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76 COGECO CABLE INC. 2014 Consolidated financial statements
10. INCOME TAXES
Years ended August 31, 2014 2013
(In thousands of Canadian dollars) $$
(restated, Note 3)
Current 82,752 84,676
Deferred (29,568) (21,902)
53,184 62,774
The following table provides the reconciliation between income tax expense at the Canadian statutory federal and provincial income tax
rates and the consolidated income tax expense:
Years ended August 31, 2014 2013
(in thousands of Canadian dollars) $$
(restated, Note 3)
Profit before income taxes 262,625 247,669
Combined income tax rate 26.65% 26.96%
Income taxes at combined income tax rate 69,990 66,772
Adjustment for losses or profit subject to lower or higher tax rates 531 1,003
Income taxes arising from non-deductible expenses 1,345 3,517
Tax impacts related to investments in foreign operations (17,929) (9,554)
Changes in unrecognized benefits related to tax losses —39
Other (753) 997
Income taxes at effective income tax rate 53,184 62,774
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:
At August 31, 2014 2013
(In thousands of Canadian dollars) $$
(restated, Note 6)
Property, plant and equipment (151,343) (168,088)
Intangible assets (399,897) (385,513)
Deferred and prepaid revenue 6,482 4,735
Partnerships income (37,077) (53,629)
Non-capital losses and other tax credit carryforwards, net of unrecognized benefits related to tax losses 113,054 108,345
Other (2,930) (683)
Net deferred tax liabilities (471,711) (494,833)
Financial statement presentation:
Deferred tax assets 12,884 26,940
Deferred tax liabilities (484,595) (521,773)
Net deferred tax liabilities (471,711) (494,833)