Blackberry 2000 Annual Report Download - page 26

5. Income Taxes
The difference between the amount of the provision for income taxes and the amount computed by multiplying income
before taxes by the statutory rate is reconciled as follows:
February 29, February 28, February 28,
For the year ended 2000 1999 1998
Provision for income taxes based on a Canadian income
tax rate of approximately 45% $ 7,156 $ 3,861 $ 277
Increase (decrease) in taxes resulting from:
Manufacturing and processing deduction (1,067) ——
Utilization of tax loss carryforwards (838) (1,791) —
Research and development tax deductions (285) (252) (432)
Other 572 427 414
$ 5,538 $ 2,245 $ 259
The Company has non-refundable investment tax credit carry-forwards which total $5,424 as at February 29, 2000.
These investment tax credits are available to offset future federal income taxes payable. In addition, the Company has loss
carry-forwards of $9,091 for Ontario tax purposes which have arisen primarily as a result of the provincial super-allowance
on the Company's research and development expenditures. These carry-forwards expire as follows:
Investment Ontario
tax credits tax losses
In the year ending February 28, 2001 $ — $ 1,412
In the year ending February 28, 2002 — 153
In the year ending February 28, 2003 — 1,284
In the year ending February 29, 2004 — 1,974
In the year ending February 28, 2005 — 921
In the year ending February 28, 2006 — 3,347
In the year ending February 28, 2007 247 —
In the year ending February 29, 2008 669 —
In the year ending February 28, 2009 2,184 —
In the year ending February 28, 2010 2,324 —
$ 5,424 $ 9,091
In addition the Company will claim further tax deductions in future years for its financing costs. These costs are
deductible at the rate of approximately $3,570 for the year ending February 28, 2001, $3,260 for the year ending February
28, 2002, $2,840 for the year ending February 28, 2003 and $2,100 for the year ending February 29, 2004.
No portion of the potential benefit of the carry-forwards and timing differences has been reflected in these financial
statements except to offset deferred taxes of $4,940. In addition, a benefit of $3,188 relating to the deduction of financing
costs has been recorded as a deferred tax asset and credited directly to share capital. Further benefit relating to the
deduction of financing costs will be credited directly to share capital when utilized. Any benefits related to investment tax
credits claimed for capital asset acquisitions will be credited to capital assets. Any other benefits of these carry-forwards
will be credited to income in the year of recognition.
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Notes to the Consolidated Financial Statements continued ■For the years ended February 29, 2000, February 28, 1999 and February 28, 1998