions, of which $651.9 million can be carried forward indefinitely, $0.4 million will expire in 2019, $0.5 million will expire in 2020, $0.4 million will expire in 2021, $0.5 million will expire in 2022, $2.2 million will expire in 2023, $0.3 million will expire in 2024, $0.6 million will expire in 2025, $0.1 million will expire in 2026 and $383.3 million will expire in 2034.

Components of Provision for Income Taxes

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



	Year Ended December 31, 2018 $		Year Ended December 31, 2017 $		Year Ended December 31, 2016 $
Current	(4,051	)	(1,772	)	(3,954	)
Deferred	(18,606	)	1,870		(4,854	)
Income tax (expense) recovery	(22,657	)	98		(8,808	)

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, 2018 $		Year Ended December 31, 2017 $		Year Ended December 31, 2016 $
Net (loss) income before taxes	(101,288	)	(299,540	)	53,283
Net (loss) income not subject to taxes	(253,605	)	(244,045	)	(19,706	)
Net income (loss) subject to taxes	152,317		(55,495	)	72,989
At applicable statutory tax rates	28,437		(15,784	)	12,972
Permanent differences	(23,179	)	2,424		(13,277	)
Adjustments related to currency differences	(338	)	5,847		(1,869	)
Valuation allowance	17,737		7,415		10,982
Tax expense (recovery) related to current year	22,657		(98	)	8,808

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 2018, 2017 and 2016:



	Year Ended December 31, 2018 $		Year Ended December 31, 2017 $		Year Ended December 31, 2016 $
Balance of unrecognized tax benefits as at beginning of the year	1,410		2,174		4,047
Decreases for positions related to prior years	(189	)	(930	)	(3,376	)
Increases for positions related to the current year	375		166		1,503
Balance of unrecognized tax benefits as at end of the year	1,596		1,410		2,174