v3.24.0.1
INCOME TAXES
12 Months Ended
Dec. 31, 2023
INCOME TAXES  
INCOME TAXES

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