2022-23 SGI CANADA Annual Report
15. Income Taxes
The Corporation's provision for income taxes is as follows:
Current
Deferred
Income tax (recovery) expense
(thousands of $)
2023
2022
$
(5,740) $
3,486
(666)
(677)
$
(6,406) $
2,809
Income tax (recovery) expense differs from the amount that would be computed by applying the federal and
provincial statutory income tax rates to income before income taxes.
The reasons for the differences are as follows:
(thousands of $)
2023
2022
Income before income taxes
$
18,041 $
84,581
Combined federal and provincial tax rate
25.26%
25.63%
Computed tax expense based on combined rate
$
4,557 $
21,678
Increase resulting from:
Earnings not subject to taxation
Other
Income tax (recovery) expense
(10,882)
(81)
(18,812)
(57)
$
(6,406) $
2,809
The combined federal and provincial tax rate is calculated by taking the federal tax rate added to the tax rate of the
individual provinces on the basis of the pro rata share of premiums written from each jurisdiction. During the year
ended March 31, 2023, there has been a slight decrease in the combined tax rate to 25.26% from 25.63%.
All income taxes receivable/payable are due within one year.
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