Note 9 Income taxes

The following table shows the significant components of income taxes deducted from net earnings.



FOR THE YEAR ENDED DECEMBER 31		2017		2016
Current taxes
	Current taxes	(758	)	(850	)
	Uncertain tax positions	(9	)	(14	)
	Change in estimate relating to prior periods	40		14
	Other	—		(1	)
Deferred taxes
	Deferred taxes relating to the origination and reversal of temporary differences	(41	)	(299	)
	Change in estimate relating to prior periods	11		32
	Recognition and utilization of loss carryforwards	(304	)	(1	)
	Effect of change in provincial corporate tax rate	(3	)	4
	Resolution of uncertain tax positions	25		5
Total income taxes		(1,039	)	(1,110	)

The following table reconciles the amount of reported income taxes in the income statements with income taxes calculated at a statutory income tax rate of 27.1% for 2017 and 2016.



FOR THE YEAR ENDED DECEMBER 31	2017		2016
Net earnings	2,970		3,087
Add back income taxes	1,039		1,110
Earnings before income taxes	4,009		4,197
Applicable statutory tax rate	27.1	%	27.1	%
Income taxes computed at applicable statutory rates	(1,086	)	(1,137	)
Non-taxable portion of (losses) gains on investments	(1	)	11
Uncertain tax positions	16		(9	)
Effect of change in provincial corporate tax rate	(3	)	4
Change in estimate relating to prior periods	51		46
Non-taxable portion of equity losses	(10	)	(23	)
Other	(6	)	(2	)
Total income taxes	(1,039	)	(1,110	)
Average effective tax rate	25.9	%	26.4	%

The following table shows aggregate current and deferred taxes relating to items recognized outside the income statements.



FOR THE YEAR ENDED DECEMBER 31	2017		2016
	OTHER COMPREHENSIVE LOSS	DEFICIT	OTHER COMPREHENSIVE LOSS		DEFICIT
Current taxes	10	9	127		11
Deferred taxes	103	2	(32	)	6
Total income tax recovery	113	11	95		17

The following table shows deferred taxes resulting from temporary differences between the carrying amounts of assets and liabilities recognized in the statements of financial position and their corresponding tax basis, as well as tax loss carryforwards.



NET DEFERRED TAX LIABILITY	NOTE	NON- CAPITAL LOSS CARRY- FORWARDS		POST EMPLOYMENT BENEFIT PLANS		INDEFINITE- LIFE INTANGIBLE ASSETS		PROPERTY, PLANT AND EQUIPMENT AND FINITE- LIFE INTANGIBLE ASSETS		INVESTMENT TAX CREDITS		CRTC TANGIBLE BENEFITS		OTHER		TOTAL
January 1, 2016		12		520		(1,619	)	(968	)	(6	)	61		265		(1,735	)
Income statement		(1	)	(28	)	(61	)	(152	)	(3	)	(17	)	3		(259	)
Business acquisitions		10		—		—		(79	)	—		—		(6	)	(75	)
Other comprehensive income		—		(38	)	—		—		—		—		6		(32	)
Deficit		—		—		—		—		—		—		6		6
Other		—		—		—		—		—		—		(8	)	(8	)
December 31, 2016		21		454		(1,680	)	(1,199	)	(9	)	44		266		(2,103	)
Income statement		(304	)	(31	)	(8	)	12		7		(14	)	26		(312	)
Business acquisitions	3	300		(11	)	(73	)	(223	)	(5	)	—		24		12
Other comprehensive income		—		82		—		—		—		—		21		103
Deficit		—		—		—		—		—		—		2		2
Other		—		—		—		(3	)	—		—		(2	)	(5	)
December 31, 2017		17		494		(1,761	)	(1,413	)	(7	)	30		337		(2,303	)

At December 31, 2017, BCE had $208 million of non-capital loss carryforwards. We:


•	recognized a deferred tax asset of $17 million for $64 million of the non-capital loss carryforwards. These non-capital loss carryforwards expire in varying annual amounts from 2029 to 2037.


•	did not recognize a deferred tax asset for $144 million of non-capital loss carryforwards. This balance expires in varying annual amounts from 2023 to 2037.

At December 31, 2017, BCE had $827 million of unrecognized capital loss carryforwards which can be carried forward indefinitely.

At December 31, 2016, BCE had $221 million of non-capital loss carryforwards. We:


•	recognized a deferred tax asset of $21 million, of which $11 million related to Q9, for $77 million of the non-capital loss carryforwards. These non-capital loss carryforwards expire in varying annual amounts from 2029 to 2036.


•	did not recognize a deferred tax asset for $144 million of non-capital loss carryforwards. This balance expires in varying annual amounts from 2023 to 2035.

At December 31, 2016, BCE had $765 million of unrecognized capital loss carryforwards which can be carried forward indefinitely.