Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Components of Company's Deferred Tax Assets and Liabilities

The significant components of the Company’s deferred tax assets and liabilities are as follows:



	December 31, 2019 $		December 31, 2018 $
Deferred tax assets:
Vessels and equipment	1,646		5,868
Tax losses carried forward and disallowed finance costs ⁽¹⁾	164,009		155,910
Other	19,674		10,545
Total deferred tax assets	185,329		172,323
Deferred tax liabilities:
Vessels and equipment	22,913		18,037
Provisions	6,512		5,588
Other	—		2,060
Total deferred tax liabilities	29,425		25,685
Net deferred tax assets	155,904		146,638
Valuation allowance	(153,302	)	(144,560	)
Net deferred tax assets	2,602		2,078

(1)

Substantially all of the Company's estimated net operating loss carryforwards of $878.3 million relates primarily to its U.K., Spanish, Norwegian and Luxembourg subsidiaries and, to a lesser extent, to its Australian subsidiaries. The Company had estimated disallowed finance costs in Spain and Norway of approximately $15.1 million and $15.0 million, respectively, at December 31, 2019, which are available for 18 years and 10 years, respectively, from the year the costs are incurred for offset against future taxable income in Spain and Norway, respectively. The Company's estimated tax losses in Luxembourg are available for offset against taxable future income in Luxembourg, either indefinitely for losses arising prior to 2017, or for 17 years for losses arising subsequent to 2016.

Components of Provision for Income Taxes

The components of the provision for income tax expense are as follows:



	Year Ended December 31, 2019 $		Year Ended December 31, 2018 $		Year Ended December 31, 2017 $
Current	(25,563	)	(17,458	)	(11,997	)
Deferred	81		(2,266	)	(235	)
Income tax expense	(25,482	)	(19,724	)	(12,232	)

Reconciliations of Income Tax Rates and Actual Tax Charge

Reconciliations of the tax charge related to the relevant year at the applicable statutory income tax rates and the actual tax charge related to the relevant year are as follows:



	Year Ended December 31, 2019 $		Year Ended December 31, 2018 $		Year Ended December 31, 2017 $
Net loss before taxes	(123,504	)	(38,023	)	(516,840	)
Net loss not subject to taxes	(91,925	)	(104,465	)	(297,688	)
Net (loss) income subject to taxes	(31,579	)	66,442		(219,152	)
At applicable statutory tax rates	(4,352	)	15,177		(51,471	)
Permanent and currency differences, adjustments to valuation allowances and uncertain tax positions	25,177		4,639		64,164
Other	4,657		(92	)	(461	)
Tax expense related to the year	25,482		19,724		12,232

Unrecognized Tax Benefits, Recorded in Other Long-Term Liabilities

The following is a roll-forward of the Company’s uncertain tax positions, recorded in other long-term liabilities, from January 1, 2017 to December 31, 2019:



	Year Ended December 31, 2019 $		Year Ended December 31, 2018 $		Year Ended December 31, 2017 $
Balance of unrecognized tax benefits as at January 1	40,556		31,061		19,492
Increases for positions related to the current year	5,829		9,297		2,631
Changes for positions taken in prior years	19,119		981		3,475
Decreases related to statute of limitations	(2,546	)	(783	)	(1,562	)
Increase due to acquisition of TIL	—		—		8,528
Decrease due to deconsolidation of Altera	—		—		(1,503	)
Balance of unrecognized tax benefits as at December 31	62,958		40,556		31,061