Westjet 2005 Annual Report Download - page 58

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56
YOUR OWNERS’ MANUAL
8. Income taxes:
Income taxes vary from the amount that would be computed by applying the basic Federal and Provincial tax rate of 35.04%
(2004 – 35.38%) to earnings (loss) before income taxes as follows:
2005 2004
Expected income tax provision $ 18,212 $ (5,652)
Add (deduct):
Non-deductible expenses 1,219 986
Non-deductible stock-based compensation 6,208 4,329
Non-taxable portion of capital gains (1,470) –
Large corporation tax and capital taxes 5,009 3,721
Future tax rate reductions (1,426) (1,739)
Other 222 (453)
$ 27,974 $ 1,192
The components of the net future income tax liability are as follows:
2005 2004
Future income tax liability:
Property and equipment $ 148,467 $ 69,547
Future income tax asset:
Share issue costs (1,368) (2,165)
Non-capital losses (44,448) –
Net future income tax liability $ 102,651 $ 67,382
Cash taxes paid during the year were $10,151,000 (2004 – $7,903,000).
The Corporation has recognized a benefit on $126.3 million of non-capital losses which are available for carry forward to
reduce taxable income in future years. These losses are scheduled to expire in the year 2014.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
WestJet Airlines Ltd.
Years ended December 31, 2005 and 2004
(Tabular Amounts are Stated in Thousands of Dollars, Except Share and Per Share Data)