Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Taxes [Abstract]

Summary of Reconciliation of Income Taxes

(CAD$ in millions)	2020		2019
Tax expense (recovery) at the Canadian statutory income tax rate of 26.58% (2019 – 26.94%)	$	(302)	$	(126)
Tax effect of:
Resource taxes	106		226
Resource and depletion allowances	(68)		(85)
Non-deductible expenses (non-taxable income)	28		(6)
Impact of initial recognition exemption related to the Frontier oil sands project	—		117
Tax pools not recognized (recognition of previously unrecognized tax pools)	5		(2)
Effect due to tax legislative changes	3		(39)
Withholding taxes on foreign earnings	40		39
Difference in tax rates in foreign jurisdictions	1		(2)
Revisions to prior year estimates	(4)		2
Other	(1)		(4)
Total income taxes	$	(192)	$	120
Represented by:
Current income taxes	$	374	$	576
Deferred income taxes	(566)		(456)
Total income taxes	$	(192)	$	120

b)The continuity related to deferred tax assets and liabilities is as follows:

(CAD$ in millions)	January 1, 2020		Through Profit (Loss)		Through OCI		Through Equity		December 31, 2020
Net operating loss carryforwards	$	190	$	57	$	—	$	—	$	247
Property, plant and equipment	(144)		(22)		(2)		—		(168)
Decommissioning and restoration provisions	123		35		—		—		158
Other temporary differences	42		(13)		5		—		34
Deferred income tax assets	$	211	$	57	$	3	$	—	$	271
Net operating loss carryforwards	$	(642)	$	(408)	$	12	$	—	$	(1,038)
Property, plant and equipment	7,101		294		(26)		—		7,369
Decommissioning and restoration provisions	(637)		(327)		2		—		(962)
Unrealized foreign exchange	(116)		11		17		—		(88)
Withholding taxes	91		6		(2)		—		95
Inventories	91		19		—		—		110
Other temporary differences	14		(104)		(13)		—		(103)
Deferred income tax liabilities	$	5,902	$	(509)	$	(10)	$	—	$	5,383

(CAD$ in millions)	January 1, 2019		Through Profit (Loss)		Through OCI		Through Equity		December 31, 2019
Net operating loss carryforwards	$	139	$	54	$	(3)	$	—	$	190
Property, plant and equipment	(130)		(13)		(1)		—		(144)
Decommissioning and restoration provisions	94		29		—		—		123
Other temporary differences	57		20		(26)		(9)		42
Deferred income tax assets	$	160	$	90	$	(30)	$	(9)	$	211
Net operating loss carryforwards	$	(750)	$	111	$	3	$	(6)	$	(642)
Property, plant and equipment	7,402		(232)		(69)		—		7,101
Decommissioning and restoration provisions	(474)		(170)		7		—		(637)
U.S. alternative minimum tax credits	(38)		37		1		—		—
Unrealized foreign exchange	(146)		4		26		—		(116)
Withholding taxes	104		(8)		(5)		—		91
Inventories	97		(5)		(1)		—		91
Other temporary differences	116		(103)		1		—		14
Deferred income tax liabilities	$	6,311	$	(366)	$	(37)	$	(6)	$	5,902

Summary of Deferred Tax Expense Charged (Credited) to Income Statement

The continuity related to deferred tax assets and liabilities is as follows:

(CAD$ in millions)	January 1, 2020		Through Profit (Loss)		Through OCI		Through Equity		December 31, 2020
Net operating loss carryforwards	$	190	$	57	$	—	$	—	$	247
Property, plant and equipment	(144)		(22)		(2)		—		(168)
Decommissioning and restoration provisions	123		35		—		—		158
Other temporary differences	42		(13)		5		—		34
Deferred income tax assets	$	211	$	57	$	3	$	—	$	271
Net operating loss carryforwards	$	(642)	$	(408)	$	12	$	—	$	(1,038)
Property, plant and equipment	7,101		294		(26)		—		7,369
Decommissioning and restoration provisions	(637)		(327)		2		—		(962)
Unrealized foreign exchange	(116)		11		17		—		(88)
Withholding taxes	91		6		(2)		—		95
Inventories	91		19		—		—		110
Other temporary differences	14		(104)		(13)		—		(103)
Deferred income tax liabilities	$	5,902	$	(509)	$	(10)	$	—	$	5,383

(CAD$ in millions)	January 1, 2019		Through Profit (Loss)		Through OCI		Through Equity		December 31, 2019
Net operating loss carryforwards	$	139	$	54	$	(3)	$	—	$	190
Property, plant and equipment	(130)		(13)		(1)		—		(144)
Decommissioning and restoration provisions	94		29		—		—		123
Other temporary differences	57		20		(26)		(9)		42
Deferred income tax assets	$	160	$	90	$	(30)	$	(9)	$	211
Net operating loss carryforwards	$	(750)	$	111	$	3	$	(6)	$	(642)
Property, plant and equipment	7,402		(232)		(69)		—		7,101
Decommissioning and restoration provisions	(474)		(170)		7		—		(637)
U.S. alternative minimum tax credits	(38)		37		1		—		—
Unrealized foreign exchange	(146)		4		26		—		(116)
Withholding taxes	104		(8)		(5)		—		91
Inventories	97		(5)		(1)		—		91
Other temporary differences	116		(103)		1		—		14
Deferred income tax liabilities	$	6,311	$	(366)	$	(37)	$	(6)	$	5,902