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Income taxes (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Summary of the Major Components of the Company's Income Tax Expense
The following is a summary of the major components of the Company’s income tax (recovery) expense:
For the year ended December 31 (in millions of Canadian dollars)202320222021
Current income tax expense$909 $492 $526 
Deferred income tax (recovery) expense
Reversal of outside basis deferred tax (Note 11)(7,832)— — 
Origination and reversal of temporary differences53 101 259 
Effect of tax rate decrease(72)(25)(11)
   Effect of hedge of net investment in foreign subsidiaries and equity-method investees (Note 8)
(22)59 (3)
Other(12)1 (3)
Total deferred income tax (recovery) expense (7,885)136 242 
Total income tax (recovery) expense$(6,976)$628 $768 
(Loss) income before income tax (recovery) expense
Canada2,359 2,236 2,899 
Foreign(5,412)1,909 721 
Total (loss) income before income tax (recovery) expense (3,053)4,145 3,620 
Income tax (recovery) expense
Current
Canada377 333 404 
Foreign532 159 122 
Total current income tax expense909 492 526 
Deferred
Canada238 177 (179)
Foreign(8,123)(41)421 
Total deferred income tax (recovery) expense (7,885)136 242 
Total income tax (recovery) expense$(6,976)$628 $768 
Deferred Income Tax Assets and Liabilities The items comprising the deferred income tax assets and liabilities are as follows:
As at December 31 (in millions of Canadian dollars)20232022
Deferred income tax assets
Tax losses and other attributes carried forward$173 $70 
Liabilities carrying value in excess of tax basis276 108 
Unrealized foreign exchange losses18 50 
Environmental remediation costs50 22 
Other7 5 
Total deferred income tax assets524 255 
Valuation allowance(36)(4)
Total net deferred income tax assets$488 $251 
Deferred income tax liabilities
   Investment in Kansas City Southern (Note 12)
— 7,526 
Properties carrying value in excess of tax basis9,481 4,149 
Pensions carrying value in excess of tax basis751 691 
Intangibles carrying value in excess of tax basis789 — 
Investments carrying value in excess of tax basis(1)
473 38 
Other(1)
46 44 
Total deferred income tax liabilities11,540 12,448 
Total net deferred income tax liabilities$11,052 $12,197 
(1) 2022 comparative figures have been reclassified to conform to the current year's presentation.
Expected Income Tax Expense Reconciled to Income Tax Expense Expected income tax (recovery) expense at statutory rates is reconciled to income tax (recovery) expense as follows:
For the year ended December 31 (in millions of Canadian dollars, except percentage)202320222021
Statutory federal and provincial income tax rate (Canada)26.11 %26.12 %26.12 %
Expected income tax (recovery) expense at Canadian enacted statutory tax rates$(797)$1,083 $946 
(Decrease) increase in taxes resulting from:
Reversal of outside basis deferred tax (Note 11)(7,832)— — 
   Remeasurement loss of Kansas City Southern
1,873 — — 
Losses (gains) not subject to tax10 (9)(116)
Canadian tax rate differentials(14)(12)(22)
Foreign tax rate differentials(62)(94)(37)
Effect of tax rate decrease(72)(25)(11)
Deduction for dividends taxed on outside basis(68)(270)— 
Unrecognized tax benefits(10)(24)(2)
Inflation in Mexico(31)— — 
Valuation allowance1 — — 
Other26 (21)10 
Income tax (recovery) expense $(6,976)$628 $768 
Reconciliation of Uncertain Tax Positions in Relation to Unrecognized Tax Benefits
The following table provides a reconciliation of uncertain tax positions in relation to unrecognized tax benefits for Canada, the U.S., and Mexico for the years ended December 31:

(in millions of Canadian dollars)202320222021
Unrecognized tax benefits at January 1$20 $49 $55 
Increase in unrecognized:
Tax benefits related to the current year2 1 — 
Tax benefits related to prior years10 — — 
Tax benefits acquired with KCS2 — — 
Dispositions:
Gross uncertain tax benefits related to prior years(6)(30)(6)
Settlements with taxing authorities(6)— — 
Unrecognized tax benefits at December 31$22 $20 $49