INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Income Taxes [Abstract]

Deferred income tax balances

The sources of deferred income tax balances are as follows:

	As of December 31,
US$ MILLIONS	2022		2021
Deferred income tax assets
Financial instruments and other	$	41	$	17
Tax losses carried forward	37		43
	$	78	$	60
Deferred income tax liabilities
Long-lived assets	$	(1,573)	$	(1,646)
Net deferred income tax liabilities	$	(1,495)	$	(1,586)
Reflected in the statement of financial position as follows:
Deferred tax assets	$	43	$	52
Deferred tax liabilities	(1,538)		(1,638)
Net deferred tax liabilities	$	(1,495)	$	(1,586)

The sources of deferred income tax balances and movements are as follows:

			Recognized in
US$ MILLIONS	Jan. 1, 2022		Net Income		Other Comprehensive Income		Other(1)		Acquisitions/Dispositions		Dec. 31, 2022
Deferred tax assets related to non-capital losses and capital losses	$	43	$	(1)	$	—	$	(5)	$	—	$	37
Deferred tax liabilities related to differences in tax and book basis, net	(1,629)		80		(14)		31		—		(1,532)
Net deferred tax liabilities	$	(1,586)	$	79	$	(14)	$	26	$	—	$	(1,495)

			Recognized in
US$ MILLIONS	Jan. 1, 2021		Net Income		Other Comprehensive Income		Other(1)		Acquisitions/Dispositions		Dec. 31, 2021
Deferred tax assets related to non-capital losses and capital losses	$	34	$	9	$	—	$	—	$	—	$	43
Deferred tax liabilities related to differences in tax and book basis, net	(1,434)		(180)		(121)		66		40		(1,629)
Net deferred tax liabilities	$	(1,400)	$	(171)	$	(121)	$	66	$	40	$	(1,586)

(1)Other items relate to foreign exchange as deferred income taxes are calculated based on the functional currency of each operating entity.

	For the year ended December 31,
US$ MILLIONS	2022		2021		2020
Deferred tax arising on income and expenses recognized in other comprehensive income
Revaluation of property, plant and equipment	$	25	$	121	$	67
Cash flow hedges	(19)		—		1
Other	8
Total income tax recognized directly in other comprehensive income	$	14	$	121	$	68

Components of income tax expense (recovery)

The major components of income tax expense include the following:

	For the year ended December 31,
US$ MILLIONS	2022		2021		2020
Tax expense comprises:
Current income tax expense	$	341	$	234	$	167
Deferred income tax expense
Origination and reversal of temporary differences	16		59		67
Change in tax rates or the imposition of new taxes	—		96		27
Deferred tax assets (recognized)/not recognized	(95)		16		8
Total income tax expense	$	262	$	405	$	269
Income tax on income before tax and non-controlling interests reconciles to tax expense as follows:
Net income before income tax and non-controlling interests	$	1,881	$	432	$	37
Income tax expense calculated at the domestic rates applicable to profits in the country concerned	576		179		70
Change in tax rates and new legislation	—		96		27
International operations subject to different tax rates	(1)		(2)		(3)
Taxable income attributable to non-controlling interests	(2)		(4)		(5)
Portion of gains subject to different tax rates	—		(37)		—
Deferred tax assets (recognized)/not recognized	(95)		16		8
Foreign exchange	12		2		17
Non-deductible dividends on exchangeable shares	42		30		18
Non-deductible remeasurement adjustments on exchangeable and class B shares	(280)		119		136
Permanent differences and other	10		6		1
Income tax expense recognized in profit or loss	$	262	$	405	$	269