Income taxes

12 Months Ended

Dec. 31, 2021



Note 9			Income taxes

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


FOR THE YEAR ENDED DECEMBER 31		2021	2020
Current taxes
	Current taxes	(872)	(776)
	Uncertain tax positions	12	26
	Change in estimate relating to prior periods	42	32
	Previously unrecognized tax benefits	—	40

Deferred taxes
	Deferred taxes relating to the origination and reversal of temporary differences	(184)	(107)
	Change in estimate relating to prior periods	(40)	(26)
	Recognition and utilization of loss carryforwards	(21)	15
	Previously unrecognized tax benefits	15	—
	Effect of change in provincial corporate tax rate	—	9
	Uncertain tax positions	4	(5)
Total income taxes		(1,044)	(792)

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 26.8% for 2021 and 26.9% for 2020.


FOR THE YEAR ENDED DECEMBER 31	2021		2020
Net earnings from continuing operations	2,892		2,473
Add back income taxes	1,044		792
Earnings from continuing operations before income taxes	3,936		3,265
Applicable statutory tax rate	26.8	%	26.9	%
Income taxes computed at applicable statutory rates	(1,055)		(878)
Non-taxable portion of (losses) gains on investments	(1)		1
Uncertain tax positions	16		21

Effect of change in provincial corporate tax rate	—		9
Change in estimate relating to prior periods	2		6
Non-taxable portion of equity (losses) gains	(26)		2
Previously unrecognized tax benefits	15		47
Other	5		—
Total income taxes from continuing operations	(1,044)		(792)
Average effective tax rate	26.5	%	24.3	%

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


FOR THE YEAR ENDED DECEMBER 31	2021		2020
	OTHER COMPREHENSIVE INCOME	DEFICIT	OTHER COMPREHENSIVE INCOME	DEFICIT
Current taxes	—	1	—	14
Deferred taxes	(677)	30	(172)	(20)
Total income taxes (expense) recovery	(677)	31	(172)	(6)

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	NON- CAPITAL LOSS CARRY- FORWARDS	POST- EMPLOYMENT BENEFIT PLANS	INDEFINITE- LIFE INTANGIBLE ASSETS	PROPERTY, PLANT AND EQUIPMENT AND FINITE- LIFE INTANGIBLE ASSETS	CRTC TANGIBLE BENEFITS	OTHER	TOTAL
January 1, 2020	31	364	(1,763)	(1,779)	7	(323)	(3,463)
Income statement	13	5	46	(426)	(7)	255	(114)
Business acquisitions	25	—	—	—	—	1	26
Other comprehensive income	—	(184)	—	—	—	12	(172)
Deficit	—	—	—	—	—	(20)	(20)
Discontinued operations	—	—	—	30	—	—	30
Other	—	—	—	—	—	9	9
December 31, 2020	69	185	(1,717)	(2,175)	—	(66)	(3,704)
Income statement	(10)	2	16	(253)	—	19	(226)
Business acquisitions	4	—	—	(9)	—	1	(4)
Other comprehensive income	—	(653)	—	—	—	(24)	(677)
Deficit	—	—	—	16	—	14	30
Reclassified to liabilities held for sale	—	—	—	4	—	1	5
Other	—	—	—	—	—	2	2
December 31,2021	63	(466)	(1,701)	(2,417)	—	(53)	(4,574)

At December 31, 2021, BCE had $266 million of non-capital loss carryforwards. We:

•recognized a deferred tax asset of $63 million for $249 million of the non-capital loss carryforwards. These non-capital loss carryforwards expire in varying annual amounts from 2024 to 2041.

•did not recognize a deferred tax asset for $17 million of non-capital loss carryforwards. This balance expires in varying annual amounts from 2023 to 2041.

At December 31, 2021, BCE had $69 million of unrecognized capital loss carryforwards, which can be carried forward indefinitely.

At December 31, 2020, BCE had $357 million of non-capital loss carryforwards. We:

•recognized a deferred tax asset of $69 million for $263 million of the non-capital loss carryforwards. These non-capital loss carryforwards expire in varying annual amounts from 2025 to 2040.

•did not recognize a deferred tax asset for $94 million of non-capital loss carryforwards. This balance expires in varying annual amounts from 2024 to 2038.

At December 31, 2020, BCE had $64 million of unrecognized capital loss carryforwards, which can be carried forward indefinitely.