Rogers 2015 Annual Report Download - page 112

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 12: INCOME TAXES
ACCOUNTING POLICY
Income tax expense includes both current and deferred taxes. We
recognize income tax expense in net income unless it relates to an
item recognized directly in equity or other comprehensive income.
We provide for income taxes based on all of the information that is
currently available.
Current tax expense is tax we expect to pay or receive based on
our taxable income or loss during the year. We calculate the
current tax expense using tax rates enacted or substantively
enacted as at the reporting date, including any adjustment to taxes
payable or receivable related to previous years.
Deferred tax assets and liabilities arise from temporary differences
between the carrying amounts of the assets and liabilities we
recognize on our Consolidated Statements of Financial Position
and their respective tax bases. We calculate deferred tax assets and
liabilities using enacted or substantively enacted tax rates that will
apply in the years in which the temporary differences are expected
to reverse.
Deferred tax assets and liabilities are offset if there is a legally
enforceable right to offset current tax assets and liabilities and they
relate to income taxes levied by the same authority on:
•thesametaxableentity;or
• different taxable entities where these entities intend to settle
current tax assets and liabilities on a net basis or the tax assets
and liabilities will be realized and settled simultaneously.
We recognize a deferred tax asset for unused losses, tax credits,
and deductible temporary differences to the extent it is probable
that future taxable income will be available to use the asset.
USE OF ESTIMATES AND JUDGMENTS
JUDGMENTS
We make significant judgments in interpreting tax rules and
regulations when we calculate income taxes. We make judgments
to evaluate whether we can recover a deferred tax asset based on
our assessment of existing tax laws, estimates of future profitability,
and tax planning strategies.
EXPLANATORY INFORMATION
Years ended December 31
(In millions of dollars) 2015 2014
Current tax expense:
For current year 234 497
Adjustments from reassessment –14
Total current taxes 234 511
Deferred tax expense (recovery):
Origination (reversal) of temporary
differences 226 (5)
Revaluation of deferred tax balances
due to legislative changes 6–
Total deferred taxes 232 (5)
Total income taxes 466 506
Thetablebelowshowsthedifferencebetweenincometax
expense computed by applying the statutory income tax rate to
income before income taxes and the income tax expense for the
year.
Years ended December 31
(In millions of dollars, except rates) 2015 2014
Statutory income tax rate 26.5% 26.5%
Income before income taxes 1,847 1,847
Computed income tax expense 489 489
Increase (decrease) in income taxes
resulting from:
Non-deductible (non-taxable) stock-
based compensation 5(2)
Revaluation of deferred tax balances
due to legislative changes 6–
Adjustments from reassessments –14
Non-taxablegainonacquisition (27) –
Other (7) 5
Total income taxes 466 506
Effectiveincometaxrate 25.2% 27.4%
DEFERRED TAX ASSETS AND LIABILITIES
As at December 31
(In millions of dollars) 2015 2014
Deferred tax assets 99
Deferred tax liabilities (1,943) (1,769)
Net deferred tax liability (1,934) (1,760)
110 ROGERS COMMUNICATIONS INC. 2015 ANNUAL REPORT