v3.25.4
Tax provision (Tables)
 12 Months Ended
Dec. 31, 2025
Disclosure of Income Tax [Abstract]  
Major components of income tax
20252024
Earnings:
Current tax recovery (provision)$15 $(118)
Deferred tax recovery218 74 
Tax recovery (provision) on earnings$233 $(43)

Other comprehensive earnings:
Deferred tax provision on retirement benefit actuarial gain$(5)$(3)
Tax recovery (provision) on comprehensive earnings$228 $(46)
Income tax rate reconciliation
The tax provision differs from the amount that would have resulted from applying the British Columbia statutory income tax rate to earnings before tax as follows:
20252024
Income tax recovery (expense) at statutory rate of 27%$316 $(10)
Rate differentials between jurisdictions and on specified activities(12)(7)
Non-taxable amounts including goodwill impairment(75)(20)
Impact of functional currency differences3 (6)
Income tax credits— 5 
Valuation allowance on deferred tax attributes7 (2)
Income tax settlement(6)— 
Other— (3)
Tax recovery (provision)233 (43)

In 2025, we entered into a settlement agreement with the Canada Revenue Agency in respect of prior tax periods. As a result, we recorded an additional tax provision of $6 million in 2025.
Deferred income tax liabilities and assets
Deferred income tax liabilities (assets) are made up of the following components:
20252024
Property, plant, equipment and intangibles$599 $681 
Reforestation and decommissioning obligations(34)(27)
Employee benefits(29)(25)
Export duties79 93 
Tax loss carry-forwards1
(176)(70)
Inventory(19)(16)
Other(29)(34)
391 602 
Represented by:
Deferred income tax assets$(6)$(7)
Deferred income tax liabilities397 609 
$391 $602 
1.We have $724 million of net operating loss carry-forwards in various jurisdictions (December 31, 2024 - $304 million), $349 million of U.S. state net operating loss carry-forwards (December 31, 2024 - $227 million), and $111 million of capital loss carry-forwards (December 31, 2024 - $95 million). A portion of these losses expire over various periods starting in 2026. The net operating losses that have not been recognized as of December 31, 2025 are $22 million in various jurisdictions (December 31, 2024 - $30 million) and $211 million for U.S. states (December 31, 2024 - $205 million). Capital losses that have not been recognized as of December 31, 2025 are $111 million (December 31, 2024 - $95 million).