Income Taxes

12 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

Income Taxes

28. INCOME TAXES

Net loss before income taxes was generated as follows:

	Years ended
	March 31,			March 31,			March 31,
	2024			2023			2022
Domestic - Canada	$	(280,786	)	$	(2,284,864	)	$	(102,313	)
Foreign - outside of Canada		(190,569	)		(801,294	)		(165,545	)
	$	(471,355	)	$	(3,086,158	)	$	(267,858	)

The income tax (expense) recovery consists of the following:

	Years ended
	March 31,			March 31,			March 31,
	2024			2023			2022
Current
Domestic - Canada	$	(462	)	$	4,783		$	895
Foreign - outside of Canada		194			(676	)		1,476
	$	(268	)	$	4,107		$	2,371
Deferred
Domestic - Canada	$	(12,596	)	$	(2,649	)	$	6,353
Foreign - outside of Canada		537			4,270			224
		(12,059	)		1,621			6,577
Income tax (expense) recovery	$	(12,327	)	$	5,728		$	8,948

As more fully described in Note 3, income taxes that are required to be reflected in equity, instead of in the consolidated statements of operations, are included in the consolidated statements of shareholders’ equity, if applicable.

Current and deferred income tax referred to above is recognized based on the Company’s best estimate of the tax rates expected to apply to the income, loss or temporary difference. The Company is subject to income tax in numerous jurisdictions with varying tax rates. During the current year ended, there were no material changes to the enacted statutory tax rates in the jurisdictions where the majority of the Company’s income for tax purposes was earned or where its material temporary differences or losses are expected to be realized or settled, however the impact of commercial decisions and market forces result in changes to the distribution of income for tax purposes amongst taxing jurisdictions that may result in a change of the effective tax rate applicable to such income, loss or temporary difference.

A reconciliation of the amount of income taxes reflected above compared to the expected income taxes calculated at the combined Canadian federal and provincial enacted statutory tax rate of 26.5% for each of the three years ended March 31, 2024, 2023 and 2022 is as follows:

	Years ended
	March 31,			March 31,			March 31,
	2024			2023			2022
Net loss before income taxes	$	(471,355	)	$	(3,086,158	)	$	(267,858	)
Expected tax rate		26.5	%		26.5	%		26.5	%
Expected income tax recovery		124,909			817,832			70,982
Non-deductible and non-taxable items		5,072			(29,292	)		17,557
Fair value changes on Acreage Arrangement		(1,191	)		12,386			146,545
Fair value changes on warrant derivative liability		-			6,294			155,964
Settlement of unsecured senior notes		(11,360	)		(14,862	)		-
Share-based compensation		(2,796	)		(2,126	)		(9,908	)
Goodwill impairment		-			(473,702	)		-
Change in valuation allowance		(137,213	)		(252,260	)		(344,965	)
Effect of tax rates outside of Canada		3,072			(4,596	)		8,459
Non-taxable portion of capital gains and losses		(77,076	)		(48,573	)		(38,440	)
Effect from divestiture of consolidated entities		84,842			-			-
Other		(586	)		(5,373	)		2,754
Income tax (expense) recovery	$	(12,327	)	$	5,728		$	8,948

Current income taxes payable in the amount of $512 (March 31, 2023 – $1,592) is included in accounts payable and current income taxes receivable in the amount of $485 (March 31, 2023 – $5,446) is included in other accounts receivable.

The Company continues to believe that the amount of unrealized tax benefits appropriately reflects the uncertainty of items that are or may in the future be under discussion, audit, dispute or appeal with a tax authority or which otherwise result in uncertainty in the determination of income for tax purposes. If appropriate, an unrealized tax benefit will be realized in the year in which the Company determines that realization is not in doubt. Where the final determined outcome is different from the Company’s estimate, such difference will impact the Company’s income taxes in the year during which such determination is made.

Significant components of deferred income tax assets (liabilities) consist of the following:

	Years ended
	March 31,			March 31,
	2024			2023
Deferred income tax assets
Property, plant and equipment	$	94,386		$	104,015
Intangible assets		14,017			11,202
Inventory reserves and write-downs		6,448			18,749
Other reserves and accruals		4,590			5,988
Losses carried forward		1,115,772			1,063,994
Equity method investments and other financial assets		95,266			72,881
Deferred financing costs		15,013			4,596
Unrealized Losses		59,167			-
Other		13,145			10,361
Gross deferred income tax assets		1,417,804			1,291,786
Valuation allowances		(1,415,794	)		(1,278,581	)
Total deferred income tax assets, net	$	2,010		$	13,205
Deferred income tax liabilities
Property, plant and equipment	$	-		$	(3,475	)
Intangible assets		(29	)		(7,788	)
Deferred financing costs		-			(1,345	)
Total deferred income tax liabilities		(29	)		(12,608	)
Net deferred income tax assets	$	1,981		$	597

In evaluating whether it is more likely than not that all or a portion of a deferred income tax asset will be realized consideration is given to the estimated reversal of deferred income tax liabilities and future taxable income. The Company has recognized valuation allowances for operating losses carried forward, capital losses carried forward and other deferred income tax assets when it is believed that it is more likely than not that these items will not be realized.

As at March 31, 2024, the Company had temporary differences associated with investments in foreign subsidiaries for which no deferred income tax liabilities have been recognized, as the Company is able to control the timing of the reversal of these temporary differences and material undistributed earnings are considered permanently invested. Determination of the amount of the unrecognized deferred income tax liability is not practicable due to the inherent complexity of the multi-jurisdictional operations of the Company.

As at March 31, 2024, the Company has the following losses carried forward available to reduce future years’ taxable income, which losses expire as follows:

Expiring within 5 years	$	1,512
Expiring between 5 and 10 years		13,547
Expiring between 10 and 15 years		615,838
Expiring between 15 and 20 years		2,374,046
Indefinite		539,273
	$	3,544,216

Total in Canada	$	3,003,430
Total in United States		490,039
Total in Europe		50,747
	$	3,544,216

Total operating losses	$	3,544,216
Total capital losses (carried forward indefinitely)		1,372,414
	$	4,916,630