Income Taxes

12 Months Ended

Dec. 31, 2021

Income tax recovery for the years ended December 31, 2021 and 2020 is as follows:


	For the year ended December 31, 2021	For the year ended December 31, 2020
	$	$
Current income tax expense
Expense for the year	1,236	239
Current income tax expense	1,236	239
Deferred income tax recovery
Origination and reversal of temporary differences in the current year	(1,002)	(41,812)

Deferred income tax expense (recovery)	(1,002)	(41,812)
Income tax expense (recovery)	234	(41,573)

A reconciliation of the provision for income taxes computed at the combined Canadian federal and provincial statutory rate to the provision for income taxes as shown in the consolidated statement of income and comprehensive income for the years ended and December 31, 2021 and 2020, is as follows:


	For the year ended December 31, 2021		For the year ended December 31, 2020
	$		$
Income (loss) before income taxes	(1,225)		(21,462)
Statutory tax rate	26.5	%	26.5	%
Income tax expense (recovery) at statutory rates	(325)		(5,687)
Reconciling items:
Not deductible listing expenses	—		5,346
Not deductible expenses	199		898
Differences in foreign statutory tax rates	170		—
Impact of change of tax status	—		(35,111)
Foreign withholding tax	302		239
Temporary differences subject to initial recognition exemption	64		23
Foreign exchange	—		(7,206)
Other	(176)		(75)
Net income tax expense (recovery)	234		(41,573)

For the year ended December 31, 2020 and as a result of the transactions described in Note 10, the tax bases of Orion Fund II Portfolio assets were increased, creating temporary differences. These assets became taxable in Canada, for which a deferred tax asset and a corresponding income tax recovery of $35,111,000 was recorded. Deferred tax asset has been recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilized.

The significant components and movement of deferred income tax assets and liabilities as at December 31, 2021 and 2020 and for the year then ended are as follows:


	As at December 31, 2020	Consolidated statement of income	Equity	As at December 31, 2021
	$	$	$	$
Deferred income tax assets:
Deductible temporary differences relating to:
Royalty, stream and other interests	39,642	(3,434)	—	36,208
Deferred and restricted share units	393	467	—	860
Share and debt issue expenses	233	(41)	—	192
Non-capital loss carry-forwards	1,990	3,811	—	5,801

	42,258	803	—	43,061

Deferred income tax liabilities:
Taxable temporary differences relating to:
Gold Prepay Loan	199	(199)	—	—
	199	(199)	—	—
Deferred income tax assets, net	42,059	1,002	—	43,061


	As as January 1, 2020	Consolidated statement of income	Equity	As at December 31, 2020
	$	$	$	$
Deferred income tax assets:
Deductible temporary differences relating to:
Royalty, stream and other interests	—	39,642	—	39,642
Deferred and restricted share units	—	393	—	393
Share and debt issue expenses	—	(14)	247	233
Non-capital loss carry-forwards	—	1,990	—	1,990
	—	42,011	247	42,258

Deferred income tax liabilities:
Taxable temporary differences relating to:
Gold Prepay Loan	—	199	—	199
	—	199	—	199
Deferred income tax assets, net	—	41,812	247	42,059

Deferred tax assets and liabilities have been offset in the consolidated balance sheets where they relate to income taxes levied by the same taxation authority and the Company has the legal right and intent to offset.