Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Taxes [Abstract]

Summary of Reconciliation of Income Taxes

Tax rate reconciliation to the Canadian statutory income tax rate

(CAD$ in millions)	2022		2021
Profit from continuing operations before taxes	$	6,565	$	4,688
Loss from discontinued operations before taxes	(956)		(156)
Profit for the year from continuing and discontinued operations before taxes	$	5,609	$	4,532
Tax expense at the Canadian statutory income tax rate of 26.53% (2021 – 26.54%)	$	1,488	$	1,203
Tax effect of:
Resource taxes	670		426
Resource and depletion allowances	(96)		(61)
Non-deductible expenses (non-taxable income)	74		69
Tax pools not recognized (recognition of previously unrecognized tax pools)	5		(56)
Difference in tax rates in foreign jurisdictions	76		75
Revisions to prior year estimates	15		(14)
Non-controlling interests	(21)		(15)
Effect from sale of Fort Hills	83		—
Other	17		(10)
Total income taxes from continuing and discontinued operations	$	2,311	$	1,617
Represented by:
Current income taxes	1,413		978
Deferred income taxes	898		639
Total income taxes from continuing and discontinued operations	$	2,311	$	1,617
Provision for income taxes from continuing operations	2,495		1,518
Provision for (recovery of) income taxes from discontinued operations	(184)		99
Total income taxes from continuing and discontinued operations	$	2,311	$	1,617

Current income taxes are accrued and paid in all jurisdictions in which we operate.

22.    Income Taxes (continued)

b) Continuity of deferred tax assets and liabilities

(CAD$ in millions)	January 1, 2022		Through Profit (Loss)		Through OCI		Transfer		December 31, 2022
Net operating loss and capital loss carryforwards	$	141	$	(98)	$	5	$	—	$	48
Property, plant and equipment	(180)		15		—		—		(165)
Decommissioning and restoration provisions	190		(35)		—		—		155
Other timing differences (TDs)	10		51		(24)		—		37
Deferred income tax assets	$	161	$	(67)	$	(19)	$	—	$	75
Net operating loss and capital loss carryforwards	$	(532)	$	93	$	(19)	$	—	$	(458)
Property, plant and equipment	7,546		(333)		89		(68)		7,234
Decommissioning and restoration provisions	(1,050)		261		(14)		—		(803)
Unrealized foreign exchange	(85)		3		(9)		—		(91)
Withholding taxes	100		27		6		—		133
Inventories	156		(9)		1		—		148
Partnership income deferral and other TDs	(162)		789		(12)		—		615
Deferred income tax liabilities	$	5,973	$	831	$	42	$	(68)	$	6,778

The transfer column refers to deferred tax assets and deferred tax liabilities related to assets held for sale (Note 5).

(CAD$ in millions)	January 1, 2021		Through Profit (Loss)		Through OCI		December 31, 2021
Net operating loss and capital loss carryforwards	$	247	$	(106)	$	—	$	141
Property, plant and equipment	(168)		(12)		—		(180)
Decommissioning and restoration provisions	158		32		—		190
Other temporary differences	34		(19)		(5)		10
Deferred income tax assets	$	271	$	(105)	$	(5)	$	161
Net operating loss and capital loss carryforwards	$	(1,038)	$	503	$	3	$	(532)
Property, plant and equipment	7,369		176		1		7,546
Decommissioning and restoration provisions	(962)		(86)		(2)		(1,050)
Unrealized foreign exchange	(88)		1		2		(85)
Withholding taxes	95		6		(1)		100
Inventories	110		47		(1)		156
Other temporary differences	(103)		(113)		54		(162)
Deferred income tax liabilities	$	5,383	$	534	$	56	$	5,973

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

Continuity of deferred tax assets and liabilities

(CAD$ in millions)	January 1, 2022		Through Profit (Loss)		Through OCI		Transfer		December 31, 2022
Net operating loss and capital loss carryforwards	$	141	$	(98)	$	5	$	—	$	48
Property, plant and equipment	(180)		15		—		—		(165)
Decommissioning and restoration provisions	190		(35)		—		—		155
Other timing differences (TDs)	10		51		(24)		—		37
Deferred income tax assets	$	161	$	(67)	$	(19)	$	—	$	75
Net operating loss and capital loss carryforwards	$	(532)	$	93	$	(19)	$	—	$	(458)
Property, plant and equipment	7,546		(333)		89		(68)		7,234
Decommissioning and restoration provisions	(1,050)		261		(14)		—		(803)
Unrealized foreign exchange	(85)		3		(9)		—		(91)
Withholding taxes	100		27		6		—		133
Inventories	156		(9)		1		—		148
Partnership income deferral and other TDs	(162)		789		(12)		—		615
Deferred income tax liabilities	$	5,973	$	831	$	42	$	(68)	$	6,778

The transfer column refers to deferred tax assets and deferred tax liabilities related to assets held for sale (Note 5).

(CAD$ in millions)	January 1, 2021		Through Profit (Loss)		Through OCI		December 31, 2021
Net operating loss and capital loss carryforwards	$	247	$	(106)	$	—	$	141
Property, plant and equipment	(168)		(12)		—		(180)
Decommissioning and restoration provisions	158		32		—		190
Other temporary differences	34		(19)		(5)		10
Deferred income tax assets	$	271	$	(105)	$	(5)	$	161
Net operating loss and capital loss carryforwards	$	(1,038)	$	503	$	3	$	(532)
Property, plant and equipment	7,369		176		1		7,546
Decommissioning and restoration provisions	(962)		(86)		(2)		(1,050)
Unrealized foreign exchange	(88)		1		2		(85)
Withholding taxes	95		6		(1)		100
Inventories	110		47		(1)		156
Other temporary differences	(103)		(113)		54		(162)
Deferred income tax liabilities	$	5,383	$	534	$	56	$	5,973