INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of components of income tax expense

The major components of income tax expense for the years ended December 31, 2023 and 2022 are set out below:


FOR THE YEARS ENDED DEC. 31 (MILLIONS)	2023		2022
Current income tax expense	$	1,908	$	1,278
Deferred income tax (recovery)/expense
Origination and reversal of temporary differences	(789)		690
Recovery arising from previously unrecognized tax assets	(116)		(447)
Change in tax rates and new legislation	8		(52)
Total deferred income tax (recovery)/expense	(897)		191
Income tax expense	$	1,011	$	1,469

Schedule of income tax rates

The company’s effective income tax rate is different from the company’s domestic statutory income tax rate due to the following differences set out below:


FOR THE YEARS ENDED DEC. 31	2023		2022
Statutory income tax rate	26	%	26	%
(Reduction)/increase in rate resulting from:

Portion of gains subject to different tax rates	(8)		(2)
Taxable income attributable to non-controlling interests	(6)		(3)
International operations subject to different tax rates	1		3
Recognition of deferred tax assets	(5)		(6)
Non-recognition of the benefit of current year’s tax losses	5		3
Non-deductible expenses	7		3
Other	(3)		(2)
Effective income tax rate	17	%	22	%

Schedule of deferred income tax assets and liabilities

Deferred income tax assets and liabilities as at December 31, 2023 and 2022 relate to the following:


AS AT DEC. 31 (MILLIONS)	2023		2022
Non-capital losses (Canada)	$	2,132	$	1,666
Capital losses (Canada)	5		77
Losses (U.S.)	3,472		3,959
Losses (International)	2,900		1,814
Difference in basis	(30,158)		(27,303)
Total net deferred tax liabilities	$	(21,649)	$	(19,787)

Disclosure of unrecognized deferred tax assets

The following table details the expiry date, if applicable, of the unrecognized deferred tax assets:


AS AT DEC. 31 (MILLIONS)	2023		2022
One year from reporting date	$	10	$	29
Two years from reporting date	13		11
Three years from reporting date	17		12
After three years from reporting date	667		672
Do not expire	2,212		1,833
Total	$	2,919	$	2,557

Schedule of components of income taxes in other comprehensive income

The components of the income taxes in other comprehensive income for the years ended December 31, 2023 and 2022 are set out below:


FOR THE YEARS ENDED DEC. 31 (MILLIONS)	2023		2022
Revaluation of property, plant and equipment	$	120	$	1,187
Financial contracts and power sale agreements	(29)		315
Fair value through OCI securities	76		(127)
Foreign currency translation	(72)		87
Revaluation of pension obligation	5		61
Total deferred tax in other comprehensive income	$	100	$	1,523