v3.25.4
Taxation (Tables)
 12 Months Ended
Dec. 31, 2025
Text block [abstract]  
Components of Tax Expense (Benefit)

The components of tax expense (benefit) for 2025 and 2024 are as follows:

 

 

 

 

Year ended December 31,

(millions of U.S. dollars)

 

2025

 

2024

Current tax expense

 

 

363

 

517

Deferred tax expense (benefit)

 

 

60

 

(640)

Total tax expense (benefit)

 

 

423

 

(123)
Schedule of Taxes on Items Recognized in Other Comprehensive (Loss) Income or Directly in Equity

Taxes on items recognized in “Other comprehensive income (loss)” or directly in equity in 2025 and 2024 are as follows:

 

 

 

 

Year ended December 31,

(millions of U.S. dollars)

 

2025

 

2024

Included in Other comprehensive income (loss)

 

 

 

 

 

Deferred tax (benefit) expense on cash flow hedges adjustments to equity

 

 

(1)

 

1

Deferred tax expense on fair value adjustments on financial assets

 

 

5

 

2

Deferred tax expense on remeasurement on defined benefit pension plans

 

20

 

5

Included in Equity

 

 

 

 

 

Deferred tax expense on share-based payments

 

 

11

 

4

Current tax benefit on share-based payments

 

 

(8)

 

(12)
Schedule of Reconciliation of Income Tax Expense Benefit

 

 

 

Year ended December 31,

(millions of U.S. dollars)

 

2025

 

2024

Income before tax

 

 

1,906

 

2,069

Income before tax multiplied by the standard rate of Canadian
   corporate tax of 26.5%

 

 

505

 

548

Effects of:

 

 

 

 

 

Income taxes recorded at rates different from the Canadian tax rate

 

 

(176)

 

(239)

Tax expense related to the transfer of certain technology assets

 

 

72

 

-

Net non-taxable foreign exchange and other gains and losses

 

 

(9)

 

16

Tax expense on changes in statutory intercompany investment values

 

 

30

 

12

Recognition of tax losses that arose in prior years due to changes in
   statutory intercompany investment values

 

 

(30)

 

(12)

Provision for uncertain tax positions

 

 

3

 

(9)

Recognition of tax assets that arose in prior years

 

 

-

 

(468)

Derecognition of tax assets that arose in prior years

 

 

-

 

3

Impact of changes in tax laws and rates

 

 

15

 

7

Research and development credits

 

 

(10)

 

(9)

Other adjustments related to prior years

 

 

2

 

17

Pillar Two top-up tax

 

 

5

 

4

Withholding taxes

 

 

7

 

6

Other differences

 

 

9

 

1

Total tax expense (benefit)

 

 

423

 

(123)