14. INCOME TAXES The following table presents GFL’s income tax reconciliations for the periods indicated: | | | | | | | | | Year ended December 31, | | | 2023 | | 2022 | Income (loss) before income taxes | | $ | 192.1 | | $ | (359.3) | Income tax expenses (recovery) at the combined basic federal and provincial tax rate (26.5% in 2023; and 26.5% in 2022) | | | 50.9 | | | (95.2) | Decrease (increase) resulting from: | | | | | | | Permanent differences | | | 124.6 | | | (87.0) | Variance between combined Canadian tax rate and the tax rate applicable to U.S. income | | | (0.7) | | | 3.7 | (Recognition) de-recognition of deferred income tax assets | | | (15.8) | | | 1.2 | Other | | | 0.9 | | | 1.2 | Income tax expenses (recovery) | | $ | 159.9 | | $ | (176.1) |
The effective income tax rates differ from the amount that would be computed by applying the combined federal and provincial statutory income tax rates to loss before income taxes. Deferred income taxes Deferred income taxes represent the net tax effect of non-capital tax losses and temporary differences between the consolidated financial statement carrying amounts and the tax basis of assets and liabilities. The following table presents GFL’s deferred income tax assets and liabilities and their changes for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Recognized in | | | | | | Balance, | | Acquisitions | | | | | | | | other | | Balance, | | | December | | via business | | Foreign | | Recognized | | comprehensive | | December | | | 31, 2022 | | combinations | | exchange | | in net loss | | loss | | 31, 2023 | Deferred income tax assets | | | | | | | | | | | | | | | | | | | Non-capital loss carry forwards | | $ | 464.7 | | $ | — | | $ | (2.7) | | $ | (5.7) | | $ | — | | $ | 456.3 | Landfill closures and post-closure obligations | | | 205.0 | | | — | | | (4.1) | | | 13.8 | | | — | | | 214.7 | Accrued liabilities | | | 3.4 | | | — | | | (0.1) | | | 1.0 | | | — | | | 4.3 | Other | | | 194.7 | | | 11.9 | | | (1.0) | | | (23.0) | | | (0.4) | | | 182.2 | | | $ | 867.8 | | $ | 11.9 | | $ | (7.9) | | $ | (13.9) | | $ | (0.4) | | $ | 857.5 | Deferred income tax liabilities | | | | | | | | | | | | | | | | | | | Property and equipment | | $ | 929.9 | | $ | 11.8 | | $ | (16.9) | | $ | (85.8) | | $ | — | | $ | 839.0 | Intangible assets | | | 592.1 | | | 85.0 | | | (4.5) | | | (136.6) | | | — | | | 536.0 | Cash flow hedges | | | (15.8) | | | — | | | — | | | 0.4 | | | 9.8 | | | (5.6) | Other | | | (55.8) | | | 3.3 | | | (1.2) | | | 11.0 | | | — | | | (42.7) | | | $ | 1,450.4 | | $ | 100.1 | | $ | (22.6) | | $ | (211.0) | | $ | 9.8 | | $ | 1,326.7 |
Acquisitions via business combinations includes $4.7 million of measurement period adjustments to adjust previously reported purchase price allocations completed during prior years. As at December 31, 2023, GFL had income tax losses of approximately $1,716.0 million ($1,871.6 million as at December 31, 2022) available to carry forward to reduce future years’ taxable income. If not utilized, these losses will begin to expire in 2027 and fully expire in 2043. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Recognized in | | | | | | Balance, | | | | | Acquisitions | | | | | | | | other | | Balance, | | | December | | Discontinued | | via business | | Foreign | | Recognized | | comprehensive | | December | | | 31, 2021 | | operations | | combinations | | exchange | | in net loss | | loss | | 31, 2022 | Deferred tax assets | | | | | | | | | | | | | | | | | | | | | | Non-capital loss carry forwards | | $ | 446.8 | | $ | (13.8) | | $ | 5.7 | | $ | 11.0 | | $ | 15.0 | | $ | — | | $ | 464.7 | Landfill closures and post-closure obligations | | | 178.1 | | | — | | | 0.9 | | | 9.8 | | | 16.2 | | | — | | | 205.0 | Accrued liabilities | | | 1.2 | | | — | | | (0.3) | | | 1.2 | | | 1.3 | | | — | | | 3.4 | Other | | | 134.2 | | | 19.2 | | | 6.1 | | | (2.0) | | | 37.2 | | | — | | | 194.7 | | | $ | 760.3 | | $ | 5.4 | | $ | 12.4 | | $ | 20.0 | | $ | 69.7 | | $ | — | | $ | 867.8 | Deferred tax liabilities | | | | | | | | | | | | | | | | | | | | | | Property and equipment | | $ | 774.9 | | $ | (13.5) | | $ | 62.6 | | $ | 60.0 | | $ | 45.9 | | $ | — | | $ | 929.9 | Intangible assets | | | 711.7 | | | (1.9) | | | 3.4 | | | (1.7) | | | (119.4) | | | — | | | 592.1 | Cash flow hedges | | | 5.8 | | | — | | | — | | | — | | | — | | | (21.6) | | | (15.8) | Other | | | (8.2) | | | (3.7) | | | (2.0) | | | (4.6) | | | (37.3) | | | — | | | (55.8) | | | $ | 1,484.2 | | $ | (19.1) | | $ | 64.0 | | $ | 53.7 | | $ | (110.8) | | $ | (21.6) | | $ | 1,450.4 |
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