INCOME TAXES

The provision for income taxes is as follows:



($ millions)		2019		2018
Current tax:
	Canada	0.2		—
	Luxembourg	0.2		0.3
Current tax expense		0.4		0.3
Deferred tax expense (recovery):
	Canada	(225.6	)	(690.5	)
	United States	66.2		(248.3	)
Deferred tax recovery		(159.4	)	(938.8	)
Income tax recovery		(159.0	)	(938.5	)

The following table reconciles income taxes calculated at the Canadian statutory rate with the recorded income taxes:



($ millions)	2019		2018
Net income (loss) before tax	(1,192.3	)	(3,555.4	)
Statutory income tax rate	26.81	%	27.00	%
Expected provision for income taxes	(319.7	)	(960.0	)
Change in corporate tax rates and tax rate variance	18.6		—
Tax rates in foreign jurisdictions	(5.3	)	13.9
Restricted share bonus plan	3.9		1.8
Change in recognition of deferred tax assets	108.3		(1.1	)
Recognition of capital gain on intercompany debt	18.5		—
Non-deductible capital losses	4.3		0.6
Non-deductible impairment of goodwill	3.5		2.1
Other	8.9		4.2
Income tax recovery	(159.0	)	(938.5	)

The statutory combined federal and provincial income tax rate decreased from 27 percent in 2018 to 26.81 percent in 2019 primarily due to the decrease in the Alberta corporate tax rate from 12 percent to 11 percent, effective July 1, 2019.

On June 28, 2019, the Alberta government enacted legislation which reduces the Alberta corporate income tax rate from 12 percent to 8 percent over the period of July 1, 2019 through January 1, 2022. As a result of these changes in tax rates, the Company recognized a reduction of $5.0 million in its deferred income tax asset.

The net deferred income tax assets (liabilities) are expected to be settled in the following periods:



($ millions)	2019	2018
Deferred income tax:
To be settled within one year	3.5	(57.9	)
To be settled beyond one year	741.8	660.2
Deferred income tax	745.3	602.3

The movement in deferred income tax assets (liabilities) are as follows:



($ millions)	At January 1, 2019		(Charges) / credits due to acquisitions & other		(Charged) / credited to earnings		At December 31, 2019
Deferred income tax assets:
Decommissioning liability	329.6		—		(38.4	)	291.2
Income tax losses carried forward	918.1		—		14.5		932.6
Share issue costs	5.3		—		(2.8	)	2.5
Risk management contracts	—		—		4.7		4.7
Lease liabilities	—		58.4		(11.9	)	46.5
Other	16.3		(35.3	)	25.6		6.6
	1,269.3		23.1		(8.3	)	1,284.1
Deferred income tax liabilities:
Property, plant and equipment	(633.9	)	—		158.0		(475.9	)
Risk management contracts	(33.1	)	—		17.1		(16.0	)
ROU asset	—		(39.5	)	7.8		(31.7	)
Other	—		—		(15.2	)	(15.2	)
	(667.0	)	(39.5	)	167.7		(538.8	)
Net deferred income tax assets (liabilities)	602.3		(16.4	)	159.4		745.3



($ millions)	At January 1, 2018		(Charges) / credits due to acquisitions & other	(Charged) / credited to earnings		At December 31, 2018
Deferred income tax assets:
Decommissioning liability	361.3		—	(31.7	)	329.6
Income tax losses carried forward	649.5		—	268.6		918.1
Share issue costs	10.2		—	(4.9	)	5.3
Risk management contracts	33.5		—	(33.5	)	—
Other	22.2		21.3	(27.2	)	16.3
	1,076.7		21.3	171.3		1,269.3
Deferred income tax liabilities:
Property, plant and equipment	(1,417.5	)	—	783.6		(633.9	)
Risk management contracts	(17.0	)	—	(16.1	)	(33.1	)
	(1,434.5	)	—	767.5		(667.0	)
Net deferred income tax assets (liabilities)	(357.8	)	21.3	938.8		602.3

The approximate amounts of tax pools available as at December 31, 2019 and 2018 are as follows:



($ millions)	2019	2018
Tax pools:
Canada	7,691.8	8,389.0
United States	2,975.9	3,830.0
Total	10,667.7	12,219.0

Deferred tax assets are recognized to the extent of expected utilization of tax attributes, based on estimated undiscounted future cashflows included in the Company's independent reserve report.

The above tax pools include estimated Canadian non-capital losses carried forward of $1.95 billion (December 31, 2018 - $1.90 billion) that expire in the years 2026 through 2039, and U.S. net operating losses of $2.26 billion (December 31, 2018 - $1.73 billion) of which $1.63 billion will expire in the years 2029 through 2037, while the remaining $630.6 million will not expire. A deferred income tax asset has not been recognized for U.S. net operating losses of $341.4 million (December 31, 2018 - $89.7 million) or for other temporary differences of $69.0 million (December 31, 2018 - $56.2 million) as there is not sufficient certainty regarding future utilization.

At December 31, 2019, a deferred tax asset has not been recognized in respect of temporary differences associated with investments in subsidiaries as it is not likely that the temporary differences will reverse in the foreseeable future. The deductible temporary differences associated with investments in subsidiaries is approximately $1.6 billion (December 31, 2018 - $1.3 billion).

The Company received notices of reassessment from the Canada Revenue Agency in 2014 and 2015 disallowing $149.3 million of tax pools and $12.6 million of investment tax credits relating to an acquired entity. The Company has filed notices of objections in response to these reassessments and management believes that it will be successful in defending its positions. Therefore, no provision for the potential income tax liability was recorded at December 31, 2019 and December 31, 2018.