| Schedule of Major Components of Tax Expense (income) |
The components of income tax benefit (expense) included in the determination of the profit (loss) from continuing operations comprise of: | | | | | | | | | | | | | 2022 | | 2021 | | Current tax expense | | | | | Current period income tax | $ | 39 | | | $ | 63 | | | Withholding tax | 3 | | | 21 | | | Total current tax expense | $ | 42 | | | $ | 84 | | | Deferred tax expense | | | | | Origination and reversal of temporary differences | $ | (18,849) | | | $ | (31,581) | | | Adjustments for prior periods | 304 | | | (565) | | | Change in unrecognized deductible temporary differences | 14,967 | | | 31,846 | | | Total deferred tax expense | $ | (3,578) | | | $ | (300) | | | | | | | Total income tax expense (recovery) from continuing operations | $ | (3,536) | | | $ | (216) | |
29. Income taxes (cont'd): (a)Current tax expense (cont'd):
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| Schedule of Reconciliation of Accounting Profit |
The Corporation’s effective income tax rate differs from the combined Canadian federal and provincial statutory income tax rate for companies. The principal factors causing the difference are as follows: | | | | | | | | | | | | | 2022 | | 2021 | | Net loss before income taxes (from continuing operations) | $ | (177,030) | | | $ | (114,613) | | Expected tax recovery at 27.00% (2021 – 27.00% ) | $ | (47,798) | | | $ | (30,945) | | | Increase (reduction) in income taxes resulting from: | | | | | Non-deductible expenses (non-taxable income) | 13,865 | | | 6,330 | | | Expiry of losses and ITC | 1,515 | | | 64 | | | Investment tax credits earned | (3,782) | | | (3,677) | | | Foreign tax rate and tax rate differences | 4,884 | | | 3,341 | | | Change in unrecognized deductible temporary differences | 27,777 | | | 24,651 | | | Other | 3 | | | 20 | | | Income taxes (recovery) from continuing operations | $ | (3,536) | | | $ | (216) | |
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| Schedule of Components of Deferred Tax Assets and Liabilities |
The components of the Corporation's deferred tax assets and liabilities as at December 31, 2022 are as follows: | | | | | | | | | | | | | 2022 | | 2021 | | Deferred tax assets | | | | | Losses from operations carried forward | $ | 596 | | | $ | 665 | | | Research and development tax credits | 29 | | | 32 | | | $ | 625 | | | $ | 697 | | | Deferred tax liabilities | | | | | Intangible assets | $ | (625) | | | $ | (4,275) | | | Deferred tax liabilities | $ | — | | | $ | (3,578) | |
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| Schedule of Temporary Difference, Unused Tax Losses and Unused Tax Credits |
At December 31, 2022, the Corporation did not recognize any deferred tax assets resulting from the following deductible temporary differences for financial statement and income tax purposes. | | | | | | | | | | | | | 2022 | | 2021 | | Scientific research expenditures | $ | 127,482 | | | $ | 122,742 | | | Investments | 21,463 | | | 9,357 | | | Share issuance costs | 23,588 | | | 33,100 | | | Losses from operations carried forward | 284,468 | | | 219,326 | | | Investment tax credits | 43,451 | | | 42,939 | | | Property, plant and equipment and intangible assets | 206,491 | | | 217,142 | | | $ | 706,943 | | | $ | 644,606 | |
The Corporation has available to carry forward the following as at December 31: | | | | | | | | | | | | | 2022 | | 2021 | | Canadian scientific research expenditures | $ | 127,482 | | | $ | 122,742 | | | Canadian losses from operations | 165,647 | | | 131,514 | | | Canadian investment tax credits | 40,877 | | | 42,939 | | | German losses from operations for corporate tax purposes | 501 | | | 232 | | | US federal losses from operations | 49,237 | | | 50,103 | | | Denmark losses from operations | 50,495 | | | 35,996 | | | Hong Kong losses from operations | 61 | | | 50 | | | UK losses from operations | 14,304 | | | 2,659 | | | UK research and development tax credits | 115 | | | 129 | |
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