21.	INCOME TAXES

(a)

Tax expense

	2019			2018
Current tax expense	$	6,329		$	2,552
Deferred tax expense (benefit)
Origination and reversal of temporary differences	$	(54,608	)	$	129,177
Benefit arising from previously unrecognized tax loss or temporary difference		59,508			(111,058	)
Deferred tax expense		4,900			18,119
Provision for income taxes	$	11,229		$	20,671

(b)

Reconciliation of the effective tax rate

The provision for income taxes represents an effective rate different than the Canadian corporate statutory rate of

26.50%

(

2018

–

26.50%

	2019
	(Restated – Note 5)			2018
Income before income taxes	$	(231,200	)	$	539,248
Combined statutory Canadian federal and provincial income tax rate		26.50	%		26.50	%
Income tax expense based on statutory rate	$	(61,268	)	$	142,901
Increase (decrease) in income taxes resulting from:
Expense (benefit) of mark to market loss and other temporary differences not recognized	$	59,508		$	(111,058	)
Variance between combined Canadian tax rate and the tax rate applicable to foreign earnings		6,857			1,000
Other permanent items		6,132			(12,172	)
Total provision for income taxes	$	11,229		$	20,671

(c)

Recognized deferred income tax assets and liabilities

Recognized deferred income tax assets and liabilities are attributed to the following:

	2019			2018
Mark to market losses on derivative instruments	$	3,097		$	17,580
Tax losses and excess of tax basis over book basis		98,042			78,825
Total deferred income tax assets		101,140			96,405
Offset of deferred income taxes		(101,140	)		(93,873	)
Net deferred tax assets	$	-		$	2,532

Partnership income deferred for tax purposes	$	(3,542	)	$	(6,249	)
Mark to market gains on derivative instruments		(20,683	)		(54,158	)
Book to tax differences on other assets		(73,889	)		(30,480	)
Convertible debentures		(6,073	)		(2,986	)
Total deferred income tax liabilities		(104,187	)		(93,873	)
Offset of deferred income taxes		101,140			93,873
Net deferred income tax liabilities	$	(3,047	)	$	-

(d)

Movement in deferred income tax balances

	Balance April 1, 2018			Recognized in profit or loss			Recognized in OCI			Other			Balance March 31, 2019
Partnership income deferred for tax	$	(6,249	)	$	2,707		$	-		$	-		$	(3,542	)
Book to tax differences		48,345			(23,528	)		(638	)		(25	)		24,154
Mark to market (gains) losses on derivative instruments		(36,578	)		18,992			-			-			(17,586	)
Convertible debentures		(2,986	)		(3,087	)		-			-			(6,073	)
	$	2,532		$	(4,916	)	$	(638	)	$	(25	)	$	(3,047	)

	Balance April 1, 2017			Recognized in profit or loss			Recognized in OCI			Other		Balance March 31, 2018
Partnership income deferred for tax	$	(8,281	)	$	2,032		$	-		$	-	$	(6,249	)
Book to tax differences		4,269			51,864			(7,788	)		-		48,345
Mark to market (gains) losses on derivative instruments		29,424			(66,002	)		-			-		(36,578	)
Convertible debentures		(4,144	)		1,158			-			-		(2,986	)
	$	21,268		$	(10,948	)	$	(7,788	)	$	-	$	2,532

(e)

Unrecognized deferred income tax assets

Deferred income tax assets

not

reflected as at

March 31

are as follows:

	2019		2018
Mark to market losses on derivative instruments		7,239		-
Excess of tax over book basis		32,911		15,824

Losses available for carryforward (recognized and unrecognized) are set to expire as follows: