Rogers 2013 Annual Report Download - page 110

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 9: INCOME TAXES
Income Tax Expense (Benefit)
Years ended December 31 Note 2013 2012
Continuing operations:
Current income tax expense $ 513 $ 428
Deferred tax expense (benefit):
Origination and reversal of
temporary differences 89 160
Revaluation of deferred tax
balances due to legislative
changes 854
Recognition of previously
unrecognized deferred tax assets (14) (22)
Total deferred tax expense 83 192
Income tax expense from continuing
operations 596 620
Income tax expense from discontinued
operations 6–(10)
Total income tax expense $ 596 $ 610
The table below shows the difference between income tax expense from
continuing operations, and income tax expense computed by applying
the statutory income tax rate to income before income taxes.
2013 2012
Statutory income tax rate 26.5% 26.4%
Computed income tax expense $ 600 $ 619
Increase (decrease) in income taxes resulting
from:
Revaluation of deferred tax balances due to
legislative changes 854
Non-taxable portion of capital gains (9) (61)
Recognition of previously unrecognized
deferred tax assets (14) (22)
Impairment of goodwill and intangible assets –11
Non-deductible stock-based compensation 89
Other items 310
Income tax expense from continuing operations $ 596 $ 620
Our statutory income tax rate increased from 26.4% in 2012 to 26.5%
in 2013 because of changes in Canadian provincial corporate income
tax rates.
Deferred Tax Assets and Liabilities
2013 2012
Deferred tax assets $31 $31
Deferred tax liabilities (1,702) (1,501)
Net deferred tax liability $ (1,671) $ (1,470)
The table below summarizes the movement of net deferred tax assets and liabilities during 2013 and 2012.
Deferred tax assets (liabilities)
Property, plant and
equipment and
Inventory
Goodwill and
other
intangibles
Stub period
income and
partnership
reserve
Non-capital loss
carryforwards Other Total
January 1, 2012 $ (484) $ (421) $ (807) $ 104 $ 248 $ (1,360)
Benefit (expense) in net income (117) 61 72 (79) (129) (192)
Benefit (expense) in other comprehensive income – – – – 82 82
December 31, 2012 (601) (360) (735) 25 201 (1,470)
Benefit (expense) in net income (135) (9) 141 19 (99) (83)
Benefit (expense) in other comprehensive income – – – – (49) (49)
Acquisitions (16) (60) – 2 5 (69)
December 31, 2013 $ (752) $ (429) $ (594) $ 46 $ 58 $ (1,671)
As at December 31, 2013 and 2012, we had not recognized deferred
tax assets for the following items.
2013 2012
Capital losses in Canada that can be applied against future
capital gains $43 $44
Tax losses in foreign jurisdictions that expire between 2023
and 2033 17 34
Deductible temporary differences in foreign jurisdictions 32 45
$92 $ 123
There are taxable temporary differences associated with our investment
in Canadian domestic subsidiaries. We do not record deferred tax
liabilities for temporary differences when we are able to control the
timing of the reversal, and the reversal is not probable in the
foreseeable future. Reversing these temporary differences would not
result in any significant tax implications.
106 ROGERS COMMUNICATIONS INC. 2013 ANNUAL REPORT