
Years Ended December 31 (millions)	2023		2022		2021
Current income tax expense (recovery)
For current reporting year	$	67	$	96	$	82
Adjustments recognized in the current year for income tax of prior years	(5)		1		1
	62		97		83
Deferred income tax expense (recovery)
Arising from the origination and reversal of temporary differences	(55)		(31)		(15)
Adjustments recognized in the current year for income tax of prior years	(2)		1		(4)
	(57)		(30)		(19)
	$	5	$	67	$	64


Years Ended December 31 (millions, except percentages)	2023				2022				2021
Income taxes computed at applicable statutory rates	$	5	7.8	%	$	57	22.7	%	$	32	22.6	%
Non-deductible items	—		—	%	9		3.6	%	16		11.3	%
Withholding and other taxes	18		31.2	%	23		9.3	%	18		12.7	%
Losses not recognized	1		1.7	%	7		2.8	%	6		4.2	%
Foreign tax differential	(12)		(20.3)	%	(30)		(12.0)	%	(3)		(2.1)	%
Adjustments recognized in the current year for income tax of prior years	(7)		(11.9)	%	2		0.8	%	(3)		(2.1)	%
Other	—		—	%	(1)		(0.4)	%	(2)		(1.5)	%
Income tax expense	$	5	8.5	%	$	67	26.8	%	$	64	45.1	%

We must make significant estimates in respect of the composition of our deferred income taxes. Our operations are complex and the related income tax interpretations, regulations, legislation and jurisprudence are continually changing. As a result, there are usually some income tax matters in question.

Temporary differences comprising the net deferred income tax liability and the amounts of deferred income taxes recognized in the consolidated statement of income and other comprehensive income and the consolidated statement of changes in owners’ equity are estimated as follows:


(millions)	Property, plant and equipment and intangible assets subject to amortization		Net pension and share- based compensation amounts		Debt and equity issue costs		Provisions and other		Non-capital loss carried forward		Leases		Net deferred income tax asset (liability)
As at January 1, 2022	$	(316)	$	4	$	8	$	4	$	15	$	3	$	(282)
Deferred income tax (expense) recovery recognized in:
Net income	32		(3)		(2)		9		(5)		(1)		30
Other comprehensive income	8		—		—		(1)		—		—		7
Foreign currency translation	—		—		—		(5)		—		—		(5)
As at December 31, 2022	$	(276)	$	1	$	6	$	7	$	10	$	2	$	(250)
Acquired during the year & other	(83)		—		—		2		14		—		(67)
Deferred income tax (expense) recovery recognized in:
Net income	35		2		(2)		4		16		2		57
Other comprehensive income	—		—		—		4		(2)		—		2
Foreign currency translation	(3)		—		—		—		—		—		(3)
As at December 31, 2023	$	(327)	$	3	$	4	$	17	$	38	$	4	$	(261)

Temporary differences arise from the carrying value of the investments in subsidiaries exceeding their tax base, for which no deferred income tax liabilities have been recognized because the parent is able to control the timing of the reversal of the difference and it is probable that it will not reverse in the foreseeable future. In our specific instance, this is relevant to our investments in our non-Canadian subsidiaries. We are not required to recognize such deferred income tax liabilities, as we are in a position to control the timing and manner of the reversal of the temporary differences and it is probable that such differences will not reverse in the foreseeable future.

As at December 31, 2023, the Company had cumulative tax losses of $56 million for which no deferred tax assets were recognized (2022 - $53 million). Of this amount, $6 million can be carried forward indefinitely, $38 million has a 20-year carryforward period and $12 million has a 5-year carryforward period. During the year ended December 31, 2023, we recognized the benefit of $1 million (2022 - $2 million) of non-capital losses. As at December 31, 2023, the Company has a deferred tax asset of $15 million which is dependent on future earnings of the Company as management considers it probable that taxable profits would be available against which such losses can be used.