| Income taxes |
Income taxes
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Year ended September 30 |
|
2025 |
2024 |
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$ |
$ |
| Current income tax expense |
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|
Current income tax expense in respect of the current year |
628,169 |
|
731,338 |
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|
Adjustments recognized in the current year in relation to the income tax (recovery) expense of prior years |
(44,889) |
|
12,998 |
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Total current income tax expense |
583,280 |
|
744,336 |
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| Deferred income tax expense (recovery) |
|
|
| Deferred income tax recovery relating to the origination and reversal of temporary differences |
(33,531) |
|
(118,893) |
|
| Deferred income tax recovery relating to changes in tax rates |
(1,619) |
|
— |
|
Adjustments recognized in the current year in relation to the deferred income tax expense (recovery) of prior years |
35,775 |
|
(27,207) |
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|
|
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| Total deferred income tax expense (recovery) |
625 |
|
(146,100) |
|
Total income tax expense |
583,905 |
|
598,236 |
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The Company’s effective income tax rate differs from the combined Federal and Provincial Canadian statutory tax rate as follows:
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Year ended September 30 |
|
2025 |
2024 |
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% |
% |
| Company's statutory tax rate |
26.5 |
|
26.5 |
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| Effect of foreign tax rate differences |
(0.7) |
|
(0.3) |
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| Final determination from agreements with tax authorities and expirations of statutes of limitations |
(0.4) |
|
(0.3) |
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| Non-deductible and tax exempt items |
0.5 |
|
0.3 |
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| Recognition of previously unrecognized temporary differences |
— |
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(0.3) |
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| Minimum income tax charge |
0.2 |
|
0.2 |
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| Changes in tax laws and rates |
(0.1) |
|
— |
|
| Effective income tax rate |
26.0 |
|
26.1 |
| 16. Income taxes (continued) The continuity schedule of deferred tax balances is as follows:
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As at
September 30, 2024 |
Additions
from
business acquisitions |
Recognized in earnings |
Recognized
in other comprehensive income |
Recognized
in equity |
Foreign currency translation adjustment and other |
As at
September 30,
2025 |
|
$ |
$ |
$ |
$ |
$ |
$ |
$ |
Accounts payable, accrued compensation and liabilities, provisions, and other long-term liabilities |
132,021 |
|
— |
|
(13,894) |
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— |
|
(5,811) |
|
3,933 |
|
116,249 |
|
Tax benefits on losses carried
forward |
51,180 |
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— |
|
618 |
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— |
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— |
|
2,164 |
|
53,962 |
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|
|
|
|
|
|
|
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| Retirement benefits obligations |
27,034 |
|
— |
|
2,297 |
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(13,062) |
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— |
|
2,125 |
|
18,394 |
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Capitalized research and
development |
174,467 |
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— |
|
18,545 |
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— |
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— |
|
5,370 |
|
198,382 |
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| Lease liabilities |
156,479 |
|
4,360 |
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(712) |
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— |
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— |
|
7,925 |
|
168,052 |
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PP&E, contract costs, intangible assets and other long-term assets |
(73,149) |
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(44,860) |
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(4,353) |
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— |
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— |
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(4,801) |
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(127,163) |
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| Right-of-use assets |
(123,982) |
|
(4,360) |
|
3,237 |
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— |
|
— |
|
(6,800) |
|
(131,905) |
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| Work in progress |
(15,621) |
|
— |
|
(3,593) |
|
— |
|
— |
|
(857) |
|
(20,071) |
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| Goodwill |
(93,682) |
|
— |
|
(20,157) |
|
— |
|
— |
|
(2,949) |
|
(116,788) |
|
Refundable tax credits on
salaries |
(24,943) |
|
(532) |
|
6,257 |
|
— |
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— |
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(25) |
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(19,243) |
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| Cash flow and net investment hedges |
14,060 |
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— |
|
26 |
|
5,873 |
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— |
|
294 |
|
20,253 |
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| Other |
(2,429) |
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— |
|
11,103 |
|
(285) |
|
— |
|
(900) |
|
7,489 |
|
| Deferred taxes, net |
221,435 |
|
(45,392) |
|
(626) |
|
(7,474) |
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(5,811) |
|
5,479 |
|
167,611 |
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As at September 30, 2023 |
|
Additions
from
business acquisitions |
Recognized in earnings |
Recognized
in other comprehensive income |
Recognized in equity |
Foreign currency translation
adjustment and
other |
As at
September 30,
2024 |
|
$ |
|
$ |
$ |
$ |
$ |
$ |
$ |
Accounts payable, accrued compensation and liabilities, provisions, and other long-term liabilities |
112,599 |
|
|
— |
|
20,946 |
|
— |
|
(3,599) |
|
2,075 |
|
132,021 |
|
Tax benefits on losses carried
forward |
56,078 |
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|
— |
|
(7,265) |
|
— |
|
— |
|
2,367 |
|
51,180 |
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|
|
|
|
|
|
|
|
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| Retirement benefits obligations |
27,243 |
|
|
— |
|
795 |
|
(356) |
|
— |
|
(648) |
|
27,034 |
|
Capitalized research and
development |
92,880 |
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|
— |
|
82,302 |
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— |
|
— |
|
(715) |
|
174,467 |
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| Lease liabilities |
169,288 |
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|
— |
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(16,919) |
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— |
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— |
|
4,110 |
|
156,479 |
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PP&E, contract costs, intangible assets and other long-term assets |
(123,717) |
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|
— |
|
49,457 |
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— |
|
— |
|
1,111 |
|
(73,149) |
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| Right-of-use assets |
(143,411) |
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|
— |
|
23,077 |
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— |
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— |
|
(3,648) |
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(123,982) |
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| Work in progress |
(14,372) |
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— |
|
(926) |
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— |
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— |
|
(323) |
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(15,621) |
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| Goodwill |
(87,259) |
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— |
|
(6,346) |
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— |
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— |
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(77) |
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(93,682) |
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Refundable tax credits on
salaries |
(22,568) |
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|
— |
|
(2,478) |
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— |
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— |
|
103 |
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(24,943) |
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| Cash flow and net investment hedges |
(4,010) |
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|
— |
|
14,164 |
|
5,374 |
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— |
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(1,468) |
|
14,060 |
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| Other |
11,600 |
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— |
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(10,707) |
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(3,462) |
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— |
|
140 |
|
(2,429) |
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| Deferred taxes, net |
74,351 |
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|
— |
|
146,100 |
|
1,556 |
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(3,599) |
|
3,027 |
|
221,435 |
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| 16. Income taxes (continued) The deferred tax balances are presented as follows in the consolidated balance sheets:
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As at
September 30, 2025 |
As at
September 30, 2024 |
|
$ |
$ |
| Deferred tax assets |
239,284 |
|
242,567 |
|
| Deferred tax liabilities |
(71,673) |
|
(21,132) |
|
|
167,611 |
|
221,435 |
| As at September 30, 2025, the Company had $203,415,000 ($195,358,000 as at September 30, 2024) in operating tax losses carried forward, of which $63,937,000 ($39,077,000 as at September 30, 2024) expire at various dates from 2041 to 2043 and $139,478,000 ($156,281,000 as at September 30, 2024) have no expiry dates. As at September 30, 2025, a deferred income tax asset of $48,989,000 ($46,564,000 as at September 30, 2024) has been recognized on $188,978,000 ($180,647,000 as at September 30, 2024) of these losses. The deferred income tax assets are recognized only to the extent that it is probable that taxable income will be available against which the unused tax losses can be utilized. As at September 30, 2025, the Company had $14,437,000 ($14,711,000 as at September 30, 2024) of the unrecognized operating tax losses that have no expiry dates. As at September 30, 2025, the Company had $471,820,000 ($470,177,000 as at September 30, 2024) in non-operating tax losses carried forward that have no expiry dates. As at September 30, 2025, a deferred income tax asset of $4,973,000 ($4,616,000 as at September 30, 2024) has been recognized on $19,254,000 ($17,869,000 as at September 30, 2024) of these losses. As at September 30, 2025, the Company had $452,566,000 ($452,308,000 as at September 30, 2024) of unrecognized non-operating tax losses. As at September 30, 2025, the Company had $667,609,000 ($1,315,252,000 as at September 30, 2024) of cash and cash equivalents held by foreign subsidiaries. The tax implications of the repatriation of cash and cash equivalents not considered indefinitely reinvested have been accounted for and will not materially affect the Company’s liquidity. In addition, the Company has not recorded deferred tax liabilities on undistributed earnings of $11,167,109,000 ($9,308,421,000 as at September 30, 2024) coming from its foreign subsidiaries as they are considered indefinitely reinvested. Upon distribution of these earnings in the form of dividends or otherwise, the Company may be subject to taxation. Organization for Economic Co-operation and Development (OECD) Pillar Two Rules The company is subject to the minimum top-up tax under the Pillar two tax legislation. The current tax recorded during the year is nil. The company has applied the temporary recognition exception in relation to accounting and disclosure for deferred taxes arising from the implementation of the Pillar two rules.
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