INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2019

INCOME TAXES

Income Tax (Recovery) Expense

($ millions)		2019		2018
Current:
	Current year	1 524		1 270
	Adjustments to current income tax of prior years	28		(20	)
Deferred:
	Origination and reversal of temporary differences	(819	)	345
	Adjustments in respect of deferred income tax of prior years	83		13
	Changes in tax rates and legislation	(1 124	)	—
	Movement in unrecognized deferred income tax assets	(58	)	82
Total income tax (recovery) expense		(366	)	1 690

Reconciliation of Effective Tax Rate

($ millions)		2019		2018
Earnings before income tax		2 533		4 983
Canadian statutory tax rate		26.74%		27.04%
Statutory tax		677		1 347
Add (deduct) the tax effect of:
	Non-taxable component of capital (gains) losses	(146	)	146
	Share-based compensation and other permanent items	25		31
	Assessments and adjustments	112		(7	)
	Impact of income tax rate and legislative changes	(1 067	)	—
	Foreign tax rate differential	83		111
	Non-taxable component of acquisitions and dispositions	—		(14	)
	Movement in unrecognized deferred income tax assets	(58	)	82
	Other	8		(6	)
Total income tax (recovery) expense		(366	)	1 690
Effective tax rate		(14.4	)%	33.9%

Deferred Income Tax Balances

	Deferred Income Tax (Recovery) Expense				Deferred Income Tax Liability (Asset)
($ millions)	2019		2018		December 31 2019		December 31 2018
Property, plant and equipment	(2 348	)	484		12 814		14 666
Decommissioning and restoration provision	259		46		(2 092	)	(1 854	)
Employee retirement benefit plans	32		15		(576	)	(585	)
Tax loss carry-forwards	16		(63	)	(156	)	(172	)
Other	123		(42	)	(23	)	(138	)
Net deferred income tax (recovery) expense and liability	(1 918	)	440		9 967		11 917

Change in Deferred Income Tax Balances

($ millions)	2019		2018
Net deferred income tax liability, beginning of year	11 917		11 433
Recognized in deferred income tax expense	(1 918	)	440
Recognized in other comprehensive income	(23	)	39
Foreign exchange, disposition and other	(9	)	5
Net deferred income tax liability, end of year	9 967		11 917

Deferred Tax in Shareholders' Equity

($ millions)		2019		2018
Deferred Tax in Other Comprehensive Income
	Actuarial (loss) gain on employment retirement benefit plans	(23	)	39
Total income tax (recovery) expense reported in equity		(23	)	39