Cogeco 2005 Annual Report Download - page 42

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3INCOME TAXES (continued)
The following table provides the reconciliation between statutory federal and provincial income taxes and the consolidated
income tax expense:
(amounts are in thousands of dollars) 2005 2004
$$
Income tax at combined income tax rate of 34.96% (35.35% in 2004) 16,341 1,794
Loss or income subject to lower or higher tax rates (218) 131
Increase in income taxes as a result of increases
in substantially enacted tax rates —32,483
Large corporation tax 1,482 3,700
Other 415 (839)
Income tax at effective income tax rate 18,020 37,269
The income tax effect of temporary differences that give rise to a significant portion of future income tax assets and liabilities are as follows:
(amounts are in thousands of dollars) 2005 2004
$$
Future income tax assets:
Non-capital loss carryforwards 29,931 49,805
Deferred and prepaid income 6,328 5,740
Other 913 1,213
Total future income tax assets 37,172 56,758
Future income tax liabilities:
Fixed assets 62,350 64,750
Deferred charges 12,961 16,132
Customer base 172,592 171,399
Total future income tax liabilities 247,903 252,281
Net future income tax liabilities 210,731 195,523
40
Cogeco Cable Inc. 2005
Notes to Consolidated Financial Statements