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60 COGECO CABLE INC. 2012 Consolidated financial statements
9. INCOME TAXES
2012 2011
(In thousands of Canadian dollars) $ $
Current 85,216 62,495
Deferred (6,560) 8,257
78,656 70,752
The following table provides the reconciliation between income tax expense at the Canadian statutory federal and provincial income tax
rates and the consolidated income tax expense:
2012 2011
(In thousands of Canadian dollars) $ $
Profit before income taxes 248,173 269,917
Combined income tax rate 27.29% 28.91%
Income tax expense at combined income tax rate 67,726 78,033
A
djustment for losses or profit subject to lower or higher tax rates 1,003 (6,271)
Increase in net deferred tax liabilities as a result of an increase in substantively enacted tax rates 11,716
Decrease in income taxes from changes in tax legislation on partnership income (3,450)
Income taxes arising from non-deductible expenses 815 543
Other 846 (1,553)
Income tax expense at effective income tax rate 78,656 70,752
The following table shows deferred income taxes resulting from temporary differences between the carrying amounts of assets and
liabilities for accounting purposes and the amounts used for tax purposes, as well as tax loss carryforwards:
A
ugust 31,
2012
August 31,
2011
September 1,
2010
(In thousands of Canadian dollars) $ $ $
Property, plant and equipment (87,451) (87,555) (85,929)
Intangible assets (147,428) (142,822) (134,278)
Deferred and prepaid revenue 2,709 5,646 5,659
Share issuance costs 858
Partnerships income (71,121) (86,801) (78,258)
Non-capital losses and other tax credit carryforwards, net of valuation allowance 5,827 3,987 2,833
Other (391) 3,072 2,248
Net deferred tax liabilities (297,855) (304,473) (286,867)
Financial statement presentation
Deferred tax assets 20,867 17,041 23,115
Deferred tax liabilities (318,722) (321,514) (309,982)
Net deferred tax liabilities (297,855) (304,473) (286,867)