2023 Consolidated Financial Statements and Notes
AIR CANADA
2023 Consolidated Financial Statements and Notes
11. INCOME TAXES
Income Tax Recovery (Expense)
Income tax recorded in the consolidated statement of operations is presented below.
(Canadian dollars in millions)
Current income tax recovery (expense)
Deferred income tax recovery (expense)
Income tax recovery (expense)
2023
2022
$
17
$
(47)
47
(129)
$
64
$
(176)
The income tax recovery (expense) differs from the amount that would have resulted from applying the statutory income
tax rate to income before income tax expense as follows:
(Canadian dollars in millions)
2023
2022
Income (loss) before income taxes
$
2,212
$
(1,524)
Statutory income tax rate based on combined federal and provincial rates
26.46%
26.46%
Income tax (expense) recovery based on statutory tax rates
(585)
403
Effects of:
Non-taxable (non-deductible) portion of capital gains (losses)
Recognition of (unrecognized) deferred income tax assets
(Non-deductible) non-taxable items
26
(80)
638
(528)
(23)
29
8
$
64
$
(176)
Other
Income tax recovery (expense)
The applicable statutory tax rate is 26.46% (2022 - 26.46%). The Corporation's applicable tax rate is the Canadian
combined tax rate applicable in the jurisdiction in which the Corporation operates. The income tax recovery in the
consolidated statement of operations differs from the amount that would have resulted from applying the statutory
income tax rate to the income (loss) before income taxes in the consolidated statement of operations primarily due to
recognizing only certain of the deferred income tax assets.
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